From Wikipedia, the free encyclopedia
Intel Corporation (commonly known as
Intel and 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 manufacturer 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 ranked No. 46 in the 2018
Fortune 500 list of the largest United States corporations by total revenue.
Intel supplies processors for
computer system manufacturers such as
Apple,
Lenovo,
HP, and
Dell. Intel also manufactures
motherboard chipsets,
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), 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
Advanced Micro Devices (AMD), 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,
Mesa3D,
Intel Array Building Blocks, and
Threading Building Blocks (TBB), and
Xen.
Current operations
Operating segments
- 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).Top customers
In 2017,
Dell accounted for about 16% of Intel's total revenues,
Lenovo accounted for 13% of total revenues, and
HP Inc. accounted for 11% of total revenues.
Market share
Market share in early 2011
According to
IDC,
while Intel enjoyed the biggest market share in both the overall
worldwide PC microprocessor market (73.3%) and the mobile PC
microprocessor (80.4%) 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
Major competitors
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-power x86
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.
Corporate history
Origins
Intel logo used from 1968 to 2006
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", near
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.
Early history
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 TTL bipolar 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.
Litigation
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).
[38]
During the late 1980s and 1990s (after this law was passed), Intel also
sued companies that tried to develop competitor chips to the
80386 CPU. 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.
Acquisitions and investments (2010–present)
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 Capital, 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 August 2016, Intel purchased deep-learning startup
Nervana Systems for $350 million.
In December 2016, Intel acquired computer vision startup
Movidius for an undisclosed price.
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 announced an investment of over
Rs.1100 crore ($170 million) for its upcoming Research and Development
(R&D) centre in Bangalore.
In January 2019, Intel announced an investment of over $11
billion on a new Israeli chip plant, as told by the Israeli Finance
Minister.
Expansions (2008–2011)
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 that would 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.
Until then, the manufacture of complex integrated circuits was
not reliable enough for customers to depend on a single supplier, but
Grove began producing processors in three geographically distinct
factories, and ceased licensing the chip designs to competitors such as
Zilog and
AMD. When the PC industry boomed in the late 1980s and 1990s, Intel was one of the primary beneficiaries.
Intel, x86 processors, and the IBM PC
The die from an Intel 8742, an 8-bit microcontroller that includes a CPU running at 12 MHz, 128 bytes of RAM, 2048 bytes of EPROM, and I/O in the same chip
Despite the ultimate importance of the microprocessor, the
4004 and its successors the
8008 and the
8080 were never major revenue contributors at Intel. As the next processor, the
8086
(and its variant the 8088) was completed in 1978, Intel embarked on a
major marketing and sales campaign for that chip nicknamed "Operation
Crush", and intended to win as many customers for the processor as
possible. One design win was the newly created
IBM PC division, though the importance of this was not fully realized at the time.
IBM introduced its personal computer in 1981, and it was rapidly successful. In 1982, Intel created the
80286 microprocessor, which, two years later, was used in the IBM PC/AT.
Compaq,
the first IBM PC "clone" manufacturer, produced a desktop system based
on the faster 80286 processor in 1985 and in 1986 quickly followed with
the first
80386-based
system, beating IBM and establishing a competitive market for
PC-compatible systems and setting up Intel as a key component supplier.
In 1975, the company had started a project to develop a highly advanced 32-bit microprocessor, finally released in 1981 as the
Intel iAPX 432.
The project was too ambitious and the processor was never able to meet
its performance objectives, and it failed in the marketplace. Intel
extended the
x86 architecture to 32 bits instead.
386 microprocessor
During this period
Andrew Grove dramatically redirected the company, closing much of its
DRAM business and directing resources to the
microprocessor
business. Of perhaps greater importance was his decision to
"single-source" the 386 microprocessor. Prior to this, microprocessor
manufacturing was in its infancy, and manufacturing problems frequently
reduced or stopped production, interrupting supplies to customers. To
mitigate this risk, these customers typically insisted that multiple
manufacturers produce chips they could use to ensure a consistent
supply. The 8080 and 8086-series microprocessors were produced by
several companies, notably AMD, with which Intel had a
technology-sharing contract. Grove made the decision not to license the
386 design to other manufacturers, instead, producing it in three
geographically distinct factories:
Santa Clara, California;
Hillsboro, Oregon; and
Chandler, a suburb of
Phoenix,
Arizona. He convinced customers that this would ensure consistent
delivery. In doing this, Intel breached its contract with AMD, which
sued and was paid millions of dollars in damages but could not
manufacture new Intel CPU designs any longer. (Instead, AMD started to
develop and manufacture its own competing x86 designs.) As the success
of Compaq's Deskpro 386 established the 386 as the dominant CPU choice,
Intel achieved a position of near-exclusive dominance as its supplier.
Profits from this funded rapid development of both higher-performance
chip designs and higher-performance manufacturing capabilities,
propelling Intel to a position of unquestioned leadership by the early
1990s.
486, Pentium, and Itanium
Intel introduced the
486
microprocessor in 1989, and in 1990 established a second design team,
designing the processors code-named "P5" and "P6" in parallel and
committing to a major new processor every two years, versus the four or
more years such designs had previously taken. Engineers
Vinod Dham and
Rajeev Chandrasekhar
(Member of Parliament, India) were key figures on the core team that
invented the 486 chip and later, Intel's signature Pentium chip. The P5
project was earlier known as "Operation Bicycle," referring to the
cycles of the processor through two parallel execution pipelines. The
P5 was introduced in 1993 as the Intel
Pentium,
substituting a registered trademark name for the former part number
(numbers, such as 486, cannot be legally registered as trademarks in the
United States). The P6 followed in 1995 as the
Pentium Pro and improved into the
Pentium II in 1997. New architectures were developed alternately in
Santa Clara, California and
Hillsboro, Oregon.
