Intel Corporation, incorporated in 1968, designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. The Company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PCs) (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. The Company also develops and sells software and services primarily focused on security and technology integration. In February 2013, it acquired ProFUSION-Comercio e Prestacao de Servicos em Tecnologia da Informacao Ltda. In May 2013, Corp acquired Aepona Ltd. Effective July 16, 2013, Intel Corp acquired Omek Interactive Ltd. Effective August 15, 2013, Intel Corp acquired Fujitsu Semiconductor Wireless Products Inc, from Fujitsu Semiconductor Ltd, a wholly owned subsidiary of Fujitsu Ltd. In February 2014, M/A-COM Technology Solutions Holdings Inc announced that its subsidiary Mindspeed Technologies Inc completed the sale of assets of its wireless infrastructure business unit to Intel Corporation.

On January 31, 2011, the Company acquired Wireless Solutions (WLS) business of Infineon Technologies AG. On February 28, 2011, the Company acquired McAfee, Inc. In August 2011, the Company formed a wholly owned subsidiary, Intel Federal LLC. During the year ended December 31, 2011, it sold the remaining interest in Micron. On February 2012, QLogic Corp. sold the product lines and certain assets associated with its InfiniBand business to the Company. In May 2012, Cray Inc. completed the sale of its interconnect hardware development program and related intellectual property to the Company. In September 2012, InterDigital, Inc.’s subsidiaries sold around 1,700 patents and patent applications to the Company.

The Company offers platforms that incorporate various components and technologies, including a microprocessor and chipset. A microprocessor-the central processing unit (CPU) of a computer system-processes system data and controls other devices in the system. It offers microprocessors with one or multiple processor cores. Its second and third generation processor families integrate graphics functionality onto the processor die. In contrast, some of its previous-generation processors incorporated a separate graphics chip inside the processor package. The Company also offers graphics functionality as part of a separate chipset outside the processor package. Processor packages may also integrate the memory controller.

A chipset sends data between the microprocessor and input, display, and storage devices, such as the keyboard, mouse, monitor, hard drive or solid-state drive, and compact disc (CD), digital versatile disc (DVD) or Blu-ray drive. The Company offers and develops System-on-Chip (SoC) products that integrate its core processing functions with other system components, such as graphics, audio, and video, onto a single chip. The Company offers Intel vPro technology, a computer hardware-based security technology for the notebook and desktop market segments. During 2011, it introduced the second generation Intel Core vPro processor family.

The Company offers components and platforms for mobile phones and connected devices. Key mobile phone components include baseband processors, radio frequency transceivers and power management integrated circuits. It also offers mobile phone platforms, including Bluetooth wireless technology and global positioning system (GPS) receivers, software solutions, customization, and essential interoperability tests. McAfee offers software products that provide security solutions for consumer, mobile, and corporate environments designed to protect systems from malicious virus attacks, as well as loss of data. McAfee’s products include endpoint security, network and content security, risk and compliance, and consumer and mobile security.

The Wind River Software Group develops and licenses embedded and mobile device software products, including operating systems, virtualization technologies, middleware, and development tools. The Company offers NAND flash memory products primarily used in solid-state drives (SSDs), portable memory storage devices, digital camera memory cards, and other devices. It offers SSDs in densities ranging from 32 gigabytes (GB) to 600 GB. Its NAND flash memory products are manufactured by IM Flash Technologies, LLC (IMFT) and IM Flash Singapore, LLP (IMFS).

The Company competes with Taiwan Semiconductor Manufacturing Company, Ltd., GlobalFoundries Inc., Advanced Micro Devices, Inc., International Business Machines Corporation, Oracle Corporation, ARM Limited, NVIDIA Corporation, MIPS Technologies, Inc., QUALCOMM Incorporated, Texas Instruments Incorporated and Symantec Corporation. http://inventors.about.com/od/ijstartinventors/a/Intel-History.htm

In 1968, andGordon Moore were two unhappy engineers working for the Fairchild Semiconductor Company who decided to quit and create their own company at a time when many Fairchild employees were leaving to create start-ups. People like Noyce and Moore were nicknamed the "Fairchildren". Robert Noyce typed himself a one page idea of what he wanted to do with his new company, and that was enough to convince San Francisco venture capitalist Art Rock to back Noyce's and Moore's new venture. Rock raised $2.5 million dollars in less than 2 days by selling convertible debentures. Art Rock became the first chairmen of Intel.

Intel Trademark The name "Moore Noyce" was already trademarked by a hotel chain, so the two founders decided upon the name "Intel" for their new company, a shortened version of "Integrated Electronics". However, the rights to the name had to bought from a company called Intelco first.

