| Brian Krzanich is the chief executive of INTEL, the world’s biggest maker of semiconductors. Mr. Krzanich will create an Intel markedly different from the past: "We have amazing assets, tremendous talent, and an unmatched legacy of innovation and execution." Brian is a strong leader with a passion for technology and deep understanding of the business. As chief operating officer, Krzanich led an organization of more than 50,000 employees spanning Intel's Technology and Manufacturing Group, Intel Custom Foundry, NAND Solutions group, Human Resources, Information Technology and Intel's China strategy. Mr. Krzanich has Croatian roots. |
New Chief at Intel Aims to Expand Chip Making
The New York Times
Brian M. Krzanich, shown at Intel headquarters in Santa Clara, Calif., last year.
By QUENTIN HARDY
Published: May 2, 2013
Brian M. Krzanich, who was named Intel’s next chief executive, knows he faces a hefty challenge when he takes over the world’s biggest maker of semiconductors.
The company that became a household name through its “Intel inside” stickers on personal computers is still the king of PC chips. But that is a shrinking business, and Intel is a laggard in making chips for hot products like smartphones and tablets.
That has put Intel in a bind, as semiconductor competitors long under the thumb of the Silicon Valley giant have gained traction through relationships with mobile device leaders like Apple and Samsung.
But Mr. Krzanich (pronounced KREZ-nick), a 52-year-old company veteran who started with Intel as an engineer when he was 22, says he is cleareyed about the challenges and has a plan to stop his company’s slide.
“I look at this world and see all kinds of devices connected to computers, and people connected to it all the time,” Mr. Krzanich said in an interview. “We can bring things to companies that others haven’t dreamed of.”
He even has a broader picture of Intel’s future, like imagining moving beyond today’s popular mobile devices and into other gadgets in people’s homes and even into so-called wearable computing devices. “If you’re just talking phones, you’re shooting behind the duck,” he added.
Last year, almost two-thirds of Intel’s $53 billion in revenue came from making chips for PCs, a market Mr. Krzanich acknowledges is “not growing, let’s be honest.”
Last month, researchers at the information technology firm IDC said PC demand declined more than 13 percent annually in the first quarter, as buyers turned to mobile devices like smartphones and tablets. In the same period, IDC said worldwide tablet shipments were up 142.4 percent, while smartphone shipments were up 41.6 percent. The bulk of Intel’s remaining revenue came from chips for computer servers, a business Intel still dominates.
Mr. Krzanich, who is the company’s chief operating officer and is an expert in running big chip factories, will become Intel’s sixth chief executive on May 16, succeeding Paul S. Otellini, who unexpectedly announced his retirement last November. Intel also promoted Renee James, the 48-year-old chief of the company’s software division, to president on Thursday.
Some analysts saw the appointment of Mr. Krzanich as a signal that the company would increase investment in its manufacturing while chasing new customers with chips meant for mobile products.
“The PC and server markets are so big, so important, that you can’t take your eye off the ball,” said Doug Freedman, an analyst with RBC Capital Markets. Mr. Krzanich, he noted, “is very much about the results. He comes from a world of schedules and manufacturing.”
But Mr. Freedman also said, “There’s a part of the investment community that would have preferred an outsider” to shake up the company. This was never likely at Intel, he noted, where employment shorter than a decade marks one as a newcomer. Intel said it considered both inside and outside candidates.
Mr. Krzanich was one of several internal candidates who made their final pitches to Intel’s board last weekend. Ms. James was also vying for the job, and Mr. Krzanich said the two had privately discussed working together, no matter who became chief executive.
“She was a very viable candidate,” he said. “Our vision of a mobile, connected computing environment was so close, we saw together we could drive things faster.”
Though he would not detail his entire strategy in the interview, Mr. Krzanich said he saw no reason to reduce Intel’s spending on cutting-edge chip technology and manufacturing. “I fought for this job for a reason,” he said. “The assets that made us great in PCs and servers are even stronger in the mobile and cloud world.”
In part, Mr. Krzanich says he believes he is carrying through on a plan that’s already under way.
On Monday, for example, Intel will introduce a new version of its low-power Atom chip designed for communications products, where its market is negligible.
