3. Company Overview
• Founded in 1968 by Robert Noyce and Gordon Moore
• Inventor of the x86 microprocessor
• Grew alongside the personal computer (WinTel)
• The world’s leading chip producer
• 107,000 employees in 63 countries
• Mission: utilize the power of Moore’s Law to bring smart,
connected devices to every person on Earth
5. Moore’s Law
• Chip performance per dollar doubles every 18 months
• The heart of Intel’s mission
• Moore’s Wall: the physical limit of processor performance
• Barriers of size, heat, and power
• “I frankly didn’t expect it to be at all precise” – Gordon Moore
6.
7. Competitive Advantage
• 10 operating fabs, each costs $4-7b to open
• Spends $11.5b in R&D each year
• More than the next four greatest industry spenders combined
• x86 architecture (switching costs)
• Constantly ahead of the game -- Developing technologies
years ahead of the competition
• Scale: low production costs, high chip yield, high margins
8. Research and Production: Labs
and Fabs
• Highly protected areas: the Intel bunnies
• Research challenge: smaller, cooler, more efficient
• Manufacturing challenge: yield
• Most recent breakthrough: 14nm chips
• Consumes 30% less power
• Improved density: 22-35% smaller chip components
• Other lab purposes:
• Efficient computing
• Transportation
• Intelligent connectivity
• Cloud
• Exploratory research
9. Intel Products
• Processors
• Mobile
• Broadwell 14nm chip
• Atom 22nm
• PC and Server
• Pentium
• Core
• Xeon
• Chipsets
• Boards
• Software
• Intel Security, developer kits, Wind River custom operating systems
• Solid state drives
• Products with Intel inside
• PCs, servers, and laptop computers
• Tablets and smartphones
• Smart objects with embedded systems (IoT)
10. Mobile and IoT
• Mobile
• 14nm Broadwell, 22nm Atom Intel’s main mobile chips
• Subsidizes $4b in Atom chips to encourage x86 tablet production
• Goal to sell 40m tablets with Intel inside
• Sells 46m in 2014
• $200m revenue, $4.2b losses in mobile
• Projected to cut losses by $800m this year
• IoT
• Curie
• Button-sized system on chip (SoC) for wearable tech and IoT
• Contains a processor, sensors, Bluetooth, and flash memory
• Wind River
• McAafee (now Intel Security)
11. Financial Performance
• IPO in 1971: $23.50 per share ($0.20 adjusted for stock splits)
• 2014 revenue reported at $55.9b
• Up $3.2b from last year
• 2014 net income of $11.7b
• Up from $2.1b from last year
• 2014 stock performance:
• Current price: $33.29
• 1 year range: $24.06 – $37.90
• Considered a mature stock – modest growth, pays dividends
13. Competition
• ARM
• Licenses chip technologies to producers
• Qualcomm, Apple, Nvidia, Samsung, and others
• RISC based vs. Intel’s CISC based x86
• Less heat and power use
• Ideal for small, power sensitive devices (i.e. mobile)
• Powers over 95% of smartphones and tablets
• 10% of laptop chips
• Increasing presence in server markets
• Aiming for 5-10% of server market by 2016
• Potential disruptor
• AMD
• x86 architecture
• Approx. 17% of x86 CPU market
• In 5% of servers
• Intel’s biggest concern going forward: mobile and server chips
14.
15.
16. Market Share Today
• 88% market share in laptop chips
• 84% in desktop chips
• 4-5% in tablets, less than 1% in smartphones
17. Intel Capital
• Venture Capital arm of Intel
• Established in 1991
• Focus: building technology ecosystems
• Sectors: Data center software, cloud computing, IoT, security,
wearables, and manufacturing & labs
• “Stage agnostic” investing
• Invested $62m in 16 startups in 2014
An important definition to know here is that a “fab” is a semiconductor fabrication plant
Costs a lot of money to have your developers re-write software to work with non-X86 chips
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An important definition to know here is that a “fab” is a semiconductor fabrication plant
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//IoT software, customizable, operating systems, in the Mars Rover
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Reduced Instruction Set Computing vs Complex Instruction Set Computing
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