Intel said Monday that President and CEO Paul Otellini is set to retire in May, ending a nearly 40-year run at the chip maker, with the past eight of those years at the helm.
A successor for Otellini has not yet been named, but Intel said its board of directors is considering both internal and external candidates for the job. Otellini's announced departure comes on the heels of Executive Vice President and Chairman of Intel China Sean Maloney also revealing plans to retire this January. Maloney, who has been with the chip maker for more than 30 years, was long considered a potential successor to Otellini.
Otellini, who recently was named one the the year's most influential executives by CRN, will play a key role in Intel's search for a new CEO, working closely with the board of directors over the next six months.
"I've been privileged to lead one of the world's greatest companies," Otellini said in a statement. "After almost four decades with the company and eight years as CEO, it's time to move on and transfer Intel's helm to a new generation of leadership. I look forward to working with Andy [Bryant, Intel's chairman], the board and the management team during the six-month transition period, and to being available as an adviser to management after retiring as CEO."
Under Otellini, annual revenue increased from $38.8 billion in 2005 to $54 billion by the end of 2011, according to Intel, Santa Clara, Calif. He also spearheaded Intel's efforts to reinvigorate the traditional PC market with Ultrabooks, the super-thin notebook form factor the chip maker brought to market last year.
Intel also has made strides in the mobile market, a space that has become increasingly crucial for it as the PC market continues to slide. Intel in February launched its Atom Medfield processors for smartphones, which are used by handset makers Motorola, Lenovo and ZTE.
In addition, Intel has started vying for a share of the tablet market with its new low-power Clover Trail processors, which the chip maker said will power more than 20 tablet designs and convertible PCs over the coming months.
Still, Intel has taken a hit financially over the past few quarters, along with fellow x86-based chip maker AMD, as worldwide PC sales remain sluggish. Otellini, by shifting Intel's focus to more lucrative markets such as tablets and smartphones, has helped transition the chip maker into this new era of computing, Intel said.
"Paul Otellini has been a very strong leader, only the fifth CEO in the company's great 45-year history, and one who has managed the company through challenging times and market transitions," said Bryant in a statement. "The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years."
PUBLISHED NOV. 19, 2012