Intel finally bites the bullet
edtn.com
Intel at last has acknowledged it has big problems in the factory.
Its management shuffle this week was viewed by industry
watchers as a major move to clean up its manufacturing act in advanced
processors.
For two years now, the MPU giant's attempts to rush into production
with new central processors has been plagued with chronic manufacturing
problems. This has delayed shipments, cut revenues, and opened the
door for archrival Advanced Micro Devices to gain ground in the
x86-based microprocessor wars.
Albert Yu, who led Intel's MPU development for 16 years, appears to
be the big loser. He is out as co-general manager of Intel's Architecture
Group. He was moved to a new job [as yet untitled] heading up the
company's optoelectronics activities.
The big winner was Paul Otellini, formerly executive vice president and
co-general manager of the Intel Architecture Group. He was named sole
manager. He will work closely with Mike Splinter, who also was just
promoted to executive vice president of Intel's Technology and
Manufacturing Group, to guarantee the successful ramp of key products.
In their expanded roles, the two execs will oversee the migration of the
Pentium III processor to Intel's new 0.13-micron technology next year
and will try to accelerate the ramp of the upcoming Pentium 4. "Mike
Splinter and Paul Otellini have all the resources under their control
needed to move faster and be more successful in this area," maintains
CEO Craig Barrett.
The move comes at a critical time for Intel in terms of manufacturing. "I
don't think Intel is falling flat on its face," says Tony Massimini, analyst at
Semico Research. "But I think Intel is being pushed by AMD much faster
than [Intel] expected."
Intel's manufacturing woes started in late 1999 when it wasn't able to ship
enough processors to PC manufacturers, causing a shortfall in computer
sales at its largest customers. "There are a number of customers that have
been shorted by Intel over the years," says Joe Osha, analyst for Merrill
Lynch. |
