RealTime IT News

Intel Taps Otellini as Next CEO

In an expected move, Intel's board of directors has elected company veteran Paul S. Otellini to succeed Craig R. Barrett as CEO, the chipmaking giant announced this morning.

Otellini, currently president and COO, has been with the Santa Clara, Calif., company since 1974.

The 54-year-old has held a number of posts throughout the years, including general manager of the microprocessor unit where he lead the launch of the Pentium processor in 1993.

The appointment triggered other management changes. Barrett, who has held the top spot for six years, will move to chairman of the board of directors.

Current chairman Andrew S. Grove will step down from the board but remain at Intel as senior advisor to the directors and senior management.

In a statement, Grove expressed confidence in Otellini and Barrett.

"Paul's vitality and deep knowledge of Intel's products, customers and global markets, together with Craig's stature as an industry leader and pre-eminent technologist, make them outstanding choices to lead Intel and the board as the company drives its core silicon expertise further in computing and communications," Grove said.

In addition to chips for PCs and servers, Intel is also working to develop chips that will meet the WiMAX standard to further expand its wireless broadband offerings.

The company envisions WiMAX for rural areas and developing nations. It has said it is producing WiMAX-enabled silicon with a range of up to 30 miles and the ability to transfer data, voice and video at speeds of up to 70 Mbps.

The technology, codenamed "Rosedale," is based on the IEEE 802.16-2004 standard (previously known as IEEE 802.16REVd). The technology, expected next year, is Intel's first "system-on-a-chip" for WiMAX.

Since it was not a surprise, news of Otellini's ascension had little impact on the company's stock, which was up slightly in morning trading.