May 13 (Reuters) - Intel ( INTC ) on Monday named Kevin

O'Buckley head of services at its contract chip-making business,

tapping an industry veteran as the company builds out the unit

to catch up with market leader Taiwan Semiconductor

Manufacturing ( TSM ).

He will succeed company veteran Stuart Pann, who set up the

Intel Foundry segment under the company's new operating model.

For decades, Intel ( INTC ) made chips only for itself but over the

past few years has poured billions into its foundry business as

it seeks to bolster its manufacturing capabilities and produce

more semiconductors as a contract manufacturer.

O'Buckley, who will report to Intel ( INTC ) CEO Pat Gelsinger, has

more than 25 years of experience in the semiconductor industry

and was most recently senior vice president of hardware

engineering at Marvell Technology's ( MRVL ) custom chip unit.

He has also held leadership positions at firms such as

GlobalFoundries ( GFS ) and International Business Machines ( IBM )

.

Pann, who will retire at the end of May after 35 years at

Intel ( INTC ), will remain as adviser to support the leadership

transition.

The services unit of Intel's ( INTC ) foundry business is responsible

for functions such as customer service.