Intel Corporation (
NASDAQ:
INTC;
SEHK:
4335) is the world's largest
semiconductor company and the inventor of the
x86 series of microprocessors, the processors found in most
personal computers. Intel was founded on July 18, 1968 as Integrated Electronics Corporation and based in
Santa Clara,
California,
USA, Intel also makes
motherboard chipsets,
network cards and
ICs,
flash memory, graphic chips, embedded processors, and other devices related to communications and computing. Founded by semiconductor pioneers
Robert Noyce and
Gordon Moore, and widely associated with the executive leadership and vision of
Andrew Grove, Intel combines advanced chip design capability with a leading-edge manufacturing capability. Originally known primarily to engineers and technologists, Intel's successful "Intel Inside" advertising campaign of the 1990s made it and its
Pentium processor household names.
Intel was an early developer of
SRAM and
DRAM memory chips, and this represented the majority of its business until the early 1980s. While Intel created the first commercial microprocessor chip in 1971, it was not until the success of the
personal computer (PC) that this became their primary business. During the 1990s, Intel invested heavily in new microprocessor designs fostering the rapid growth of the PC industry. During this period Intel became the
dominant supplier of microprocessors for PCs, and was known for aggressive and sometimes controversial tactics in defense of its market position, as well as a struggle with
Microsoft for control over the direction of the PC industry.
[3][4] The 2007 rankings of the world's 100 most powerful brands published by
Millward Brown Optimor showed the company's brand value falling 10 places – from number 15 to number 25.
[5]In addition to its work in semiconductors, Intel has begun research in electrical transmission and generation.
[6][7]Contents[
hide]Corporate history
Intel headquarters in Santa Clara
Intel was founded in 1968 by
Gordon E. Moore (a
chemist and
physicist) and
Robert Noyce (a physicist and co-inventor of the
integrated circuit) when they left
Fairchild Semiconductor. A number of other Fairchild employees also went on to participate in other
Silicon Valley companies. Intel's third employee was
Andy Grove,
[8] a
chemical engineer, who ran the company through much of the 1980s and the high-growth 1990s. Grove is now remembered as the company's key
business and
strategic leader. By the end of the 1990s, Intel was one of the largest and most successful businesses in the world.[
citation needed]
[
edit] Origin of the name
At its founding, Gordon Moore and Robert Noyce wanted to name their new company Moore Noyce. The name, however, sounded remarkably similar to more noise — an ill-suited name for an
electronics company, since noise is typically associated with bad
interference. They then used the name NM Electronics for almost a year, before deciding to call their company INTegrated ELectronics or Intel for short
[9]. However, Intel was already trademarked by a
hotel chain, so they had to buy the rights for that name at the beginning.
[10][
edit] Company's evolution
Intel has grown through several distinct phases. At its founding, Intel was distinguished simply by its ability to make
semiconductors, and its primary products were
static random access memory (SRAM) chips. Intel's business grew during the 1970s as it expanded and improved its manufacturing processes and produced a wider range of products, still dominated by various memory devices.
While Intel created the
first microprocessor (Intel 4004) in 1971 and one of the first
microcomputers in 1972,
[11][12] by the early 1980s its business was dominated by
dynamic random access memory chips. However, increased competition from
Japanese semiconductor manufacturers had, by 1983, dramatically reduced the profitability of this market, and the sudden success of the
IBM personal computer convinced then-
CEO Grove to shift the company's focus to microprocessors, and to change fundamental aspects of that business model. By the end of the 1980s this decision had proven successful, and Intel embarked on a 10-year period of unprecedented growth as the primary (and most profitable) hardware supplier to the PC industry.
After 2000, growth in demand for high-end microprocessors slowed and competitors garnered significant market share, initially in low-end and mid-range processors but ultimately across the product range, and Intel's dominant position was reduced. In the early 2000s then-CEO Craig Barrett attempted to diversify the company's business beyond semiconductors, but few of these activities were ultimately successful.
In 2005, CEO Paul Otellini reorganized the company to refocus its core processor and chipset business on platforms (enterprise, digital home, digital health, and mobility) which led to the hiring of over 20,000 new employees. In September 2006 due to falling profits, the company announced a restructuring that resulted in layoffs of 10,500 employees or about 10 percent of its workforce by July 2006. Its research lab located at
Cambridge University was closed at the end of 2006.
[
edit] Sale of XScale processor business
On June 27, 2006, the sale of Intel's
XScale assets was announced. Intel agreed to sell the XScale processor business to
Marvell Technology Group for an estimated $600 million in cash and the assumption of unspecified liabilities. The move is intended to permit Intel to focus its resources on its core x86 and server businesses.
