Intel Corporation (NASDAQ:INTC) Chief Engineering Officer Murthy Renduchintala is leaving the company, in what is a major shakeup of the chipmaker's technology team.
The California-based company's Chief Executive Officer Bob Swan announced Monday that the company’s technology, systems architecture, and client group teams would be reorganized immediately in light of Renduchintala's departure and report directly to him.
The technology development team would be headed by Ann Kelleher, manufacturing and operations by Keyvan Esfarjani, design engineering on an interim basis by Josh Walden, architecture, software, and graphics by Raja Koduri and supply chain by Randhir Thakur.
Renduchintala will exit his role on August 3. This is the second high-profile departure from the company in recent days. In June, Jim Keller, senior vice president in technology, systems architecture and client group, left citing personal reasons.
Keller’s departure was deemed significant by Rosenblatt Securities analyst Hans Mosesmann, who stated that whatever the microprocessor engineer was enacting at Intel wasn't working.
Why It Matters
Intel last week announced a delay in the launch of its next-generation 7nm products of more than six months. The company suffered two years of delay in its current 10nm chips, which is raising questions on the company’s business model.
Rival chipmakers Advanced Micro Devices, Inc (NASDAQ:AMD) and Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) are deemed to be beneficiaries of the delay in Intel’s 7nm product. NVIDIA Corporation (NASDAQ:NVDA) also stands to benefit as it increases 7nm accelerators for data centers.
BofA Securities analyst Vivek Arya said the Santa Clara, California-headquartered company is headed for earnings upwards of the $3 mark by 2023 and a CAGR of 43% by the same period.
Intel shares closed nearly 2% lower at $49.57 on Monday and further fell about 0.2% in the after-hours trading.
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