Intel Chairman Barrett to Step Down

Intel Chairman Craig Barrett will step down from his post in May, ending a 35-year stint at the world's No. 1 chipmaker, the company announced Friday.

Barrett, who joined Intel in 1974, also served as the chief executive of the company from 1998 through 2005.

"Intel became the world's largest and most successful semiconductor company in 1992 and has maintained that position ever since," said Barrett. "I'm extremely proud to have helped achieve that accomplishment."

Barrett said he was confident that Intel has the right management in place to continue its leadership in the chip making industry.

Jane Shaw, a board member since 1993, will replace Barrett as non-executive chairman in May.

Earlier this week, Intel CEO Paul Otellini announced that last quarter's profit tumbled 90% to $234 million, and reportedly told employees that he couldn't rule out the possibility that Intel might actually lose money in the current quarter. It would be the first time that's happened in more than 20 years.

The company also announced Wednesday that it will be cutting production at two U.S. silicon wafer facilities and closing three facilities in Asia, affecting between 5,000 and 6,000 workers.

Shares of Intel (INTC, Fortune 500) rose 3% in mid-afternoon trading, but the company's stock has lost more than 40% since August.