The Santa Clara design team embarked in 1993 on a successor to the
x86 architecture, codenamed "P7". The first attempt was dropped a year later but quickly revived in a cooperative program with
Hewlett-Packard engineers, though Intel soon took over primary design responsibility. The resulting implementation of the
IA-64 64-bit architecture was the
Itanium,
finally introduced in June 2001. The Itanium's performance running
legacy x86 code did not meet expectations, and it failed to compete
effectively with
x86-64, which was AMD's 64-bit extension of the 32-bit x86 architecture (Intel uses the name
Intel 64, previously
EM64T). In 2017, Intel announced that the
Itanium 9700 series (Kittson) would be the last Itanium chips produced.
The Hillsboro team designed the
Willamette processors (initially code-named P68), which were marketed as the Pentium 4.
Pentium flaw
In June 1994, Intel engineers discovered a flaw in the
floating-point math subsection of the
P5 Pentium microprocessor.
Under certain data-dependent conditions, the low-order bits of the
result of a floating-point division would be incorrect. The error could
compound in subsequent calculations. Intel corrected the error in a
future chip revision, and under public pressure it issued a total recall
and replaced the defective Pentium CPUs (which were limited to some 60,
66, 75, 90, and 100 MHz models) on customer request.
The
bug was discovered independently in October 1994 by Thomas Nicely, Professor of Mathematics at
Lynchburg College. He contacted Intel but received no response. On October 30, he posted a message about his finding on the Internet.
Word of the bug spread quickly and reached the industry press. The bug
was easy to replicate; a user could enter specific numbers into the
calculator on the operating system. Consequently, many users did not
accept Intel's statements that the error was minor and "not even an
erratum." During Thanksgiving, in 1994,
The New York Times ran a piece by journalist
John Markoff
spotlighting the error. Intel changed its position and offered to
replace every chip, quickly putting in place a large end-user
support organization. This resulted in a $475 million charge against Intel's 1994
revenue.
Dr. Nicely later learned that Intel had discovered the FDIV bug in its
own testing a few months before him (but had decided not to inform
customers).
The "Pentium flaw" incident, Intel's response to it, and the
surrounding media coverage propelled Intel from being a technology
supplier generally unknown to most computer users to a household name.
Dovetailing with an uptick in the "Intel Inside" campaign, the episode
is considered to have been a positive event for Intel, changing some of
its business practices to be more end-user focused and generating
substantial public awareness, while avoiding a lasting negative
impression.
"Intel Inside" and other campaigns
The "Intel Inside" logo used from 1991 to 2006
During this period, Intel undertook two major supporting advertising
campaigns. The first campaign, the 1991 "Intel Inside" marketing and
branding campaign, is widely known and has become synonymous with Intel
itself. The idea of "
ingredient branding" was new at the time, with only
NutraSweet and a few others making attempts to do so. This campaign established Intel, which had been a component supplier little-known outside the PC industry, as a household name.
The second campaign, Intel's Systems Group, which began in the early 1990s, showcased manufacturing of PC
motherboards,
the main board component of a personal computer, and the one into which
the processor (CPU) and memory (RAM) chips are plugged. The Systems Group campaign was lesser known than the Intel Inside campaign.
Shortly after, Intel began manufacturing fully configured "
white box" systems for the dozens of PC clone companies that rapidly sprang up. At its peak in the mid-1990s, Intel manufactured over 15% of all PCs, making it the third-largest supplier at the time.
During the 1990s,
Intel Architecture Labs (IAL) was responsible for many of the hardware innovations for the PC, including the
PCI Bus, the
PCI Express (PCIe) bus, and
Universal Serial Bus
(USB). IAL's software efforts met with a more mixed fate; its video and
graphics software was important in the development of software digital
video, but later its efforts were largely overshadowed by competition from
Microsoft. The competition between Intel and Microsoft was revealed in testimony by then IAL Vice-President
Steven McGeady at the
Microsoft antitrust trial (
United States v. Microsoft Corp.).
2018 security flaws
The impact on performance resulting from software patches is
"workload-dependent". Several procedures to help protect home computers
and related devices from the Spectre (and
Meltdown) security vulnerabilities have been published.
Spectre patches have been reported to significantly slow down
performance, especially on older computers; on the newer 8th generation
Core platforms, benchmark performance drops of 2–14 percent have been
measured. Meltdown patches may also produce performance loss. It is believed that "hundreds of millions" of systems could be affected by these flaws.
On March 15, 2018, Intel reported that it will redesign its
CPU processors (performance losses to be determined) to protect against the
Spectre security vulnerability, and expects to release the newly redesigned processors later in 2018.
On May 3, 2018, eight additional Spectre-class flaws were
reported. Intel reported that they are preparing new patches to mitigate
these flaws.
On August 14, 2018, Intel disclosed three additional chip flaws
referred to as L1 Terminal Fault (L1TF). They reported that previously
released microcode updates, along with new, pre-release microcode
updates can be used to mitigate these flaws.
