Exclusive: Three Intel senior executives to retire amid manufacturing shake up
Intel told staff on Tuesday that corporate vice presidents in the technology development group, Kaizad Mistry and Ryan Russell, would retire, as would Gary Patton, corporate vice president at its Design Technology Platform organization and a former IBM (IBM.N), opens new tab executive.
Intel also discussed changes to the technology development group, which is responsible for creating manufacturing processes, said two people briefed on the matter. The chipmaker plans to reduce its manufacturing capacity planning team and cut a portion of its engineering team, the people said.
Intel declined to comment on the changes.
Manufacturing operations are led by former Micron Technology (MU.O), opens new tab executive Naga Chandrasekaran, who was hired about a year ago by then-CEO Pat Gelsinger.
Chandrasekaran's responsibility expanded in March as he took over technology development and manufacturing. He has since reorganized staff under him, including layoffs as part of global cutbacks.
When Intel announced its quarterly financial results last week, CEO Tan, who assumed the role in March, set a goal of slashing the chipmaker's workforce to 75,000 people by year-end, a reduction of around 22%. Intel also vowed to take a more disciplined approach to manufacturing investment.
Intel said its next-generation 14A manufacturing process depends on securing a new, significant customer, otherwise it could suspend or terminate development.
"We're developing Intel 14A ... from the ground up in close partnership with large external customers," Tan said in a memo released with the financial results. "Going forward, our investment in Intel 14A will be based on confirmed customer commitments."
Tan also told investors that Intel's 18A process could only generate a reasonable return if it is used for in-house products. Tan has debated whether to stop offering 18A technology to external customers to focus on 14A, Reuters reported in July.
Intel plans to ramp to high-volume manufacturing its Panther Lake PC chips this year using its 18A manufacturing process.
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