How has the global shift in the semi-conductor industry affected Intel Corp

Contents Introduction : How selected conversations with Intel CEO Andy Grove illuminate

the development of Intel throughout the changes in the Semiconductor

Industry

I .Cover History : Creation of the Semiconductor

II . The Semiconductor Production Circuit

III .Intel :A Brief History : selected conversations with Intel CEO Andy Grove

IV . Intel and Global shifts in the Semiconductor Industry

V . Changing Patterns of Consumption

VI . Production Costs for Intel

VII . Intel Corporate Strategies in the Semiconductor Industry

VIII . Intel 's New Product Lines

IX . Conclusion : How Intel has maintained

its Role as the Industry leader in the Semiconductor Industry 1

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Introduction At first glance the mass of disparate data on the development of

semiconductor firms would yield nothing but a set of investments in new

forms of technology that either failed or led to a wild rush into a

technology-inspired future .This cycle is apparent in the competition of American

and Japanese firms in the 1980s , repeats in the dot com bubble and crash in the 1990s , and has taken a new direction with the advent of the internet based business

and communications society of 2000 . The question of a theoretical framework to

make sense of the data becomes necessary . This study will draw heavily on the

case study of industry expert Alfonso Velosa , the related readings of Kelly , Wang

and Bitko on competition in the semiconductor industry , and selected conversations

with Intel CEO Andy Grove to provide industry expert views on the nature of the

changes in the semiconductor industry and how Intel responded to become the leader

in the industry today

I .The Semiconductor

When it was first created , no one could have predicted that the semiconductor

would form the basis of the Internet revolutions that took place in the form of the

dot com bubble of 1990s and the massive changes in the globalization of companies

since the year 2000

The mythology of Silicon Valley , with its fast fortunes and

hard-driving but unconventional work culture also seemed futuristic

Although some of the headiness of the earlier days still lingers in our

current images of Silicon Valley , the glamour has tended to shift from

the physical properties of the chip to the software and the new applications

that fuelled the dot .com and tech stock bubble of the late 1990s . Huge

increases in computing capacity of chips have become routine and whole generations of chips seem to become obsolete even before we get familiar with them . There has been an average decrease in the price of microprocessing performance of 30 percent per year between 1970 and 2000 (Standard and Poors , 2000c :7 . Memory chips have become a mass-produced commodity and chip factories have been moving out of Silicon Valley to cheaper locations overseas for decades now (Porter 112 Daniel Bell , in The Coming of Post-Industrial Society , characterized the transition of

America from an industrial society to a post-industrial society based on what he called

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the economics of information . The rise of the semiconductor and the increasingly

smaller chips that...