Remote Keyboard Android App
Intel
has decided to discontinue with their recent Intel Remote Keyboard
Android app after encountering several security bugs. This app was
launched in early 2015 to help users control Intel single-board
computers and Intel NUC. The company has asked Remote Keyboard Users to
delete the app at their first convenience.
Solid-state drives (SSD)
In 2008, Intel began shipping mainstream
solid-state drives (SSDs) with up to 160 GB storage capacities.
As with their CPUs, Intel develops SSD chips using ever-smaller
nanometer processes. These SSDs make use of industry standards such as
NAND flash,
mSATA,
PCIe, and
NVMe. In 2017, Intel introduced SSDs based on
3D XPoint technology under the Optane brand name.
Supercomputers
Mobile Linux software
In 2007 Intel formed the
Moblin project to create an
open source Linux operating system for x86-based mobile devices. Following the success of
Google's
Android platform which ran exclusively on
ARM processors, Intel announced on February 15, 2010, that it would partner with
Nokia and merge Moblin with Nokia's ARM-based
Maemo project to create
MeeGo. MeeGo was supported by the
Linux Foundation.
In February 2011 Nokia left the project after partnering with
Microsoft,
leaving Intel in sole charge of MeeGo. An Intel spokeswoman said it was
"disappointed" by Nokia's decision but that Intel was committed to
MeeGo. In September 2011 Intel stopped working on MeeGo and partnered with
Samsung to create
Tizen, a new project hosted by the Linux Foundation. Intel has since been co-developing the Tizen operating system which runs on several Samsung devices.
Competition, antitrust and espionage
Two factors combined to end this dominance: the slowing of
PC demand growth beginning in 2000 and the rise of the low-cost PC. By the end of the 1990s,
microprocessor
performance had outstripped software demand for that CPU power. Aside
from high-end server systems and software, whose demand dropped with the
end of the "
dot-com bubble",
consumer systems ran effectively on increasingly low-cost systems after
2000. Intel's strategy of producing ever-more-powerful processors and
obsoleting their predecessors stumbled, leaving an opportunity for rapid gains by competitors, notably AMD. This, in turn, lowered the profitability of the processor line and ended an era of unprecedented dominance of the PC hardware by Intel.
Intel's dominance in the
x86 microprocessor market led to numerous charges of
antitrust violations over the years, including
FTC investigations in both the late 1980s and in 1999, and civil actions such as the 1997 suit by
Digital Equipment Corporation (DEC) and a patent suit by
Intergraph. Intel's market dominance (at one time
it controlled over 85% of the market for 32-bit x86 microprocessors)
combined with Intel's own hardball legal tactics (such as its infamous
338 patent suit versus PC manufacturers) made it an attractive target for litigation, but few of the lawsuits ever amounted to anything.
A case of
industrial espionage arose in 1995 that involved both Intel and AMD.
Bill Gaede, an
Argentine formerly employed both at AMD and at Intel's
Arizona plant, was arrested for attempting in 1993 to sell the
i486 and
P5 Pentium designs to AMD and to certain foreign powers. Gaede videotaped data from his computer screen at Intel and mailed it to
AMD,
which immediately alerted Intel and authorities, resulting in Gaede's
arrest. Gaede was convicted and sentenced to 33 months in prison in June
1996.
Use of Intel products by Apple Computer (2005–present)
On June 6, 2005,
Steve Jobs, then CEO of
Apple, announced that Apple would be transitioning from its long favored
PowerPC architecture to the Intel x86 architecture because the future PowerPC road map was unable to satisfy Apple's needs. The first
Macintosh
computers containing Intel CPUs were announced on January 10, 2006, and
Apple had its entire line of consumer Macs running on Intel processors
by early August 2006. The Apple Xserve server was updated to Intel
Xeon processors from November 2006 and was offered in a configuration similar to Apple's Mac Pro.
Core 2 Duo advertisement controversy (2007)
In July 2007, the company released a print advertisement for its
Intel Core 2
Duo processor featuring six African-American runners appearing to bow
down to a Caucasian male inside of an office setting (due to the posture
taken by runners on
starting blocks).
According to Nancy Bhagat, Vice President of Intel Corporate Marketing,
viewers found the ad to be "insensitive and insulting", and several
Intel executives made public apologies.
Introduction of Classmate PC (2011)
The
Classmate PC is the company's first low-cost
netbook computer. In 2014, the company released an updated version of the Classmate PC.
Introduction of new mobile processor technology (2011)
In June 2011, Intel introduced the first Pentium mobile processor based on the
Sandy Bridge
core. The B940, clocked at 2 GHz, is faster than existing or upcoming
mobile Celerons, although it is almost identical to dual-core Celeron
CPUs in all other aspects.
According to IHS iSuppli's report on September 28, 2011, Sandy Bridge
chips have helped Intel increase its market share in global processor
market to 81.8%, while AMD's market share dropped to 10.4%.
Intel planned to introduce Medfield – a processor for tablets and
smartphones – to the market in 2012, as an effort to compete with ARM. As a 32-nanometer processor, Medfield is designed to be energy-efficient, which is one of the core features in ARM's chips.
At the Intel Developers Forum (IDF) 2011 in San Francisco,
Intel's partnership with Google was announced. By January 2012, Google's
Android 2.3 will use Intel's Atom microprocessor.
Update to server chips (2011)
In
July 2011, Intel announced that its server chips, the Xeon series, will
use new sensors that can improve data center cooling efficiency.
