Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world’s largest semiconductor chip manufacturer by revenue,[3][4] and is one of the developers of the x86 series of instruction sets, the instruction sets found in most personal computers (PCs). Incorporated in Delaware,[5] Intel ranked No. 45 in the 2020 Fortune 500 list of the largest United States corporations by total revenue for nearly a decade, from 2007 to 2016 fiscal years.[6]
Intel supplies microprocessors for computer system manufacturers such as Acer, 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 (integrated and electronics) was founded on July 18, 1968, by semiconductor pioneers Gordon Moore (of Moore’s law) and Robert Noyce (1927–1990), and is associated with the executive leadership and vision of Andrew Grove. Intel was a key component of the rise of Silicon Valley as a high-tech center. Noyce was a key inventor of the integrated circuit (microchip).[7][8] 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.[9][10]
The Open Source Technology Center at Intel hosts PowerTOP and LatencyTOP, and supports other open-source projects such as Wayland, Mesa, Threading Building Blocks (TBB), and Xen.[11]
Operating segments
Client Computing Group – 51.8% of 2020 revenues – produces PC processors and related components.[12][13]
Data Center Group – 33.7% of 2020 revenues – produces hardware components used in server, network, and storage platforms.[12]
Non-Volatile Memory Solutions Group – 6.9% of 2020 revenues – produces components for solid-state drives: NAND flash memory and 3D XPoint (Optane).[12]
Internet of Things Group – 5.2% of 2020 revenues – offers platforms designed for retail, transportation, industrial, buildings and home use.[12]
Programmable Solutions Group – 2.4% of 2020 revenues – manufactures programmable semiconductors (primarily FPGAs).[12]
Customers
In 2020, Dell accounted for about 17% of Intel’s total revenues, Lenovo accounted for 12% of total revenues, and HP Inc. accounted for 10% of total revenues.[1] As of August 2021 US Department of Defense is another large customer for Intel.[14][15][16][17]
Market share
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.[18][19]
Intel’s market share decreased significantly in the enthusiast market as of 2019,[20] and they have faced delays for their 10 nm products. According to former Intel CEO Bob Swan, the delay was caused by the company’s overly aggressive strategy for moving to its next node.[21]
Historical market share
In the 1980s, Intel was among the top ten sellers of semiconductors (10th in 1987) in the world. It was part of the “Win-Tel” personal computer domination in the 1990’s and early 2000’s. In 1992, Intel became the biggest chip maker by revenue and held the position until 2018 when it was surpassed by Samsung, but Intel returned to its former position the year after.[22][23] Other major semiconductor companies include TSMC, GlobalFoundries, Samsung, Texas Instruments, Toshiba, STMicroelectronics, United Microelectronics Corporation (UMC), Micron, SK Hynix, Kioxia, and SMIC.
Major competitors
Intel’s competitors in PC chipsets included Advanced Micro Devices (AMD), VIA Technologies, Silicon Integrated Systems, and Nvidia. Intel’s competitors in networking include NXP Semiconductors, Infineon,[needs update] Broadcom Limited, Marvell Technology Group and Applied Micro Circuits Corporation, and competitors in flash memory included Spansion, Samsung Electronics, Qimonda, Kioxia, STMicroelectronics, Micron, and SK Hynix.
The only major competitor in the x86 processor market is 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.[24] However, the cross-licensing agreement is canceled in the event of an AMD bankruptcy or takeover.[25]
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.[26] Since over 95% of the world’s smartphones currently use processors cores designed by ARM Holdings, using the ARM instruction set, ARM has become a major competitor for Intel’s processor market. ARM is also planning to make attempts at setting foot into the PC and server market, with Ampere and IBM each individually designing CPUs for servers and supercomputers.[27] The only other major competitor in processor instruction sets is RISC-V, which is an open-source CPU instruction set. With the major phone and telecommunications manufacturer Huawei releasing chips based on the RISC instruction set due to US sanctions.
Intel has been involved in several disputes regarding violation of antitrust laws, which are noted below.