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Technology Stocks : Intel Corporation (INTC)
INTC 40.56+10.2%Nov 28 12:59 PM EST

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To: Paul Engel who wrote (112823)10/9/2000 9:50:38 PM
From: puborectalis  Read Replies (1) of 186894
 
Intel shuffles management to ensure smooth
ramp of new processors

Semiconductor Business News
(10/09/00, 06:42:05 PM EDT)

SANTA CLARA, Calif.-- In a move apparently aimed at solving manufacturing
problems in advanced microprocessors, Intel Corp. today shuffled the
responsibilities of top managers overseeing its highest performing products.

Mike Splinter, 50, was named executive vice president and general manager of
Intel's Technology and Manufacturing Group. Splinter was previously senior vice
president in the group, but he is also being given additional responsibilities by Intel
to guarantee the successful ramp of key products, said the company. Splinter will
oversee the migration of the Pentium III processor to Intel's new 0.13-micron
technology next year as well as the company's attempts to accelerate the ramp of
the upcoming Pentium 4.

The management shuffle moves Albert Yu from his position as co-general manager
of the Intel Architecture Group to new job heading up optoelectronics activities. Yu
has led Intel's microprocessor development for 16 years. While Intel said
optoelectronics was an important emerging business, company observers noted
that Yu's new assignment was not a promotion. An Intel spokesman said the
company has not yet given Yu an official title for his new responsibility.

Paul Otellini, executive vice president, was given sole management of the Intel
Architecture Group. According to the company, Otellini will work with Splinter to
make Intel Architecture products successful across all areas of design,
technology, and manufacturing.

"These changes allow us to align the charters of key executives to address issues
critical to the future of our core businesses in Intel Architecture processors and
platforms," said Craig Barrett, president and chief executive officer of Intel. "Mike
Splinter and Paul Otellini have all the resources under their control needed to move
faster and be more successful in this area.

"At the same time, we remain committed to our strategy for growth based on
pursuing new opportunities in networking, communications, and services," Barrett
said. "The addition of Albert Yu, who has led our microprocessor development
since 1984 and made many significant contributions, provides strong leadership
and support for these growth-oriented initiatives."

Intel also said Claude Leglise, vice president in the Architecture Group and general
manager of the Home Products Group, will now report to Gerhard Parker,
executive vice president and general manager of Intel's New Business Group.
Leglise continues to head up the Home Products Group, which remains focused
on building blocks and products for new home digital devices, said Intel.

Six weeks ago, Intel recalled its 1.13-GHz Pentium III processor after lab tests
turned up errors when the chip was operating under certain kernels of the Linux
operating system. During the same week as the recall, Advanced Micro Devices
Inc. announced 10 PC makers were planning to new models based on its 1.1-GHz
Athlon processor (see Aug. 28 story). Intel has also delayed the launch of the
Pentium 4 by several weeks recently to next month.

For nearly two years, Intel's attempts to quickly ramp production of faster central
processors has been plagued with chronic manufacturing problems that have
delayed volume shipments, cut revenues, and opened the door for archrival AMD
to grab design wins in high-end systems.

Analysts believe that the executive changes at Intel are aimed to solve a series of
manufacturing issues--all at a time when AMD is gaining ground in the x86-based
processor wars.

"I don't think Intel is falling flat on its face," said Tony Massimini, an analyst who
track this industry for Semico Research Corp. of Phoenix, Ariz. "But I think Intel is
being pushed by AMD much faster than [Intel] expected."
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