Grove will continue as chairman of the board focusing on Intel's relationship within the computer industry, an Intel spokesman said.
The spokesman explained: "Craig has been running the operational aspects of Intel for quite a number of years, it frees Andy up to really drive some of the industry development issues because we have so much activity happening between our company and the industry and otherwise there's no one who oversees and orchestrates growth."
The spokesman said the formal changeover will take place in May, after a vote at an upcoming board of directors meeting. Barrett has been with Intel for more than 20 years, and was named president about a year and a half ago. At the time, many saw the move as tantamount to designating him heir-apparent. They will be hard shoes to fill. Grove has one of the highest reputations in the industry and is given much credit for turning Intel into the multi-billion dollar powerhouse it is today. The company might have thrown a scare into investors when it issued a warning about slow sales this quarter, but on average it has been a stellar performer, reporting an annualised 44 percent return over the last 10 years.
"I have thoroughly enjoyed being Intel's CEO for the past 11 years, and now I would like to focus more of my time on broad strategic issues concerning the industry and Intel. Craig and I have had a long working relationship and I look forward to a smooth transition of our roles as I continue my work as chairman," Grove said in a release. Barrett joined Intel in 1974, and became chief operating officer in 1993. He was named president last year.
"Craig has been the architect of Intel's operations throughout the last decade. Our performance in developing a superb set of products and meticulously ramping them into high-volume production has been the result of the exceptional organisation and methodology he has put into place," Grove said in the release. "He has also grown into an outstanding multifaceted leader and is ready to undertake additional challenges as Intel's chief executive officer."