Introduction of Ivy Bridge 22 nm processors (2011)
In 2011, Intel announced the
Ivy Bridge processor family at the Intel Developer Forum. Ivy Bridge supports both DDR3 memory and DDR3L chips.
Development of Personal Office Energy Monitor (POEM) (2011)
As
part of its efforts in the Positive Energy Buildings Consortium, Intel
has been developing an application, called Personal Office Energy
Monitor (POEM), to help office buildings to be more energy-efficient.
With this application, employees can get the power consumption info for
their office machines, so that they can figure out a better way to save
energy in their working environment.
IT Manager series
Intel has introduced some simulation games, starting in 2009 with web-based
IT Manager 3: Unseen Forces.
In it, the player manages a company's IT department. The goal is to
apply technology and skill to enable the company to grow from a small
business into a global enterprise. The game has since been discontinued and succeeded in 2012 by the web-based multiplayer game
IT Manager: Duels, which is no longer available.
Car Security System (2011)
In
2011, Intel announced that it is working on a car security system that
connects to smartphones via an application. The application works by
streaming video to a cloud service if a car armed with the system is
broken into.
High-Bandwidth Digital Content Protection
Move from Wintel desktop to open mobile platforms (2013–2014)
In
2013, Intel's Kirk Skaugen said that Intel's exclusive focus on
Microsoft platforms was a thing of the past and that they would now
support all "tier-one operating systems" such as Linux, Android, iOS,
and Chrome.
In 2014, Intel cut thousands of employees in response to "evolving market trends", and offered to subsidize manufacturers for the extra costs involved in using Intel chips in their tablets.
Introduction of Haswell processors (2013)
In June 2013, Intel unveiled its fourth generation of Intel Core processors (
Haswell) in an event named Computex in
Taipei.
Wearable fashion (2014)
Intel developed a reference design for
wearable
smart earbuds that provide biometric and fitness information. The Intel
smart earbuds provide full stereo audio, and monitor heart rate, while
the applications on the user’s phone keep track of run distance and
calories burned.
CNBC reported that Intel eliminated the division that worked on health wearables in 2017.
Fog computing
On November 19, 2015, Intel, alongside
ARM Holdings,
Dell,
Cisco Systems,
Microsoft, and
Princeton University, founded the
OpenFog Consortium, to promote interests and development in
fog computing. Intel's Chief Strategist for the IoT Strategy and Technology Office, Jeff Faders, became the consortium's first president.
Conflict-free production
In 2009, Intel announced that it planned to undertake an effort to remove
conflict resources—materials sourced from mines whose profits are used to fund armed militant groups, particularly within the
Democratic Republic of the Congo—from
its supply chain. Intel sought conflict-free sources of the precious
metals common to electronics from within the country, using a system of
first- and third-party audits, as well as input from the
Enough Project and other organizations. During a keynote address at
Consumer Electronics Show
2014, Intel CEO at the time, Brian Krzanich, announced that the
company's microprocessors would henceforth be conflict free. In 2016,
Intel stated that it had expected its entire supply chain to be
conflict-free by the end of the year.
Self driving cars
Intel is one of the biggest stakeholders in the
self-driving car industry, having joined the race in mid 2017 after joining forces with Mobileye.
The company is also one of the first in the sector to research consumer
acceptance, after an AAA report quoted a 78% nonacceptance rate of the
technology in the US.
Safety levels of the technology, the thought of abandoning
control to a machine, and psychological comfort of passengers in such
situations were the major discussion topics initially. The commuters
also stated that they did not want to see everything the car was doing.
This was primarily a referral to the auto-steering wheel with no one
sitting in the driving seat. Intel also learned that voice control
regulator is vital, and the interface between the humans and machine
eases the discomfort condition, and brings some sense of control back. It is important to mention that Intel included only 10 people in this study, which makes the study less credible. In a video posted on YouTube, Intel accepted this fact and called for further testing.
Corporate affairs
Leadership and corporate structure
Paul Otellini, Craig Barrett and Sean Maloney (2006)
Robert Noyce was Intel's CEO at its founding in 1968, followed by co-founder
Gordon Moore in 1975.
Andy Grove
became the company's president in 1979 and added the CEO title in 1987
when Moore became chairman. In 1998, Grove succeeded Moore as Chairman,
and
Craig Barrett, already company president, took over. On May 18, 2005, Barrett handed the reins of the company over to
Paul Otellini, who had been the company president and COO and who was responsible for Intel's design win in the original
IBM PC. The board of directors elected Otellini as President and CEO, and Barrett replaced Grove as
Chairman of the Board.
Grove stepped down as chairman but is retained as a special adviser. In
May 2009, Barrett stepped down as chairman of the Board and was
succeeded by Jane Shaw. In May 2012, Intel vice chairman Andy Bryant,
who had held the posts of CFO (1994) and Chief Administrative Officer
(2007) at Intel, succeeded Shaw as executive chairman.
In November 2012, president and CEO Paul Otellini announced that
he would step down in May 2013 at the age of 62, three years before the
company's mandatory retirement age. During a six-month transition
period, Intel's board of directors commenced a search process for the
next CEO, in which it considered both internal managers and external
candidates such as
Sanjay Jha and Patrick Gelsinger.
Financial results revealed that, under Otellini, Intel's revenue
increased by 55.8 percent (US$34.2 to 53.3 billion), while its net
income increased by 46.7% (US$7.5 billion to 11 billion).
