Intel CEO Paul Otellini has announced he will be retiring from the company in May next year, ending a 40-year association with the chip maker.
The company will be looking internally and externally for a replacement and thinks the leadership transition period will last for around six months.
Otellini took over as Intel CEO in 2005 and has overseen a rise in annual revenue from $38bn to $54bn, as well as generating $107bn in cash during that time. Earnings per share went up from $1.40 to $2.39 under his watch.
In a statement Otellini said it was the right time to move on. "After almost four decades with the company and eight years as CEO, it's time to move on and transfer Intel's helm to a new generation of leadership," he said. "I look forward to working with Andy, the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO."
"Paul Otellini has been a very strong leader, only the fifth CEO in the company's great 45-year history, and one who has managed the company through challenging times and market transitions," said Andy Bryant, chairman of the board. "The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years."
Intel was the undisputed industry leader for many years, with its chips being installed in nearly every PC and laptop being used around the world. However the company has struggled to make an impact in the mobile space, which is dominated by ARM's lower-power architecture as well as chips from Qualcomm and others.
The company is trying to carve out its own market in the mobile space with the Ultrabook range of ultra thin laptops. However sales of those devices have been poor, with one analyst house cutting it estimate for 2012 shipments from 22 million to just 10.3 million.
Intel has also announced other management changes, with Renee James, head of Intel's software business, Brian Krzanich, chief operating officer and head of worldwide manufacturing, and Stacy Smith, chief financial officer and director of corporate strategy, all being promoted to executive vice president.