Just one day after Qualcomm's former mobile chip division co-president Venkata "Murthy" Renduchintala resigned, rival Intel hired him as head of their newly created Client and Internet of Thing Business and Systems Architecture Group.

In a report by Forbes, the Santa Clara, Calif.-based chipmaker said the new executive position requires Renduchintala to oversee various Intel organizations, including the Design Tools & Technology Group, Software & Services Group, Internet of Things Group, Client Computing Group, and the Platform Engineering Group.

According to the Business Insider Qualcomm said Renduchintala's departure wasn't sudden at all. The company said, it gave the executive a few months to think about his move. However, the announcement of his departure still drew questions, especially with the great contributions Renduchintala has given for the company for the past 10 years.

"This really shows Intel's commitment to the Internet of Things, and that it's not just a passing fad," said Intel partner Velocity Micro director of sales and marketing Josh Covington in a report by CRN. "Judging by this hire, they're looking to ramp up very quickly for the remainder of 2015, and then in the last half of 2016, start to create some big noise around the Internet of Things."

Renduchintala managed the development of the Snapdragon mobile chips when he was still with Qualcomm. That chip powers most high-level Android smartphones all over the world. This skillset will definitely benefit Intel, which is suffering from a downturn in it mobile chip sales.

Meanwhile, Qualcomm's chip business has also been suffering in the last year. Samsung, which is a major customer for the company, has passed on the Snapdragon 810 chip for the new Galaxy phone line. The slowdown in the chip market is due to the decline on premium Android phone sales as Apple's iPhone is taking over the market by storm.