Vacations In Santa Clarita - Intel Names 30-year Veteran as New Chief

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By - Chris Nuttall
Category - Vacations In Santa Clarita
Posted By - Hampton Inn Santa Clarita

Vacations In Santa Clarita

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has promoted 30-year veteran Brian Krzanich to the role of chief executive, as the world’s largest chipmaker by sales navigates a post-PC world dominated by smartphones and other mobile devices.

The Silicon Valley company’s chief operating officer will succeed Paul Otellini at this month’s annual meeting, becoming only the sixth person to lead Intel in its 45-year history.

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Intel broke with tradition when it appointed Mr Otellini, its first non-engineer in the top job. However, Mr Krzanich is steeped in Intel’s core manufacturing operations, having joined in 1982 as an engineer and rising to manage one of its “fabs”, the fabrication plants that produce its processors from silicon wafers.

His appointment will increase speculation that Intel could focus on growing this side of its business to become more of a foundry for outside companies, given its lead in the miniaturisation of chips.

Intel’s processors are in four out of every five PCs sold, but that market slumped a record 14 per cent in the first quarter as consumers turned to tablets and smartphones.

Mr Otellini had focused on reducing the power demands of the company’s processors to make them more appealing to those markets. However, Intel has made little impression with device manufacturers, which have preferred the chip designs of the UK’s Arm.

Mr Otellini, 62, who joined Intel in 1974 and who has been chief executive since May 2005, sensed that the company was at a pivotal point when in November he announced his decision to retire so “a new generation” of leaders could face the mobile challenge.

Mr Krzanich, 52, said Intel was well positioned to expand into mobile markets. “We have the best silicon technology and the best factories in the world bar none . . . and so I think we’re perfectly poised for growth in that area and that is absolutely our intention," he said.

Andy Bryant, Intel chairman, said Mr Krzanich was a strong leader with a passion for technology. “He has the right combination of knowledge, depth and experience to lead the company during this period of rapid technology and industry change.”

Nathan Brookwood, analyst at the Insight 64 consultancy, said moves by Intel to become more of a foundry for outside companies could be a good alternative if its mobile processor designs failed to have much impact.

“One of the things that Intel really needs to look at is how it can tie up with some of the key fabless chip suppliers, which are Arm-based companies like Apple and Qualcomm, in order to leverage its manufacturing strengths, even if it doesn’t get to leverage its processor design strength,” he said.

Intel has a handful of partnerships making chips for companies that do not compete with it on PC microprocessors, including Altera, Cisco Systems and Microsemi.

Mr Otellini had combined the roles of president and chief executive, but Intel announced that Renee James, 48, would become president. She has been an executive vice-president in charge of Intel’s software business.

Intel shares, which have fallen 18 per cent over the past year, rose 0.5 per cent to $24.11.