Intel Corporation (Intel corporation is said) is the American corporation making a broad spectrum of electronic devices and computer components including semiconductors, microprocessors, sets of system logic (chipsets), etc. In addition to microprocessors, Intel releases semiconductor components for industrial and network equipment.
Structure and management
For January, 2019 as a part of Intel company the following divisions work:
- Intel Client Computing Group
- Data Center Group
- Internet of Things Group
- Non-volatile Memory Solutions Group
- Programmable Solutions Group
Main article: Financial performance of Intel
Financial year of the company comes to the end on December 31.
Growth of revenue by 2% to $71.97 billion, net profit did not change — $21.05 billion
Revenue of Intel in 2019 was the highest in the history of the company — $71.97 billion that for 2% exceeds an indicator of year prescription. The company considers the main driver of revenue growth server business.
The relevant division of Intel Data Center Group at the end of 2019 recorded turnover at the level of $23.48 billion against $22.99 billion the previous year.
In the direction for personal computers (Client Computing Group) annual revenues climbed release of processors from $37 billion to $37.15 billion. This jump, though small, Intel connects with increase in supply rate of desktop chips and modems. The successful announcement of 10-nanometer mobile Ice Lake processors based on which 44 models of notebooks will be created is mentioned in the press release.
The business connected with projects in the field of Internet of Things at Intel completed 2019 with revenue in the amount of $4.7 billion. It is less, than the previous year when sales were measured by $4.15 billion.
In the division supervising creation of products on the basis of a non-volatile memory (Non-volatile Memory Solutions Group), income in 2019 was $4.36 billion, having slightly risen in comparison with the 2018th.
The Programmable Solutions Group group created based on the absorbed Altera company received $1.99 billion that falls short of value of year prescription in $2.12 billion.
Net profit in 2019 practically did not change and was $21.05 billion. Profit in server business was reduced from $11.48 billion in 2018 to $10.23 billion a year later.
In structure of Client Computing Group profit turned out equal to $15.2 billion that it is more relatively 2018 ($14.22 billion). The division of Non-Volatile Memory Solutions Group received losses in the amount of 1.18 billion, and structure of Programmable Solutions Group — profit at the level of $318 million
Business in Russia
Main article: Intel Russia
Merges and absorption
Main article: Absorption and asset sale of Intel
The history of Intel is filled with numerous transactions of absorption and asset sales, many of which are described here.
Main article: Research and development centers of Intel
Intel COVID-19 Response and Readiness и Online Learning
Start of innovation laboratory together with Nutanix
On August 19, 2020 the Nutanix company announced start of innovation laboratory in cooperation with Intel corporation. The joint laboratory Nutanix and Intel will receive the selected engineering resources and products for researches, adaptation and implementation of innovations of Intel in the field of calculations, networks and data storage within software solutions of Nutanix. Read more here.
Hackers published 20 Gbytes of source codes and classified documents of Intel
On August 6, 2020 on the Internet there was a part of the confidential data of Intel company stolen by hackers. Swedish the cybersecurity researcher who published a part of data, intends to open even more classified documents.
Part of the stolen data of Intel was published by the Swedish engineer Til Kottmann (the user name on Twitter - @deletescape). The archive which size reaches 20 Gbytes contains confidential data of the company as source codes of firmwares, technical documentation, data on Intel processors and other information for 2016.
The folder contains the following information:
- Data on Intel Management Engine;
- Data on enrollment for development of the built-in software for consumer electronics of Intel;
- Technical data and information on Kaby Lake processors;
- Different road maps of the company and other documents;
- Information on Rocket Lake S processors;
- Schemes, documents, tools and software for the Tiger Lake platform;
- Different debug tools and also building tools;
- Binary files for drivers of the camera of Intel which she made for SpaceX;
- Descriptions of different platforms, including HDL codes;
- The Trace Hub files for the systems of debugging based on Intel processors;
- The reference book of the Elkhart Lake platform and code samples for it;
- Different documents on processors of a series of Xeon;
- Debug versions of BIOS for different platforms;
- Bootguard SDK;
- Simulator of processes Snowridge/Snowfish;
- Different schemes;
- Marketing materials of Intel and many other things.
Documents in itself, it seems, and are nothing, but as writes insider Apple, on the basis of these data it is possible to create exploits which can be dangerous to the MacOS systems. Meanwhile such programs are not revealed, but since data are published, they can appear at any time. In it, actually, and danger of this leak: the vulnerabilities given for stay are enough.
Kottmann claims that he received files from an anonymous source. The IT specialist uploaded the first part of data on the file hosting service of Mega, the link to archive appeared in Kottmann's Telegram channel. He promises to publish other files later. Kottmann noted in the publication that the provided files get under action of regulations of the Nondisclosure agreement (NDA), i.e. are considered as confidential.
Kottmann considers that hackers could get data access from the Center of resources and design. The library is open only for computer makers based on Intel.
According to the The Register edition, the published files can be irrelevant. Data of users did not suffer and Intel does not consider this leak as serious cracking.
The Swedish engineer noted that he often publishes data as supports free information exchange and wishes that security experts in a cyberspace could conduct the research, and users to improve experience of interaction with technologies. Nevertheless, Intel is engaged in investigation, and Til Kottmann is not afraid that the company can make a complaint in connection with publication of files.
Stop of deliveries of processors for Inspur
At the beginning of July, 2020 it became known of the termination of deliveries of Intel processors of Inspur company. It occurred after toughening of export restrictions by the American authorities. Read more here.
Intel headed the project of the Pentagon on protection of military against cyber attacks by means of machine learning
At the beginning of April, 2020 the chipmaker of Intel headed a new initiative of a military and research wing of the U.S. Government (DARPA) to provide cyber defense of the models of machine learning used in work of the Pentagon. Read more here.
Prohibition on communication with the staff of Huawei
On June 10, 2019 it became known that several large technology companies prohibited the employees any communication with workers of Huawei Technologies because of the sanctions inflicted by the American government on the Chinese producer of telecommunication equipment and mobile devices.
