Intel (INTC) - Get Report announced the departure of Chief Engineering Officer Murthy Renduchintala, less than a week after the chip giant said its new 7-nanometer processor, a key component in its strategy to take on market-leading rivals such as Taiwan Semiconductor (TSM) - Get Report, was around six months behind schedule and that it might have to seek outside help in order to catch up.
Renduchintala will leave Intel on Aug. 3. The technology group he led will be separated into five teams, with Intel saying the moves were being made to "accelerate product leadership and improve focus and accountability in process technology execution."
Shares of Intel fell 16% last Friday, the day after the company announced it was considering looking to use chip foundries from other companies.
Intel CEO Bob Swan said last week that chips made with the company's 7nm-based CPU technology were expected to launch in 2021 but would be delayed due to a flaw that resulted in "yield degradation" in its manufacturing process.
"We're going to be pretty pragmatic about if and when we should be making stuff inside or making outside, and making sure that we have optionality to build internally, mix and match inside and outside, or go outside in its entirety if we need to," Swan told investors on a conference call.
Intel posted second-quarter earnings last week that topped Wall Street estimates, but also guided for third-quarter earnings below forecasts.
Intel said it expects to post earnings in the third quarter of $1.10 a share on revenue of $18.2 billion. Wall Street had been earnings of $1.14 a share on revenue of $17.9 billion.
Shares of Intel fell 0.38% to $49.38 in premarket trading Tuesday.