Intel's new chief says push into mobile technology will gather steam on his watch
IAN KING – 09 MAY 2013
INTEL, the world's largest chipmaker and a major employer in Ireland, will appoint chief operating officer Brian Krzanich as chief executive officer next week, leaning on an insider to accelerate a shift toward mobile devices as the personal-computer age wanes.
The former factory manager will become the sixth CEO in Intel's history at the annual shareholder meeting next Thursday, when Paul Otellini, (62) steps down as CEO and director.
In opting for Mr Krzanich (52), Intel hewed to a tradition of hiring for the top job from within, backing a three-decade veteran who firmly grasps the complexities of making the chips that run more than 80pc of the world's PCs.
Yet, as Intel lags behind Qualcomm in the production of semi-conductors for smartphones and tablets, the decision not to appoint an executive who has expertise in mobile technology carries risks.
"A fresh set of eyes from an external candidate might have been a good move," said Cody Acree, an analyst at Williams Financial in Dallas.
"Intel has to be ultra-successful in another large market or in a lot of markets to re-invigorate your growth."
Mr Krzanich's main challenge will be jump-starting Intel's efforts to gain ground in the market for chips that run mobile devices.
The PC industry, Intel's stronghold, is facing its second consecutive decline in annual sales this year while tablets and smartphones continue to surge.
Intel has spent more than a decade and billions of dollars trying to gain a foothold in smartphones, yet chip