SANTA CLARA, Calif. (Diya TV) — Intel CEO Brian Krzanich broke with years of company tradition last year by naming an outsider, Murthy Renduchintala of rival Qualcomm, his No. 2.
Renduchintala brought with him a successful record in the market of mobile-phone chips, a market Intel has yet to crack. However, his appointment also caused a rift in senior management, fueling an exodus of talent that helped turn Intel into the $300 billion chipmaking powerhouse the company has become. Additionally, the moves left analysts speculating that Intel would see more upheaval from its executives.
Earlier this month, two more exits took place — Kirk Skaugen, the PC and mobile division head considered an eventual contender for the CEO job, split for his “next career opportunity.” Doug Davis, a 20-year veteran of the company who ran the Internet of Things group, announced he plans to retire at the end of the year. In November, Renduchintala was named head of engineering and president of a newly created group that includes chipmaking for personal computers and devices that connect to the Internet — the position placed him squarely above the aforementioned two employees.
Executives often leave companies when other candidates are brought in ahead of them, something widely considered to be an impeding factor in attaining CEO status. However, in Renduchintala’s case, his arrival has been considered more disruptive since Intel for years has groomed homegrown talent and promoted from within.
Renduchintala was brought in for the purpose of fresh thinking at the top, and to prevent the company from being further lapped in the smartphone market.
The move has seen the company make progress as of late, and further improvement would be acknowledged if Intel’s efforts to court Apple, one of the most coveted mobile-phone customers, are successful. Intel is currently in the running for a lucrative order to supply chips for the next iPhone, according to Tim Arcuri of Cowen & Co.