Intel Products

In 1969, Intel released the world's first metal oxide semi-conductor (MOS) static ram, the 1101. Also in 1969, Intel's first money making product was the 3101 Schottky bipolar 64- bit static random access memory (SRAM) chip. A year later in 1970, Intel introduced the 1103, DRAM memory chip . In 1971, Intel introduced the now-famous world's first single chip microprocessor (computer on a chip), the , invented by Intel engineers Federico Faggin,Ted Hoff, and Stanley Mazor. In 1972, Intel introduced the first 8-bit microprocessor the 8008. In 1974, the microprocessor was introduced with ten times the power of the 8008. In 1975, the 8080 microprocessor was used in one of the first consumer home computer - the Altair 8800 that was sold in kit form. In 1976, Intel introduced the first micro-controllers, the 8748 and 8048, a computer-on-a- chip optimized to control electronic devices.

Though produced by the USA’s Intel Corporation, the 1993 was basically the outcome of a research conducted by an Indian engineer. Popularly known as the Father of the Pentium chip, the inventor of the computer chip is Vinod Dham.

Andrew Stephen ("Andy") Grove (born 2 September 1936), is a Hungarian-born American businessman, engineer, and author. He is a science pioneer in the semiconductor industry. He escaped from Communist-controlled Hungary at the age of 20 and moved to the United States where he finished his education. He later became CEO of Intel Corporation and helped transform the company into the world's largest manufacturer of semiconductors.

As a result of his work at Intel, and from his books and professional articles, Grove had a considerable influence on the management of modern electronics manufacturing industries worldwide. He has been called the "guy who drove the growth phase" of Silicon Valley. [2] Steve Jobs, when he was considering returning to be Apple's CEO, called Grove, who was someone he "idolized," for his personal advice.[3] One source notes that by his accomplishments at Intel alone, he "merits a place alongside the great business leaders of the 20th century."[4] http://en.wikipedia.org/wiki/Andrew_Grove

For nearly 40 years, Intel Corporation has been at the forefront of silicon innovation. Today it is the world leader in developing technologies, products, and initiatives to continually advance how people work and live.

Intel’s early history is legendary. The company was established in 1968 by Robert N. Noyce, cofounder of the integrated circuit, and Gordon E. Moore, a colleague of Noyce’s from Fairchild Semiconductor, to make semiconductor memory more practical and affordable. The pair quickly won the backing of venture capitalist Art Rock, who raised $2.5 million in less than two days. Because the name Moore Noyce was already trademarked by a hotel chain, the two called their startup Intel, short for “integrated electronics.”

Soon after Intel’s founding, a third visionary joined the team: Andrew S. Grove, a Hungarian émigré who had played a critical role in the development of metal oxide semiconductor (MOS) large scale integrated (LSI) technology. Not long after that, top engineers Ted Hoff , Federico Faggin, and Stan Mazor joined the group. In late 1969, when a Japanese calculator manufacturer, Busicom, asked the new company to design 12 custom chips for one of its products, the innovative Intel team came up with a groundbreaking solution: one chip that could do the work of 12.

Intel Corporation

Nine months later, the Intel 4004 was first produced, a 1/8-inch by 1/6-inch chip that contained 2,300 MOS transistors. This “computer on a chip” was the world’s first microprocessor, with all the power of the 3,000-cubic-foot ENIAC computer.

In 1980, the 4004 was followed by the 8080, which was chosen as the central processing unit of IBM’s first personal computer. In 1985 Intel introduced its next-generation Intel386™ microprocessor, and in 1993 the company’s focus on R&D and manufacturing expertise resulted in the renowned Pentium microprocessor, whose descendants power performance-intensive applications today. Intel’s groundbreaking achievements continue in the new century.

In January 2006, the company announced it had designed what is believed to be the fi rst fully functional SRAM (static random access memory) chip using 45-nanometer (nm) logic technology. Then, just a year later, Intel began to implement an innovative combination of materials that drastically reduced transistor leakage, improving energy efficiency, and significantly increasing performance in its 45nm process technology. Intel now uses a new material based on the element hafnium instead of silicon with a property called “high-k” for its transistor gate dialectric, and a new combination of metals for the transistor gate in portions of the millions of transistors inside a multi-core computer chip, which is about the size of a postage stamp. According to , the move to hafnium-based high-k and metal gate materials “marks the biggest change in transistor technology since the introduction of polysilicon gate MOS transistors in the late 1960s.”

Intel’s new 45nm processor technology is now in production for more than 15 products in its next generation family of computer chips. With more than 400 million transistors for dual-core processors and more than 800 million for quad-core, these next generation of chips provide greater performance, power-management capabilities, higher core speeds, and larger caches for desktop, mobile, workstation, and enterprise computers.

And more milestones are ahead including a 32 nanometer (nm) technology with transistors so small that more than 4 million of them could fit on the period at the end of a sentence on a printed page. “Intel has a long history of translating technology leaps into tangible benefits that people appreciate,” said Bill Holt, vice president and general manager of the Intel Technology and Manufacturing Group. That forward- looking ethic is reflected in Intel’s Leap ahead™ call to action, inspiring continuing commitment to moving silicon technology forward.

