Intel's chief engineer is departing as the chip giant grapples with the fallout from a major production stumble

• Intel Chief Engineer Murthy Renduchintala is leaving the company, per a press release on Monday.
• The change comes after Intel announced that production problems have led to the delay of its next generation chips. The news caused Intel shares to fall sharply when it announced earnings last week.
• Murthy, who was a longtime president at Qualcomm, joined Intel in 2015 to help lead the company's bid to reclaim its dominance in the chip industry.
• Intel CEO Bob Swan announced changes to the Intel leadership team, including the appointment of Intel veteran Anne Kelleher as head of the chip giant's manufacturing operations.

Intel's chief engineer, Murthy Renduchintala, is leaving the chip giant, the company said Monday.

The change comes as Intel reels from production woes that led to a delay of its next generation processors, stunning Wall Street and causing its stock to plummet.

Murthy, a veteran of the semiconductor industry who served as Qualcomm president for 12 years, joined Intel in 2015. He was one of three engineering stars who formed what was expected to lead Intel's bid to regain its competitive edge in a rapidly changing market. The other engineering execs were Jim Keller, who came from Tesla and was a veteran of Apple, and Raja Koduri, one of the leading graphics chip engineers in the world, who joined from rival AMD.

Intel announced last month that Keller was leaving. And last week, Intel stunned Wall Street when it said it had run into problems with its transition to a new manufacturing process, causing a delay in its next generation chips.

Intel CEO Bob Swan said Murthy, as Renduchintala is fondly called, will leave on August 3, as he also unveiled major changes in the Silicon Valley giant's leadership and engineering teams.

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Among them was the appointment of Ann Kelleher, an Intel veteran, to lead the company's manufacturing operations. Koduri will continue to lead Intel architecture, software and graphics teams.

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