Top 100 Brand In the World by Forbes – Rank no. 6 – Intel US
Market Cap $105.72 B
At a Glance
- Industry: Semiconductors
- Founded: 1968
- Country: United States
- CEO: Paul Otellini
- Website: www.intel.com
- Employees: 105,000
- Sales: $53.34 B
- Headquarters: Santa Clara, California
At a Glance
- Industry: Semiconductors
- Founded: 1968
- Country: United States
- CEO: Paul Otellini
- Website: www.intel.com
- Employees: 105,000
- Sales: $53.34 B
- Headquarters: Santa Clara, California
Intel Corporation designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. The Company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PCs) (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. On February 2012, QLogic Corp. sold the product lines and certain assets associated with its InfiniBand business to the Company. In May 2012, Cray Inc. completed the sale of its interconnect hardware development program and related intellectual property to the Company. In September 2012, InterDigital, Inc.’s subsidiaries sold around 1,700 patents and patent applications to the Company.
The current logo, used since December 2005.
|Traded as||NASDAQ: INTC
Dow Jones Industrial Average Component
S&P 500 Component
|Founded||July 18, 1968|
|Founder(s)||Gordon Moore, Robert Noyce|
|Headquarters||Santa Clara, California, United States|
|Key people||Andy Bryant
|Products||Bluetooth chipsets, flash memory, microprocessors,motherboard chipsets, network interface cards|
|Revenue||US$ 53.34 billion (2012)|
|Operating income||US$ 14.63 billion (2012)|
|Net income||US$ 11.00 billion (2012)|
|Total assets||US$ 84.35 billion (2012)|
|Total equity||US$ 51.20 billion (2012)|
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California. Intel is the world’s largest and highest valued semiconductor chip maker, based on revenue. It is the inventor of the x86 series ofmicroprocessors, the processors found in most personal computers. Intel Corporation, founded on July 18, 1968, is a portmanteau ofIntegrated Electronics (the fact that “intel” is the term for intelligence information was also quite suitable). Intel also makesmotherboard chipsets, network interface controllers and integrated circuits, 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. Though Intel was originally known primarily to engineers and technologists, its “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 1981. Although Intel created the world’s first commercial microprocessor chip in 1971, it was not until the success of the personal computer (PC) that this became its primary business. During the 1990s, Intel invested heavily in new microprocessor designs fostering the rapid growth of the computer industry. During this period Intel became the dominant supplier of microprocessors for PCs, and was known for aggressive and sometimes illegal tactics in defense of its market position, particularly against Advanced Micro Devices (AMD), as well as a struggle with Microsoft for control over the direction of the PC industry. The 2013 rankings of the world’s 100 most valuable brands published by Millward Brown Optimor showed the company’s brand value at number 61.
Intel has also begun research in electrical transmission and generation. Intel has recently introduced a 3-D transistor that improves performance and energy efficiency. Intel has begun mass-producing this 3-D transistor, named the Tri-Gate transistor, with their 22 nm process, which is currently used in their 3rd generation core processors initially released on April 29, 2012. In 2011, SpectraWatt Inc., a solar cell spinoff of Intel, filed for bankruptcy under Chapter 11. Recently Intel unveiled its brand new fourth generation Intel Core processors (Haswell) in an event named Computex in Taipei.
The Open Source Technology Center at Intel hosts PowerTOP and LatencyTOP, and supports other open-source projects such asWayland, Intel Array Building Blocks, Intel Threading Building Blocks, and Xen.
Intel was originally founded in Mountain View, California in 1968 by Gordon E. Moore (of “Moore’s Law” fame, a chemist and physicist), Robert Noyce (a physicist and co-inventor of the integrated circuit), Arthur Rock (investor and venture capitalist), and Max Palevsky. Moore and Noyce came from Fairchild Semiconductor and were Intel’s first two employees. Rock was not an employee, but he was an investor and Chairman of the Board. The total initial investment in Intel was $2.5 million convertible debentures and $10,000 from Rock. Just 2 years later, Intel completed their initial public offering (IPO), raising $6.8 million ($23.50 per share). Intel’s third employee was Andy Grove, a chemical engineer, who later ran the company through much of the 1980s and the high-growth 1990s.
Moore and Noyce initially wanted to name the company “Moore Noyce”. The name, however, was a partial homophone for “more noise” – an ill-suited name for an electronics company, since noise in electronics is usually very undesirable and typically associated with bad interference. Instead they used the name NM Electronics for almost a year, before deciding to call their company Integrated Electronics or “Intel” for short.Since “Intel” was already trademarked by the hotel chain Intelco, they had to buy the rights for the name.