This history was written by the Santa Clara Valley Historical Association in 2008. http://www.siliconvalleyhistorical.org/#!intel-corporation-/c1zra

From the book Lasting Leadership: What You Can Learn from the Top 25 Business People of our Times, this chapter describes Andy Grove, the Intel CEO who forged the company through fire and setbacks into the powerhouse that it is today.

When Andrew S. Grove was a student of engineering at New York's City College in the mid-1950s, he faced a problem. The one-year scholarship he received as a Hungarian refugee was about to run out, and to speed up his graduation, he needed to take courses in the chemical engineering department. The chairman, Professor Al Xavier Schmidt, taught a crucial course—Chem E 128. Unable to schedule an appointment with Schmidt, Grove, then a young man of 20, waited outside the classroom one day and seized his chance to present his case to the formidable professor.

As Grove spoke, Schmidt, a short man with a fierce moustache, fixed his eyes on the nervous student and subjected him to an interrogation. "He cross-examined me on the spot," Grove recalls. "He asked me about my courses, who I took them from, and my grades." Schmidt apparently liked Grove's replies—he had failed one exam in physics but got an A in the subject the next time—and admitted him to his course. "He was testing me, testing my background," says Grove.

That incident was an early example of a pattern that appears frequently in Grove's life—converting a negative situation into a positive one through resourcefulness. As chairman and former CEO of Intel, a company he co-founded in 1968, Grove has repeatedly faced setbacks during the past 35 years but found ways to turn them into stepping stones. In the process, with Grove at its helm, Intel has grown into the world's largest chipmaker, with 78,000 employees and more than $30 billion in annual revenues in 2003.

That, in itself, is not unusual. Many companies and leaders profiled in this book have seen remarkable success during the past 25 years. Still, Intel occupies a special place among them. As the company that introduced the world's first microprocessor in 1971, Intel has played a seminal role in the evolution of modern computing. It is impossible to conceive of today's global, networked economy without Intel, or to imagine Intel without Andy Grove. As this chapter shows, Grove's life and career consistently reveal his imagination, resolution, and integrity. That is why his leadership has lasted as long as it has.

This book argues that lasting leadership results from individuals possessing—and cultivating—certain qualities and combinations of attributes. While all the leaders featured here have some of these attributes, Grove stands out because he has personified so many of them in specific ways over a span of nearly 50 years.

Inspired by Schmidt, Grove developed a leadership style based on truth-telling. At a time when Intel was facing a crisis of mammoth proportions—triggered by Japanese inroads into the company's core market of memory chips in the mid 1980s—he discovered an underserved market and rejuvenated the business. A decade later, confronted by another severe disaster involving a flaw in its Pentium microprocessors, Grove was forced to recognize how market conditions had changed. He was able to build the Intel brand (through the famous "Intel Inside" campaign) and used his savvy in managing risk to steer the company clear of antitrust regulators. Above all, Grove espoused and upheld values that have given Intel its unique corporate culture, or what he calls its "very strong immune system."

A business leader who combines all these attributes and deploys them consistently over his or her life is not just rare; he or she is unique. That is why Wharton and Nightly Business Report named Andy Grove "most influential" among the Top 25 leaders profiled in this book. The attributes that make him special, however, are not unique; they are available to everyone. Learning how to nurture these qualities in yourself will not turn you into Andy Grove. It may, however, make you a better leader. Andrew S. Grove

The Challenge: Dealing with the Pentium Flaw Debacle

Ask Andy Grove, chairman of Intel, about his toughest business challenge, and a pensive look appears in his piercing blue eyes. Two situations vie for the position. One is the time when Intel almost went under during the mid-1980s as a result of fierce competition from Japanese chipmakers. The second crisis— which is highlighted in this section—came a decade later, when the company was slammed by its customers and the media for a flaw in its Pentium microprocessors. The flaw eventually led to large-scale product replacements and ended with Intel taking a $475 million write-off. "The net present value of the pain involved is hard to compare," Grove says in his precise voice. "They both tore me up. It seems that the more recent one tore me up more, but that may be because it is more recent."

It happened in the fall of 1994. At that time Intel, which had $10 billion in annual revenues, was already the world's largest chipmaker. The company was busy preparing for the launch of the Pentium, its latest generation microprocessor—an operation that involved a heavy-duty manufacturing effort and a massive advertising campaign. As optimism about Intel's prospects increased, the company's stock soared. In the last week of November, it traded in the high 60s after a Merrill Lynch analyst predicted a big increase in fourth-quarter sales.

Under the radar screen, however, trouble was brewing. Several weeks earlier, discussions had begun in various Internet newsgroups about a flaw in the Pentium's floating point unit, the part of the chip that handles advanced number-crunching. Intel executives, including Grove, didn't pay much attention. They were aware of the flaw and, after a thorough examination, concluded that it was insignificant. According to Grove, the design error "caused a rounding error in division once every nine billion times." This meant "that an average spreadsheet user would run into the problem only once every 27,000 years of spreadsheet use."

