Intel Selects Qualcomm Executive for New Senior Job

Intel Corp. turned to the ranks of a major competitor, Qualcomm Inc., to recruit an executive for what amounts to the No. 2 job at the big chip maker.

The Santa Clara, Calif., company said Venkata "Murthy" Renduchintala will become president of a new group that includes selling chips for personal computers, Intel's biggest business. His responsibilities will also include software and services, platform engineering and a business associated with the trend called the Internet of Things.

Mr. Renduchintala, 50 years old, had been a Qualcomm executive vice president and co-president in charge of the company's chip business. Qualcomm on Thursday named Cristiano Amon as sole head of that unit, stating that Mr. Renduchintala would be leaving the company.

Intel, whose chips serve as calculating engines in computers, has tried for years with limited success to crack the mobile-chip market. Qualcomm is the biggest supplier of such products, offering chips that serve as cellular modems as well as processors based on technology licensed from ARM Holdings PLC.

The San Diego company is particularly good at combining such varied functions in products called systems on a chip, an area in which Intel has lagged behind Qualcomm.

Brian Krzanich, Intel's chief executive, cited Mr. Renduchintala's expertise in those and other areas. He said the appointment should accelerate Intel's work on communications efforts and the Internet of Things, a term that refers to adding computing and communications capabilities to many kinds of everyday items.

At an analyst meeting Thursday, Mr. Kzanich stressed the importance of communications, a specialty of Mr. Renduchintala's, to the Internet of Things.

Mr. Krzanich at the event said he has brought significant changes to the management ranks at Intel, which has historically been known for promoting from within. He estimated that 40% of executives that directly report to him were recruited from outside Intel.

"We continue to evolve our organizational structure to better position the company for growth," Mr. Krzanich said in prepared remarks Friday.

Mr. Renduchintala's appointment follows an announcement in early July that Intel President Renee James, who took that job when Mr. Krzanich became CEO, will leave the company to see a job elsewhere. She hasn't yet disclosed her plans.

The appointment also adds Mr. Renduchintala's name to the list of executives in contention to one day succeed Mr. Krzanich. "All executive appointments—whether with internal or external talent—reflect Intel's long-range executive leadership planning processes," an Intel spokeswoman said.

A Qualcomm spokesman said Friday that the company decided several months ago to have one president for its chip business. After Mr. Amon was selected for that job, Mr. Renduchintala was offered another role within Qualcomm but he decided to leave the company instead, she said.

The Intel spokeswoman said Mr. Renduchintala wasn't available to comment.

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(END) Dow Jones Newswires

November 20, 2015 16:35 ET (21:35 GMT)

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