This article is about the company. For the information gathering term, see Intelligence assessment. For other uses, see Intel (disambiguation).
This article needs to be updated. Please update this article to reflect recent events or newly available information.(May 2017)
Coordinates: 37°23′16.54″N121°57′48.74″W / 37.3879278°N 121.9635389°W / 37.3879278; -121.9635389
Intel Corporation's current logo, used since 2006
Intel's headquarters in Santa Clara, California
|N M Electronics (1968)|
|Founded||July 18, 1968; 49 years ago (1968-07-18)|
|Headquarters||Santa Clara, California, U.S.|
|Products||Central processing units|
Integrated graphics processing units (iGPU)
Network interface controllers
Solid state drives
Wi-Fi and BluetoothChipsets
Vehicle automation sensors
|Revenue||US$62.76 billion (2017)|
|US$17.93 billion (2017)|
|US$9.601 billion (2017)|
|Total assets||US$123.2 billion (2017)|
|Total equity||US$69.01 billion (2017)|
Number of employees
|Subsidiaries||Mobileye, McAfee, Here, Wind River Systems|
Intel Corporation (also known as Intel, stylized as intel) is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world's second largest and second highest valued semiconductor chip makers based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboardchipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
Intel Corporation was founded on July 18, 1968, by semiconductor pioneers Robert Noyce and Gordon Moore (of Moore's law fame), and widely associated with the executive leadership and vision of Andrew Grove. The company's name was conceived as portmanteau of the words integrated and electronics, with co-founder Noyce having been a key inventor of the integrated circuit (microchip). The fact that "intel" is the term for intelligence information also made the name appropriate. Intel was an early developer of SRAM and DRAM memory chips, which 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 anti-competitive tactics in defense of its market position, particularly against AMD (Advanced Micro Devices) , as well as a struggle with Microsoft for control over the direction of the PC industry.
The Open Source Technology Center at Intel hosts PowerTOP and LatencyTOP, and supports other open-source projects such as Wayland, Intel Array Building Blocks, and Threading Building Blocks (TBB), and Xen.
- Client Computing Group – 55% of 2016 revenues – produces hardware components used in desktop and notebook computers.
- Data Center Group – 29% of 2016 revenues – produces hardware components used in server, network, and storage platforms.
- Internet of Things Group – 5% of 2016 revenues – offers platforms designed for retail, transportation, industrial, buildings and home use.
- Non-Volatile Memory Solutions Group – 4% of 2016 revenues – manufactures NAND flash memory and 3D XPoint, branded as Optane, products primarily used in solid-state drives.
- Intel Security Group – 4% of 2016 revenues – produces software, particularly security, and antivirus software.
- Programmable Solutions Group – 3% of 2016 revenues – manufactures programmable semiconductors (primarily FPGAs).
In 2016, Dell accounted for 15% of Intel's total revenues, Lenovo accounted for 13% of total revenues, and HP Inc. accounted for 11% of total revenues.
Market share in early 2011
According to IDC, while Intel enjoyed the biggest market share in both the overall worldwide PC microprocessor market (79.3%) and the mobile PC microprocessor (84.4%) in the second quarter of 2011, the numbers decreased by 1.5% and 1.9% compared to the first quarter of 2011.
Historical market share
In the 1980s, Intel was among the top ten sellers of semiconductors (10th in 1987) in the world. In 1992, Intel became the biggest chip maker by revenue and has held the position ever since. Other top semiconductor companies include TSMC, Advanced Micro Devices, Samsung, Texas Instruments, Toshiba and STMicroelectronics.
Competitors in PC chipsets include Advanced Micro Devices, VIA Technologies, Silicon Integrated Systems, and Nvidia. Intel's competitors in networking include NXP Semiconductors, Infineon, Broadcom Limited, Marvell Technology Group and Applied Micro Circuits Corporation, and competitors in flash memory include Spansion, Samsung, Qimonda, Toshiba, STMicroelectronics, and SK Hynix.
The only major competitor in the x86 processor market is Advanced Micro Devices (AMD), with which Intel has had full cross-licensing agreements since 1976: each partner can use the other's patented technological innovations without charge after a certain time. However, the cross-licensing agreement is canceled in the event of an AMD bankruptcy or takeover.
Some smaller competitors such as VIA Technologies produce low-powerx86 processors for small factor computers and portable equipment. However, the advent of such mobile computing devices, in particular, smartphones, has in recent years led to a decline in PC sales. Since over 95% of the world's smartphones currently use processors designed by ARM Holdings, ARM has become a major competitor for Intel's processor market. ARM is also planning to make inroads into the PC and server market.
Intel has been involved in several disputes regarding violation of antitrust laws, which are noted below.
