Intel CEO creates ‘new devices‘ group

Intel Corp's new chief executive, Brian Krzanich, has launched a sweeping reorganization of the world's top chipmaker and created a unit aiming to retake the top chipmaker's lead in mobile and semiconductor innovation.

The shakeup, announced internally just days after the 30-year veteran took the helm, places most of Intel's main product groups directly under his supervision and hands its sprawling global manufacturing operation to new president Renee James, said a source close to the company, who declined to be identified.

Details of the reorganization were outlined in an internal memo sent to employees on Monday. It was described to Reuters by a company source and details of the reorganization, which is effective immediately, were confirmed by spokesman Chuck Mulloy on Tuesday.

"As your CEO I am committed to making quick, informed decisions. I am committed to being bolder, moving faster, and accepting that this means changes will be made knowing that we will listen, learn and then make adjustments in order to keep pace with a rapidly changing industry," Krzanich said in the email, according to the source.

Krzanich officially took over as CEO last week and said that under his leadership, the top chipmaker will be more responsive to customers in an intensified focus on the fast-growing smartphone and tablet market where it lags rivals.

The chipmaker's main product groups - including the PC client group, mobile communications and data center unit that previously reported to Intel Architecture group chief Dadi Perlmutter - now report directly to Krzanich.

Intel has called the shots in the personal computer industry for decades, but it was slow to react to the explosion of smartphones and tablets. The latter two markets are now dominated by competitors like Qualcomm Inc and Samsung Electronics Co Ltd, which design their chips using architecture licensed from ARM Holdings Plc.

James, formerly head of the software arm, will now also oversee the company's sprawling global manufacturing operations and take on additional parts of security efforts.

Mulloy said Intel presidents have traditionally been responsible for managing the manufacturing operations.

James will also lead corporate strategy and planning. Her previous job as Intel's software chief has been taken over by Doug Fisher, a senior executive from that group.

Mike Bell will head up Intel's newly formed "new devices" group," which Mulloy said will focus on emerging product trends.

Herman Eul previously shared responsibility for Intel's mobile communications group, which makes smartphone chips, with Bell, and he will now take full responsibility for that business.