UPDATED 04:47 EDT / OCTOBER 18 2018

INFRA

Intel to reorganize chip manufacturing group as another key executive leaves

Chipmaker Intel Corp. is reorganizing its manufacturing businesses following the departure of yet another key executive.

The restructuring comes as Intel struggles to deliver on its promised 10-nanometer central processing units and continues its hunt to replace former Chief Executive Brian Krzanich, who left the company earlier in the year.

News of the reshuffle was first reported Wednesday by the Oregonian, which said it was precipitated by the departure of Sohail Ahmed, the manufacturing group’s senior vice president and general manager. Intel announced in an email to employees that the executive will retire next month.

The same email also revealed how the manufacturing business will be restructured. The plan is for the division to be split into three segments, which will fall under the purview of Venkata “Murthy” Renduchintala, Intel’s chief engineering officer and group president of the Technology, Systems Architecture & Client Group.

The new segments include a “Technology Development” group, to be led by Intel’s current Chief Technology Officer Mike Mayberry; “Manufacturing and Operations,” headed up by Ann Kelleher, who also served as senior vice president and general manager of the manufacturing group alongside Ahmed; and “Supply Chain,” which will be led by Randhir Thakur, Intel’s current general manager of global supply management.

“We must continuously evolve our organization to enable our growth fueled by a wider set of advanced IP, architectures, and packaging technologies,” Renduchintala wrote in the email to employees. “This will require intense focus and greater velocity to appropriately scale in each of our core disciplines.”

Renduchintala also provided an update on Intel’s efforts to manufacture 10-nanometer chips, saying that thanks to Ahmed’s efforts, the company was making “good progress” on this. “Yields are improving consistent with the timeline that we shared in April, and we continue to expect systems on shelves for the 2019 holiday season,” Renduchintala said.

Intel had initially planned to launch its first 10-nanometer processors way back in 2015, but it revealed in its first quarter earnings report in April that it was only shipping them in low volumes.

Intel continues to be led by interim CEO Bob Swan and remains tight-lipped about a successor.

Photo: Morton Lin/Flickr

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU