By Don Clark
Intel Corp. plans to combine operations that handle chips for
personal computers with those targeting smartphones and tablets,
according to an email sent to employees by Chief Executive Brian
Krzanich.
The reorganization comes as Intel, a longtime powerhouse in
chips used in PCs and server systems, faces pressure to step up its
penetration in mobile devices.
"The market continues to evolve rapidly, and we must change even
faster to stay ahead," Mr. Krzanich said in the email.
Intel's changes, which are scheduled to take effect in early
2015, will broaden the responsibilities of Kirk Skaugen, a senior
vice president who now oversees what Intel calls the PC-client
group. Under the new structure, Mr. Skaugen will head a new unit
called the client-computing group, which will also oversee sales of
processors and modem chips used in mobile devices.
Those mobile-chip operations are part of a group known as the
mobile and communications group. Its general manager is Herman Eul,
a vice president who joined Intel as part of its 2011 purchase of
the wireless operations of Infineon Technologies AG.
Mr. Krzanich wrote that he had asked Mr. Eul to focus on leading
the transition to the new structure until at least the end of the
first quarter of 2015, at which time his next position with Intel
will be announced.
The mobile and communications group posted a $1 billion
operating loss in the third quarter, while revenues shrank to just
$1 million from $353 million in the year-earlier period. Intel
traced those results largely to a push to get the company's chips
in 40 million tablets in 2014, which requires the company to pay
special subsidies to customers.
Mr. Skaugen's PC-client group, by contrast, reported operating
profit of $4.12 billion with revenue that grew 9% to $9.19
billion.
In marketing chips for smartphones and tablets, Intel has lagged
behind rivals that use technology from ARM Holdings PLC. The
company has argued that the distinction between some categories
will fade with the rise of new two-in-one models that can operate
in tablet or clamshell mode.
"That will happen more and more," said Chuck Mulloy, an Intel
spokesmen, who confirmed the organizational changes.
While Mr. Skaugen will oversee processors aimed at tablets and
smartphones, operations in the mobile and communications group that
developed wireless modem chips will shift to a wireless platform
research and development organization, according to the email.
Write to Don Clark at don.clark@wsj.com
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