Soon, however, the online discussion caught the attention of trade publications, which started writing about it. Matters came to a boil on November 22, 1994, the Tuesday before Thanksgiving. A CNN crew showed up at Intel's headquarters in Santa Clara, California, and the next day, the cable news channel aired a nasty piece about the Pentium flaw. Soon the story began to appear in other publications in the U.S., and then in other parts of the world. For example, The New York Times ran an article titled, "Flaw Undermines Accuracy of Pentium Chips." Customers, too, were up in arms, because news reports said Intel had already shipped two million computers with Pentium chips. Says Grove, "We had a daily monitor of incoming nasty calls, of customer complaints." Grove's reaction, as usual, was to set the record straight. On Thanksgiving Day, he wrote a memo and posted it on the Internet, identifying himself as the CEO of Intel, and pointing out that while the floating- point unit did have an error, it would only affect "users of the Pentium processor who are engaged in heavy-duty scientific/floating-point calculations." Much to his amazement, not only did people pooh-pooh his arguments about the Pentium flaw, but they also didn't believe that he had written the memo. "There was a huge amount of discourse on the web claiming that it wasn't I who had written it," Grove says. "I typed the f***ing thing with my own two fingers [but] nobody believed what it said, and nobody believed that I wrote it. Everything I said in it was true, and I wrote it. I was shocked."

Outraged customers began demanding replacement chips for their computers. Sticking to Grove's policy of insisting that the error was minor, Intel initially resisted replacing the chips unless the customers could establish that the chips would be used for advanced math calculations. As Information Week wrote in an article titled, "Intel to Users: 'Humbug!'," "Users, upon reaching Intel's 800 number, apparently go through a lengthy interview process to see if Intel deems them worthy of receiving a corrected chip. If you can't convince Intel that you may encounter the bug in daily life, you just don't make the cut." Soon, jokes ridiculing Intel were making the rounds on the Internet, including a top-ten list of reasons to buy a Pentium machine. "Reason number 10.0000001: Your current computer is too accurate."

By December, the volume of complaints declined a little, and Grove began to feel optimistic that the worst might be over. Unexpectedly, another blow fell. Grove arrived at his office one Monday to find a message with a news flash on his desk. It said, simply, that IBM had stopped shipments of all Pentium-based machines. According to Grove, "All hell broke loose again...The phones started ringing furiously from all quarters. The call volume to our hotline skyrocketed. Our other customers wanted to know what was going on. And their tone, which had been quite constructive the week before, became confused and anxious. We were back on the defensive again in a major way."

Why did Intel respond to the Pentium flaw crisis the way it did, in a manner that one observer called "a textbook example of how not to handle a delicate situation"? In part, it followed from Grove's approach, modeled as it was after his former chemistry professor's tough, no-nonsense style of stating the facts and refusing to bow before pressure. In retrospect, says Grove, he thinks he "mishandled the floating-point debacle about as badly as possible. By the way, Schmidt probably cheered me on as I mishandled that situation. I stuck with the facts and told our customers to get with it." It was apparent, however, that Grove's "Schmidt approach," while it may have worked in previous situations, was not only ineffective during the Pentium flaw crisis but was making matters worse. Eventually, "after a number of days of struggling against the tide of public opinion, of dealing with the phone calls and the abusive editorials, it became clear that we had to make a major change," according to Grove. When this realization sank in, Intel reversed its policy. The company announced it would replace anyone's chip who wanted it replaced. It set up a huge operation to answer customer phone calls—staffing it initially with volunteers who wanted to help cope with the disaster. Ultimately, as Intel replaced hundreds of thousands of chips, the crisis passed. When it ended, Intel had to take a $475 million bath. "It was the equivalent of half a year's R&D budget, or five years' worth of the Pentium processor's advertising spending," says Grove.

While Grove's "Schmidt-style" response may have aggravated the Pentium flaw crisis, it alone was not responsible for the way he dealt with it. As he explained two years later in his book Only the Paranoid Survive, Intel at that time was going through a "strategic inflection point," or a key turning point, when the rules by which the company did business changed.

The rules changed, ironically, because of the success of another initiative, the "Intel Inside" marketing campaign. During its relatively brief history, Intel had pioneered the development of innovative memory chips and microprocessors. It had set the standards for its products and marketed them to computer makers (rather than computer users). "Whatever problems we had in the past, we used to handle with the computer manufacturers, engineer to engineer, in conference rooms with blackboards, based on data analyses." A few years before the Pentium crisis hit, however, Intel had embarked on an aggressive marketing campaign to build the Intel brand. Its "Intel Inside" slogan was plastered on billboards, appeared in TV commercials, and, in China, even on bicycle reflectors. By the time the campaign ended, Intel had become a world-famous brand with international name recognition.