On May 2, 2013, Executive Vice President and COO
Brian Krzanich was elected as Intel's sixth CEO,
a selection that became effective on May 16, 2013, at the company's
annual meeting. Reportedly, the board concluded that an insider could
proceed with the role and exert an impact more quickly, without the need
to learn Intel's processes, and Krzanich was selected on such a basis. Intel's software head
Renée James was selected as president of the company, a role that is second to the CEO position.
As of May 2013, Intel's board of directors consists of Andy Bryant, John Donahoe, Frank Yeary, Ambassador
Charlene Barshefsky,
Susan Decker,
Reed Hundt, Paul Otellini, James Plummer, David Pottruck, and David Yoffie and Creative director
will.i.am. The board was described by former
Financial Times
journalist Tom Foremski as "an exemplary example of corporate
governance of the highest order" and received a rating of ten from
GovernanceMetrics International, a form of recognition that has only
been awarded to twenty-one other corporate boards worldwide.
On June 21, 2018, Intel announced the resignation of Brian
Krzanich as CEO, with the exposure of a relationship he had with an
employee.
Bob Swan was named interim CEO, as the Board began a search for a permanent CEO.
On January 31, 2019,
Swan transitioned from his role as CFO and interim CEO and was named by the Board as the 7th CEO to lead the company.
Ownership
Employment
Intel microprocessor facility in Costa Rica was responsible in 2006 for 20% of Costa Rican exports and 4.9% of the country's GDP.
The firm promotes very heavily from within, most notably in its
executive suite. The company has resisted the trend toward outsider
CEOs. Paul Otellini was a 30-year veteran of the company when he assumed
the role of CEO. All of his top lieutenants have risen through the
ranks after many years with the firm. In many cases, Intel's top
executives have spent their entire working careers with Intel.
Intel has a mandatory retirement policy for its CEOs when they
reach age 65. Andy Grove retired at 62, while both Robert Noyce and
Gordon Moore retired at 58. Grove retired as Chairman and as a member of
the board of directors in 2005 at age 68.
Intel's headquarters are located in Santa Clara, California, and the company has
operations around the world. Its largest workforce concentration anywhere is in
Washington County, Oregon (in the
Portland metropolitan area's "
Silicon Forest"), with 18,600 employees at several facilities. Outside the United States, the company has facilities in China, Costa Rica,
Malaysia, Israel, Ireland, India,
Russia, Argentina and
Vietnam, in 63 countries and regions internationally. In the U.S. Intel employs significant numbers of people in California,
Colorado,
Massachusetts,
Arizona,
New Mexico,
Oregon, Texas,
Washington and
Utah. In Oregon, Intel is the state's largest private employer. The company is the largest industrial employer in
New Mexico while in Arizona the company has over 10,000 employees.
Intel invests heavily in research in China and about 100
researchers – or 10% of the total number of researchers from Intel –
are located in Beijing.
In 2011, the Israeli government offered Intel $290 million to
expand in the country. As a condition, Intel would employ 1,500 more
workers in
Kiryat Gat and between 600–1000 workers in the north.
In January 2014, it was reported that Intel would cut about 5,000
jobs from its work force of 107,000. The announcement was made a day
after it reported earnings that missed analyst targets.
In March 2014, it was reported that Intel would embark upon a $6
billion plan to expand its activities in Israel. The plan calls for
continued investment in existing and new Intel plants until 2030. As of
2014 Intel employs 10,000 workers at four development centers and two
production plants in Israel.
Diversity
Intel has a Diversity Initiative, including employee diversity groups as well as supplier diversity programs.
Like many companies with employee diversity groups, they include groups
based on race and nationality as well as sexual identity and religion.
In 1994, Intel sanctioned one of the earliest corporate Gay, Lesbian,
Bisexual, and Transgender employee groups, and supports a Muslim employees group, a Jewish employees group, and a Bible-based Christian group.
In January 2015, Intel announced the investment of $300 million
over the next five years to enhance gender and racial diversity in their
own company as well as the technology industry as a whole.
In February 2016, Intel released its Global Diversity & Inclusion 2015 Annual Report.
The male-female mix of US employees was reported as 75.2% men and 24.8%
women. For US employees in technical roles, the mix was reported as
79.8% male and 20.1% female.
NPR reports that Intel is facing a retention problem (particularly for
African Americans), not just a pipeline problem.
Economic impact in Oregon in 2009
In 2011, ECONorthwest conducted an
economic impact analysis
of Intel's economic contribution to the state of Oregon. The report
found that in 2009 "the total economic impacts attributed to Intel's
operations, capital spending, contributions and taxes amounted to almost
$14.6 billion in activity, including $4.3 billion in personal income
and 59,990 jobs".
Through multiplier effects, every 10 Intel jobs supported, on average,
was found to create 31 jobs in other sectors of the economy.
School funding in New Mexico in 1997
Ultrabook fund (2011)
In
2011, Intel Capital announced a new fund to support startups working on
technologies in line with the company's concept for next generation
notebooks. The company is setting aside a $300 million fund to be spent over the next three to four years in areas related to ultrabooks.
Intel announced the ultrabook concept at Computex in 2011. The
ultrabook is defined as a thin (less than 0.8 inches [~2 cm] thick) notebook that utilizes Intel processors and also incorporates tablet features such as a touch screen and long battery life.
