Intel announced on Thursday that Brian Krzanich will succeed Paul Otellini as the company's new chief executive officer, effective May 16.
In November, Otellini—who has worked for Intel for more than 40 years—announced that he planned to soon retire from the company.
The board of directors unanimously elected Krzanich, who has served as the company's chief operating officer since 2012 and first joined the company in 1982, to become Intel's new CEO.
Otellini will continue to serve as an adviser to the company's management team after his departure.
The board of directors also announced that Renee James, the former chairman of Intel's software subsidiaries, will assume the role as president of the chip maker also beginning on May 16.
Krzanich, 52, will take the reigns of the company at a time when it is struggling to figure out its mobile strategy and looking to push into new markets.
Last month when the chip maker reported weak earnings, Stacy Smith, the company's chief financial officer, said that the company's chips lead in power efficiency, which gives it an advantage in the mobile industry.
(Read More: Intel Earnings Miss by a Penny; Revenue Hits Target )
"We're driving this transition in the marketplace where we're moving the company to benefit from these lower-power devices," he said.
Smith added that the company also profits on the server side of the business by building the infrastructure that serves mobile devices.
In a separate announcement on Thursday, Intel Capital said that it was leading an investment round of $9 million in the cloud-based mobile applications firm called FeedHenry. The company provides a platform for the enterprise market to develop and deploy apps.
Intel shares fell slightly in early trade after the company announced the leadership change.