LSI Logic

(LSI) - Get Report

named a high-ranking

Intel

(INTC) - Get Report

executive to take over its top spot from founder and longtime CEO Wilf Corrigan.

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Abhi Talwalkar, 41, was vice president and co-general manager of Intel's Digital Enterprise Group. His counterpart in that unit, Pat Gelsinger, will assume sole responsibility.

Talwalkar has been elected LSI Logic's board and will take the titles of both CEO and president.

Corrigan will become the nonexecutive chairman of LSI Logic, the Milpitas, Calif.-based firm he founded in 1980.

The executive shuffle comes at a pivotal time for both companies: Intel just last week formally transitioned its chief executive duties to Paul Otellini from Craig Barrett.

Meanwhile, LSI Logic has struggled in the past year, with its stock failing to advance past $7. It's been three years since its stock has sustained a price above $12 as end markets for its storage and communications semiconductors have suffered. Also, the company has had plans for almost a year now to complete an IPO for its storage systems unit, known as Engenio Information Technologies.

LSI Logic executives, including Talwalkar, will host a conference call Tuesday morning at noon EDT to discuss the changes.