Intel is merging its mobile phone and tablet businesses with the division that makes chips for personal computers. The reorganization of the two units was announced internally through a memo send to Intel employees and will be completed early next year, according to Intel spokesman Chuck Mulloy.

"The lines are blurring between PCs, tablets, phablets and phones," Mulloy said. "The idea is to accelerate the implementation and create some efficiency so that we can move even faster."

The new combined unit will be led by Kirk Skaugen, who currently heads the PC-chips business. Hermann Eul, currently in charge of phone and tablet chips, will stay on to help the transition and until a new post for him is announced in the first quarter of 2015.

Intel has struggled to make headway in the fast-growing market for phone and tablet chips.