Intel CEO Paul Otellini to retire in May 2013

Chipmaker Intel has confirmed that CEO Paul Otellini is to retire after 40 years of continuous service at the company.

The move will see Otellini leave the company in May 2013, after eight years as CEO.

Intel confirmed in a statement that it will be considering external and internal candidates to replace him, and that it expects the "leadership transition" to take six months.

Andy Bryant, chairman of the Intel board, said Otellini had been a "very strong leader" who had helped the firm through some challenging times.

I look forward to working with the board and the management team during the six-month transition.

"The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years," added Bryant.

In a statement, Otellini said he was moving on to make room for a "new generation of leadership" at Intel.

"I look forward to working with Andy, the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO," said Otellini.

The company has also announced the promotion of several other members of its senior management team to executive vice president status.

They include Renee James, head of Intel's software business, Brian Krzanich, chief operating officer, and Stacy Smith, the company's chief financial officer and director of corporate strategy.