At the Intel Developers Forum in 2011, four Taiwan ODMs showed prototype ultrabooks that used Intel's Ivy Bridge chips.
Intel plans to improve power consumption of its chips for ultrabooks,
like new Ivy Bridge processors in 2013, which will only have 10W default
thermal design power.
Intel's goal for Ultrabook's price is below $1000;
however, according to two presidents from Acer and Compaq, this goal
will not be achieved if Intel does not lower the price of its chips.
Marketing
Intel Inside
Intel has become one of the world's most recognizable computer brands following its long-running
Intel Inside campaign. The idea for "Intel Inside" came out of a meeting between Intel and one of the major computer resellers,
MicroAge.
In the late 1980s, Intel's market share was being seriously
eroded by upstart competitors such as Advanced Micro Devices (now AMD),
Zilog, and others who had started to sell their less expensive
microprocessors to computer manufacturers. This was because, by using
cheaper processors, manufacturers could make cheaper computers and gain
more market share in an increasingly price-sensitive market. In 1989,
Intel's Dennis Carter visited MicroAge's headquarters in Tempe, Arizona,
to meet with MicroAge's VP of Marketing, Ron Mion. MicroAge had become
one of the largest distributors of Compaq, IBM, HP, and others and thus
was a primary – although indirect – driver of demand for
microprocessors. Intel wanted MicroAge to petition its computer
suppliers to favor Intel chips. However, Mion felt that the marketplace
should decide which processors they wanted. Intel's counterargument was
that it would be too difficult to educate PC buyers on why Intel
microprocessors were worth paying more for ... and they were right.
But Mion felt that the public didn't really need to fully understand
why Intel chips were better, they just needed to feel they were better.
So Mion proposed a market test. Intel would pay for a MicroAge billboard
somewhere saying, "If you're buying a personal computer, make sure it
has Intel inside." In turn, MicroAge would put "Intel Inside" stickers
on the Intel-based computers in their stores in that area. To make the
test easier to monitor, Mion decided to do the test in Boulder,
Colorado, where it had a single store. Virtually overnight, the sales of
personal computers in that store dramatically shifted to Intel-based
PCs. Intel very quickly adopted "Intel Inside" as its primary branding
and rolled it out worldwide.
As is often the case with computer lore, other tidbits have been
combined to explain how things evolved. "Intel Inside" has not escaped
that tendency and there are other "explanations" that had been floating
around.
Intel's branding campaign started with "The Computer Inside"
tagline in 1990 in the US and Europe. The Japan chapter of Intel
proposed an "Intel in it" tagline and kicked off the Japanese campaign
by hosting EKI-KON (meaning "Station Concert" in Japanese) at the Tokyo
railway station dome on Christmas Day, December 25, 1990. Several months
later, "The Computer Inside" incorporated the Japan idea to become
"Intel Inside" which eventually elevated to the worldwide branding
campaign in 1991, by Intel marketing manager Dennis Carter. The case study of the Inside Intel Inside was put together by Harvard Business School.
The five-note jingle was introduced in 1994 and by its tenth
anniversary was being heard in 130 countries around the world. The
initial branding agency for the "Intel Inside" campaign was
DahlinSmithWhite Advertising of
Salt Lake City. The Intel
swirl logo was the work of DahlinSmithWhite art director Steve Grigg under the direction of Intel president and CEO Andy Grove.
The
Intel Inside advertising campaign sought public brand loyalty and awareness of Intel processors in consumer computers. Intel paid some of the advertiser's costs for an ad that used the
Intel Inside logo and
xylo-marimba jingle.
2009–2011 Pentium Inside badge design
In 2008, Intel planned to shift the emphasis of its Intel Inside
campaign from traditional media such as television and print to newer
media such as the Internet.
Intel required that a minimum of 35% of the money it provided to the
companies in its co-op program be used for online marketing.
The Intel 2010 annual financial report indicated that $1.8 billion (6%
of the gross margin and nearly 16% of the total net income) was
allocated to all advertising with Intel Inside being part of that.
Sonic logo
The famous D♭ D♭ G♭ D♭ A♭ xylophone/xylomarimba
jingle, sonic logo, tag, audio
mnemonic was produced by
Musikvergnuegen and written by
Walter Werzowa, once a member of the Austrian 1980s sampling band
Edelweiss.
The sonic Intel logo was remade in 1999 to coincide with the launch of
the Pentium III, and a second time in 2004 to coincide with the new logo
change (although it overlapped with the 1999 version and was not
mainstreamed until the launch of the Core processors in 2006), with the
melody unchanged. Advertisements for products featuring Intel processors
with prominent MMX branding featured a version of the jingle with an
embellishment after the final note.
Processor naming strategy
In 2006, Intel expanded its promotion of open specification platforms beyond
Centrino, to include the
Viiv media center PC and the business desktop
Intel vPro.
In mid-January 2006, Intel announced that they were dropping the long running
Pentium
name from their processors. The Pentium name was first used to refer to
the P5 core Intel processors and was done to comply with court rulings
that prevent the trademarking of a string of numbers, so competitors
could not just call their processor the same name, as had been done with
the prior 386 and 486 processors (both of which had copies manufactured
by IBM and AMD). They phased out the Pentium names from mobile
processors first, when the new
Yonah chips, branded
Core
Solo and Core Duo, were released. The desktop processors changed when
the Core 2 line of processors were released. By 2009, Intel was using a
good-better-best strategy with Celeron being good, Pentium better, and
the Intel Core family representing the best the company has to offer.