If successful, Mr. Krzanich will create an Intel markedly different from the past.
Under Andrew S. Grove, the executive who coined the unofficial company slogan, “Only the paranoid survive” and led Intel to dominance in providing chips for PCs and servers, the company honed a business known for a few close relationships with partners like Microsoft, and then PC manufacturers like Hewlett-Packard and Dell. Those relationships and the fortunes of those companies have declined in recent years.
Today, Intel faces competition from Qualcomm and Nvidia in the manufacturing of chips for mobile devices. H.P. is showing off servers that use parts from five or more competitors.
Even Microsoft, once the other half of a relationship so close that pundits called the two companies Wintel, is working with other chip makers for its video game consoles and tablets.
Intel's CEO Brian Krzanich talks about the future of Intel and the PC
30-Year Intel Veteran Brian Krzanich to Become Next Chief Executive of Semiconductor Giant
Intel Corp. announced Thursday that the board of directors has unanimously elected Brian Krzanich as its next chief executive officer (CEO), succeeding Paul Otellini. Mr. Krzanich will assume his new role at the company’s annual stockholders’ meeting on May 16. Separately, the board of directors elected Renée James to be president of Intel.
“After a thorough and deliberate selection process, the board of directors is delighted that Krzanich will lead Intel as we define and invent the next generation of technology that will shape the future of computing,” said Andy Bryant, chairman of Intel.
Brian Krzanich will become the sixth CEO in Intel’s history. As previously announced, Paul Otellini will step down as CEO and from the board of directors on May 16.
Mr. Krzanich has progressed through a series of technical and leadership roles at Intel, most recently serving as the chief operating officer (COO) since January 2012. As COO, his responsibilities included leading an organization of more than 50 000 employees spanning Intel's technology and manufacturing group, Intel Custom Foundry, supply chain operations, the NAND solutions group, human resources, information technology and Intel's China strategy.
His open-minded approach to problem solving and listening to customers' needs has extended the company's product and technology leadership and created billions of dollars in value for the company. In 2006, he drove a broad transformation of Intel's factories and supply chain, improving factory velocity by more than 60% and doubling customer responsiveness. Mr. Krzanich is also involved in advancing the industry's transition to lower cost 450mm wafer manufacturing through the Global 450 Consortium as well as leading Intel's strategic investment in lithography supplier ASML.
“I am deeply honored by the opportunity to lead Intel. We have amazing assets, tremendous talent, and an unmatched legacy of innovation and execution. I look forward to working with our leadership team and employees worldwide to continue our proud legacy, while moving even faster into ultra-mobility, to lead Intel into the next era,” said Mr. Krzanich.
Prior to becoming COO, Brian Krzanich held senior leadership positions within Intel's manufacturing organization. He was responsible for Fab/Sort manufacturing from 2007-2011 and assembly and test from 2003 to 2007. From 2001 to 2003, he was responsible for the implementation of the 0.13-micron logic process technology across Intel's global factory network. From 1997 to 2001, Krzanich served as the Fab 17 plant manager, where he oversaw the integration of Digital Equipment Corporation's semiconductor manufacturing operations into Intel's manufacturing network. The assignment included building updated facilities as well as initiating and ramping 0.18-micron and 0.13-micron process technologies. Prior to this role, Mr. Krzanich held plant and manufacturing manager roles at multiple Intel factories.
The new CEO of Intel began his career at Intel in 1982 in New Mexico as a process engineer. He holds a bachelor's degree in Chemistry from San Jose State University and has one patent for semiconductor processing. Krzanich is also a member of the Board of Directors of Lilliputian Corporation and the Semiconductor Industry Association.
“Brian is a strong leader with a passion for technology and deep understanding of the business. His track record of execution and strategic leadership, combined with his open-minded approach to problem solving has earned him the respect of employees, customers and partners worldwide. He has the right combination of knowledge, depth and experience to lead the company during this period of rapid technology and industry change,” added Mr. Bryant.