According to Reuters news agency with reference to the people familiar with a situation, all informal contacts with the people working in Huawei were limited in Intel and Qualcomm and also in InterDigital Wireless research company and South Korean mobile operator LG Uplus. Read more here.
AMD was compared by Epyc to Xeon and told about deliberate understating of capacity of Intel processors
At the end of March, 2019 AMD posted the materials devoted to advantages of the server Epyc processors over Xeon on the website. The company reported that Intel underestimates performance of the solutions that clients bought more expensive products. Read more here.
The termination of development of a 5G chips together with Chinese. Washington against
At the February MWC 2019 exhibition the Intel company officially announced the termination of joint development of a 5G modems with the China's second in value producer of chips — Unisoc (the former name — Spreadtrum Communications).
The head of department of Intel of a 5G of Advanced Technologies Rob Topol explained agreement cancelation with Unisoc so: the American corporation "should be convinced that it will be able to scale a 5G as soon as possible".
|As for Unisoc, we actually stopped this partnership … We decided that we will not continue this cooperation. Now we are going to focus some of our computing and a solution 5G directly on the Chinese OEM manufacturing — Topol said.|
In 2014 Intel purchased a 20 percent share in the Chinese state holding Tsinghua Unigroup which owns Unisoc for $1.5 billion. After that close cooperation of chipmakers which, in particular, assumed creation in Spreadtrum of the single-crystal systems based on Intel Atom microarchitecture began.
In 2018 Spreadtrum ceased to make chips on the basis of Atom, but the company agreed with Intel about creation of a 5G chips for smartphones to the second half of the 2019th. Partners wanted to use two modem chips of Intel from the XMM 8000 series and the Spreadtrum processor for development of a joint product.
Despite the termination of cooperation of Intel will release a 5G chipset for producers by the end of 2019. On its development more time left, than it was expected as Intel wanted to create "net a 5G chip", Rob Topol noted.
According to Nikkei Asian Review, opposed cooperation of Intel and the Chinese chipmaker the American authorities which were afraid that Beijing will get access to important technologies of Intel.
Intel invests 7 billion euros in construction of new factory in Ireland
In February, 2019 it became known of investment of Intel into construction of new manufacturing enterprise. It will be built in the Irish city of Leykslip (County of Kildare).
According to the Irish Times edition with reference to documentation published by the company, investments into the project will make 7 billion euros. These are the largest investments of the chipmaker in Ireland.
Future factory in which about 1600 people will work will be located near other production facilities of Intel in Leykslip at which by February, 2019 more than 4500 workers are engaged.
Within the new project the American company got permission to use of 90 thousand sq.m of the earth and also submitted the application for receiving the rights to 110 thousand sq.m of the neighboring square. There will 8 huge reservoirs for water, a 48-meter tower and the building with generators and treatment facilities are constructed.
As construction of the enterprise assumes cutting about 2.5 hectares of the wood, Intel undertook to plant 6 thousand trees and 12 thousand bushes in other places. Also the company will broaden the next roads, will set 400 occasional parking spaces for bicycles and will build the multi-storey parking on 600 parking places.
The corporation does not disclose information on what will be made at the new plant. Most likely, Intel will arrange there production of the advanced 7-nanometer processors while other Irish objects are occupied with production of 14-nanometer products.
It is noted that investments of Intel into production of Ireland corresponds to strategy at which the company increases the production volume of chips in the conditions of updating of computers in the corporate sector, including among small and medium business. Intel also aims to eliminate an acute shortage of processors which in retail is observed from the second half of 2018.
Robert Swan is the new CEO of Intel
On January 31, 2019 Intel announced appointment as the new CEO of the company of 58-year-old Robert Swan who temporarily fulfilled these duties since June when Brian Krzanich was dismissed. Read more here.
Intel invests $11 billion in expansion of production of chips in Israel
At the end of January, 2019 it became known of plans of Intel to invest $11 billion in construction of the new plant in Israel. $10 billion will be spent by the company, and $1 billion will provide the government of the country as a grant.
As the Minister of Finance of Israel Moshe Kahlon reported on the Twitter blog, Intel notified him on intentions to invest the unprecedented amount of 40 billion shekels ($10.9 billion) of creation of new factory. It will be located in the south of Israel in the city of Kiryat-Ghats.
Intel did not disclose project details, including implementation terms, cost and production technologies, and only announced plans to provide the business plan "for continuation of investment into the production site of the company in Kiryat-Ghat".
|When the company comes to Israel and invests $10 billion, it receives a grant for 9%, i.e. 91% of investments remain in the country. Always there are discounts and remunerations — Kakhlon said in Army Radio interview.|
According to Haaretz, in last investment projects of Intel asked the Israeli authorities to cover from 10% to 15% of the planned expenses, but the state offered a 5 percent grant and also a 5 percent tax subsidy for the planned jobs and for not less than 12 months. Finally the government agreed to compensate 8% of costs, notes the edition.
Intel is the main exporter of industrial output in Israel with a supply rate of $4 billion at the end of 2018. The processor giant bought products from the local companies for $1.7 billion.
It is expected that the new plant will increase the number of staff of Intel in Israel by 1000 people in addition to 13 thousand employees who work by the beginning of 2019 there. A considerable part of workers are the share of Mobileye company which was absorbed by Intel earlier.
Investment of $5 billion in expansion of production in Israel and receiving a grant for $185 million
In December, 2018 the financial committee of parliament of Israel approved providing Intel of a grant in the amount of 700 million shekels (about $185.5 million at the rate of at the time of a statement) as partial financing of production expansion which was planned by the American corporation. That invests about $5 billion in expansion of the Fab 28 enterprise located in the city of Kiryat-Ghats in the south of Israel and which is engaged in release of chips for servers, workstations, notebooks and desktops.
