The Intel Corporation is best known for designing, manufacturing and selling computer components and related products. Some of their most popular products include: microprocessors, chipsets, motherboards, and wireless and wired connectivity products. They develop advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications.
The company, founded in 1968 by Gorden Moore and Robert Noyce, operates its business through the following segments: a client computing group, a data center group, an internet of things group, software & service, and all other the remaining. Intel is a world-renowned company ranking on multiple different lists for many great reasons. Just in 2016, Intel was ranked fourteenth on Interbrand’s “100 Best Global Brands”, 51st on Brandz “Top 100 Global Brands”, 43rd on Fortune Magazine’s list of the “50 World’s Most Admired Companies”, and 60th on Forbes list of “The World’s Biggest Public Companies”.
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This industry was formed in 1960 when the production of semiconductors became a viable option. The term “semiconductor” derives its name from the ability to conduct electricity in higher temperatures and to resist electricity in lower temperature. The application of the semiconductor has expanded extensively from radio in the 1960s to almost every electronic device that has an on-off switch in 2015. The industry is driven by technology innovation and has grown rapidly, from over $1 billion in 1964 to $335.8 billion in 2014. The global semiconductor industry is dominated by the US, South Korea (EWY), Japan (EWJ), Taiwan, and the European Union. In 1975, Intel's own founder, Gorden Moore, observed that the number of transistors on a chip would likely double every two years. This suggested that the size of the transistor would keep shrinking, thus creating Moore’s Law, which has guided long-term research planning in the semiconductor industry ever since. Intel, being a major player in the semiconductor industry, makes up 18.93% of the VanEck Vectors Semiconductor ETF (SMH) and 7.74% of the iShares PHLX Semiconductor ETF (SOXX). Take a look at Intel's journey in the semiconductor industry below. Resources:
http://marketrealist.com/2015/09/overview-semiconductor-industry/ http://marketrealist.com/2015/08/intel-history-semiconductor-industry/ The Intel Corporation's most significant rival is personal computer processor manufacturer Advanced Micro Devices and Mobile processor manufacturer Acorn RISC Machines. AMD line of Athlon64 processors and quad core processors compete with Intel’s i7,i5,i3 and Celeron Processors. The main difference is Intel hyper threading technology vs the added cores of the AMD processors. The advantage of Intel chip is hyper threading technology runs at lower temperatures and are more compatible with motherboards.
New chips from IBM and Nvidia are becoming more relevant. IBM’s Open Power9 Processors made for servers are direct competition to Intel Xeon processors and Nvidia TEGRA X1 with their new GPUs integrated with ARM processors are now competing with the Intel atom and integrated GPU processors. Intel make GPUs integrated into many of their CPUs although are more focused on business processes than high end graphics. The difference is that Intel CPUs can handle complex operations, while GPUs can only handle simple operations but at high speed. Intel has had a long run with AMD and has top them with their Xeon processor but still has competition with IBM Power 9 server processors and Nvidia TEGRA X1 processor with it integration with ARM architecture that directly competes with Intel’s Atom mobile processors. Resources: http://www.techradar.com/news/computing-components/processors/intel-vs-amd-which-processor-is-best-936589 http://www.alphr.com/features/390064/arm-vs-intel-processors-what-s-the-difference Who are Intel's (INTC) main competitors? | Investopedia http://www.investopedia.com/ask/answers/120114/who-are-intels-intc-main-competitors.asp#ixzz4RoPAA3He http://www.nvidia.com/object/tegra-x1-processor.html Intel has constantly reinvested into its manufacturing process in order to bring faster, smaller, and cheaper processors to market.
Although Intel is an industry juggernaut in developing new microprocessor technology, its Capital division actually spends considerable amounts of money in research and development, in itself and in startup companies into promising technologies. In 2012, Intel was the number one investor in research and development among US publicly traded companies at a whopping $10.1 billion. Resources: http://www.intel.com/content/www/us/en/company-overview/us-economic-impact-study-overview.html Intel uses what is called the tick tock method basically meaning every other year they focus on either creating a new product or improving the current product design.
They are the leaders in production of Computer processors because they keep putting out more powerful processors. This is how they stay ahead of others. If they are the ones creating the technology and discovering the new ways to innovate they set the trend for everyone else. Another way that they stay ahead of the competition is their manufacturing system. They create all of their plants exactly like every other plant they have specific rules for where they will build a plant and each plant is built as an exact copy. Resources: http://businesscasestudies.co.uk/intel/using-innovation-to-create-competitive-advantage/manufacturing.html#axzz4RddQEeeV |
AuthorsIST 415 Project for Southern Illinois University Carbondale completed by Maria Salazar, Chavez Ellis, Matt Barber and Tim Brown. Categories
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