Intel Corporation Plans To Merge PC, Mobile Chip Groups

Intel Corporation Plans To Merge PC, Mobile Chip Groups
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Intel Corporation (NASDAQ:INTC) will integrate its PC and mobile processor divisions, indicating a shift in the market in which tablets and laptops are congregating. Intel CEO Brain Krzanich talked about the changes on Monday in an internal email, according to spokesman Chuck Mulloy.

Move aimed to strengthen mobile segment

Intel plans to build a new division early next year they’re calling the Client Computing Group, which will include the teams concerned with the development of the Intel Core processors for desktops and laptops, along with those engaged in developing the Atom chips for smartphones and tablets. Intel is taking the step to enhance communication between product teams, allowing it to effectively fulfill the demands of the manufacturers that use its products.

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“The market continues to evolve rapidly, and we must change even faster to stay ahead,” Krzanich said in an email (first reported by The Wall Street Journal).

PCs have always remained the focus for the company, as it earned humongous revenue with its powerful Core processor, along with serving smartphone and tablet markets with its low-power Atom chips, but the line is becoming increasingly blurred now, owing to the advent of hybrid computers that can be used as a laptop and a tablet. For example, Intel is powering traditional laptops, hybrid computers and tablets through its core M processor.

“Industry-wide, the lines have been blurring,” Mulloy said. “The question is whether we’re organized to map to where the market is going.”

Management reshuffle at Intel

Kirk Skaugen, head of the PC Client Group at Intel, will be heading the Client Computing Group. He said that the changes will come into effect after Jan. 1. At present, Intel has a division known as the Mobile and Communication Group, which will be broken. Now the teams developing mobile processors will join the new client group while the remaining will build modems and work under the new wireless R&D group.

Herman Eul, who currently leads the mobile group, will head the new structure throughout the first quarter and will switch to a new role after that, according to Mulloy. The changes from Intel are aimed at enhancing its position in the smartphone and tablet segment, which is presently dominated by ARM holdings. Mulloy also said that more financial details on how the new division will report sales will be revealed later.

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