In addition to expansion of factory for $5 billion, Intel undertakes to create on this object of 250 new jobs and every year to conclude with the Israeli producers and retailers of the transaction for the amount 2.1 billion shekels ($560 million). The company is going to submit the application for receiving additional government subsidies in Israel for 2019 and 2020.
In 2014 Intel after the declaration of investment of 23.5 billion shekels into the plant in Kiryat-Ghat received a grant for 1.7 billion shekels. Afterwards the authorities of the country made Intel the strategic partner thanks to what the company began to pay corporate taxes at the rate of 5% instead of standard 23%.
Since 1974 until the end of the 2018th Intel invested in the Israeli economy about $35 billion in the form of investments and merger of the local companies. Intel became in the country the largest employer in the IT industry among the non-state companies, having the state in 11 thousand employees.
According to the senior vice president and the area manager Manufacturing and Operations in Intel Ann Kellekher (Ann Kelleher), expansion of production will allow the company to react quicker to surge in demand in the market and will save up to 60% of time when increasing deliveries. In addition to Israel, Intel expands production in Oregon (USA) and Ireland, being going to begin long construction works in 2019.
11 employees of Intel were hospitalized after sharp chemical poisoning
At the end of November, 2018 11 employees of Intel industrial complex in the city of Hilsborough (State of Oregon) were hospitalized after they had trouble breathing during operation. Fortunately, it was without the victims.
As the representative of rescue and fire fighting service of Hilsborough Bruce Montgomery told the The Oregonian/OregonLive edition, it is unclear that became the reason of an indisposition of people. At the same time he noted that the rescue team was notified on "sharp chemical poisonings" and helped injured workers of a campus of Intel Ronler Acres. All 11 people were in consciousness when they were taken away in hospital.
According to Bruce Montgomery, firemen and gas analyzers in Intel did not reveal distribution of any dangerous gases at the Intel enterprise. Due to the lack of toxic substances in air team of specialists in chemical incidents were not sent to a campus of Intel.
Montgomery told that he does not know in what department injured employees work. The company refrained from comments. Investigation is made.
Earlier at the Intel plant in Arizona where processors are made, explosion took place. Chemical solutions lit up and exploded at the enterprise for production of chips in the State of Arizona. Hundreds of workers were urgently evacuated.
Four persons as a result of explosion got serious burns and were hospitalized in local hospitals. Three workers were written out later, one more some time was critical condition. According to law enforcement officials, wounds generally had fragmental character. Concussion was diagnosed for some workers.
Then it was supposed that emergency occurred because of one of the staff of the enterprise. However the final reason of the incident was not stated.
Intel focused on Apple and left ASUS and Acer without processors
At the end of October, 2018 information that Apple is the main reason of shortage of computer processors appeared. Other PC makers, including ASUS and Acer suffer from this cooperation of Intel and Apple. Read more here.
HPE urges partners to buy server chips from AMD, but not from Intel
Dismissal of the CEO because of the love relations with the employee
Cooperation with the IOC
On June 21, 2017 the International Olympic Committee (IOC) and Intel announced start of long-term technology partnership which first stage was an official ceremony of agreement signature in New York with participation of the president of the IOC Thomas Bach and the chief executive officer of Intel Brian Krzanich (Brian Krzanich).
Intel will join the global sponsor's program "The Olympic Partner" (TOP), having received the status of the world top partner of the Olympic committee until 2024. Cooperation of Intel and the IOC will help to change an appearance of the Olympic Games, will help admirers of sport to see the Olympic Games in all beauty.
|Following the strategy of development for the Olympic Movement until 2020, the IOC actively signs agreements with new partners", - Thomas Bach said. "In the area Intel is the world leader therefore we lay great hopes on cooperation with a command of Intel which will help us to create the future of the Olympic Games by means of the most advanced technologies. The Olympic Games act as a link between athletes and admirers of sport, inspiring people by means of sport and the Olympic principles of friendship, respect and commitment to excellence worldwide. Global cooperation with Intel already very soon will allow athletes, admirers of sport at stadiums and to the audience to open for itself new edges of magic of the Olympic Games worldwide.|
The Olympic Games are the unique platform capable to show to the whole world as technologies of Intel create the future of big-time sports. The first fruits of cooperation can be seen in February, 2018 at winter Olympic Games 2018 in South Korean Pyeongchang where technologies of Intel will be used for forward translation of sports meets in a format of virtual reality.
Bosses of Intel are threatened because of growth of number of women and black in the state
In April, 2017 became that Intel increases expenses on security of heads because of the threats coming to their address in connection with increase in minorities in staff of the company.
In 2016 Intel spent $1.86 million for bodyguard of the CEO Brian Krzanich. $275.2 thousand more were spent for protection of his house. For comparison, in 2015 safety of the head cost the company only $39.6 thousand.
The executive vice president of Intel Venkata Renduchintala (Venkata Renduchintala) heading division which integrates client devices, Internet of Things and system solutions received from the employer of $944.8 thousand for security. Similar annual expenses on Stacy Smith which in Intel directs issues of production, sales and operating activities made $309.9 thousand.
According to the materials provided to Intel of the U.S. Securities and Exchange Commission, the company increases expenses on protection services because the CEO and several other heads and also members of their families receive threats. In this respect the IT giant did not provide more detailed information.
Bloomberg reports that it is about threats because of increase in number of women, black, Latin Americans and other minorities in personnel of Intel. In April, 2016 Brian Krzanich said that some top managers faced the negative reaction connected with a position and a company performance in relation to minorities. In 2015 Intel was going to spend about $300 million for that to the 2020th the personnel of the company reflected the national and gender structure of the population of the USA.
At the end of 2016 Intel increased a share of women in the state to 25.8% that on 2.3 percent points it is more in comparison with an indicator of 2014. Besides, the company balanced the salaries of minorities and the majority at the compared positions.
