Intel
Intel: Strategic Decisions in Locating a New Assembly and Testing Plan Intel was founded in Mountain View, CA in 1968 by Robert Noyce and Gordon Moore, two physicists who worked at a San Jose-based Fairchild Semiconductors. Intel, which stands for “Integrated Electronics”, began producing semiconductors.
Company timeline
1970 – Created the first commercially available dynamic random access memory (DRAM) chip
1971 – Produced the first commercially available microprocessor, moved their HQ to Santa Clara, CA and went public raising $6.8 million.
1972 – Opened an assembly plant in Malaysia, their first operations outside the US
1979 – Andy Grove, who had been with the company since its founding, was named president
1983 – The company recorded $1 billion in annual revenue
1987 – Andy Grove named CEO
1991 – Debuted the famous “Intel Inside” marketing campaign
1997 – Andy Grove steps down as CEO. Under Grove the company’s revenue grew more than sevenfold and the stock appreciated more than 1,600%
1998 – Craig Barrett named CEO
2003 – Transitioned from manufacturing 200mm to 300mm wafers
2005 – Barrett becomes Chairman of the Board and Paul Ottelini named CEO
By 2005 Intel had become the largest semiconductor manufacturer in the world supplying about 80% of the central processing units (CPU’s) used in PC’s, workstations and servers which accounted for 90% of the company’s revenue. By 2005, the semiconductor industry generated approximately $226 billion in revenue worldwide and was expected to hit $300 billion by 2008. Dell (19% of total revenue) and Hewlett-Packard (16%) were Intel’s largest customers. Intel’s competitive advantage consists on introducing faster and better microchips with its high-paced innovation making the competition perpetually one step behind their technology.
Microprocessor manufacturing There are 2 types of plants used in the manufacturing of microprocessors - Fabrication Plants (aka “fabs”) and Assembly and Testing (AT) plants. Much of the
Company timeline
1970 – Created the first commercially available dynamic random access memory (DRAM) chip
1971 – Produced the first commercially available microprocessor, moved their HQ to Santa Clara, CA and went public raising $6.8 million.
1972 – Opened an assembly plant in Malaysia, their first operations outside the US
1979 – Andy Grove, who had been with the company since its founding, was named president
1983 – The company recorded $1 billion in annual revenue
1987 – Andy Grove named CEO
1991 – Debuted the famous “Intel Inside” marketing campaign
1997 – Andy Grove steps down as CEO. Under Grove the company’s revenue grew more than sevenfold and the stock appreciated more than 1,600%
1998 – Craig Barrett named CEO
2003 – Transitioned from manufacturing 200mm to 300mm wafers
2005 – Barrett becomes Chairman of the Board and Paul Ottelini named CEO
By 2005 Intel had become the largest semiconductor manufacturer in the world supplying about 80% of the central processing units (CPU’s) used in PC’s, workstations and servers which accounted for 90% of the company’s revenue. By 2005, the semiconductor industry generated approximately $226 billion in revenue worldwide and was expected to hit $300 billion by 2008. Dell (19% of total revenue) and Hewlett-Packard (16%) were Intel’s largest customers. Intel’s competitive advantage consists on introducing faster and better microchips with its high-paced innovation making the competition perpetually one step behind their technology.
Microprocessor manufacturing There are 2 types of plants used in the manufacturing of microprocessors - Fabrication Plants (aka “fabs”) and Assembly and Testing (AT) plants. Much of the