Further information: Timeline of Intel
Intel was founded in Mountain View, California in 1968 by Gordon E. Moore (of "Moore's law" fame), a chemist, and Robert Noyce, a physicist and co-inventor of the integrated circuit. Arthur Rock (investor and venture capitalist) helped them find investors, while Max Palevsky was on the board from an early stage. Moore and Noyce had left Fairchild Semiconductor to found Intel. Rock was not an employee, but he was an investor and was 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 became a public company via an 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.
In deciding on a name, Moore and Noyce quickly rejected "Moore Noyce",homophone for "more noise" – an ill-suited name for an electronics company, since noise in electronics is usually undesirable and typically associated with bad interference. Instead, they founded the company as N M Electronics on July 18, 1968 but by the end of the month had changed the name to Intel which stood for Integrated Electronics. 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 logic circuits using semiconductor devices. The founders' goal was the semiconductor memory market, widely predicted to replace magnetic-core memory. Its first product, a quick entry into the small, high-speed memory market in 1969, was the 3101 Schottky TTLbipolar 64-bit static 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. While the 1101 was a significant advance, its complex static cell structure made it too slow and costly for mainframe memories. The three-transistor cell implemented in the first commercially available dynamic random-access memory (DRAM), the 1103 released in 1970, solved these issues. The 1103 was the bestselling semiconductor memory chip in the world by 1972, as it replaced core memory in many applications. 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. The growing success of the IBM personal computer, based on an Intel microprocessor, was among factors that convinced Gordon Moore (CEO since 1975) to shift the company's focus to microprocessors and to change fundamental aspects of that business model. Moore's decision to sole-source Intel's 386 chip played into the company's continuing success. The development of the micro-processor by Intel, (1971): The micro-processor represented a notable advance in the technology of integrated circuitry. A micro-processor miniaturized the central processing unit of a computer. Which then made it possible for small machines to perform calculations that in the past only very large machines could do. Considerable technological innovation was needed before the micro-processor could actually become the basis of what was first known as a "mini computer" and then known as a "personal computer".
By the end of the 1980s, 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, part of the winning 'Wintel' combination. Moore handed over to Andy Grove in 1987. By launching its Intel Inside marketing campaign in 1991, 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 in 2000
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 80386CPU. 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 and 2005, AMD brought further claims against Intel related to unfair competition.
Regaining of momentum (2005–2007)
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).
In 2006, 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 (2006)
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.
In 2010, Intel purchased McAfee, a manufacturer of computer security technology for $7.68 billion. As a condition for regulatory approval of the transaction, 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. In September 2016, Intel sold a majority stake in its computer-security unit to TPG, reversing the five-year-old McAfee acquisition.
In August 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 used to be included on the EE Times list of 60 Emerging Startups.
In October 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 agreed to buy 10% of the shares of ASML Holding NV for $2.1 billion and another $1 billion for 5% of the 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, Indisys was announced in September 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 (AI) technology "is a human image, which converses fluently and with common sense in multiple languages and also works in different platforms."
In December 2014, Intel bought PasswordBox.
In January 2015, Intel purchased a 30% stake in Vuzix, a smart glasses manufacturer. The deal was worth $24.8 million.
In February 2015, Intel announced its agreement to purchase German network chipmaker Lantiq, to aid in its expansion of its range of chips in devices with Internet connection capability.
In June 2015, Intel announced its agreement to purchase FPGA design company Altera for $16.7 billion, in its largest acquisition to date. The acquisition completed in December 2015.
In October 2015, Intel bought cognitive computing company Saffron Technology for an undisclosed price.
In August 2016, Intel purchased deep-learning startup Nervana Systems for $350 million.
In March 2017, Intel announced that they had agreed to purchase Mobileye, an Israeli developer of "autonomous driving" systems for US$15.3 billion.
In June 2017, Intel Corporation has announced an investment of over Rs.1100 crore ($170 million) for its upcoming Research and Development (R&D) centre in Bangalore.
