Wednesday, October 17th 2018

Intel Plans To Split its Manufacturing Group Into Three Segments

We are still waiting for 10 nm to happen at Intel, and although we have recently received some good news about those chips, they won't be available until the end of 2019. The problems at Intel could be alleviated thanks to a strategic change that the company is proposing. Sohail Ahmed, who was in charge of the manufacturing group since 2016, will retire next month, and that will lead to a number of major changes in manufacturing management at Intel.

Intel will divide its manufacturing group into three new segments led by different managers, but there is no information on how the three groups will collaborate. The decision to split the manufacturing division is important, and comes at a weird time given that there hasn't been a replacement for Krzanich, who left the company in June 2018 after violating Intel's non-fraternization policy. Chief Financial Officer Bob Swan is leading the company as the interim CEO, but the six month process to find a new leader should clarify things at the company.
The three new segments that will replace the previous division are:
  • Technology Development, to be led by CTO Mike Mayberry
  • Manufacturing and Operations, led by Ann Kelleher
  • Supply Chain, led by Randhir Thakur
The three groups will be under the direction of Venkata "Murthy" Renduchintala, a former Qualcomm top executive. Let's hope the decision to split the manufacturing helps to solve those big problems Intel has had with the transition to 10 nm chips. Source: OregonLive
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18 Comments on Intel Plans To Split its Manufacturing Group Into Three Segments

#2
TheinsanegamerN
So more middle management? how will this fix any of intel's manufacturing woes?
Posted on Reply
#3
Fx
TheinsanegamerN said:
So more middle management? how will this fix any of intel's manufacturing woes?
That is how I read it.

1) That isn't going to work any better and only induces unnecessary complexity for worse results
2) This sounds like posturing to me to provide confidence to investors (and any other parties concerned) that they are taking steps to address their shortcomings
Posted on Reply
#4
Vayra86
I'm sure they have their reasons. Sometimes just moving people around can have a desirable effect, change is good for some. Especially when you get stuck.
Posted on Reply
#5
bug
TheinsanegamerN said:
So more middle management? how will this fix any of intel's manufacturing woes?
Take current 14nm manufacturing process. Give two of the new groups 5nm to make and the remaining 4nm to the last group. And voila! instant market leadership.
I'm being sarcastic and talking nonsense, of course :D
Posted on Reply
#6
Darmok N Jalad
Maybe Intel realized one guy had too much authority over a big chunk of the company, and they couldn’t find one person who could properly replace him. That, or he bungled some things and Intel couldn’t make a management change without drastically affecting the entire group. When your process node is 3 years late, a reorg is practically inevitable.
Posted on Reply
#7
oxidized
I'm actually very happy to read there're so many company-management experts here on this forum.
Posted on Reply
#8
Dave65
Atta boy Intel, that will fix it:shadedshu:
Posted on Reply
#9
mtcn77
oxidized said:
I'm actually very happy to read there're so many company-management experts here on this forum.
Wait until I pop in with my doomsday prophecies;
  1. See, I have said 'HR is the mastermind at Intel, now' in the recent past;
  2. Problem is, HR is no visionary;
  3. Things don't develop on their own without a visionary.
Posted on Reply
#10
R-T-B
Ah, blanket hatred of middle management, the hallmark of having no idea how to run a large scale business. I see it's out in force today.

In reference to this change, I will only comment that I have no idea. I'm not privy to internal intel politics.
Posted on Reply
#11
mcraygsx
I for one say Sohail Ahmed has done great job keeping Intel this far ahead of competition since 1984 but unfortunately one cannot hold a position forever. Finally the day has come for him to hand over the keys to three separate divisions.

I remember reading an article regarding 10mn issues back in May which directly pointed fingers at two executives. One down and seems like other is about to retire.

"These 2 Intel Executives Need to Be Replaced"

Link to the article:
It's time for Intel to clean house to restore itself to its former glory.
Posted on Reply
#12
Prima.Vera
Intel needs to go back to its roots. They should hire a strong CEO(s) which not only has skills, but also passion and energy to change stuff for the better.
Posted on Reply
#13
oxidized
mtcn77 said:
Wait until I pop in with my doomsday prophecies;
  1. See, I have said 'HR is the mastermind at Intel, now' in the recent past;
  2. Problem is, HR is no visionary;
  3. Things don't develop on their own without a visionary.

Yeah, the important thing is that you believe it.
Posted on Reply
#14
mtcn77
oxidized said:
Yeah, the important thing is that you believe it.
I believe in Bill Gates,
  • “Death can come swiftly to a market leader. By the time you’re thrown out of the positive-feedback cycle, it can be too late to change what you’ve been doing, and a negative spiral can come into play.”
Posted on Reply
#15
R-T-B
mtcn77 said:
I believe in Bill Gates,
Pretty sure from past discussions Bill Gates would not share that admiration though. ;)
Posted on Reply
#16
mtcn77
R-T-B said:
Pretty sure from past discussions Bill Gates would not share that admiration though. ;)
I seem to be unresourceful enough to find his commentary on CEOs of companies caught in a downward spiral. He had utmost praise for those who made it out safely.
Posted on Reply
#17
Flanker
Prima.Vera said:
Intel needs to go back to its roots. They should hire a strong CEO(s) which not only has skills, but also passion and energy to change stuff for the better.
like Andrew Grove type of CEO? Hmm not sure how that style can work in this day and age.
Posted on Reply
#18
Prima.Vera
Flanker said:
like Andrew Grove type of CEO? Hmm not sure how that style can work in this day and age.
Well, cannot be worst than what is currently happening....
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