Heads of Medtronic and Boeing joined Intel the board
On March 23, 2017 Intel announced emergence in Board of Directors of corporation of two new members. It is about the CEO of manufacturing company of the medical equipment of Medtronic Omar Ishrak and also the chief financial officer and the executive vice president for corporate development and the strategy of Boeing Greg Smith (Greg Smith).
|We are very glad to welcome two new independent directors having wide experience of the management of global innovative companies. We hope for their valuable deposit how Intel continues transformation of the business for achievement of growth in the developing and adjacent segments of the market — the chairman of the board of Intel Andy Bryant (Andy Bryant) whose words are cited in the press release reported.|
After Omar Ishrac and Greg Smith's entry into Board of Directors of Intel the number of members grew to 13, including the chairman Bryant there. Following structure:
- CEO of Intel Brian Krzanich (Brian M. Krzanich);
- chairman of the board of PayPal Holdings John Donahoe;
- director of consulting company REH Advisors Reed Hundt;
- head of Red Eagle Ventures investment company David Pottruck
- cofounder and CEO of developer of the corporate software Workday Aneel Bhusri.
- former US Trade Representative of Charlene Barshefsky;
- executive chairman of consulting company CamberView Partners Frank Iri (Frank D. Yeary);
- professor of engineering faculty of Stanford University James Plummer;
- professor of the Harvard business school David Yoffie;
- professor of faculty of electrical equipment and computer sciences in engineering college of the University of California in Berkeley Tsu-Jae King Liu.
Development of technologies for unmanned vehicles
At the end of November, 2016 it became known of plans of Intel for development of technologies for unmanned vehicles. The company created special division and also joined the project of producers of automobile Mobileye and Delphi component parts.
The separate structure in Intel which focused on creation program and the hardware for self-driving motor transport received the name Automated Driving Group. It was headed by the senior vice president and the head of division of Internet of Things of Intel Dag Davies (Doug Davis). For the sake of a new position it postponed the retirement planned for the end of 2016.
Formation of Automated Driving Group continued series of actions of Intel concerning the technologies providing control automation with machine. In July, 2016 Intel announced cooperation with Mobileye and car maker BMW over the project of the unmanned vehicle which will appear in 2021.
In November, 2016 Intel announced investment of $250 million into development of robomobiles and also integrated with Mobileye and Delphi in creation of appropriate technologies.
At first Mobileye and Delphi will use Intel Core i7 microprocessors in the developments, and then Intel will provide to new partners the chip with a high integration scale which is developed especially for application in cars. Ready-made solutions will be tested on cars of commercial appointment in the closed territories.
The presentation of a joint system of Intel, Mobileye and Delphi is planned for the CES 2017 exhibition which in January will take place in Las Vegas.
In addition to processors, Intel develops different sensors and communication solutions, security systems and machine learning. The top analyst of Tirias Research Jim McGregor notes, Intel has a set of modems and chips, however the company still lags behind the competitors advancing technologies for unmanned vehicles.
Intel begins production of ARM processors to order. The first client — LG
On August 16, 2016 Intel announced the conclusion of the license transaction with the British company ARM Holdings. The American corporation will make mobile processors according to the customer order among which can be Apple, Qualcomm, etc.
Cooperation of Intel and ARM it was announced at the Intel Developer Forum (IDF) conference in San Francisco. The agreement provides that Intel will be engaged in production of 10-nanometer chips on the most popular in smartphones and tablets to architecture — ARM.
The LG Electronics corporation became the first client of Intel who placed orders for production of ARM chips. It is about some single-crystal system of new generation with main cores of Artisan. Terms of the beginning of production of this processor at capacities of Intel it is not announced.
It should be noted that by the time of the declaration of partnership with ARM the Intel company was not going to develop independently ARM processors which could replace own solutions of Atom. However and without this business Intel can expect a considerable additional income, considering a large number of the large companies (for example, Qualcomm, Apple, MediaTek) using services of contract semiconductor producers.
In addition to LG, at least two more companies — Altera and Spreadtrum (its processors often meet in budget tablets) — ordered production of chips from Intel. Intel began to make chips to order in 2013, having entered fight against leaders of this market (as of 2016) Taiwan Semiconductor Manufacturing Company (TSMC) and Globalfoundries.
The analyst of consulting company IHS Technology Ian Fogg considers that the license transaction with ARM gives to Intel a great opportunity to become the large player in the market of mobile processors due to use of the advanced production capacities.
The presentation of new technologies at the Computex exhibition
Reduction of 11% of the state
On April 19, 2016 Intel announced a personnel decrease for 11%, having explained this solution with the restructuring started against the background of falling of the global demand for personal computers.
Intel is going to dismiss about 12 thousand employees. By the end of 2015 the global staff of corporation totaled 107.3 thousand people.
Due to mass reduction of jobs of Intel expects to save $750 million in 2016 and also to reduce annual expenses by $1.4 billion to the middle of the 2017th. However at first the chipmaker will have to spend about $1.2 billion for payment of compensations by the dismissed employee and other expenses connected with the announced personnel cleaning.
Intel notes that the most part of the got laid off workers will be notified on it till June, 2016, however in certain cases process of dismissals will be dragged out to the middle of the 2017th.
|These actions will stimulate the long-term changes directed to strengthening of positions of Intel as the leader in the world of smart network technologies — the CEO of the company Brian Krzanich says. — Are sure that we will be able to develop as more productive company having wider scope and strong government.|
Intel also reported that the company intends to accelerate "evolution from the PC company in the organization which develops cloud computing and also services billions of smart devices".
Along with 11 percent staff reduction Intel announced Stacy Smith leaving from a post of the chief financial officer. It will be transferred to a position of the head of sales, production and developments. Appointment will become effective only after the company finds the new financial director, and on it several months can be required.
Sale of server processors complete with the Chinese chips
On January 21, 2016 Intel announced the beginning of strategic cooperation with the Chinese partners together with whom it is going to market the upgraded processors of Xeon for local data centers. Due to new business the American IT giant intends to gain corporate and state clients in Celestial Empire.
