Intel Inside

Essay by jojojojojojojojojoUniversity, Master'sA+, January 2007

download word file, 17 pages 4.3

Part A - The Intel Corporation

1. The history of Intel

Intel was founded in 1968 by Robert Noyce and Gordon Moore, both pioneers in the semiconductor industry at Fairchild Semiconductor. The initial goal of the company was to develop memory products based on semiconductor technology. In 1969, Intel introduced a 256-bit static random access memory (SRAM); this was followed in 1970 by the first 1 K dynamic random access memory (DRAM). By 1972, Intel's DRAM was the largest selling semiconductor memory product in the world. Intel's leadership in technology was firmly established after it invented the world's first microprocessor and erasable-programmable read-only-memory (EPROM). Intel invented 16 of the 22 major breakthroughs in microelectronics between 1971 and 1981.

However in the early 1980s, Intel's revolutionary breakthroughs slowed and the company began to make some mistakes. Between 1985 and early 1987, the company retrenched as the global semiconductor industry experienced its worst depression in 40 years.

2. Internal analysis

As mentioned above, the initial goals of Intel was to develop memory products based on semiconductor technology. However because of the depression that the company had to face in 1980s, their mission is to maintain its leadership position in the microprocessor industry.

2.1 Financial situation

Despite difficult market conditions in recent years, from 1994 to 1998 the company's net revenues increased from $2,644.9 million to $4,247.8 million, representing a compound annual growth rate of 12.6%. Such revenue gains were achieved despite the Company's absence from the market for DRAMs (a commodity memory product) and, until the second half of 1994, from the market for personal computer microprocessors (such as the x86 family of products). According to trade association data, the TAM increased from $101.9 billion in 1994 to $125.6 billion in 1998, representing a compound annual growth rate of 5.4%,

2.2 Assortment...