As a result, when the Pentium crisis hit, the customers who were concerned were not just engineers (who might have understood why a minor design flaw was not a big deal) but millions of non-technical folks who didn't give a hoot about intricate mathematical arguments. They just knew they wanted an accurate chip to replace a flawed one. Grove was still trying to communicate about product standards according to the old rules, without realizing that as a result of its marketing campaign, Intel's customer base had fundamentally changed. Intel was no longer an industrial products company; it had evolved into a mass consumer products company.

Another factor, Grove realized in retrospect, was also at work. He still thought of Intel as an innovative start-up, but the external view of the company was that it had grown into a global IT giant. As such, when thousands of customers thought Intel was not responding to their complaints about the Pentium's flaw, they lambasted it as they might any insensitive big-business mega-corporation. Here, too, Grove's perception of Intel was at odds with that of its customers.

That disconnect was brought home strongly to Grove after Christmas 1994. One Sunday, Grove was speaking to Dennis Carter, Intel's head of marketing, about having survived the crisis. Carter said, "I'm glad you called, because I have drawn completely the opposite conclusion. We may have survived, but it was shocking how little public goodwill there was for us to tap into. It was as if the public was just waiting for us to stumble." Carter argued that "Intel would have to change its approach to business dramatically: It would have to court its public, be sensitive to the needs of vast numbers of customers, and build equity of goodwill."

Grove was livid. "I told him to go f*** himself," he says. "I didn't have the patience to listen to bullshit like this. Again, Schmidt probably cheered me on. We talked for hours. I was standing in front of the kitchen phone. And as usually was the case when Dennis and I fought, Dennis won." Intel had learned its lesson: It implemented several actions to win back the public's trust and confidence. Eventually it won a spot on Fortune magazine's list of most admired companies.

Grove's experience shows that when faced with a challenge of such enormous magnitude, just being a truth teller may not be enough; it is equally important to be a fast learner, recognizing how the rules of the game have changed and adapting to the new realities. Grove, with some help from his colleagues, was able to do just that. "So, did I learn? Yeah," he says. "But did I learn from the incident? Hell, no." http://www.ftpress.com/articles/article.aspx?p=345010

In a soon-to-be-released biography, Harvard Business School professorRichard S. Tedlow profiles one of the most influential business leaders of our time— Intel's Andy Grove. Tedlow discusses his research on the Silicon Valley legend and how Grove altered much more than the chip industry. Key concepts include:

 A key to Grove's success was his ability to look at issues dispassionately, like an outsider.  Grove's experience growing up in Hungary became a foundation for the "Intel way." What Hungary was, Intel was not. Intel culture emphasized knowledge over power, common sense, and respect for ideas.  Trained as an engineer, Grove taught himself how to run a business and has since made lasting contributions to management education with books such as Only the Paranoid Survive. by Sean Silverthorne

Almost fifty years ago, nineteen-year-old Andy Grove stepped off a boat in New York City, a poor immigrant from Hungary who barely escaped Nazi occupation. A decade later he co-founded Intel, the chipmaker that would help invent the PC industry. But Grove was more than a talented engineer. As his biographer Richard S. Tedlow puts it, Grove was "one of the master managers in the history of American business."

A new biography, Andy Grove: The Life and Times of an American, will debut next week, written by Tedlow, the Class of 1949 Professor of Business Administration at Harvard Business School. Tedlow spent several years researching and interviewing Grove, to the point of inhabiting a small cubicle in Intel's Santa Clara, California headquarters. Although Grove participated with Tedlow, he did not review the manuscript until it was in print, Tedlow says.

Tedlow discusses the book and Grove in this interview. Next week, HBS Working Knowledge will offer a video podcast with Tedlow, as well as a book excerpt.

Sean Silverthorne: Why is your book subtitled "The Life and Times of an American"?

Richard S. Tedlow: The subtitle highlights the central theme in Grove's professional life. His odyssey epitomizes the fulfillment of the American dream. A penniless immigrant from an environment entirely unlike that in the United States comes here and winds up at the center of the industry which is at the center of the future.

Grove was astonished by America. Nobody ever held against him the fact that he is an immigrant. Nor was he held back because he is of Jewish origin. When he graduated first in his engineering class at the City College of New York in 1960, he was quoted in The New York Times to the effect that "Friends told me that all I needed was ability. Americans don't know how lucky they are." Q: You explore in detail his early years growing up a Hungarian Jew who was threatened not only by the Nazis but also by the Soviet invasion of his country. What do you think this upbringing contributed to his development as a man and a leader?

A: I devote a good deal of attention to Grove's childhood, boyhood, and youth because I think an appreciation of the first two decades of his life is essential to understanding his development as a manager.