At its founding, Intel was distinguished by its ability to make semiconductors. Its first product, in 1969, was the 3101 Schottky TTL bipolar 64-bitstatic random-access memory (SRAM), which was nearly twice as fast as earlier Schottky diode implementations by Fairchild and the Electrotechnical Laboratory in Tsukuba, Japan. In the same year Intel also produced the 3301 Schottky bipolar 1024-bit read-only memory (ROM) and the first commercial metal–oxide–semiconductor field-effect transistor (MOSFET) silicon gate SRAM chip, the 256-bit 1101. 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 commercially available microprocessor (Intel 4004) in 1971 and one of the first microcomputers in 1972, 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 Andrew 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. Buoyed by its fortuitous position as microprocessor supplier to IBM and IBM’s competitors within the rapidly growing personal computer market, Intel embarked on a 10-year period of unprecedented growth as the primary (and most profitable) hardware supplier to the PC industry. By launching its Intel Inside marketing campaign in 1989, Intel was able to associate brand loyalty with consumer selection, so that by the end of the 1990s, its line of Pentium processors had become a household name.
Slowing demand and challenges to dominance
After 2000, growth in demand for high-end microprocessors slowed. Competitors, notably AMD (Intel’s largest competitor in its primary x86 architecture market), garnered significant market share, initially in low-end and mid-range processors but ultimately across the product range, and Intel’s dominant position in its core market was greatly 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.
Intel had also for a number of years been embroiled in litigation. US law did not initially recognize intellectual property rights related to microprocessor topology (circuit layouts), until the Semiconductor Chip Protection Act of 1984, a law sought by Intel and the Semiconductor Industry Association (SIA). During the late 1980s and 1990s (after this law was passed) Intel also sued companies that tried to develop competitor chips to the 80386 CPU. The lawsuits were noted to significantly burden the competition with legal bills, even if Intel lost the suits. Antitrust allegations had been simmering since the early 1990s and had been the cause of one lawsuit against Intel in 1991. In 2004, AMD broughtfurther claims against Intel related to unfair competition. In 2005, AMD brought further claims.
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).
Regaining of momentum
In 2007, Intel unveiled its Core microarchitecture to widespread critical acclaim; the product range was perceived as an exceptional leap in processor performance that at a stroke regained much of its leadership of the field. In 2008, Intel had another “tick,” when it introduced the Penryn microarchitecture, which was 45 nm. Later that year, Intel released a processor with the Nehalem architecture. Nehalem had positive reviews.
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 and the assumption of unspecified liabilities. The move was intended to permit Intel to focus its resources on its core x86 and server businesses, and the acquisition completed on November 9, 2006.
On August 19, 2010, Intel announced that it planned to purchase McAfee, a manufacturer of computer security technology. The purchase price was $7.68 billion, and the companies said that if the deal were approved, new products would be released early in 2011. On January 26, 2011, the European Union approved the acquisition, after Intel agreed to provide rival security firms with all necessary information that would allow their products to use Intel’s chips and personal computers. After the acquisition, Intel had about 90,000 employees, including about 12,000 software engineers.
On August 30, 2010, Intel and Infineon Technologies announced that Intel would acquire Infineon’s Wireless Solutions business. Intel planned to use Infineon’s technology in laptops, smart phones, netbooks, tablets and embedded computers in consumer products, eventually integrating its wireless modem into Intel’s silicon chips.
In March 2011, Intel bought most of the assets of Cairo-based SySDSoft.
In July 2011, Intel announced that it had agreed to acquire Fulcrum Microsystems Inc., a company specializing in network switches. The company was previously included on the EE Times list of 60 Emerging Startups.
On October 1, 2011, Intel reached a deal to acquire Telmap, an Israeli-based navigation software company. The purchase price was not disclosed, but Israeli media reported values around $300 million to $350 million.
In July 2012, Intel Corporation agreed to buy 10 percent shares of ASML Holding NV for $2.1 billion and another $1 billon for 5 percent shares that need shareholder approval to fund relevant research and development efforts, as part of a EUR3.3 billion ($4.1 billion) deal to accelerate the development of 450-millimeter wafer technology and extreme ultra-violet lithography by as much as two years.