According to the statement Intel, corporation creates the joint venture (JV) with National Tsing Hua University (Tsinghua University) and Montage Technology Global Holdings company. The last is "daughter" of one of the state IT companies, largest in the People's Republic of China — CEC which creates electronics for state agencies and military forces.
The new project in which Intel invests more than $100 million, assumes development of the processor modules including the server Intel Xeon chips and special programmable chips of RCP (Reconfigurable Computing Processor) developed by specialists of National Tsing Hua University for "expansion of the opportunities intended for the satisfaction of special local requirements".
Details of partnership are not disclosed. The analyst of Gartner Martin Reynolds notes that RCP solutions guarantee lack of "suspicious activity" in chips of Intel.
According to the analyst of J. Gold Associates Jack Golda (Jack Gold), Intel aiming to strengthen the positions in the Chinese market of large data centers selected a way of cooperation.
|It is similar to partnership of Intel with the Massachusetts Institute of Technology or Stanford University. The agreement will allow Intel to protect the processes, and Tsinghua — to save what they already developed — the expert considers.|
The analyst Patrick Moorhead from Moor Insights says that China aims at creation of own processor for state companies for the purpose of ensuring national security. At such scenario of Intel will deliver chips of Xeon, the Montage company will add to them security bits, will pack these solutions and will send them to the Chinese producers, Moorhead considers.
Montage is going to start release of the processor modules consisting of Xeon and the RCP chip in 2017.
Dependence on Amazon and Microsoft
In November, 2015 the Business Insider edition published article devoted to the increasing dependence of Intel on Microsoft and Amazon. Though these leading cloud providers strengthen a financial status of processor giant, finally this cooperation can turn back not for benefit of the last.
Intel is a prime vendor of the server chips optimized under the customer used in the equipment of data centers of Amazon Web Services (AWS) and Microsoft Azure. Annual revenues of these public cloud services are stated in $7 billion and $1.4 billion respectively. The companies achieved such results not without the aid of Intel which this partnership is also profitable.
By estimates of analysts of Deutsche Bank, from 2009 to 2015 Intel increases sales of chips to suppliers of public cloud solutions on average for 50% a year. At the same time in the conditions of decline in demand for computer solutions the corporation focuses on server which in the third quarter generated 2015 Intel revenue in the amount of $4.1 billion — 12% more, than the previous year.
According to analysts, increase in a share of sales of chips to the cloud companies in a total turnover can lead to the fact that these customers of Intel will begin to dictate the terms and to require more discounts.
"If large players of the market of public clouds become even more, at them the number of levers of pressure upon Intel will increase — the analyst of Moor Insights & Strategy Patrick Moorhead says. — Giving them strong support, Intel in a sense helped to generate the monster".
The vice president and the leading analyst of Gartner Lydia Leong agrees with this opinion, saying that Intel strongly risks when it allocates clients with the bigger "market power". According to the expert, the corporation needs to try to diversify the client ecosystem.
The head of division of Intel Data Center Group (is responsible for server products) Diane Bryant assures that technologies of the company are still inaccessible to competitors therefore clients will continue to buy Intel processors still long time.
Updating of a team of top managers
On July 2, 2015 Intel announced changes in an organization structure. Resignation of the president of the company Renee James became the main thing among them.
She will resign the authority in January, 2016. Till this time James will help with transfer of the duties to the new head whose name is not reported.
The president of Intel Rene James will leave the company in January, 2016
"For the last 28 years Rene had an enormous impact on development of Intel — its CEO Brian Krzanich comments on resignation of the president of the company. — On behalf of Board of Directors and leadership team we thank Rene for its work in the direction of business which we have now. We completely support its solution".
Rene James called the leaving the next stage of the career, the new place of its work is not called. Technology, production and personnel departments of Intel which are under direct supervision James temporarily turned into Krzhanich's maintaining.
In addition to departure of the president of Intel, in the company it is announced some other staff changes. So, the general communications and devices manager of Intel Aicha Evans is appointed responsible for strategy in mobile business, and the head of Intel Capital fund Arvind Sodhani will leave corporation in January, 2016, having given the duties to the head of department of transactions in the field of merges and absorption Wendell Brooks who will combine both positions.
Besides, it became known of completion of integration of division of information security of Intel Security (it is created based on the absorbed McAfee company) with the general structure of the American corporation. Intel Security was headed by Chris Young. The head of department of New Technology Group Josh Walden heads all research commands now.
"We rebuilt structure of the management for further increase in efficiency to try to obtain advantages of our strategy quicker, than before" — Brian Krzanich said.
Penalty for personnel collusion to other IT companies
In the middle of January, 2015 Adobe, Apple, Google and Intel announced intention to pay compensation in $415 million for pre-judicial settlement of the class action of charge of the IT companies of personnel collusion.
In the claim submitted in 2011 on behalf of 64 thousand employees of Apple, approved by Google, Intel and Adobe that the specified employers secretly agreed not to entice each other employees, having limited for them to that a possibility of the wages rise and search of more attractive work in the competing company.
According to Lucie Koch, in the case of collusion to the preventing purpose to employment of workers there are enough proofs of antitrust violation therefore without pre-judicial settlement of Apple, Google, Intel and Adobe threatens a penalty at the rate from $9 billion.
The technology companies claim that in recent years salaries of their employees grew so even in case of any arrangements of employers the income of employees was not undermined.
2014: Consolidation of mobile business with division of the PC
On November 18, 2014 Intel announced consolidation of mobile business with computer. The new structure will receive the name Intel Client Computing Group, her employees will develop side by side Core chips for desktops and notebooks and also Atom chips for gadgets.
At the beginning of 2015 the division of Intel Mobile and Communications Group supervising development of chips for smartphones and tablets will be a part of group of computer solutions (PC Client Group) which head Kirk Skaugen will become the head of newly made structure of Intel Client Computing Group.