Until 1945, anti-Semitism placed Grove's physical survival at risk. His father's mother was killed in Auschwitz, and other members of his (and his wife's) extended family lost their lives in the Holocaust and because of the fighting in World War II. In 1944 and especially early in 1945, young Andy was a hunted child.

Life under the Communist regime which followed the Soviet defeat of the Germans Grove came to find hateful. Everything about Communist Hungary elevated the lie at the expense of the truth.

Both during the Nazi and Communist eras, knowing what really was going on— finding out the actual truth—was more than once a matter of life and death for the Grove family. Think about it. No wonder Grove's search for the truth in the business world was so intense, so passionate.

HE HAS AN UNCANNY ABILITY TO ABSTRACT HIMSELF FROM A DECISION IN WHICH HE IS DEEPLY, EMOTIONALLY INVOLVED AND VIEW THE PROBLEM AS AN OUTSIDER WOULD.

More than anyone else, Grove created "Intel culture." If you look at some of the principles by which he ran that company, you can see that in an upside-down way, he learned them in Hungary. Everything Intel was, Grove's experience in Hungary was not. Here are a couple of examples. "Knowledge power" trumps "position power." It is, in other words, what you know, not what title you have in the organization that matters. "We argue about issues, not the people who advocate them" was another of Grove's beliefs. Once again, this is the opposite of his experience in Hungary, where people were stapled to the ideas they put forth. If you were stapled to an idea that lost favor in Hungary, it was worth your life.

"Put common sense on a pedestal," says Grove. Once again, the direct opposite of the "uncommon nonsense" epitomized by the "virtual" cheering at parades and the show trials of Andy's youth.

Q: Grove was also a prolific writer on the art and science of business management, including the books Only the Paranoid Survive and High Output Management. How does he stack up as a thinker in this area? Why do you think someone with such a great engineering and technology background became so interested in strategy and the intricacies of running a business?

A: Grove made the transition from technologist to technologist/manager because he had no choice. When Intel was founded in July of 1968, he was employee number three. Employees number one and two, Bob Noyce and Gordon Moore, were older than Andy. They were established and well fixed financially. Neither of them liked business management at all.

So if Intel were going to be managed—and if it were not it was doomed—the responsibility flowed down to employee number three. Grove knew nothing about managing a business and, in his own words, "I was scared to death. It was terrifying. I literally had nightmares. I was supposed to be director of engineering, but there were so few of us that they made me director of operations."

Grove is the ultimate "autodidact," the ultimate self-taught professional. He started at the bottom—"My first assignment was to get a post office box so we could get literature describing the equipment we couldn't afford to buy"—and worked his way up to the rank of one of the master managers in the history of American business. What Grove learned, he has also taught. This he has done through his course at Stanford's Graduate School of Business during the past quarter century, through the half-dozen books and innumerable articles he has written, and through his hundreds of speeches. But most of all, Grove has taught and continues to teach by example. What he has done and what he has communicated have exercised a profound impact on business schools and business executives. This impact will prove lasting.

Q: You note that "Andy Grove's Intel was a pressure cooker." Grove's management style was intense and demanding, and Intel was not necessarily the most fun place to work. He guided the company through one of the great transitions in tech history, changing a maker of memory chips into a microprocessor powerhouse, but also had failures such as Intel's response to the floating point issue. What do you think managers in general can learn from Grove's management and leadership?

A: Grove's career has innumerable lessons for the business executives of today and tomorrow. But if I had to select one, it would be "point of view." He has an uncanny ability to abstract himself from a decision in which he is deeply, emotionally involved and view the problem as an outsider would.

It is this ability to view issues that for others would be fraught with emotion in a clinical fashion, which has led to some of his most astute decisions. The devices he employs to disentangle himself from the heat of the moment can be of use to anybody running a business today.

Q: Grove's notebooks, which you had access to, are fascinating. Why did he keep such detailed journals and what did you learn from them?

A: I mentioned previously that Grove is an autodidact—a man capable of teaching himself a remarkable variety of new skills. Writing down his thoughts plays an important role in this process of teaching himself. The act of writing contributes an important element of discipline to his thinking. What I learned from those notebooks is that as hard as Grove drove others, he was harder on himself. He is unsparing in self-criticism. He knew that the speed of the gang is the speed of the boss. No faster.

Q: Most of the titans of industry you have studied in the past are deceased. Andy Grove is very much alive. As an historian, what were some of the professional challenges you faced writing about a living legend?

A: The great advantage of being an historian is the perspective provided by the passage of time. You have a frame in which you can place events. The historian is willing to sacrifice, for that priceless asset, immediacy and access. We have a lot of perspective on Napoleon. However, we can't ask him or anyone who knew him, or anyone who knew anyone who knew him, any questions.

I took a chance. I decided that for this one time in my professional life I would sacrifice perspective for access. It is not a decision I regret.

