Intel has announced that its chief executive Paul Otellini will step down in May 2013 after nearly 40 years with the company.
He is set to retire after the computing company's annual shareholders' meeting.
"I've been privileged to lead one of the world's greatest companies. 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," Otellini said in a statement.
Otellini, 62, has been CEO of the US chip manufacturer for the past eight years and was the fifth chief executive in Intel's 45-year history.
"Paul Otellini has been a very strong leader, only the fifth CEO in the company's great 45-year history, and one who has managed the company through challenging times and market transitions," said Intel's chairman, Andy Bryant.
The company is now considering his replacement among three existing executives, which include Intel's software head Renee James, chief operating officer Brian Krzanich and chief financial officer Stacy Smith. Analysts predict that Smith is most likely to fill the position due to her well known status on Wall Street.
Intel made its name as the world's biggest manufacturer of processors in PCs, making phenomenal profits after its partnership with Microsoft. Currently, 80 per cent of chipsets are based around Intel's technology.
However, with declining PC sales and a rise in mobile technology, the firm has struggled to compete in the cut-throat market for smartphone chips, where it boasts a share of less than one per cent of the segment, trailing the likes of Qualcomm, Samsung, and Britain's ARM.
Last week, there were reports that Apple may dump Intel based processors in its computing devices, in favour of more custom-designed ARM-based mobile processors, like the Apple A6 SoC found in the iPhone 5.
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