The head of the company Brian Krzanich asked to trace the vice president and the general manager of the integrated division of Intel Mobile and Communications Group of Hermann Eul process of merge of assets. In the first quarter 2015 the new position of Eul in Intel will become known, Bloomberg with reference to the representative of corporation Chuck Mulloy reports.
In the letter Krzhanich wrote to employees the following: "The market continues to develop promptly, we need to change even quicker to be ahead".
Analysts apprehended consolidation of computer and mobile business as the next attempt of Intel to be fixed in the market of processors for smartphones and tablets that at the company badly turns out.
Intel integrates mobile business with computer
In the third quarter 2014 the operating loss in division of Intel Mobile and Communications Group exceeded $1 billion, and revenue decreased to $1 million against $353 million the previous year. Financial recession in mobile business is connected with the fact that the corporation pays to producers of devices of a subsidy for use of chips of Intel in the products. At the end of 2014 the American giant expects to produce up to 40 million chips for tablet computers.
In division of Intel PC Client Group in July-September, 2014 revenue in the amount of $9.19 billion is recorded that is 9% more, than the previous year. The company hopes that within the planned restructuring the engineers who are engaged in mobile chips will be able to adopt experience of development of successful computer solutions of the colleagues from PC Client Group.
Cessation of production of motherboards
In January, 2013 it became known of a stop of production of motherboards of Intel. According to market observers, from the company it is quite logical step in this market experiencing prolonged crisis.
According to representatives of Intel, production volume of these components will be gradually nullified within the next three years. At the same time in Intel refused to call to what reduction of quantity of jobs will lead eventually decrease in production volumes.
Intel also emphasized that made this decision to make more efforts for production of components for new perspective form factors, in particular, of mobile devices. Nevertheless, calmed in the company, business on production of the PC still will remain important for it.
However, some analysts already suggested that failure of Intel from production of motherboards can lead eventually to its complete leaving from the market of personal computers though still the division on production of the PC brings the lion share of revenue of Intel.
Brian Krzanich is the new CEO of Intel
The choice of the candidate from among own managers indicates that the board is convinced of correctness of a present rate. Judging from the fact that the choice fell on the 52-year-old director of operations with wide experience in the production sphere, the Board of Directors is happy with the current situation.
"Krzanich, undoubtedly, deeply understands business and corporate culture of Intel — Charles King, the analyst of Pund-IT believes. — If selected someone from the outside, it would mean that the corporation is interested in a good shake-up. But as selected Krzanich, it means that the Board of Directors needs only the minimum correction of a rate".
Krzanich's choice also means that the Board of Directors of Intel confirms a course towards further improvement of production technologies and acceleration of an output to the market of new architecture. Now in Intel are concentrated on implementation of new 14-nanometer technology process of production of chips with three-barrier transistors which would allow corporation to save a lead over other producers which are lagging behind it in "a race of nanometers".
According to Murkhed if under the leadership of Krzanich Intel successfully copes with promotion of new mobile architecture, the corporation will be able to purchase influence in the mobile market and to throw down a challenge to ARM.
5 planned innovations of Intel in 2013
Development and reduction in cost of touch technologies
Kirk Skaugen, the vice president and the general manager of division of Intel PC Client Group, said that ultrabooks with the touch screen will appear by the end of 2013 at the price of $599. Moreover, Intel made the statement that all ultrabooks which will work based on fourth generation of Core processors will have the touch screen. Generally, all new ultrabooks made later in 2013 will become like those.
Increase in term of operation of the battery
According to Skaugen, the jump which is going to make Intel in respect of increase in term of operation of the battery of portable computers is the largest in the history of the company. So, rechargeable batteries of ultrabooks thanks to new generation of Core processors will work till 13 o'clock, and tablets – till 10 o'clock. New devices of this type will cost $799 and $899, they will be put on the market later in 2013.
Perfect systems of identification
New Intel of a system will be equipped with more perfect authentication systems, and, therefore, will be safer. In particular, computers will use the system of face recognition based on webcams so at users need of manual entry of the password will disappear. The system of recognition will read out at the same time not only unique geometry of persons, but also to analyze the movement of muscles so nobody will be able to crack such protection, using others photos and video of the image. The solution can be supplemented with the voice recognition system.
It is less than movement by "mouse"
By the end of 2013 the computer mouse can lose a role of aksessur number one. The systems of Intel will use management of a look, voice actuation and will be capable to distinguish the individual movements of a hand of the user that will become an additional tool of protection of computers. Such methods of information input and commands will be gradually substituted by a traditional mouse and the keyboard.
Revolutionary TV of technology
At the end of 2013 the provider of paid Comcast TV based on technologies of Intel will bring to the market new type of the cable set-top box using which it will be possible to watch TV and video content on demand from the combined devices running Windows 8 so the tablet and the PC will become addition to the TV (implementation of the concept of multiscreen).
The plan of investments into ASML Holding in the amount of $4.1 billion
The total volume of investments will be $4.1 billion (3.3 billion euros), this money will go as is one share purchase higher than the called Dutch company, and on scientific research in the field of creation of chips on 450-millimeter plates.
As stated in the official statement of Intel, the ultimate goal of corporation consists in reducing the term of production of the necessary equipment by two years that will lead to considerable cost reduction and gain of productivity for vendors of semiconductors.
Within the first phase of Intel will direct to ASML about $680 million for research and development of the equipment for production of 450-mm chips and will acquire about 10% of shares of the company for $2.1 billion. Implementation of the second phase will require approval of shareholders of ASML, she assumes providing Intel in addition of $340 million ASML for researches and purchase of another 5% of stocks of the company for $1 billion.
Transfer of the announcement of the chip for LTE for the end of 2012
According to the marketing director of products of Intel of the Summit of SUAL (Summit Syal), the company is going to increase production volumes of chips with support of LTE since 2013.