In July 2013, Intel confirmed the acquisition of Omek Interactive, an Israeli company that makes technology for gesture-based interfaces, without disclosing the monetary value of the deal. An official statement from Intel read: “The acquisition of Omek Interactive will help increase Intel’s capabilities in the delivery of more immersive perceptual computing experiences.” One report estimated the value of the acquisition between US$30 million and $50 million.
The acquisition of a Spanish natural language recognition startup named Indisys was announced on September 13, 2013. The terms of the deal were not disclosed but an email from an Intel representative stated: “Intel has acquired Indisys, a privately held company based in Seville, Spain. The majority of Indisys employees joined Intel. We signed the agreement to acquire the company on May 31 and the deal has been completed.” Indysis explains that its artificial intelligence (IA) technology “is a human image, which converses fluently and with common sense in multiple languages and also works in different platforms.”
|Number||Acquisition date||Company||Business||Country||Price||Used as or integrated with||Ref(s).|
|1||August 19, 2010||McAfee||Security||USA||$7.6B||Software|||
|2||August 30, 2010||Infineon||Wireless||Germany||$1.4B||Mobile CPUs|||
|3||September 29, 2011||Telmap||Software||Israel||N/A||Location Services|||
|4||April 13, 2013||Mashery||Cloud Software||USA||$180M||Software|||
|5||May 3, 2013||Aepona||SDN||Ireland||N/A||Software|||
|6||May 6, 2013||StoneSoft||Security||Finland||$389M||Software|||
|7||July 16, 2013||OMEK Interactive||Gesture||Israel||N/A||Software|||
|7||September 13, 2013||Indysis||Natural language processing||Spain||N/A||Software|||
In 2008, Intel spun off key assets of a solar startup business effort to form an independent company, SpectraWatt Inc. However, as of 2011, SpectraWatt has filed for bankruptcy.
February 2011: Intel announced plans to build a new microprocessor manufacturing facility in Chandler, Arizona, which is expected to be completed in 2013, at a cost of $5 billion. It will accommodate 4,000 employees. The company produces three-quarters of their products in the United States, although three-quarters of their revenue comes from overseas.
April 2011: Intel began a pilot project with ZTE Corporation to produce smartphones using the Intel Atom processor for China’s domestic market. This project is intended to challenge the domination of ARM processors in mobile phones.
December 2011: Intel announced that it reorganized several of its business units to form a new mobile and communications group. This group will be responsible for the company’s smartphone, tablet and wireless efforts, and will be headed by Hermann Eul and Mike Bell.
Opening up the foundries
Finding itself with excess fab capacity after the failure of the Ultrabook to gain market traction and with PC sales declining, in 2013 Intel reached a foundry agreement to produce chips for Altera using 14-nm process. General Manager of Intel’s custom foundry division Sunit Rikhi indicated that Intel would pursue further such deals in the future. This was after poor sales of Windows 8 hardware caused a major retrenchment for most of the major semiconductor manufacturers, except for Qualcomm, which continued to see healthy purchases from its largest customer, Apple.
As of July 2013, five companies will use Intel’s fabs via the Intel Custom Foundry division: Achronix, Tabula, Netronome, Microsemi, and Altera—most are FPGA makers, but Netronome designs network processors. Only Achronix began shipping chips made by Intel using the 22-nm Tri-Gate process. Several other customers also exist but were not announced at the time.
The Alliance for Affordable Internet (A4AI) was launched in October 2013 and Intel is part of the coalition of public and private organisations that also includes Facebook, Google, and Microsoft. Led by Sir Tim Berners-Lee, the A4AI seeks to make Internet access more affordable so that access is broadened in the developing world, where only 31% of people are online. Google will help to decrease internet access prices so that they fall below the UN Broadband Commission’s worldwide target of 5% of monthly income.
Product and market history
SRAMS and the microprocessor
Intel’s first products were shift register memory and random-access memory integrated circuits, and Intel grew to be a leader in the fiercely competitive DRAM, SRAM, and ROMmarkets throughout the 1970s. Concurrently, Intel engineers Marcian Hoff, Federico Faggin, Stanley Mazor and Masatoshi Shima invented Intel’s first microprocessor. Originally developed for the Japanese company Busicom to replace a number of ASICs in a calculator already produced by Busicom, the Intel 4004 was introduced to the mass market on November 15, 1971, though the microprocessor did not become the core of Intel’s business until the mid-1980s. (Note: Intel is usually given credit with Texas Instruments for the almost-simultaneous invention of the microprocessor)
From DRAM to microprocessors
In 1983, at the dawn of the personal computer era, Intel’s profits came under increased pressure from Japanese memory-chip manufacturers, and then-president Andy Grove focused the company on microprocessors. Grove described this transition in the book Only the Paranoid Survive. A key element of his plan was the notion, then considered radical, of becoming the single source for successors to the popular 8086 microprocessor.
