Intel CEO Memo: Production Problems Unacceptable

Craig Barrett, the chief executive at Intel isn't too pleased with all the problems that Intel has been experiencing. Lately Intel has been missing product deadlines, and has had to recall its Grantsdale chipset. It's pretty obvious that Intel is feeling the pressure from other microchip companies like AMD & IBM. Especially in the server market where its Itanium processors are no longer the top dog in performance.

Craig Barrett, the chief executive of Intel Corp., has called on employees to focus on "actions and attitudes" to halt a string of product delays and manufacturing problems that have frustrated the world's largest chip maker. In an open letter sent last week to the company's 80,000 workers, Barrett said that there was no excuse for the recent problems, and said he had spoken "bluntly and directly" with senior managers about the need to improve performance.

"In the end reasons don't matter because the result is less-satisfied customers and a less-successful Intel," Barrett wrote in his letter, dated July 21. "Therefore," he wrote, "it is critical that everyone -- beginning with senior management but extending to all of you -- focus intensely on actions and attitudes that will continue Intel's strong track record of technology leadership" and customer satisfaction.

Intel, based in Santa Clara, California, is the world's most powerful chip maker, providing the key chips for most personal computers. It also supplies chips for cellular phones and networking equipment. When Intel misses its production targets, the entire electronics supply chain can feel the repercussions. Yet Intel officials have been accused of lacking humility when the company errors. "I have never seen an Intel executive embarrassed in my life," said Richard Doherty, the director of the Envisioneering Group, a market research firm. "You can marvel at that."

News source: Reuters

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