Competitive Strategies of Intel & Amd

Topics: X86, Microprocessor, Intel Corporation Pages: 25 (9785 words) Published: August 6, 2010



We live in a digital age. Music, video, phone calls, information creation and information consumption are all, by and large, done digitally. A huge proportion of this happens on the Internet. People use the Internet and its content via computers: As Internet content becomes more sophisticated with, for example, film, music and podcasts, more computing power is needed. The computer chips inside computers need to keep pace with that demand. Intel is best known for producing the chips that deliver this increased computing power. Computer chips are essentially collections of transistors - tiny electronic devices that control the flow of electricity to create the 1s and 0s that underpin computing. Intel is the world’s leader in silicon innovation. Silicon is made from purified sand that is super-heated. Produced as a huge sausage-like shape called an ingot, it is sliced into wafers. The chips are manufactured on these wafers. Transistors are the building blocks of computer chips that Intel has been making for 40 years. Intel has been working to make these transistors smaller so that more of them could be fitted onto the same area of silicon, making the chips more powerful. This came at a price. Until recently, the smaller the transistors, the hotter the chips tended to run. In 2007 Intel developed a breakthrough in the materials used to construct the transistors. Not only can these transistors work faster, they can also do this while generating less heat. Intel has started to use this new material for its latest generation of processors. These are made from transistors only 45 nanometres in size. This means over 2,000 of them could fit on the full stop at the end of this sentence. A 45 nanometer transistor can switch on and off approximately 300 billion times a second. A beam of light travels less than a tenth of an inch during the time it takes a 45nm transistor to switch on and off. INTEL

Intel began in 1968. It was founded by Gordon E. Moore who is also a physicist and chemist. He was accompanied by Robert Noyce, also a fellow physicist and co-creator of integrated circuitry, after they both had left Fairchild Semiconductor. During the 1980’s Intel was run by a chemical engineer by the name of Andy Grove, who was the third member of the original Intel family. Many other Fairchild employees participated in other Silicon Valley companies. Andy Grove today is considered to be one of the company’s essential business and strategic leaders. As the 1990’s concluded, Intel had become one of the largest and by far the most successful businesses in the entire world. Intel has gone through many faces and phases. In the beginning Intel was set apart by its ability primarily to create memory chips or SRAM.  When the firm was founded, Gordon Moore and Robert Noyce had the idea to name their company Moore Noyce. However when the name is spoken it is heard as “More Noise” This idea was quickly abandoned and the pursuit of a more suitable name – one which was not associated with a bad interface. The name NM Electronics was shortly thereafter chosen and used for nearly a year, when the company experienced a name change to Integrated Electronics, or INTEL for short. The rights to the name however had to be purchased as it was already in use by a fairly well known hotel chain. Though Intel had mastered the first microprocessor called the Intel 4004 in 1971 and also one of the world’s very first microcomputers in 1972, in the early 80’s the focus was primarily on Random Access Memory chips. A new client in the early 70’s from Japan wanted to enlist the services of Intel to design twelve chips for their calculators. Knowing that they did not have the manpower or the resources to complete this job effectively, Ted...
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