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Friday, 7 December 2012 - Intel CEO Otellini expects insider to replace him |
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See the best of Reuters photography.  See more | Photo caption  Fishing for shark fin The Ocean Sunset hunts sharks as well as other fish for their meat and fins off the cost of Canada.  Slideshow  Pregnant princess Princess Kate, Duchess of Cambridge, leaves the hospital.   Slideshow  Sponsored Links Intel CEO Otellini expects insider to replace him Tweet Share this Email Print Related News AMD plans to sell Texas campus to raise cash Tue, Nov 27 2012 Analysis: Intel Inside - Looking inward for CEO may be best bet Wed, Nov 21 2012 Intel CEO to retire as chipmaker struggles with mobile Mon, Nov 19 2012 Exclusive: AMD hires bank to explore options - sources Tue, Nov 13 2012 Analysis & Opinion Apple and Motorola talk arbitration. End in sight to patent war? Related Topics Investing Simplified » Tech » Paul Otellini, president and CEO of Intel Corporation, holds an Intel smartphone reference design as he gives a keynote address during the 2012 International Consumer Electronics Show (CES) in Las Vegas, Nevada, January 10, 2012. Credit: Reuters/Steve Marcus SAN FRANCISCO | Thu Dec 6, 2012 2:19pm EST SAN FRANCISCO (Reuters) - Intel's outgoing chief executive, Paul Otellini, said he expected to be replaced by a company insider and also signaled that the top chipmaker could open its factories to strategic customers. Otellini's comments at a Sanford Bernstein investor conference on Wednesday stoked speculation the top chipmaker may manufacture mobile chips for Apple and pushed Intel's shares higher on Thursday morning. "For the right types of products and not to enable my competitors, I would certainly consider it. There's a lot of stuff in the pipeline," Otellini said, according to a Thomson One transcript. "As you know it takes a while to move your designs over, to design them under our process, for us to be able to bring them in-house and so forth and our foundry customers aren't going to announce that they've moved until they've moved because it would hurt them at their current suppliers, Otellini said. RBC analyst Doug Freedman said Otellini's comments about the possibility of open Intel's plants to customers were more direct than previous ones. Apple currently depends on Samsung Electronics to manufacture its mobile chips but the two companies are in a war over patents and also compete in smarpthones and tablets. Apple is believed to be looking for alternative suppliers. Intel raised eyebrows on Wall Street and in Silicon Valley in November when it said it will consider an outsider to take over after Otellini unexpectedly announced he will retire in May, potentially ending a four-decade tradition of internal succession. Some analysts took that as a sign that Intel, which has struggled to jump from the personal computer market to mobile, might be considering a transformative hire. But Otellini he expects the board to choose from among the chipmaker's own executives. "It's not up to me but I think that's the most likely outcome. I'm very comfortable with the internal candidates and the track record of internal versus external in our industry shows pretty clearly you want to stay inside if you can," Otellini said. While the idea of an iconic visionary stepping in to lift Intel into the mobile market - its Achilles heel - may sound attractive, it could open the chipmaker to new risks should it waver from its traditional focus on hard-core manufacturing. "Even if you brought in Mr. or Ms. Perfect, that person is going to take whatever it is, two years to figure out the culture and the people and how systems work and stuff like that," Otellini said. "In this environment, why take the risk and take the time? So I think they will stay inside." Shares of Intel rose 1.66 percent to $20.17. (Reporting By Noel Randewich; Editing by M.D. Golan) Investing Simplified Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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