Chips with support LTE were going to be released in 2011 especially for the market smartphones USA. However, the left Medfield x86 Atom SoC chip has no such function. It should be noted that the smartphone from Apple iPhone 5 in the USA works only in the standard LTE.
SUAL also noted that the company prepares the dual core Medfield chip for an exit. The operating architecture has only one core. However, the chip can support function of multitasking Hyper-Threading which all competing producers have not in two-nuclear chips. According to SUAL, Intel wants to show that even with one core products of the company are competitive, and two-nuclear chips can be more productive, than others four-nuclear.
At the same time, SUAL refused to speak about production schedules of four-nuclear chips for smartphones, referring to the fact that the company does not disclose similar plans.
TechCrunch connects avarice of comments of Intel with the fast declaration of financial results for the 3rd quarter 2012 which should be published on October 16, 2012.
Intel it is necessary to battle against ARM for a segment of ultrabooks
ARM and its partners in production of processors, including Texas Instruments and Nvidia, aim at the market of thin and easy notebooks. They intend to offer for it productive and energy-efficient hardware platforms. Now Qualcomm also joined their number, at the end of March, 2012 her senior vice president Rob Chandhok announced the conducted works on creation of the quad-core version of the Snapdragon S4 chip for notebooks running Windows 8. According to him, they will be easier and thinner than ultrabooks on platforms of Intel and will exceed on these indicators even the known Apple MacBook Air.
Intel in turn looks for methods to make up for lost time and to be fixed in quickly growing market of mobile solutions in which today ARM Holdings takes strong positions. Representation at the Computex exhibition in May, 2011 to the concept of ultrabooks became one of attempts to achieve this difficult goal. She assumes creation of very thin, easy and at the same time productive notebooks. Lines, characteristic of tablets, – a progressive tense of life from one battery power, permanent stay in an active mode, in some cases, the touch screen are also inherent to ultrabooks. At the same time their cost should not exceed $1000 to save competitive positions against the background of MacBook Air.
According to analysts, in case of success of ultrabooks in the market Intel will kill two hares at once. The company will be able not only to strengthen positions in a mobile segment, but also to increase sales of mobile PCs. For the last several quarters they seriously sank because of the growing popularity of tablets.
However, whether there is open a question collectors so far will be able to offer rather low prices of ultrabooks to make them it is more attractive than MacBook Air or even tablets. The first models cost $800 or slightly cheaper, however now there are a lot of offers on $1000 and above. Actually, the products provided at the moment not fully answer the initial determination of the concept of the ultrabook made by Intel.
Apple will overtake Intel on deliveries of mobile processors
Infoworld with reference to data still of the unpublished report of In-Stat provides information that until the end of 2012 Apple can become the world's largest supplier of mobile processors. So far the company takes the second place after Intel.
The reasons lie on a surface – improbable popularity of "apple" smartphones and tablets against the background of deceleration of growth rates of the PC market. The last traditionally remains the fiefdom of Intel, however last year volumes of the implemented PCs grew less, than by 2%. According to In-Stat, in 2011 Intel shipped 181 million processors for mobile devices (mainly notebooks) and occupied a market share in 13.9%, Apple – 176 million from market shares of 13.5%. "The gap is minimum, and Apple has every chance to overcome it", – Jim McGregor, the main strategist on In-Stat technologies is sure.
Apple during creation of A4, A5 and A5X processors for iPhone and iPad uses the restricted information of own research centers or, in other words, acts as the supplier of "brains" for production capacities of Samsung, at least, in some cases. In an arsenal of Intel there are processors for smartphones and tablets, in particular, Atom Z2460 known to Medfield code-named too. If they manage to find a way to developers of ready devices, Intel will be able to expect sharp increase in the market share.
Lenovo K800 will become the first smartphone based on Intel Atom, its sales will begin in the second quarter through network of China Unicom operator. From distinctive features It should be noted the 4.5-inch display, Android OS and support of Evolved High-Speed Packet Access 4G-technology (HSPA+). It is known also of agreements of Intel with Motorola, ZTE and Orange, – undoubtedly, very large, but not key players in a segment of smartphones and, especially, tablets.
It is rumored that Apple in response to persistent attempts of Intel to get into a segment of smartphones, new to it, and tablets can refuse use of its processors in own notebooks and give preference to architecture of ARM.
The agreement with Lenovo on release of smartphones on Atom processors
According to the CEO of Intel Paul Otellini (Paul Otellini), the K800 Lenovo device will become the first smartphone with Intel Inside marking. It will become available in China in the second quarter with the assistance of China Unicom company. China is the most fast-growing market for mobile devices and already now there more than 950 million users of smartphones.
"We did not tell the last word in the market of smartphones yet", - Otellini in a telephone interview to the Computerworld edition emphasized.
Otellini also laid hopes for Infineon company which Intel purchased earlier. It will help Intel to become more active in the market of component parts for smartphones. Chips of Infineon work in 400 million phones, and the company intends to integrate radio into Atom chips. The majority of chips of this model is now used in netbooks, but this market seriously suffered because of the competition to tablets. The Medfield chip will also be used in tablets since 2012. Intel is going to recover the PC market using ultrabooks – they thinner and easier than notebooks, consume less energy.
The ultrabooks equipped with modern Intel processors code-named Sandy Bridge are already delivered by the companies Acer Asus, Toshiba and Hewlett-Packard. The following line of ultrabooks will go on sale at the end of 2012 with processors on the basis of new microarchitecture of Ivy Bridge. They will be made on the basis of 22-nanometer technology. New chips will provide to computers increase in productivity and decrease in level of consumption of energy.
One more product expecting the announcement - the processor for the Xeon E5 servers, the code designation Romley. The release of servers will begin with E5 this and next quarter, Otellini told. The CEO noted that though demand for Romley is strong, he will not head a cycle of replacement of processors as this architecture (the code name Nehalem) was developed in 2009.
In the statement the head of Intel let know that the company moves towards opportunities of the world growth provided by security systems, ultrabooks, data processing centers and a release of smartphones and tablets under a trademark of Intel.