As I observe in the book's acknowledgments, I have spent my career at a university the motto of which is Veritas. I tried to provide a truthful, objective account of Andy Grove's life and times in this book. However, the reader should be aware that Grove is a magnetic man. It is impossible, for me at least, to have spent as much time with him as I did and to have immersed myself as completely as I did in this project without developing feelings of admiration and affection which must have colored the account to some degree.

Q: How did the idea for the book come about, and how did your personal relationship with Grove evolve over time?

A: I first met Andy Grove when I made a presentation at Intel in 1993, and we stayed in touch in a desultory fashion ever since. Andy believes in "strategy by speechmaking." Because he has a sense of history, he often uses analogies from the past to illustrate his arguments. I am an historian, so either he or one of his technical assistants would occasionally ask me for examples of past occurrences which might shed light on current events and on the future. During one such e-mail exchange early in 2003, I made a suggestion about a biography.

Specifically, I wrote that, as Andy approached the end of his chairmanship of Intel's board of directors, there was a good chance that someone was going to try to make money off his name by writing a quick and cheap book about him. I suggested that he consider cooperating with an historian who wanted to write a genuine, truthful account of his career which aimed at the highest scholarly standards.

I said that I did not want to write the book. However, I knew everyone who did this kind of work; and I would be happy to select a couple of candidates worthy of the challenge. There would be no charge. My goal was the advancement of knowledge about a key man in a key company in a key industry in a key part of the world.

His technical assistant forwarded this e-mail to Grove. His immediate response to her was that this was the stupidest idea he had ever heard. A half hour later, he sent her another e-mail asking why I didn't want to write the book. That is how it all began.

Q: What are you working on next?

A: I am at work on the centennial history of the Harvard Business School.

ABOUT THE AUTHOR Sean Silverthorne is editor of HBS Working Knowledge. http://hbswk.hbs.edu/item/5561.html

http://www.entrepreneur.com/article/197636 Andrew S. Grove & Gordon E. Moore Co-founders of Intel Corp. Founded: 1968

"Only the paranoid survive."-Andrew S. Grove

The history of the modern computer industry is rife with pioneering duos: William Hewlett and David Packard, Steve Jobs and Steve Wozniak, Bill Gates and Paul Allen. But the duo that is most responsible for making personal computers as common a consumer durable as television sets is Andrew S. Grove and Gordon E. Moore. Through the combination of Moore's inventive engineering and Grove's hard-driving, sometimes ruthless management style, these innovative entrepreneurs provided the "ammunition" for the personal computer revolution and built one of the most profitable businesses in the annals of industry.

Born in Pescadero, California, a tiny coastal town about 50 miles north of San Francisco, Gordon Moore never dreamed he'd become an entrepreneur. He wanted to pursue the quiet, contemplative life of academia. But after graduating from the California Institute of Technology with a Ph.D. in chemistry and physics, he found that teaching jobs were scarce and accepted a position with Shockley Semiconductor, a research lab founded by Nobel Prize winner and co- inventor of the transistor, William Shockley. At Shockley, Moore met and became friends with another engineer, Robert Noyce. William Shockley may have been a brilliant scientist, but he proved to be a merciless manager and virtually impossible to work for. After a year of frustration, Moore, Noyce and six other engineers left Shockley and started Fairchild Semiconductor, a West Coast subsidiary of Fairchild Camera & Instrument. Together, this close-knit group developed the first integrated circuits, which combined several electronic components onto a single chip rather than devoting a separate chip to each function. As Moore would later recall, "We had no idea that we had turned the first stone on something that was going to be a $1 billion business."

During his time at Fairchild, Moore interviewed and hired his future partner, . A holocaust survivor, Grove had immigrated to the United States in 1957 when the former Soviet Union invaded his homeland of Hungary. Grove arrived in New York City with $20 in his pocket and little knowledge of the English language. He enrolled in the City College of New York-a free school that had become kind of an immigrant's Oxford-to study engineering.

Overcoming the language barrier, Grove received his bachelor's degree, graduating near the top of his class. From there he headed to California, where he entered the Ph.D. program at University of California, Berkeley. Again he was an academic star, and upon graduation in 1963, he had his pick of American research corporations. He narrowed his choices down to Bell Laboratories or Fairchild Semiconductors, and finally chose to cast his lot with Fairchild. For the next five years, Grove would work side by side with Moore, who became his mentor and friend. At Fairchild, Grove was a member of the team that perfected the use of silicon in transistors, which set the stage for the semiconductor revolution. But while Grove and his team were revolutionizing the semiconductor industry, Fairchild was falling apart. Engineers were leaving, top executives didn't understand the business, and science was being replaced by politics. Sensing Fairchild was doomed, Robert Noyce and Gordon Moore decided to start their own company. Knowing of his excellent organizational, communication and leadership skills, they asked Grove to join them.

