Intel to break up manufacturing group

Amid struggles to deliver its 10nm technology, the technology and manufacturing group will be split into three parts.

Intel is breaking its manufacturing group up into three segments, as first reported by the Oregonian. The restructuring comes as Intel struggles to deliver its 10nm chip technology.

The restructuring was precipitated by the resignation of Sohail Ahmed, who will retire next month from his role as SVP and GM of the technology and manufacturing group. Intel announced Ahmed's retirement and the group restructuring in an email to its employees this week, obtained by ZDNet.

The three new segments will fall under the purview of Venkata "Murthy" Renduchintala, Intel's chief engineering officer and group president of the Technology, Systems Architecture & Client Group.

The segments include: technology development, led by Intel CTO Mike Mayberry; manufacturing and operations, led by Ann Kelleher, who served as SVP and GM of the technology and manufacturing group alongside Ahmed; and supply chain, led by Randhir Thakur, GM of global supply management.

"We must continuously evolve our organization to enable our growth fueled by a wider set of advanced IP, architectures, and packaging technologies," Renduchintala wrote in his email to employees. "This will require intense focus and greater velocity to appropriately scale in each of our core disciplines."

Renduchintala added, "Thanks to the efforts of Sohail and the entire Intel team, we are making good progress on 10nm. Yields are improving consistent with the timeline that we shared in April, and we continue to expect systems on shelves for the 2019 holiday season."

Intel initially planned to release 10nm processors in 2015, but it revealed in its Q1 earnings report in April that it was only shipping 10nm product in low volumes.

In a letter to customers last month, Intel CFO and Interim CEO Bob Swan also said Intel is making progress with 10nm. "Yields are improving and we continue to expect volume production in 2019," he wrote.