Release of processors with architecture of Sandy Bridge
At the beginning of 2011 Intel announced release of processors with architecture of Sandy Bridge which will be on sale as "the Intel processors Core of the second generation" (first generation was provided exactly a year ago). The main innovation in new chips was more broad support of multimedia, including a graphic core which is integrated on one crystal together with the main cores this time, but not on separate - the solution similar to Fusion processors which deliveries the AMD company started at the end of 2010.
Release schedule of smartphones and tablets on Intel processors
The company promises to release not the first year smartphones based on the processors and in 2011, at last, is going to implement this promise, Otellini said. Along with entry into the market of smartphones until the end of 2011 the vendor is going to become stronger in the market of tablets. Both there, and there the company should compete with ARM Holdings. They intend achieve success, according to the head of Intel, by further decrease in energy consumption of the processors.
Also believe in the companies that advantage of their solutions is the possibility of the choice of the operating system: Android, MeeGo or Windows - all of them are supported by its architecture (x86).
2009: Reorganization of structure of the company: emphasis on architecture of X86
In September, 2009 there were changes in structure of Intel directed to concentration of business around architecture of X86 and production assets. All main Intel groups are united in division of Intel Architecture Group (IAG) which is headed by vice presidents Sean Maloney and Dadi Perlmutter. Maloney is responsible for business and operating activities, Perlmutter — for development of a product row and architecture. All divisions anyway connected with architecture of x86 are accountable to them.
The production division of Technology and Manufacturing Group (TMG) was headed by the executive vice president and the chief executive officer of Intel Andy Bryant (Andy Bryant).
In addition to departments of development of microarchitecture, processors, chipsets, SOC ("systems on the chip") and wireless solutions which direct respectively Steve Pawlowski, Sunil Shenoy Rony Friedman, Rob Crooke and Raviv Melamed, are created six new divisions working "under an umbrella" IAG:
- The first group — PC Client Group (mobile and desktop systems, the head — Mooly Eden).
- The second group — Data Center Group (servers, "cloud computing", computer networks and high-performance computing systems, the head — Kirk Skaugen).
- The third division — Visual Computing Group (virtualization, Jim Johnson).
- The fourth division — Ultra Mobility Group — will be focused on implementation of a mikroarkhitetkura of Intel in mobile devices, the head — Anand Chandrasekher.
- The fifth group — Embedded and Communications Group, the head — Doug Davis.
- The sixth group — Digital Home Group, the head remains Eric Kim.
Duties Shauna Meloni, before the marketing vice president, after his transition to IAG were undertaken by Tom Kilroy.
2008: Intel controls 75% of the market of microprocessors
The 1990th: The largest supplier of component parts for the PC
In the 1990s the company became the largest producer of component parts for home personal computers. Series of Pentium and Celeron processors long time were the most widespread.
Intel made a huge contribution to development of the computer equipment. It is enough to tell that to the specification on all ports, buses, command systems were written by Intel or the companies working together with it. For example, such type of memory as DDR became known thanks to it (rather, contrary to) though long time the company advanced other type of memory — RAMBUS RAM (RDRAM).
1989: Start of production in the Irish Leykslip
Since 1989 on the production sites of Intel located in Leykslip (Ireland) releases modern solutions.
1987: Start of release of Intel 8086
Since the beginning of the release on June 8, 1987 microprocessors of Intel 8086 became a basis for the first IBM personal computers and literally changed our world. Thanks to discipline, creative potential and following to the Moore's law of Intel continued to develop innovations and with each new generation of processors to represent all new improvements in architecture of a command set of x86. Technologies of Intel allowed the company to achieve true commercial success.
1971: The order from the Japanese Busicom, development of Intel 4004
Success to the company came in 1971 when Intel began cooperation with the Japanese company Busicom. Intel received the order for twelve dedicated chips, but according to the proposal of the engineer Tad Hoff the company developed one universal microprocessor of Intel 4004. Capacity of this processor was comparable with a capacity of the most powerful computers of that time. The following developed Intel 8008.
1969: Opening of office in Brussels
1968: Foundation of the company, venture investments
The company was founded by Robert Noys and Gordon Moore in 1968 after left Fairchild Semiconductor company. Andy Grove soon joined them. After long reflections founders called Intel company (from the words "integrated electronics"). When to nobody unknown Bob Noys and Gordon Moore wanted to call own IT Moore Noyce company, but by then there was already a hotel chain with such name. So they decided to stop on reduction from INTegrated ELectronics.
The business plan of the company was printed on the typewriter by Robert Noys and occupied only one page. Having provided it to the financier who helped to create Fairchild Semiconductor earlier, Intel received venture investments into 2.5 million dollars.
You See Also
- ↑ Intel Reports Fourth-Quarter and Full-Year 2019 Financial Results
- ↑ Intel NDA blueprints – 20GB of source code, schematics, specs, docs – spill onto web from partners-only vault
- ↑ Intel ends Unisoc deal so it can work directly with Chinese OEMs
- ↑ Intel prepared to invest of $8 bn in new Leixlip development
- ↑ Intel to get of $1 billion state grant for of $11 billion Israel chip plant expansion
- ↑ Intel prepares to expand manufacturing in Israel as part of global plan
- ↑ 11 Intel employees in Hillsboro hospitalized after report of ‘toxic exposure’
- ↑ Intel Elects Two New Members to Board of Directors
- ↑ Intel races to put autonomous cars on streets with new driving group
- ↑ Intel Licenses ARM Technology to Boost Foundry Business
- ↑ Intel cuts 12.000 jobs in wake of falling PC sales
- ↑ Intel Links Up With China in Server-Chip Venture
- ↑ Intel helped Amazon Web Services become a monster, and it could end up backfiring
- ↑ Intel Announces Leadership Changes
- ↑ Intel to Merge Loss-Making Mobile Business With PC Division
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