Intel confirms new CEO to replace Barrett

12 Nov 2004

The board of Intel yesterday confirmed that Paul Otellini, the current president and chief operating officer, is to take over from Craig Barrett (pictured) as chief executive of the company. Barrett will become chairman of Intel while previous chairman Andrew Grove will no longer serve on the Intel board, but will take on the role of senior advisor to the board and management of the semiconductor giant.

The confirmation of Otellini’s appointment followed a vote by the board on who will be the company’s next chief executive. Otellini was tipped as Barrett’s likely successor earlier this year. He will take over at the company’s annual stockholders’ meeting next May.

Intel’s outgoing chairman Andrew Grove said of the management reshuffle: “Craig and Paul are the right team at the right time for Intel. We’re exceptionally fortunate to have them at the helm.

“Having worked closely with Craig and Paul for over 30 years, I know that Paul’s vitality and deep knowledge of Intel’s products, customers and global markets, together with Craig’s stature as an industry leader and pre-eminent technologist, make them outstanding choices to lead Intel and the board as the company drives its core silicon expertise further in computing and communications.”

Since coming to Ireland in 1989, Intel’s presence in Ireland has grown to incorporate Fab 10, Fab 14 and lately Fab 24, employing 3,480 full-time employees. In recent months, the company revealed plans to invest a further €1.6bn in new wafer fabrication cleanrooms for the production of the next generation of 300mm wafers using 65 nanometer technology.

The investment, which will bring the total investment by Intel in Ireland to almost €7bn, will secure long-term employment of the company’s existing 4,700 direct and indirect workforce in Ireland and will bring the total number of employees and contractors to over 5,000.

During a visit to Intel’s Irish operations last June, Barrett said: “This is one of the most modern and cost-effective technology plants in the world. We will be creating integrated circuits of 300mm silicon wafers with 90 nanometer topographical technology. Every two years we upgrade our facilities here and envisage improving that to 65 nanometer technology. When I began in the semiconductor business, we boasted about placing 1,000 transisters on a silicon wafer. By next year we will be placing over two billion transistors on a single wafer. This trend shows no sign of slowing down.”

While praising the partnership that has existed between Intel, IDA Ireland and the Government for the past 15 years, Barrett warned Taoiseach Bertie Ahern: “We are looking forward to the next 15 years. However, I would urge you not to be too successful with the economy in terms of rising costs.”

By John Kennedy