International Directory of Company Histories

Public Company Incorporated: 1968 as N M Electronics Employees: 70,200 Sales: $34.21 billion (2004) Stock Exchanges: NASDAQ Ticker Symbol: INTC NAIC: 334413 Semiconductor and Related Device Manufacturing; 334210 Telephone Apparatus Manufacturing

Intel Corporation is the largest semiconductor manufacturer in the world, with 11 fabrication facilities and six assembly and test facilities around the world. Intel has changed the global marketplace dramatically since it was founded in 1968; the company invented the microprocessor, the "computer on a chip" that made possible the first handheld calculators and personal computers (PCs). By the early 21st century, Intel's microprocessors were found in approximately 80 percent of PCs worldwide. The company's product line also includes chipsets and motherboards; flash memory used in wireless communications and other applications; networking devices and equipment for accessing the Internet, local area networks, and home networks; and embedded control microchips used in networking products, laser printers, factory automation instruments, cellular phone base stations, and other applications. Intel has remained competitive through a combination of clever marketing, well-supported research and development, superior manufacturing proficiency, a vital corporate culture, prowess in legal matters, and an ongoing alliance with software giant Microsoft Corporation often referred to as "Wintel."

1968–79: From DRAM to the 8086

Intel's founders, Robert Noyce and Gordon Moore, were among the eight founders of Fairchild Semiconductor Corporation, established in 1957. While at Fairchild, Noyce and Moore invented the integrated circuit; in 1968, they decided to form their own company. They were soon joined by Andrew Grove, a Hungarian refugee who had arrived in the United States in 1956 and joined Fairchild in 1963. Grove would remain president and CEO of Intel into the 1990s.

To obtain start-up capital, Noyce and Moore approached Arthur Rock, a venture capitalist, with a one-page business plan simply stating their intention of developing large-scale integrated circuits. Rock, who had helped start Fairchild Semiconductor, as well as Teledyne and Scientific Data Systems, had confidence in Noyce and Moore and provided $3 million in capital. The company was incorporated on July 18, 1968, as N M Electronics (the letters standing for Noyce Moore), but quickly changed its name to Intel, formed from the first syllables of "integrated electronics." Intel gathered another $2 million in capital before going public in 1971.

Noyce and Moore's scanty business proposal belied a clear plan to produce large-scale integrated (LSI) semiconductor memories. At that time, semiconductor memories were ten times more expensive than standard magnetic core memories. Costs were falling, however, and Intel's founders surmised that with the greater speed and efficiency of LSI technology, semi-conductors would soon replace magnetic cores. Within a few months of its startup, Intel produced the 3101 Schottky bipolar memory, a high-speed random access memory (RAM) chip. The 3101 proved popular enough to sustain the company until the 1101, a metal oxide semiconductor (MOS) chip, was perfected and introduced in 1969. The following year, Intel introduced the 1103, a 1-kilobyte (K) dynamic RAM, or DRAM, which was the first chip large enough to store a significant amount of information. With the 1103, Intel finally had a chip that really did begin to replace magnetic cores; DRAMs eventually proved indispensable to the personal computer.

Although Intel initially focused on the microprocessor as a computer enhancement that would allow users to add more memory to their units, the microprocessor's great potential—for everything from calculators to cash registers and traffic lights—soon became clear. The applications were facilitated by Intel's introduction of the 8008, an 8-bit microprocessor developed along with the 4004 but oriented toward data and character (rather than arithmetic) manipulation. The 8080, introduced in 1974, was the first truly general purpose microprocessor. For $360, Intel sold a whole computer on one chip, while conventional computers sold for thousands of dollars. The response was overwhelming. The 8080 soon became the industry standard and Intel the industry leader in the 8-bit market.

In response to ensuing competition in the manufacture of 8-bit microprocessors, Intel introduced the 8085, a faster chip with more functions. The company was also developing two more advanced projects, the 32-bit 432 and the 16-bit 8086. The 8086 was introduced in 1978 but took two years to achieve wide use, and, during this time, Motorola, Inc. produced a competing chip (the 68000) that seemed to be selling faster. Intel responded with a massive sales effort to establish its architecture as the standard. When International Business Machines Corporation (IBM) chose the 8008, the 8086's 8-bit cousin, for its personal computer in 1980, Intel seemed to have beat out the competition.

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