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.

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