Intel chief executive officer Paul Otellini will retire in May after eight years at the helm of the computer chip giant, which has been slow to adapt to the growth of mobile and tablet devices, the company announced Monday.
"I've been privileged to lead one of the world's greatest companies," Otellini said in statement. "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."
Intel said it was searching for Otellini's successor both inside and outside the company.
With a market capitalization of 100 billion dollars, Silicon Valley-based Intel is one of the most valuable companies in the world and a bellwether for the entire PC industry.
Intel supplies the computer chips that run more than 90 percent of personal computers, but it has been affected by the rise of smartphones and tablet computers, where Intel's chips are less popular than those using a technology developed by Britain's ARM Holdings. PC sales have also been hit by the sluggish global economy.
Intel's market cap was recently overtaken by rival chipmaker Qualcomm, whose chips are in heavy demand for smartphones and tablet computers.
Though Otellini has overseen a major reorganisation of the massive chip company, Intel did not seriously enter the market for tablet and smartphone chips until last year, and its products are struggling to gain traction.
However, the company denied it was pushing Otellini aside.
"The decision to retire was entirely Paul Otellini's," Intel spokesman Paul Bergevin told The Wall Street Journal, adding that the board had accepted his resignation "with regret."
Otellini's departure will come three years before he reaches the age of 65, which is when Intel usually requires its CEOs to retire.
Otellini was just the fifth CEO in Intel's history, ascending to the spot after working at the company for 33 years.
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