(FROM THE WALL STREET JOURNAL 11/21/15) 
   By Don Clark 

Intel Corp. turned to the ranks of a major competitor, Qualcomm Inc., to recruit an executive for what amounts to the No. 2 job at the chip maker.

The Santa Clara, Calif., company said Venkata Renduchintala will become president of a new group that includes selling chips for personal computers, Intel's biggest business. His responsibilities will also include software and services, platform engineering and a business associated with the trend called the Internet of Things.

Mr. Renduchintala, 50 years old, had been a Qualcomm executive vice president and co-president in charge of the company's chip business. Qualcommon Thursdaynamed Cristiano Amon as sole head of that unit, and said Mr. Renduchintala, who goes by "Murthy," would be leaving the company.

Intel, whose chips serve as calculating engines in computers, has tried for years with limited success to crack the mobile-chip market. Qualcomm is the biggest supplier of such products, offering chips that serve as cellular modems as well as processors based on technology licensed from ARM Holdings PLC.

Qualcomm is particularly good at combining such varied functions in products called systems on a chip, an area in which Intel has lagged behind the San Diego company.

Brian Krzanich, Intel's chief executive, cited Mr. Renduchintala's expertise in those and other areas. He said the appointment should accelerate Intel's work on communications efforts and the Internet of Things, a term that refers to adding computing and communications capabilities to many kinds of everyday items. At an analyst meeting Thursday, Mr. Kzanich stressed the importance of communications -- a specialty of Mr. Renduchintala's -- to the Internet of Things.

Mr. Krzanich at the event said he has brought significant changes to management at Intel, which has historically been known for promoting from within. He estimated that 40% of executives that directly report to him were recruited from outside Intel.

Mr. Renduchintala's appointment follows an announcement in July that Intel President Renee James, who took that job when Mr. Krzanich became CEO, would leave Intel at the end of the year.

The appointment also adds Mr. Renduchintala's name to the list of executives in contention to one day succeed Mr. Krzanich. "All executive appointments -- whether with internal or external talent -- reflect Intel's long-range executive leadership planning processes," an Intel spokeswoman said.

A Qualcomm spokesman saidthe firm decided several months ago to have one president for its chip business. After Mr. Amon was selected, Mr. Renduchintala was offered another role but he decided to leave the firm instead, she said. The Intel spokeswoman said Mr. Renduchintala wasn't available to comment.

 

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(END) Dow Jones Newswires

November 21, 2015 02:47 ET (07:47 GMT)

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