Intel Corp. changing business divisions

SANTA CLARA, Calif. — Intel Corp., the world's largest chip maker, on Monday announced a major overhaul of its business divisions in a bid to help streamline how the company markets and develops microprocessors.

The company divided its business lines into five distinct product groups, including two new segments in which it hopes to make inroads this year — digital health care and worldwide distribution.

Intel — which last week reported fourth-quarter earnings that beat Wall Street expectations and announced a major push in research, development and capital spending — believes the new organization will group together complementary business segments and "improve the way technology is used."

"The new organization will help address growth opportunities by better anticipating and addressing market needs, speeding decision-making, and ensuring world-class operational excellence," president and chief operating officer Paul Otellini said in a statement. "Each operating unit has the autonomy to allocate computing and communications resources to be successful, making Intel's entire structure consistent with our platform products strategy."

The best example of how the new groups will operate might come from Intel's introduction of the Centrino mobile microchip, a spokesman said. The Centrino combined the functionality of a number of different areas — including microprocessors, chipsets, communications chips, software capabilities, and other tools.

The mobility group, which develops platforms for notebook personal computers, handheld and communications devices, will be led by Sean Maloney and Dadi Perlmutter.

The digital enterprise group — led by Pat Gelsinger and Abhi Talwalkar — will develop computing communications and infrastructure platforms.

The digital home group will develop computing and communications products for consumers planning to use a computer to control entertainment applications, and will be led by Don MacDonald.

The digital health group — led by Louis Burns — will develop products in health-care research, diagnostics, productivity and personal health care.

The channel products group will seek to expand Intel's marketing efforts globally and focus on developing technology that caters to local markets worldwide. It will be led by Bill Siu.

The heads of each group will report to chief executive Craig Barrett. Reporting structures and assignments in other Intel organizations, including the company's technology and manufacturing group, remain unchanged.

Intel also announced that Jason Chen, a vice president and director of its sales and market group, plans to leave at the end of January to attend to a family matter. He will be replaced by Anand Chandrasekher, who will jointly run the organization with Eric Kim.

Justin Rattner will serve in an acting capacity to oversee Intel's corporate technology group until a replacement for Gelsinger is named.