Intel

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Intel.JPG
Type: Public
Industry: Semi-coductors
Founded: July 18, 1968
Founder(s): Gordon Moore & Robert Noyce
Headquarters: Santa Clara, California
Country: USA
Employees: 82,500 as of 2010[1]
Revenue: $43.623 billion as of 2010 [2]
Website: www.intel.com
Key People
Paul Otellini, President & CEO
Jane Shaw, Chairman

Intel Corporation is the the world's largest semiconductor manufacturer and the inventor of the first microprocessor. Eighty percent of computers worldwide use Intel microchips. The company also designs and manufactures other advance computing and communications components including flash memory, graphic chips, embedded processors, motherboard chip sets, network interface controllers and integrated circuits. Intel was established in 1968 and its headquarters is located in Santa Clara, California.[3]

Timeline

Below are significant events about Intel based on the company's corporate timeline.[4]

  • 1968- Intel was originally founded by Bob Noyce and Gordon Moore as NM Electronics on July 16, 1968. NM Electronics was later changed to Intel, which stands for "Integrated Electronics" after the corporation purchased the name rights of Intelco.Venture Capitalist Arthur Rock contributed and raised more than $2.5 million in capital for Intel and became Chairman of the company.
  • 1969- Intel launched the first metal oxide semiconductor, MOS 1101 and the company logo. Its first product was introduced to the market, the 3101 Schottky bipolar random access memory (RAM).
  • 1970-1103 DRAM was released as the standard compute memory for the computer industry
  • 1971- The company went public and offered its stock at $23.50 per share
  • 1972- The first international manufacturing facility in Penang, Malaysia was opened and released the first 8-bit microprocessor 8008.
  • 1973- The developed P/LM, the first high level language for microprocessors and introduced the intellec 4-40 software development tool
  • 1974- Introduces Intel 8080 microprocessor
  • 1975- Intel 8080 was used in the Altair 8800, one of the first personal computers developed. The company also launched ICE-80, the worlds first in circuit emulator and Intellec Model 800, a disk based system
  • 1976- ISBc 80/10, the first single board computer was launched and the first microcontrollers, 8748 and 8048 featuring a combination of central processor with memory, peripherals, and input-output functions on a single piece of silicon
  • 1977- the single chip codec (coder/decoder) 2910 was launched and became the standard for the telecommunications industry
  • 1978- Intel 16-bit microprocessor was introduced
  • 1979- Bob Noyce received the National Medal of Science from President Jimmy Carter
  • 1980- Intel 8051 and 8751 became world's best selling micro-controllers
  • 1981- The Intel 8088 microprocessor was chosen by IBM to power their personal computers
  • 1983- Bob Noyce was inducted into the Inventors Hall of Fame and the company reached $1 billion in annual revenue
  • 1985- Intel entered the parallel super computer business, introduced iPSC/1 with multiple Intel 286 microprocessor capable of solving problems simultaneously.
  • 1987- iPSC/2, the second generation super computer was released with Intel386 microprocessors and Intel 80387 math coprocessors
  • 1988- Intel entered the flash memory business and introduced ETOX (Eprom Tunnel Oxide) technology
  • 1989- Intel i860 processor with 1 million transistors for scientific & supercomputer applications was launched
  • 1990- Bob Noyce died of heart attack
  • 1991- The Intel Inside logo was launched
  • 1992- Data Quest declared Intel as the world's largest semiconductor supplier
  • 1993- Financial World ranks Intel as the world's 3rd most valuable company. The Intel Pentium processor was also introduced
  • 1994- LANDesk Manager was released, which allows software distribution, virus protection, remote diagnosis and other computer network functions
  • 1995- First real time space teleconferencing was conducted by astronauts on board Space Shuttle Endeavor using the Intel Pro Share Video Conferencing Technology
  • 1996- A parallel supercomputer was developed by Intel and Sandia National Laboratory, which runs on one trillion floating point operations per seconds
  • 1997- Andy Grove was named Time Magazine's "Man of the Year"
  • 1998- The company launched Intel Celeron Pentium II Xeon Process
  • 1999- Intel joined Dow Jones
  • 2000- Intel Pentium 4 processor, Intel XScale micro-architecture & Intel Pro Wireless LAN PC Cards were released in the market
  • 2001- The company starts working on extreme ultra violet (EUV) lithography as key technology in making smaller semiconductors in the future
  • 2002- Intel released its first chip using 0.13 micron technology
  • 2003- Intel PXA 800F cellular processor microchip, a key component of cellphone and handheld pc on a single piece silicon was released
  • 2004- Intel PRO/Wireless 1915ABG Network Connection Wireless Module for Intel Centrino processor technology based notebooks was released and became an IEEE standard 802.11, a, b & g
  • 2005- Gordon Moore created the Moore's Laws which states, "The numbers of transistors incorporated in a chip will approximately double every 24 months."
  • 2006- Intel launched the Intel Centrino Dou mobile technology, Intel viiv technology & Intel Core 2 Duo Processor
  • 2007- Intel Processor based Classmate PC, a kid-friendly affordable rugged PC designed for children in remote regions
  • 2009- The company opened its Design Center in Haifa, Israel
  • 2010- The United States Environmental Protection Agency confirmed that Intel is the largest buyer of green power

