Intel Engineering Head Leaving After Delay Disaster; Analyst Says Sell Now

Andrew Cummings
July 28, 2020

The news caused Intel shares to fall sharply when it announced earnings last week. In this restructuring, it was announced that Intel's chief engineering officer, Murthy Renduchintala, will leave the company on 3 August.

With the sweeping changes, Intel said it hopes to "improve focus and accountability in process technology execution". With Renduchintala on the way out, the semiconductor maker also announced that it will also be compartmentalising his technology group into five teams, while also reorganising its technology, systems architecture, and client group. Leaders for these groups will now report directly to CEO Bob Swan. Last week, the company had said the smaller, faster 7-nanometer chipmaking technology was six months behind schedule and it would have to rely more on outside chipmakers to keep its products competitive.

Mosesmann continued: "As was the case with Murthy, a relatively recent non-Intel ex-Qualcomm player, senior management is still non-Intel and not engineering-centric in terms of historical skill sets". They will spit out more 10nm CPUs in Tiger Lake processors later this year, all the while AMD will continue to hammer in nails into Intel's coffin with 7nm CPUs later this year, 2021, 2022, and beyond.

Murthy, who was a longtime president at Qualcomm, joined Intel in 2015 to help lead the company's bid to reclaim its dominance in the chip industry.

Manufacturing and Operations will be led by Keyvan Esfarjani, who most recently led manufacturing for Intel's Non-Volatile Memory Solutions Group and will take over Kelleher's role in driving the ramp-up of new products and build-out of new fabs for Intel's global manufacturing group. "We have the most diverse portfolio of leadership products in our history and, as a result of our six pillars of innovation and disaggregation strategy, much more flexibility in how we build, package and deliver those products for our customers". This came after a "defect mode" was found in its design that resulted in yield degradation.

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