Intel Reshuffles Management

On the heels of a sharp drop for semiconductor stocks Monday, Intel Corp. reshuffled its management structure, saying the moves would allow it to address critical issues in its processor and platform businesses.

The move is also a hint that the chip maker is getting more serious about its networking business because it transfers Senior Vice President Albert Yu, a very senior executive and long-time co-head of the company’s Architecture Group, to a leading role in Intel’s optoelectronics activities, an emerging business for the company. Optoelectronics is the conversion of digital to fiber optics.

“It’s in support of what we’ve been saying for the last two years,” said company spokesman Chuck Mulloy. “We’re still very much focused on growth in networking and communications. It’s strategically important to us.”

The company promoted Mike Splinter, formerly a senior vice president, to executive vice president and general manager of the Technology and Manufacturing Group. The promotion gives Splinter responsibility for the successful ramp of key high-performance products like the Intel Pentium III processor to higher performance and its conversion to the company’s new 0.13-micron manufacturing process next year. The conversion is intended to accelerate the ramp of Intel’s upcoming Pentium 4 processor, which the company plans to introduce later this year.

Splinter will have responsibility for the overall Technology and Manufacturing Group — which includes all technology and manufacturing operations for the company worldwide. He will work closely with Sunlin Chou, vice president and general manager of the Technology and Manufacturing Group. He will also work closely with Paul Otellini, executive vice president and general manager of the Intel Architecture Group.

Otellini will take sole responsibility for the Architecture Group, a role he previously shared with Yu. Otellini will have direct responsibility for product roadmaps and design methodology, Intel’s product initiatives in enterprise computing (including the launch of the Intel Itanium processor family), and overall responsibility for Intel Architecture products business and strategies.

Claude Leglise, vice president of the Intel Architecture Group and general manager of the Home Products Group, will report to Gerhard Parker, executive vice president and general manager of Intel’s New Business Group. Leglise will continue in his role as head of the Home Products Group, which is geared to delivering building blocks and products for home digital devices.

“These changes allow us to align the charters of key executives to address issues critical to the future of our core businesses in Intel Architecture processors and platforms,” said Craig Barrett, president and chief executive officer of Intel. “Mike Splinter and Paul Otellini have all the resources under their control needed to move faster and be more successful in this area.”

Barrett added, “At the same time, we remain committed to our strategy for growth based on pursuing new opportunities in networking, communications and services. The addition of Albert Yu, who has led our microprocessor development since 1984 and made significant contributions, provides strong leadership and support for these growth-oriented initiatives.”

Intel stock hit a nine-month low Monday, despite signs that the semiconductor industry — which Intel dominates — is seeing the strongest sales growth since 1995. Intel was not the only semiconductor company taking a pounding. The Philadelphia semiconductor index was down more than 5 percent to 758.33, also a nine-month low. Texas Instruments, the top chip maker for wireless phones and high-speed modems, hit an 11-month low, and Rambus, which designs memory chip technology, was off more than 10 percent.

The entire sector has taken a beating since Sept. 21, when Intel warned that its third-quarter revenue would be below expect

ations because of weak demand in Europe. That set off a flurry of similar announcements, including warnings from Apple Computer and Dell Computer.

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