Acquisitions

As of 2010, Intel acquired the following assets:

  • McAfee- a computer security technology company- $7.68 billion transaction[5]
  • Infineon Technologies WLS- a standalone wireless business unit which makes baseband processors, radio-frequency (RF) transceivers, power management integrated circuits and system software, $1.4 billion transaction[6]
  • SYSDSoft- an Egyptian 4G Wireless company which designs software for wireless, mobile platforms such as WiMax, Wi-Fi, Bluetooth, Wireless USB, CDMA-DO and LTE related technologies, transaction undisclosed[7]
  • Fulcrum Microsystems Inc.- manufacturer of high bandwidth network switching chips, transaction undisclosed[8]

Global Processor Market Share

On August 2011, IDC reported that Intel's market share for global microprocessor was 79.9 percent. The company's market share was down 1.4 percent compared to the 80.7 percent share on the second quarter of 2010. Intel recorded 84.4 percent market share for laptop processors while 70.9 percent for desktop processors and 94.5 percent for server processors. Meanwhile, the company's market share for pc microprocessor with an integrated graphics processing was 88 percent.[9] [10]

Legal Battles

Intel has been confronted with several legal antitrust legal cases in the United States and internationally including:

AMD Antitrust Lawsuit

In 2005, Advanced Micro Devices (AMD) filed an anti-trust lawsuit against Intel in the United States District Court of Delaware for allegedly practicing scare and coercion tactics on 38 companies to monopolize the x86 microprocessor industry.[11] In its complaint, AMD claimed Intel pressured HP's Senior Managers to fire an executive who planned to use AMD chips on the HP Evo computers and that is why HP turned down AMD 's free microprocessors offer to HP. In addition, AMD also claimed that Intel offered to pay 300 million yen per quarter in exchange for caps on purchasing from AMD. The result, AMD's 84% share on NEC's consumer business was completely lost within six months.[12] The company also filed the same charges against Intel with the Japanese Fair Trade Commission and Korea's competition authorities.[13]

In 2009, Intel agreed to pay AMD $1.25 billion to settle the anti-trust lawsuit and agreed to refrain conducting the following business practices:[14]

  • Offering inducements to customers in exchange for their agreement to buy all of their microprocessor needs from Intel, whether on a geographic, market segment, or any other basis
  • Offering inducements to customers in exchange for their agreement to limit or delay their purchase of microprocessors from AMD, whether on a geographic, market segment, or any other basis
  • Offering inducements to customers in exchange for their agreement to limit their engagement with AMD or their promotion or distribution of products containing AMD microprocessors, whether on a geographic, channel, market segment, or any other basis
  • Offering inducements to customers in exchange for their agreement to abstain from or delay their participation in AMD product launches, announcements, advertising, or other promotional activities
  • Offering inducements to customers or others to delay or forebear in the development or release of computer systems or platforms containing AMD microprocessors, whether on a geographic, market segment, or any other basis
  • Offering inducements to retailers or distributors to limit or delay their purchase or distribution of computer systems or platforms containing AMD microprocessors, whether on a geographic, market segment, or any other basis
  • Withholding any benefit or threatening retaliation against anyone for their refusal to enter into a prohibited arrangement such as the ones listed above

