Intel announced the departure of Chief Engineering Officer Murthy Renduchintala, this announcement comes a little 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, 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 August 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."
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.
So, what does this departure signal to Jim Cramer? Hint: It's not great. Cramer said someone had to take the fall for Intel's disappointing quarter and even more ominous chip announcement, but is one departure enough?
Cramer says the problem lies in Intel's C-Suite. Should Intel be run by an engineer like its peers at AMD and Nvidia?
Tell us in the comments below.