Intel Corporation

Intel Corporation

Intel Corp is an American manufacturer of semiconductors located in Santa Clara, California, USA. Intel Corporation is one of the largest semiconductor manufacturers in the world and controls about 80% of the market for microprocessors used in desktop computers, laptops, Smartphones and Servers. Intel also manufactures semiconductors for the medical, automobile and industrial market. Intel has been at the forefront of the PC chip industry since the early days of the x86 chips to the core technology we know today.

Intel Corp was founded in July 1968 by Robert Noyce and Gordon Moore but was incorporated on March 1, 1989.

Intel Corp employs more than 100 thousand people globally and controls about 15% of the global semiconductor market with the bulk of its revenue coming from 4 major countries. China, Singapore, Taiwan and the United States. Each of these regions represents approximately $10 billion in revenue every year.

Intel Corp spends an estimated 20% of their annual revenue towards research and development. This was in excess of $12billion in 2015. In 2013, Intel Corp appeared on the list of most loved companies in the world.

Products and Services

Intel Corp designs and manufactures semiconductors, microprocessors and computer chips. The company is divided into 7 sections: Client Computing Group (CCG), Internet of Things Group (IOTG), Intel Security Group (ISecG), Data Center Group (DCG), Programmable Solutions Group (PSG), Non Volatile Memory Solutions Group (NSG) and New Technology Group (NTG). Intel Corp provides computer, networking and communications solutions to a wide range of customers including Original equipment manufacturers (OEMs), Original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications and automotive equipment manufacturers.

The Client Computing Group (CCG) is Intel’s primary revenue generator, accounting for about 55% of its total revenue. CCG produces chips for computer notebooks, desktops, tablets, Smartphones and mobile communication equipment. The Data Center Group accounts for about 30% of Intel’s revenue with chips designed for servers and other related products designed for the cloud, enterprise and communication equipment market. The Internet of Things Group which manufactures chips for connected devices in transportation, retail, industrial, video, and other market accounts for about 5% of Intel’s revenue. While about 10% of the company’s revenue is made up by the Intel Security, the Programmable Solutions, and Non Volatile Memory Solutions groups all together.  In 2016, Intel divested the Security group.

Major Competitors

Apple Inc, Cisco Systems, Inc, International Business Machines Corporation, Micron Technology, Inc, Oracle Corporation, Qualcomm Incorporated, Symantec Corporation, Texas Instruments Incorporated, Samsung Electronics and Toshiba are amongst Intel’s main competitors in the semiconductor industry.

Company’s worth

Over the past 10 years, Intel’s revenue has grown 55% in a one and two year growth pattern. In 2016, Intel Corp recorded revenue of $59 billion; this is a 7% increase from $55 billion recorded in 2015.

In 2015 Intel finalized the acquisition of Lantiq, a supplier of broadband access and home networking solutions. This acquisition moves Intel further into the DSL market. In 2015, Intel also invested nearly $1 billion in UniSpreadtrum Technology Beijing to jointly develop and produce chips for mobile devices based on the Intel architecture.

In 2017, Client Computing Group’s (CCG) revenue rose 2% and recorded revenue of about $33 billion. Data Center Group had an increase of 8% which resulted in recorded revenue of $17 billion.

Intel acquired Mobileye in 2017 for more than $15 billion. Mobileye is based in Israel and develops sensors for cameras and automobiles. Intel also acquired Altera.  Altera’s acquisition will provide Intel Corp with the key technology to provide data center solutions for cloud and the Internet of Things.

Intel Key Executives

Andy D. Bryant was named chairman of the Board of Directors in May 2012.

Brian M. Krzanich is the chief executive officer of Intel Corporation and also a member of the board of directors. He assumed office in 2013.

Sohail U. Ahmed is a senior vice president at Intel Corp. He is also general manager of the Technology and Manufacturing division at Intel Corporation.

Diane M. Bryant is group president at Intel Corp. She was formerly group president of the Data Center Group.

Wendell Brooks is a senior vice president at Intel Corporation. He is also the President of Intel Capital, Intel Corporation’s global investment division, which makes decision on equity investments in innovative technology startups and companies all over the world.

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