According to spokesman Bill Calder, Intel has maintained only the
Celeron brand, the Atom brand for netbooks and the vPro lineup for
businesses. Since late 2009, Intel's mainstream processors have been
called Celeron, Pentium, Core i3, Core i5, and Core i7, in order of
performance from lowest to highest. The first generation core products
carry a 3 digit name, such as i5 750, and the second generation products
carry a 4 digit name, such as the i5 2500. In both cases, a K at the
end of it shows that it is an unlocked processor, enabling additional
overclocking abilities (for instance, 2500K). vPro products will carry
the Intel Core i7 vPro processor or the Intel Core i5 vPro processor
name. In October 2011, Intel started to sell its Core i7-2700K "Sandy Bridge" chip to customers worldwide.
Since 2010, "Centrino" is only being applied to Intel's WiMAX and Wi-Fi technologies.
Typography
Neo Sans Intel is a customized version of
Neo Sans based on the Neo Sans and Neo Tech, designed by Sebastian Lester in 2004.
Intel Clear is a global font announced in 2014 designed for to be used across all communications. The font family was designed by
Red Peek Branding and
Daltan Maag Ltd. Initially available in Latin, Greek and Cyrillic scripts, it replaced Neo Sans Intel as the company's corporate typeface. Intel Clear Hebrew, Intel Clear Arabic were added by Daltan Maag Ltd.
Intel Brand Book
It
is a book produced by Red Peak Branding as part of new brand identity
campaign, celebrating Intel's achievements while setting the new
standard for what Intel looks, feels and sounds like.
Open source support
However, after the release of the wireless products called Intel
Pro/Wireless 2100, 2200BG/2225BG/2915ABG and 3945ABG in 2005, Intel was
criticized for not granting free redistribution rights for the
firmware that must be included in the operating system for the wireless devices to operate.
As a result of this, Intel became a target of campaigns to allow free
operating systems to include binary firmware on terms acceptable to the
open source community.
Linspire-
Linux creator
Michael Robertson outlined the difficult position that Intel was in releasing to
open source, as Intel did not want to upset their large customer
Microsoft.
Theo de Raadt of
OpenBSD
also claimed that Intel is being "an Open Source fraud" after an Intel
employee presented a distorted view of the situation at an open-source
conference.
In spite of the significant negative attention Intel received as a
result of the wireless dealings, the binary firmware still has not
gained a license compatible with free software principles.
Declining PC sales
Due to declining PC sales, in 2016 Intel cut 12,000 jobs.
Litigation and regulatory issues
Patent infringement litigation (2006–2007)
In October 2006, a
Transmeta lawsuit was filed against Intel for patent infringement on computer architecture and power efficiency technologies.
The lawsuit was settled in October 2007, with Intel agreeing to pay
US$150 million initially and US$20 million per year for the next five
years. Both companies agreed to drop lawsuits against each other, while
Intel was granted a perpetual non-exclusive license to use current and
future patented Transmeta technologies in its chips for 10 years.
Anti-trust allegations and litigation (2005–2009)
In September 2005, Intel filed a response to an
AMD lawsuit,
disputing AMD's claims, and claiming that Intel's business practices
are fair and lawful. In a rebuttal, Intel deconstructed AMD's offensive
strategy and argued that AMD struggled largely as a result of its own
bad business decisions, including underinvestment in essential
manufacturing capacity and excessive reliance on contracting out chip
foundries.
Legal analysts predicted the lawsuit would drag on for a number of
years since Intel's initial response indicated its unwillingness to
settle with AMD. In 2008 a court date was finally set, but in 2009, Intel settled with a $1.25 billion payout to AMD (see below).
On November 4, 2009, New York's attorney general filed an
antitrust lawsuit against Intel Corp, claiming the company used "illegal
threats and collusion" to dominate the market for computer
microprocessors.
On November 12, 2009, AMD agreed to drop the antitrust lawsuit against Intel in exchange for $1.25 billion.
A joint press release published by the two chip makers stated "While
the relationship between the two companies has been difficult in the
past, this agreement ends the legal disputes and enables the companies
to focus all of our efforts on product innovation and development."
An antitrust lawsuit and a class-action suit relating to
cold calling employees of other companies has been settled.
Allegations by Japan Fair Trade Commission (2005)
In 2005, the local
Fair Trade Commission found that Intel violated the
Japanese Antimonopoly Act.
The commission ordered Intel to eliminate discounts that had
discriminated against AMD. To avoid a trial, Intel agreed to comply with
the order.
Allegations by the European Union (2007–2008)
In July 2007, the
European Commission accused Intel of
anti-competitive practices, mostly against
AMD. The allegations, going back to 2003, include giving preferential prices to computer makers buying most or all of their
chips
from Intel, paying computer makers to delay or cancel the launch of
products using AMD chips, and providing chips at below standard cost to
governments and educational institutions. Intel responded that the allegations were unfounded and instead qualified its market behavior as consumer-friendly. General counsel
Bruce Sewell responded that the Commission had misunderstood some factual assumptions as to pricing and manufacturing costs.
In February 2008, Intel stated that its office in Munich had been raided by
European Union regulators. Intel reported that it was cooperating with investigators. Intel faced a fine of up to 10% of its annual revenue, if found guilty of stifling competition. AMD subsequently launched a website promoting these allegations. In June 2008, the EU filed new charges against Intel.