The board of directors elected Renée James, 48, to be president of Intel. She will also assume her new role on May 16, joining Krzanich in Intel’s executive office. Ms. James has broad knowledge of the computing industry, spanning hardware, security, software and services, which she developed through leadership positions at Intel and as chairman of Intel’s software subsidiaries – Havok, McAfee and Wind River. She also currently serves on the board of directors of Vodafone Group Plc and VMware and was chief of staff for former Intel CEO Andy Grove.
"I look forward to partnering with Renée as we begin a new chapter in Intel’s history. Her deep understanding and vision for the future of computing architecture, combined with her broad experience running product R&D and one of the world’s largest software organizations, are extraordinary assets for Intel,” said Mr. Krzanich.
Intel Board Elects Brian Krzanich as CEO
Renée James Elected President
SANTA CLARA, Calif., May 2, 2013 – Intel Corporation announced today that the board of directors has unanimously elected Brian Krzanich as its next chief executive officer (CEO), succeeding Paul Otellini. Krzanich will assume his new role at the company's annual stockholders' meeting on May 16.
Krzanich, Intel's chief operating officer since January 2012, will become the sixth CEO in Intel's history. As previously announced, Otellini will step down as CEO and from the board of directors on May 16.
"After a thorough and deliberate selection process, the board of directors is delighted that Krzanich will lead Intel as we define and invent the next generation of technology that will shape the future of computing," said Andy Bryant, chairman of Intel.
"Brian is a strong leader with a passion for technology and deep understanding of the business," Bryant added. "His track record of execution and strategic leadership, combined with his open-minded approach to problem solving has earned him the respect of employees, customers and partners worldwide. He has the right combination of knowledge, depth and experience to lead the company during this period of rapid technology and industry change."
Krzanich, 52, has progressed through a series of technical and leadership roles since joining Intel in 1982.
"I am deeply honored by the opportunity to lead Intel," said Krzanich. "We have amazing assets, tremendous talent, and an unmatched legacy of innovation and execution. I look forward to working with our leadership team and employees worldwide to continue our proud legacy, while moving even faster into ultra-mobility, to lead Intel into the next era."
The board of directors elected Renée James, 48, to be president of Intel. She will also assume her new role on May 16, joining Krzanich in Intel's executive office.
"I look forward to partnering with Renée as we begin a new chapter in Intel's history," said Krzanich. "Her deep understanding and vision for the future of computing architecture, combined with her broad experience running product R&D and one of the world's largest software organizations, are extraordinary assets for Intel."
As chief operating officer, Krzanich led an organization of more than 50,000 employees spanning Intel's Technology and Manufacturing Group, Intel Custom Foundry, NAND Solutions group, Human Resources, Information Technology and Intel's China strategy.
James, 48, has broad knowledge of the computing industry, spanning hardware, security, software and services, which she developed through leadership positions at Intel and as chairman of Intel's software subsidiaries -- Havok, McAfee and Wind River. She also currently serves on the board of directors of Vodafone Group Plc and VMware Inc. and was chief of staff for former Intel CEO Andy Grove.
Additional career background on both executives is available at newsroom.intel.com.
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world's computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.
Run silent, run deep: The life of Brian Krzanich at Intel
Photo By Noel Randewich
SAN FRANCISCO | Fri May 3, 2013
(Reuters) - It took him 30 years, but Brian Krzanich - the understated, analytical engineer who started his career at an Intel chip factory in New Mexico - quietly worked his way up to the top. Now, the man who once prided himself on halving production times will have to act swiftly to move the company into new areas of growth.
Krzanich will take over as chief executive beginning on May 16 at the annual shareholder meeting, replacing Paul Otellini, who in November unexpectedly announced his plan to retire. Under Otellini, Intel has been sidelined in smartphones and tablets while demand for its PC processors is on the wane.
To turn around the $53 billion-a-year empire, Krzanich will have to depend on trusted lieutenants, something he shouldn't have a problem doing, say former employees, analysts and industry executives who have worked with him.
In 2010, Krzanich was on the brink of a weighty decision: whether to break with tradition and open up Intel's top-secret manufacturing facilities and make chips for other companies. He called a teleconference of 8-10 key people - executives from marketing, investor relations and sales among them - and began firing off questions.
He wanted to know if going ahead with the manufacturing deal could create any potential problems for other areas within Intel, like upsetting major customers or creating misunderstandings on Wall Street about Intel's core strategies.