Acquisition table (2010–present)
|Number||Acquisition announcement date||Company||Business||Country||Price||Used as or integrated with||Ref(s).|
|1||000000002009-06-04-0000June 4, 2009||Wind River Systems||Embedded Systems||US||$884M||Software|||
|2||000000002010-08-19-0000August 19, 2010||McAfee||Security||US||$7.6B||Software|||
|3||000000002010-08-30-0000August 30, 2010||Infineon (partial)||Wireless||Germany||$1.4B||Mobile CPUs|||
|4||000000002011-03-17-0000March 17, 2011||Silicon Hive||DSP||Netherlands||N/A||Mobile CPUs|||
|5||000000002011-09-29-0000September 29, 2011||Telmap||Software||Israel||N/A||Location Services|||
|6||000000002013-04-13-0000April 13, 2013||Mashery||API Management||US||$180M||Software|||
|7||000000002013-05-03-0000May 3, 2013||Aepona||SDN||Ireland||N/A||Software|||
|8||000000002013-05-06-0000May 6, 2013||Stonesoft Corporation||Security||Finland||$389M||Software|||
|9||000000002013-07-16-0000July 16, 2013||Omek Interactive||Gesture||Israel||N/A||Software|||
|10||000000002013-09-13-0000September 13, 2013||Indisys||Natural language processing||Spain||N/A||Software|||
|11||000000002014-03-25-0000March 25, 2014||BASIS||Wearable||US||N/A||New Devices|||
|12||000000002014-08-13-0000August 13, 2014||Avago Technologies (partial)||Semiconductor||US||$650M||Communications Processors|||
|13||000000002014-12-01-0000December 1, 2014||PasswordBox||Security||Canada||N/A||Software|||
|14||000000002015-01-05-0000January 5, 2015||Vuzix||Wearable||US||$24.8M||New Devices|||
|15||000000002015-02-02-0000February 2, 2015||Lantiq||Telecom||Germany||undisclosed||Gateways|||
|16||000000002015-06-01-0000June 1, 2015||Altera||Semiconductor||US||$16.7B||FPGA|||
|17||000000002015-06-18-0000June 18, 2015||Recon||Wearable||US||$175M||New Devices|||
|18||000000002015-10-26-0000October 26, 2015||Saffron Technology||Cognitive computing||US||undisclosed||Software|||
|19||000000002016-01-04-0000January 4, 2016||Ascending Technologies||UAVs||Germany||undisclosed||New Technology|||
|20||March 9, 2016||Replay Technologies||Video technology||Israel||undisclosed||3D video technology|||
|21||April 5, 2016||Yogitech||IoT security and Advanced Driver Assistance Systems.||Italy||undisclosed||Software|||
|22||August 9, 2016||Nervana Systems||Machine learning technology||US||$350M||New Technology|||
|23||Sept 6, 2016||Movidius||Computer Vision||Ireland||undisclosed||New Technology|||
|24||March 16, 2017||MobilEye||Autonomous vehicle technology||Israel||$15B||Self driving technology|
In 2008, Intel spun off key assets of a solar startup business effort to form an independent company, SpectraWatt Inc. In 2011, SpectraWatt filed for bankruptcy.
In February 2011, Intel began to build a new microprocessor manufacturing facility in Chandler, Arizona, completed in 2013 at a cost of $5 billion. The building was never used. The company produces three-quarters of its products in the United States, although three-quarters of its revenue come from overseas.
In April 2011, Intel began a pilot project with ZTE Corporation to produce smartphones using the Intel Atom processor for China's domestic market.
In December 2011, Intel announced that it reorganized several of its business units into a new mobile and communications group be responsible for the company's smartphone, tablet, and wireless efforts.
Opening up the foundries to other manufacturers (2013)
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 were using Intel's fabs via the Intel Custom Foundry division: Achronix, Tabula, Netronome, Microsemi, and Panasonic – most are field-programmable gate array (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 ROM markets 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.
Digital wallet platform Paytm has indeed come a long way since its beginnings as a recharge platform to a payments bank. And interestingly, the startup’s journey would now be part of a documented case study at the India Research Center, Harvard Business School, the company said.
The cornerstone of the study is the Paytm’s successful journey from being an online recharge platform to building India’s largest mobile payments platform. The study titled ‘Paytm: Building a Payments Network’ will be available for academic purposes both within and outside Harvard.
Besides, it would also focus on Paytm’s offline expansion, the proliferation of wallet-based payments, it’s adoption of various methods to transfer digital cash, including using QR (Quick Response) code.
“Paytm is revolutionising payments in India and it is a shining example of India’s digital future,” said Professor Sunil Gupta, one of the authors of the study and Edward W. Carter Professor of Business Administration and Chair of the General Management Program at HBS.
Earlier, Harvard had included Flipkart’s strategy of branching Ekart as a separate business. One of the other more popular Harvard case studies is the story of the Mumbai Dabbawalas.
“We are on a mission to bring half a billion Indians to the mainstream economy and in turn build a business that India would be proud of. For us, the journey to enable fellow countrymen with digital payments and become a part of financial inclusion has only started right now. It is truly a privilege to have it become a part of the curriculum offered by the prestigious institute,” said Vijay Shekhar Sharma, CEO of Paytm.
Post demonetization and amidst a bigger push for the digital economy, Paytm has seen windfall gains and has been leaving no stones unturned to reap maximum benefits from it.