Intel Reorganizes Manufacturing Group As Top Exec Retires

Intel is reorganizing its Technology and Manufacturing Group into three units as one of the division's top executives plans to retire, according to a company memo sent Monday.

The reorganization memo, which was obtained by CRN Wednesday, comes as the Santa Clara, Calif.-based company has been dealing with delays of its next-generation, 10-nanometer processor, which was originally scheduled for 2015 and now won't enter mass production until next year.

[Related: Intel Addresses CPU Shortage: 'Supply Is Undoubtedly Tight']

Intel confirmed the news to CRN.

In the memo, Murthy Renduchintala, Intel's chief engineering officer, wrote to employees that Sohail Ahmed, senior vice president and general manager of the Technology and Manufacturing Group, informed him of his plans to retire next month.

With Ahmed stepping down, Renduchintala said he is restructuring the Technology and Manufacturing Group into three groups: technology development, led by Intel CTO Mike Mayberry; manufacturing and operations, led by Intel executive Ann Kelleher; and global supply chain, led by Intel executive Randhir Thakur.

Renduchintala, who has been cited as a contender for Intel's next CEO, said the company has been making "good progress" on its 10nm CPUs and remains on schedule for Intel's previously announced plans of reaching mass production for the holiday 2019 season.

"We must continuously evolve our organization to enable our growth fueled by a wider set of advanced IP, architectures and packaging technologies. This will require intense focus and greater velocity to appropriately scale in each of our core disciplines," he said.

The new technology development group will focus on research, transistor and packaging technology development while manufacturing and operations will house Intel's assembly and test manufacturing, as well as its fab sort manufacturing operations, according to Renduchintala. The global supply chain group will focus on capital and material supply, corporate procurement and external manufacturing.

In leading Intel's new technology development group, Mayberry has stepped down from his role as leader of Intel Labs, which will be led in the interim by Intel executive Rich Uhlig as the company looks for a permanent successor, Renduchintala said.

Renduchintala noted Ahmed's "amazing" career with Intel, which started in 1984, and thanked him for his "many outstanding contributions."

"Sohail has been a great partner and an outstanding role model of Intel values. His dedication, determined manner, focus on data-driven results and unwavering belief in Intel and in our technology have been foundational to the company’s growth and success the past three decades," Renduchintala said.

Intel's third-quarter earnings release is scheduled for Thursday, Oct. 25.

The Oregonian first reported on the memo Wednesday morning.