Intel was an early developer of SRAM and DRAM memory chips, and this represented the majority of its business until the early 1980s. While Intel created the first commercial microprocessor chip in 1971, it was not until the success of the personal computer (PC) that this became their primary business. During the 1990s, Intel invested heavily in new microprocessor designs and in fostering the rapid growth of the PC industry. During this period Intel became the dominant supplier of microprocessors for PCs, and was known for aggressive and sometimes controversial tactics in defense of its market position, as well as a struggle with Microsoft for control over the direction of the PC industry.[5][6] The 2007 rankings of the world's 100 most powerful brands published by Millward Brown Optimor showed the company's brand value falling 10 places – from number 15 to number 25.[7]
In addition to its work in semiconductors, Intel has begun research in electrical transmission and generation.[8][9]
Origin of the name
At its founding, Gordon Moore and Robert Noyce wanted to name their new company "Moore Noyce". The name, however, sounded remarkably similar to "more noise" — an ill-suited name for an electronics company, since noise is typically associated with bad interference. They then used the name NM Electronics for almost a year, before deciding to call their company INTegrated ELectronics or "Intel" for short. However, Intel was already trademarked by a hotel chain, so they had to buy the rights for that name at the beginning.[11]
[edit] Company's evolution
Intel has grown through several distinct phases. At its founding, Intel was distinguished simply by its ability to make semiconductors, and its primary products were static random access memory (SRAM) chips. 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 microprocessor (Intel 4004) in 1971 and one of the first microcomputers in 1972,[12][13] 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, and the sudden success of the IBM personal computer convinced then-CEO Grove to shift the company's focus to microprocessors, and to change fundamental aspects of that business model. By the end of the 1980s this decision had proven successful, and Intel embarked on a 10-year period of unprecedented growth as the primary (and most profitable) hardware supplier to the PC industry.
After 2000, growth in demand for high-end microprocessors slowed and competitors garnered significant market share, initially in low-end and mid-range processors but ultimately across the product range, and Intel's dominant position was 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.
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) which led to the hiring of over 20,000 new employees. In September 2006 due to falling profits, the company announced a restructuring that resulted in layoffs of 10,500 employees or about 10 percent of its workforce by July 2006. Its research lab located at Cambridge University was closed at the end of 2006.
[edit] Sale of XScale processor business
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 in cash and the assumption of unspecified liabilities. The move is intended to permit Intel to focus its resources on its core x86 and server businesses. The acquisition was completed on November 9, 2006.[14]
