Intel set for major reform

Intel yesterday announced a major reorganisation following a year of strategic blunders and missed deadlines ahead of the appointment…

Intel yesterday announced a major reorganisation following a year of strategic blunders and missed deadlines ahead of the appointment of a new chief executive.

The world's biggest chipmaker said its two divisions - chip architecture and communications - were being transformed into five new business units to bring its product groups into line with a strategy of developing complete technology platforms.

The "platformisation" strategy has been championed by Mr Paul Otellini, president and chief operating officer, who will succeed Mr Craig Barrett as chief executive in May.

In 2004, Intel shelved development of a new chip for advanced televisions and missed its targets on shipping other chips. But it ended the year strongly, last week reporting record annual sales of $34.2 billion (€26.16 billion).

READ MORE

Platformisation began with Intel's successful Centrino mobile platform, where a range of functions including processing and wireless communications were bundled together.

Intel said three groups were being created to lead the company in its efforts in platforms for mobility, the digital enterprise and digital home.

"The new organisation will help address growth and opportunities by better anticipating and addressing market needs, speeding decision-making and ensuring world-class operational excellence," Mr Otellini said.

He added that each operating unit had the autonomy to allocate computing and communications resources.

The two other divisions being created - a digital health group and a channel products group - reflect Intel's increasing attention to opportunities in healthcare and emerging markets around the world.

Among the major personnel changes announced, chief technology officer Mr Pat Gelsinger will move to head the digital enterprise group. Mr Seán Maloney, the executive vice-president who ran the communications division, will lead the mobility group.

Mr Jason Chen, vice-president and director of sales and marketing, will leave Intel at the end of January to attend to a family health matter, the company said.