Transmeta Patent Infringement Case

In 2006, Transmeta Corporation, a company engaged in developing and licensing innovative computing, microprocessor and semiconductor technologies filed a patent infringement case against Intel. According to John O'Hara Horsley, Vice-president of the company, "After endeavoring to negotiate with Intel for fair compensation for the continued use of our intellectual property, we have concluded that we must turn to the judicial system to be fairly compensated for our inventions". Transmeta alleged that Intel used Transmeta inventions on its microprocessor product lines including Intel Pentium III, Pentium 4, Pentium M, Core and Core 2. The company requested a court order prohibiting Intel to continue to sell the products, financial damages and royalties on infringing products, and attorneys fees.[15] In 2007, Transmeta settled the case with Intel. Transmeta agreed to license the Transmeta patent portfolio to Intel. In return, Intel was to make an initial payment of $150 million to Transmeta and begin $20 million annual license fees for the next five years.[16]

State of New York Antitrust Lawsuit

In 2007, New York State Attorney General Andrew Cuomo filed a complaint againts Intel in the U.S. District Court of Delaware for allegedly violating Section 2 of the Sherman Act and violating the Donnelly Act, by practicing anti-competitive business practices and monopolizing the x86 CPU market.[17] Intel spokesman Chuck Mulloy said that the allegations were wrong and said, "Neither consumers who have consistently benefited from lower prices and increased innovation nor justice are being served by the decision to file a case now. Intel will defend itself."[18]

European Commission Anti-Competitive Lawsuit

In 2007, the European Commission filed an anti-competitive case against Intel. According to the EU Statement of Objection, the company violated Article 82 of the EC Treaty rules on abuse of a dominant position. EU cited that Intel conducted the following business practices:[19] [20]

  • Intel offered significant amount of rebates to various Original Equipment Manufacturers (OEMs) with a condition to purchase all their CPU requirement from Intel
  • Paid OEM to entice them to delay or cancel the launching of product lines with an AMD-based CPU
  • Intel offered CPUs on average or below cost in bidding against AMD-based products for strategic customers in the server market

In response to the allegations, Intel's General Counsel Bruce Sewell said that the EC committed factual mistakes on its charges against Intel, particularly on the company's pricing and manufacturing costs. Sewell said, "I can tell you that having read the SO there are factual assumptions which have been made which we think the Commission has simply gotten wrong -- not intentionally."[21]

In 2009, the EC ruled that Intel committed anti-competitive business practices and ordered the company to pay a $1.45 billion fine. According to E.U. Competition Commissioner, Neelie Kroes, Intel seriously violated the E.U. antitrust rules. Furthermore, she stated that, "Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years." Intel Chairman Paul Otellini said that the company will appeal the decision and the Commission failed to acknowledge the reality of a highly competitive microprocessor market.[22]

ICANN Involvement

On October 13 1999, Scott B. Schwartz, Intel Corporation's Senior Attorney for Trademarks & Brands, provided comments regarding the Accompanying Rules, and Provider of ICANN's Draft UDRP. Schwartz commented that ICANN demonstrated a positive advancement towards the protection of trademarks in cyberspace by posting the UDRP to its website; he believed, however, that certain sections needed revision.[23]

On January 26, 2010, Intel expressed its disappointment regarding the Special Trademark Issues Working Team (STI) Report on Trademark Protection on New gTLDs. The company was disappointed that many of the strategies recommended by the prior Implementation Recommendation Team (IRT) were not incorporated into the STI Team's report or any draft of the applicant guidebook. They noted that the IRT's recommendations effectively created a system of interworking mechanisms, which included a globally protected marks list, and that by leaving them out in the STI report, the effectiveness of any one measure was severely compromised. Intel urged ICANN to reconsider incorporating some of the IRT recommendations. Meanwhile, Intel acknowledged the benefits of a Trademark Clearinghouse as necessary protection tool for trademarks. The company suggested that its use and scope be expanded and that it should be used during new the gTLD pre-launch and during Uniform Rapid Suspension System (URSS) and Uniform Dispute Resolution Policy (UDRP) proceedings for all TLDs, including existing ones. They also proposed that information submitted to the Trademark Clearinghouse be shared with registries and registrars, for the purpose of supporting RPM procedures, unless otherwise authorized by trademark owners. Intel believed that fees to submit trademarks to the Trademark Clearinghouse should be minimal. Regarding the URS process, Intel agreed that it would be a beneficial tool as long as the process was made less expensive and quicker.[24]

ISOC

Intel is a sponsor of a component of ISOC's Next Generation Leaders Programme, which is an academic and field-based program, launched in 2010 in conjunction with the DiploFoundation, intended to further the skills of promising Internet professionals and individuals working in Internet governance. Intel specifically sponsors a fellowship with the IETF, a part of the academic portion of the NGL programme.[25]

References