Intel CEO Paul Otellini to retire in May

SANTA CLARA, Calif. Intel's CEO, Paul Otellini, plans to retire in May after nearly 40 years with the company.

Intel Corp. (INTC) said Monday that its board will look at company executives as well as external candidates to replace Otellini. He has been head of Intel for eight years.

Intel is the world's largest maker of microprocessors, the "brains" of computers. The company is dealing with consumers' shift away from PCs and toward tablet computers -- a threat to Intel because most tablets don't use its processors. Instead, they use cheaper chips similar to the ones found in smartphones.

Also on Monday, Intel announced that it has promoted three executives to executive vice president: Renee James, head of Intel's software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.

Otellini, 62, joined Intel in 1974. In 2002, he was named president and chief operating officer and became CEO three years later.

The Santa Clara, Calif., company's shares climbed 16 cents to $20.19 Monday morning.