Until then, the manufacture of complex integrated circuits was not reliable enough for customers to depend on a single supplier, but Grove began producing processors in three geographically distinct factories, and ceased licensing the chip designs to competitors such as Zilog and AMD. When the PC industry boomed in the late 1980s and 1990s, Intel was one of the primary beneficiaries.
Intel, x86 processors, and the IBM PC
Despite the ultimate importance of the microprocessor, the 4004 and its successors the 8008 and the 8080 were never major revenue contributors at Intel. As the next processor, the 8086 (and its variant the 8088) was completed in 1978, Intel embarked on a major marketing and sales campaign for that chip nicknamed “Operation Crush”, and intended to win as many customers for the processor as possible. One design win was the newly created IBM PC division, though the importance of this was not fully realized at the time.
IBM introduced its personal computer in 1981, and it was rapidly successful. In 1982, Intel created the 80286 microprocessor, which, two years later, was used in the IBM PC/AT. Compaq, the first IBM PC “clone” manufacturer, produced a desktop system based on the faster 80286 processor in 1985 and in 1986 quickly followed with the first 80386-based system, beating IBM and establishing a competitive market for PC-compatible systems and setting up Intel as a key component supplier.
In 1975 the company had started a project to develop a highly advanced 32-bit microprocessor, finally released in 1981 as the Intel iAPX 432. The project was too ambitious and the processor was never able to meet its performance objectives, and it failed in the marketplace. Intel extended the x86 architecture to 32 bits instead.
During this period Andrew Grove dramatically redirected the company, closing much of its DRAM business and directing resources to the microprocessor business. Of perhaps greater importance was his decision to “single-source” the 386 microprocessor. Prior to this, microprocessor manufacturing was in its infancy, and manufacturing problems frequently reduced or stopped production, interrupting supplies to customers. To mitigate this risk, these customers typically insisted that multiple manufacturers produce chips they could use to ensure a consistent supply. The 8080 and 8086-series microprocessors were produced by several companies, notably AMD. Grove made the decision not to license the 386 design to other manufacturers, instead producing it in three geographically distinct factories: Santa Clara, California; Hillsboro, Oregon; and Chandler, a suburb of Phoenix, Arizona. He convinced customers that this would ensure consistent delivery. As the success of Compaq’s Deskpro 386 established the 386 as the dominant CPU choice, Intel achieved a position of near-exclusive dominance as its supplier. Profits from this funded rapid development of both higher-performance chip designs and higher-performance manufacturing capabilities, propelling Intel to a position of unquestioned leadership by the early 1990s.
486, Pentium, and Itanium
Intel introduced the 486 microprocessor in 1989, and in 1990 formally established a second design team, designing the processors code-named “P5” and “P6” in parallel and committing to a major new processor every two years, versus the four or more years such designs had previously taken. Vinod Dham & team including Rajeev Chandrasekhar(Member of Parliament, India) were part of the architecture teams that invented the 486 chip & later, Intel’s signature Pentium chip. The P5 was earlier known as “Operation Bicycle,” referring to the cycles of the processor. The P5 was introduced in 1993 as the Intel Pentium, substituting a registered trademark name for the former part number (numbers, such as 486, are hard to register as a trademark). The P6 followed in 1995 as the Pentium Pro and improved into the Pentium II in 1997. New architectures were developed alternately in Santa Clara, California and Hillsboro, Oregon.
The Santa Clara design team embarked in 1993 on a successor to the x86 architecture, codenamed “P7”. The first attempt was dropped a year later, but quickly revived in a cooperative program with Hewlett-Packard engineers, though Intel soon took over primary design responsibility. The resulting implementation of the IA-64 64-bit architecture was theItanium, finally introduced in June 2001. The Itanium’s performance running legacy x86 code did not meet expectations, and it failed to compete effectively with x86-64, which was AMD’s 64-bit extensions to the original x86 architecture (Intel uses the name Intel 64, previously EM64T). As of 2012, Intel continues to develop and deploy the Itanium; known planning continues into 2014.
The Hillsboro team designed the Willamette processors (initially code-named P68), which were marketed as the Pentium 4.[