Intel: Chip evolution brings ten million fortune

Despite the lack of a clear business plan, but a clear understanding of the founders of Intel Fairchild's warning, so it is absolutely not repeat the same mistakes. To make money in the electronics industry is the key, not to become the most competitive in existing markets of the company, but to create a new market, and the monopoly it! Noyce and Moore found that large computers are becoming the needs of enterprises mainstream. Computer time, although the central processors, logic components using a semiconductor device, but the memory is composed of a wide variety of other devices, convenient store information. To be able to become more useful, the computer's memory must become faster and easier to obtain. IC then control the computer's intelligent, but no one knows how they can be applied in terms of memory. Noyce and Moore was trying to do, is to create the first mass-market semiconductor memory chips. In entering this new field, they enhance the memory function will be comparable to the impact on the current transistor.




The spring of 1969, Intel produced its first memory chips. This rough and simple products have memory capacity, although more like fleas and unlike elephants, but to existing semiconductor manufacturers signaled: Noyce and Moore again! Within a few years, Intel has introduced a powerful lot of chips - DRAM (dynamic random access memory), "1103", the semiconductor storage system first commercial device. Although the invention compared to the next one, "1103" will soon become history. But Intel can not forget that outside there is a logic IC market.




Compiled for the 12th company employees is a named Mull Xi'an · "Ted" Hoff (Marcian E. "Ted" Hoff) engineering PhD, he graduated from Stanford University, and because electronic achievements obtained Westinghouse Science Award. The summer of 1969, a Japanese company called Busicom commercial machine manufacturer Intel desktop computers use to assist in the production of complex logic circuits. Noyce's legendary time has been reached Asia, and there was not any Japanese engineers can design Busicom want. To be able to deal with similar calculations and print these different functions, each computer must have at least a dozen parts. 32-year-old Hough was being responsible for the Busicom project, he soon discovered that a computer program is very complex and can not be manufactured at a reasonable price. As an alternative, he reasoned, as different functions within the computer are integrated into one chip on. Later in 1971 he developed the first prototype of the integrated chip.




Central Processing Unit (CPU) has far beyond the capabilities of the computer, but these are not Hof or other officer of Intel in 1969, you can guess get. This came to be known as the "microprocessor" components that can perform like a computer logic and computing capabilities, but the volume is quite different. Old computers and electronic digital integrated host 1950s bigger than a bakery; later invented the vacuum tube is removed after the microcomputer, first reduced to a closet-sized, then the bookshelf size; while Hoff said, "tiny" in the new indicates the invention can be placed on the next leg of your computer. Various functions one day will be "software" way to accomplish - to run the microprocessor program. In the case of the correct command, the computer can count, balance accounts, on-screen display fonts, play games, send e-mail and painted dinosaurs. Because the program can be changed (from the keyboard input on the line), the computer can perform many different tasks, and has also become one of the most uniquely human inventions. Yes, after greatly reduced volume (and price), a common microprocessor may be installed on any appliances and equipment, the realization of human and functions had never imagined. Meanwhile, outside of the microprocessor in the computer also has a great market, dishwasher, stereo, bombs, satellites, cars, pets, pagers, jewelry, shoes, Ski, will one day because of it will have the ability to think . Within the engine in the car used in conjunction with a microprocessor sensor, you can adjust the carburetor where the air-fuel ratio; And to the toaster, it can decide bread crispness. Before those who need to use levers, gears or other mechanical equipment operation can now be replaced with electronics.




Intel's Japanese customers eventually gave up the idea of Hoff, but Noyce and Moore left him to continue research. To the beginning of 1971, with the former Fairchild engineers Hough ephod Rick France Gold (Federico Faggin) and Stan Mai Zhuoer (Stan Mazor) developed the first programmable "computer chip" - this is Intel microprocessor marketing name used. When you see the Intel technicians installed a rabbit wearing space age in those annoying TV commercials when they are showing off the benefits of it by the microprocessor.




