Securities fraud lawsuit and 7nm chip delays force Intel to fire Chief Engineering Officer Venkata Murthy Renduchintala
We had reported on 24th July 2020, how Intel is going through hard times due to new 7-nanometer chip delays. While Intel is struggling with a defect in the 7nm-chip foundry, its rivals like AMD are racing ahead with 7nm and even 5nm chip launches. Intel CEO Bob Swan had said that 7-nm chip manufacturing was delayed due to a defect mode in its manufacturing and the new ETA for 7nm chips is as late as 2023.
Apart from the 7-nm chip delay, Intel has also been hauled to the court with a class-action lawsuit over possible securities fraud. Both the delay and the upcoming security fraud lawsuit has forced the company to fire Venkata Renduchintala.
Intel today announced that the technology, systems architecture, and client group (TSCG) Chief Engineering Officer and Group President, Venkata Renduchintala is leaving the company. The press release did not provide any reason for Renduchintala leaving the company but industry watchers say that the 7nm processors and securities fraud allegation may have been the cause.
The Santa Clara, Calif.-based company said Renduchintala, whose responsibilities include process technologies like 7nm and manufacturing operations, will leave on Aug. 3. An Intel spokesperson said it does not plan to replace Renduchintala‘s role as chief engineering officer or as group president of TSCG. After Renduchintala’s departure, the TSCG group will be divided into five different teams, namely Technology Development, led by Dr. Ann Kelleher, Manufacturing and Operations with Keyvan Esfarjani in charge of everything, Design Engineering with Josh Walden serving as the interim chief, Architecture, Software and Graphics under the supervision of Raja Koduri, and Dr. Randhir Thakur’s Supply Chain.
This marks Intel‘s second high-profile executive departure in as many months following the sudden resignation of chip design executive Jim Keller, who left in June for personal reasons.
Intel’s worries are incremental due to the fact that the law firm Hagens Berman is investigating into possible investors’ fraud after the recent delay of the 7nm processors. The law firm stated that Intel promised 7nm chip would begin shipping in 2021 on multiple occasions. The law firm says that each time Intel gave an excuse and extended the date. The law firm is investigating whether “Intel misled investors about the 7nm schedule and related manufacturing issues,” as Reed Kathrein, the Hagens Berman partner leading the investigation stated.