"His job was to say, Can we do it economically and make money in our factory? But he was really good about making sure the supply-chain guys, the marketing guys, everyone kind of understood the impact of (the potential deal)," one of the people on the conference call told Reuters.
In less than an hour, he took a decision that would pave the way toward a new business for Intel: Achronix became its first foundry customer. This past February, Altera Corp became its first major client for the business, and industry insiders believe it could eventually reach a similar deal with Apple.
At a company known in Silicon Valley for its insular culture, Krzanich went largely unnoticed by investors and media even as he rose through the ranks to senior positions. Two former longtime employees said that when they left Intel less than a decade ago, they had never even heard of Krzanich, though he was then in charge of the company's assembly and test facilities.
The new CEO is a mystery even to some of the best-connected of the chip industry elite. Paul Jacobs, CEO of No. 2 U.S. chipmaker Qualcomm Inc, said on Thursday he looked forward to meeting Krzanich.
The San Jose State University graduate, who declined to comment for this story, has an engaged but quiet management style, although an employee said engineers who miss their deadlines or targets tend not to stay in positions of responsibility.
When Krzanich was promoted to chief operating officer last year, Intel pushed him into the public spotlight, exposing him a little more to the media. Given a choice between speaking to an investor or a reporter, Krzanich will choose the investor every time, another Intel employee who knows him well said.
As recently as a few years ago he was known to drive just an ordinary car, and in January arrived at an investor meeting in Las Vegas wearing work boots. One of the former Intel employees described Krzanich as the worst-dressed guy in a meeting, "but in a good way."
"He doesn't worry too much about the impression he leaves with you. But you pay attention to what he has to say," said RBC analyst Doug Freedman.
FACTORIES STILL THE FOCUS
Intel's strength has traditionally come from its manufacturing prowess, and Krzanich's promotion is seen as confirmation by the board that the company's multibillion-dollar network of cutting-edge factories still holds the key to success.
People who have dealt with "B.K.," his handle inside the company, describe him as well aware of own limitations outside of manufacturing, like dealing with customers, but willing to consult with trusted others and make quick decisions based on their recommendations.
Perhaps for that reason, Intel Chairman Andy Bryant on Thursday stressed that the new CEO will work closely with new president and former software honcho, Renee James, and team up to push new markets, including smartphones and tablets.
After becoming COO, Krzanich told Reuters in a March 2012 interview that he had devoted a couple of years to learning to manage the product-design engineers outside of Intel's factories. "Managing them like the factory would be one of the worst things I could do for Intel. They need creativity. It's very different from the factory role."
Krzanich seems to play well with others. He stood out at an offsite executive-training course he attended for several days around a decade ago, according to two consultants who helped organize it.
"When you observed him on the team working with his peers he was a leader, but not because he was a dominating, hard-ass guy. He was a good team player," said Noel Tichy, who is also a business professor at the University of Michigan.
"What Brian brought was a level of depth. He went deep on the data. I remember conversations with him about his analysis, and moving the team through the analytic phase of the work. He had an opportunity to really help shape some of the team's thinking," said consultant Chris DeRose.
Krzanich began his Intel career soon after college at a chip factory in New Mexico in 1982. He acquired responsibility for his first factory, in Chandler, Arizona, in 1996. After running the company's assembly and testing facilities, in 2007 he was put in charge of the global network of factories as well as the chipmaker's supply chain. His promotion to COO in January last year added human resources and IT to his responsibilities.
CEOs Mark Durcan of Micron Technology and Mike Splinter of Applied Materials on Thursday lauded Krzanich for his profound knowledge of the industry.
One reservation was voiced by Henri Richard, senior vice president of commercial sales at SanDisk and a former executive of Intel rival AMD. Making changes to long-held Intel practices, he said, may be one of Krzanich's biggest challenges because of loyalty to the old guard.
"He's going to fall in the category of 'not a bad choice'," said Richard, who has never met Krzanich. "But I think the market had appetite for the implied bigger change that would have come with an external CEO."
(Reporting by Noel Randewich, additional reporting by Alexei Oreskovic; editing by Prudence Crowther)
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