Backed with money provided by San Francisco venture capitalist Arthur Rock, the trio founded Intel (short for Integrated Electronics) Corp. in 1968. With Noyce as CEO, Moore as executive vice president and Grove as director of operations, Intel produced its first product-a bipolar memory chip-in 1969. From the beginning, Intel adopted what Moore calls the "Goldilocks Strategy." Intel's execs knew they had a choice of three technologies¬: an easy one that could be quickly copied by the competition, a complicated one that might easily bankrupt them, or a moderately complicated one. Like Goldilocks, they chose the middle course-a decision that would eventually enable Intel to dominate the microchip market.

Intel's first big product, the 1101 Static RAM chip, gave the company a strong lead on its competitors, a lead it maintained for nearly 10 years. In the early 1970s, Intel reached beyond the memory chip market and began experimenting with "multipurpose" chips-using software to make one chip perform multiple functions. It was this research that led Intel to produce the world's first microprocessor-a single chip powerful enough to run a small computer-in 1971. Ironically, Grove and most other Intel execs did not think of it as part of the company's core business. Nevertheless, Intel continued to refine its microprocessors. Intel experienced tremendous growth throughout the 1970s, dominating the memory chip market and increasing its earnings with each fiscal year. Moore succeeded Noyce as CEO in 1979, and Grove became the company's president. Two years later, IBM chose Intel's 8086 microprocessor for its fledgling personal computer. It couldn't have happened at a better time. Japanese semiconductor companies had begun dumping cheap memory chips into the U.S. market and were rapidly eating away at Intel's profits.

The crisis forced Grove to reassess the value of the microprocessor. In 1984 he and Moore suggested that Intel shift its focus from memory chips to microprocessors. This proposal would change the course of Intel history. IBM's decision to use only Intel chips in its computers had already given Intel a tremendous lead in the microprocessor market. In addition, IBM had purchased $400 million of Intel stock, which provided Intel with the capital it needed to design and construct new microprocessor plants.

By 1985, personal computer sales were booming as IBM clones poured into the market at record pace. But while cloners such as Compaq Computers were rapidly swiping market share from IBM, nearly all of them had to use Intel's chips, which had become the industry standard. With the huge and growing market assured by IBM as well as the cloners, Intel quickly became the world's largest producer of microprocessors.

In 1987, Moore retired, handing the title of CEO over to Grove. Under Grove's guidance, Intel produced increasingly powerful microprocessors throughout the 1990s, achieving near-monopoly conditions in supplying chips for PCs. In fact, Intel experienced little or no competition until the close of the decade.

As the popularity of PCs grew, competition in the market became fierce. A number of computer companies began using cheaper chips from other manufacturers in order to offer consumers PCs priced under $1,000. Unwilling to walk away from a market whose size Grove predicted "is going to be measured in tens of millions of units per year, maybe bigger," Intel began producing chips for "value PCs" in 1997. Once again, Grove was able to keep Intel on top. By the end of 1997, Intel held nearly 90 percent of the microprocessor market, with sales exceeding $25 billion.

In May 1998, three decades after he helped found Intel, Andrew Grove relinquished his CEO title to company COO Craig Barret. In an interview for CNNfn.com, Grove explained his reason for stepping down: "I have been CEO for 11 years. Intel has been around 30. I'm the third CEO, so I've had more than the average share of tenure."

Tech Prophet Gordon Moore is a true visionary in every sense of the word. Like Jules Verne and H.G. Wells, Moore seems to have the uncanny ability to very accurately predict the future of technology. In a little-known article published in Electronics magazine in 1965, Moore formulated what would become known as "Moore's Law." It states that the density of transistors in an integrated circuit would double every year with proportionate decreases in cost. Moore was only off by a couple of months. In the more than three decades since he made his prediction, not only transistor density, but also microprocessor performance, has doubled every 18 months. "Integrated electronics," Moore writes, "will make electronic techniques more generally available throughout all of society." He then went on to predict the coming of such things that have since become commonplace consumer items, including home computers, portable telephones and cars made smarter by use of dozens of relatively cheap computer chips.

Crisis Turned Caveat If nothing else, Andrew S. Grove is a survivor. Although he made few missteps as head of Intel, his one major gaff actually turned into a boon for the company. In 1994, Intel released millions of flawed Pentium computer chips. Consumers demanded replacements. But Grove refused, insisting the glitch was so small that conventional PC users would not be affected unless they were working on "some advanced astrophysics problems."

Dissatisfied with this response, Pentium users turned to the press, and Grove had a public relations nightmare on his hands. Within a few days, he reversed his decision and agreed to spend $475 million to replace the chips, going as far as to offer home delivery. Grove would later admit that the incident was "a difficult education" in customer relations. Ironically, Grove's decision turned a PR disaster into an advertising bonanza. The extensive press coverage made Intel's name better known than ever. And once the firm agreed to replace the chips, customers saw Intel as a company that was determined to get things right, regardless of the cost.