SANTA CLARA, Calif. -- Intel Corp.'s shuffling of its microprocessor management team comes at a critical time for the world's largest chip maker, said industry analysts reacting to the company's realignment of leadership in its Technology and Manufacturing Group and the Intel Architecture Group (see Oct. 9 story).

According to some Intel observers, the moves are aimed at solving chronic manufacturing problems and slow production ramps that have plagued the company's leading-edge central processor series and some of its biggest customers since late last year. Even Intel president and CEO Craig Barrett said on Monday that the new assignments would "allow us to align the charters of key executives to address issues critical to the future of our core businesses in Intel Architecture processors and platforms."

In the management shuffle, Intel moved senior vice president Albert Yu from his position as co-general manager of the Intel Architecture Group to a new assignment as the head of optoelectronics, which the company said was an emerging business. Yu had been heading up Intel's microprocessor development since 1984. An Intel spokesman on Monday said Yu had not yet been given an official title in his new assignment.

In the management change, Paul Otellini, executive vice president, was given sole management of the Intel Architecture Group. And, Mike Splinter was promoted to executive vice president and general manager of Intel's Technology and Manufacturing Group. Splinter was previously senior vice president of the group, but he is also being given additional responsibilities by Intel to guarantee the successful ramp of key products in the coming year.

Industry analysts said they believe the executive changes at Intel are aimed at solving a series of manufacturing and development issues at a time when rival Advanced Micro Devices Inc. appears to be gaining ground in high-end x86-commpatible CPUs. "I don't think Intel is falling flat on its face," said Tony Massimini, analyst tracking the microprocessor segment at Semico Research Corp. in Phoenix. "But, I think Intel is being pushed by AMD much faster than Intel expected."

Intel suffered a setback six weeks ago when it recalled its 1.13-GHz Pentium III processor after lab tests turned up errors when the chip was operating under certain kernels of the Linux operating system (see Aug. 28 story). Recently, Intel decided to push back the launch of its new Pentium 4 by several weeks into next month because of concerns about production in 0.13-micron technology, according to sources.

Semico's Massimini said Monday's announcement comes at a critical time for Intel in terms of manufacturing. "They are making a transition from 0.18- to 0.13-micron technology," he noted.

Intel's manufacturing woes can be traced back to late 1999, when the company was unable to ship enough processors to PC manufacturers, causing a shortfall in computer sales at Compaq, Dell, Hewlett-Packard, and other OEM customers. "There are a number of customers that have been shorted by Intel over the years," observed analyst Joe Osha, who tracks the company for Merrill Lynch & Co. "I think Intel is still trying to come to grips with their decision to cut capital spending back in 1997 and 1998."

And some Intel watchers think the management shuffle could portend a changing in the guard at the company. "It's kind of curious," responded Merrill Lynch's Osha. "I guess what it means is that Otellini is running the whole show."