The first number is "4004" microprocessor contains 2300 transistors. Its processing capacity limit of 4-bit binary number ("0" and "1" code), so that initially only completed six million times per year. But within a year, Intel has launched the "8008" in a plastic case contains all the computers in addition to the necessary parts of the chip, in addition to CPU, but also with similar input and output lines of the components. The problem is, when in addition to Busicom as "4004" and other fees paid by the company as "8008" pay, Intel really did not make any money from the chip.




But Intel since ushered in luck. Busicom after receiving their first batch of "4004" Microprocessor Shortly after, they asked Intel to price adjustment, because the computer market but also a new round of competitors entered, including by Jack Kilby of Texas Instruments designed new products. Noyce fact they can be directly and unashamedly refused this request, but because of Busicom's "4004" is the exclusive contract, is not very good deal. Hove but has another plan, he negotiated with Noyce said: "For God's sub children, and give us an opportunity to put these chips sold to other customers today." Later Busicom got some price concessions, while Intel won the open marketing rights. This is not because the market sales care that, in their eyes, "4004", but that is just a white elephant. You know, unless it can be sold on the market each year 20,000 computers, and Intel can use its own new microprocessor to occupy the market, or selling "4004" meaning make? Always like Intel's an engineer says he will never have a desk that they can get up and move a computer.




Intel launched a fearless next to the public buyers selling "4004" plan. The fall of 1971, they are a business magazine advertisements in the statement: "The new integrated electronics era of! A miniature programmable computer chips!" But the question is, who will buy it?




Wall Street is no doubt that they are confident that Intel has successfully listed at this time of the (also available to employees stock). This is the Shockley Semiconductor and Fairchild Semiconductor have never tried. This will not only play the real money, but also allow founders first taste of "Zenitani" taste children. Like chips and improve the function of the same, count the number of "zero" and later became the founder of the part of the work. Noyce and Moore is the company's largest shareholder, the two of them together have more than 1/3 of the shares. The IPO prices, both of whom have at least $ 10 million fortune. Although the rise of wealth by Internet standards, this is just change it, but at the time in the context of that money is already a lot.




When Intel launched the "4004", the moles (generally not very exaggerated) claims that this is "the most revolutionary in human history, one of the products." He liked the Berkeley campus or elsewhere, while shaking his hair aside and said, "We are the revolutionaries of that era." Perhaps the fact that, but for a microcomputer revolution really take time. The chip will not only sell well initially, but also the lack of a specific application of the chip is designed as a computer programmer. In fact, those "hackers", the young, rebellious but playful software artists, a revolution in helping Moore on this matter, the credit is not less than the business people. Later, two young men together in Seattle bought a early "8008" microprocessors, and use it to create a measurement street traffic machine. They later founded a company called "Traf-O-Data" of the company, but did not succeed. But a few years later, they founded a final close cooperation with Intel Corporation. Both in 1972 purchased the Intel chips are young William Henry Gates (William Henry Gates, is called "Bill" that) and Paul Allen (Paul Allen), their house survived company is Microsoft. Even today, Bill Gates is still in his office hangs a poster of Intel chips.




The problem is not limited to the initial chip physical aspects, but also some supernatural factors. In the U.S. corporate office, the nature of the computer it is not only practical, but also a symbol of power, status and mystery. Unless someone really believe that the company everyone needs to get a table this stuff, otherwise there is no need to consider the question of its size or price. In addition to appearance, more substantial problem is that these chips is not strong enough. From Shockley's transistor to Noyce's integrated circuits, microprocessors and then Hough, this process is very admirable, but in fact it has not become large computer chip recognized alternatives.




Intel launched early in 1974 a more sophisticated "8080" chips, and have quick breakthrough. "8080" is not only more than "4004" to be 10 times faster, and the same price ($ 360). This product was very hot, even the tail number of the phone company for a while are obsessed with "8080." Intel has just started, committed to the development of the period, the company's sales in the first year is less than 3000 dollars, and six years later, in 1974, sales jumped to $ 135 million (today it is up to several billions of dollars) Intel thus became the world's fifth-largest chip manufacturer. Staff from a mere 42 to 3 100. In less than five months time, they will recover research and development costs. Then from the Mountain View company moved out of the crowded office, six miles east of the Santa Clara built a huge new office area. They still work that address.