In May 2009, the EU found that Intel had engaged in anti-competitive
practices and subsequently fined Intel €1.06 billion (US$1.44 billion), a
record amount. Intel was found to have paid companies, including
Acer,
Dell,
HP,
Lenovo and
NEC, to exclusively use Intel chips in their products, and therefore harmed other companies including AMD.
The European Commission said that Intel had deliberately acted to keep
competitors out of the computer chip market and in doing so had made a
"serious and sustained violation of the EU's antitrust rules". In addition to the fine, Intel was ordered by the Commission to immediately cease all illegal practices.
Intel has stated that they will appeal against the Commission's
verdict. In June 2014, the General Court, which sits below the European
Court of Justice, rejected the appeal.
Allegations by regulators in South Korea (2007)
In
September 2007, South Korean regulators accused Intel of breaking
antitrust law. The investigation began in February 2006, when officials
raided Intel's South Korean offices. The company risked a penalty of up
to 3% of its annual sales, if found guilty.
In June 2008, the Fair Trade Commission ordered Intel to pay a fine of
US$25.5 million for taking advantage of its dominant position to offer
incentives to major Korean PC manufacturers on the condition of not
buying products from AMD.
Allegations by regulators in the United States (2008–2010)
New
York started an investigation of Intel in January 2008 on whether the
company violated antitrust laws in pricing and sales of its
microprocessors. In June 2008, the
Federal Trade Commission also began an antitrust investigation of the case. In December 2009, the FTC announced it would initiate an administrative proceeding against Intel in September 2010.
In November 2009, following a two-year investigation,
New York Attorney General Andrew Cuomo
sued Intel, accusing them of bribery and coercion, claiming that Intel
bribed computer makers to buy more of their chips than those of their
rivals, and threatened to withdraw these payments if the computer makers
were perceived as working too closely with its competitors. Intel has
denied these claims.
On July 22, 2010,
Dell agreed to a settlement with the
U.S. Securities and Exchange Commission (SEC) to pay $100M in penalties resulting from charges that Dell did not accurately
disclose
accounting information to investors. In particular, the SEC charged
that from 2002 to 2006, Dell had an agreement with Intel to receive
rebates in exchange for not using chips manufactured by AMD. These
substantial rebates were not disclosed to investors, but were used to
help meet investor expectations regarding the company's financial
performance; "These exclusivity payments grew from 10 percent of Dell's
operating income in FY 2003 to 38 percent in FY 2006, and peaked at 76
percent in the first quarter of FY 2007."
Dell eventually did adopt AMD as a secondary supplier in 2006, and
Intel subsequently stopped their rebates, causing Dell's financial
performance to fall.
Corporate responsibility record
Intel has been accused by some residents of
Rio Rancho, New Mexico of allowing
VOCs to be released in excess of their pollution permit. One resident claimed that a release of 1.4 tons of
carbon tetrachloride
was measured from one acid scrubber during the fourth quarter of 2003
but an emission factor allowed Intel to report no carbon tetrachloride
emissions for all of 2003.
Another resident alleges that Intel was responsible for the release of other VOCs from their Rio Rancho site and that a
necropsy of lung tissue from two deceased dogs in the area indicated trace amounts of
toluene,
hexane,
ethylbenzene, and
xylene isomers, all of which are
solvents used in industrial settings but also commonly found in
gasoline, retail
paint thinners
and retail solvents. During a sub-committee meeting of the New Mexico
Environment Improvement Board, a resident claimed that Intel's own
reports documented more than 1,580 pounds (720 kg) of VOCs were released
in June and July 2006.
Intel's environmental performance is published annually in their corporate responsibility report.
In its 2012 rankings on the progress of consumer electronics companies relating to
conflict minerals, the
Enough Project rated Intel the best of 24 companies, calling it a "Pioneer of progress".
In 2014, chief executive Brian Krzanich urged the rest of the industry
to follow Intel's lead by also shunning conflict minerals.
Age discrimination complaints
Intel has faced complaints of
age discrimination
in firing and layoffs. Intel was sued in 1993 by nine former employees,
over allegations that they were laid off because they were over the age
of 40.
A group called FACE Intel (Former and Current Employees of Intel)
claims that Intel weeds out older employees. FACE Intel claims that
more than 90 percent of people who have been laid off or fired from
Intel are over the age of 40.
Upside magazine requested data from Intel breaking out its hiring and firing by age, but the company declined to provide any. Intel has denied that age plays any role in Intel's employment practices. FACE Intel was founded by Ken Hamidi, who was fired from Intel in 1995 at the age of 47.
Hamidi was blocked in a 1999 court decision from using Intel's email
system to distribute criticism of the company to employees, which overturned in 2003 in
Intel Corp. v. Hamidi.
Tax dispute in India
In August 2016, Indian officials of the
Bruhat Bengaluru Mahanagara Palike
(BBMP) parked garbage trucks on Intel's campus and threatened to dump
them for evading payment of property taxes between 2007 and 2008, to the
tune of 340 million Indian rupees (4.9 million USD). Intel had
reportedly been paying taxes as a non-air-conditioned office, when the
campus in fact had central air conditioning. Other factors, such as land
acquisition and construction improvements, added to the tax burden.
Previously, Intel had appealed the demand in the
Karnataka
high court in July, during which the court ordered Intel to pay BBMP
half the owed amount (170 million rupees, or 2.4 million USD) plus
arrears by August 28 of that year.