Intel engineering chief out after 7nm product delays

Intel is revamping its technology leadership in a bid to turnaround its manufacturing unit after announcing delays in its 7nm processes.

Last week, Intel said on its second quarter earnings report that its 7nm products would be delayed. Rival AMD is already on 7nm as is TSMC. Since Intel's earnings report and market cap hit, analysts have been speculating that the chip giant may leave manufacturing.

In other words, Intel needed to revamp its technology organization. Under Monday's reorg, Dr. Ann Kelleher will lead technology development. She had led Intel manufacturing. Kelleher will focus on developing 7nm and 5nm processes. Murthy Renduchintala, Intel's chief engineering officer, will depart Aug. 3.

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Intel is also separating its Technology, Systems Architecture and Client Group unit into teams focused on technology development, manufacturing and operations, design engineering, architecture, software and graphics and supply chain.

While Kelleher leads technology development, Keyvan Esfarjani will take over manufacturing and operations. Esfarjani previously led manufacturing for Intel's non-volatile memory unit.

Design engineering is an open position that will be led by Josh Walden, who led Intel's product assurance and security group, in the interim. Raja Koduri will continue to lead architecture, software and graphics and supply chain remains with Dr. Randhir Thakur.

While the shakeup may shore Intel's organization up a bit, the company still faces big challenges. Wedbush analyst Matt Bryson said in a research note:

With Intel announcing its 7nm platform production ramp will slip 6 months (with yields 12 months behind Intel's internal timeline) necessarily investors are again concerned Intel could face a repeat of its 10nm struggles putting it well behind competitors (e.g., AMD).