This document discusses Intel's strategy and business decisions in the 1980s-1990s. It summarizes that in the 1980s Intel exited the DRAM business but grew through its 386 microprocessor. By 1990, discussions were held about focusing on EPROM, emerging RISC architecture, and customer relations. While DRAM was a large market dominated by Japan, Intel leadership expressed skepticism about its importance. Intel also explored opportunities in flash memory and maintained its position in EPROMs and microprocessors through the 1980s. Debates emerged around RISC vs CISC architectures as RISC gained adoption. Intel developed the i860 RISC processor in response. It also grew its systems business, which some saw

2. In 1987, Intel began to emerge from recession Growth of Intel 386.

3. Andy Groove wondered of “new” Intel, late in 1990 with strategy on: 1. Intel of 1990s should be dominant in the EPROM business. 2. Emergence of RISC architecture. 3. The growing importance of company’s relation with its customers

5. Sun Lin Chou quote: “DRAM business would not lead to a big business”

6. By 1990, DRAM $ 8 Billion market: 1. Japan 87% 2. US 8% 3. Korean 5% (will be increase)

8. In 1990 , Sun Lin Chou expressed some skepticism in discussing the cumulative volumn model for learning in the semiconductor industry

9. CraigeBarret , executive vice president and General manager of the Microcomputer Component Group , believed the importance of DRAMs to technology leader-ship had been overestimated by most industry observes

11. In 1986, Intel manager recommend to maintain its position in the EPROM business.

13. Flash is actually a simpler-to- manufacturer.

14. Flash used on parallel processor or neutral network and can lead on portable to hand- held units business.

16. The electronics industry received the 386 TM microprocessor with great enthusiasm

17. The power of the 386’s ability to leverage previous software led to the most rapid ramp up of production for any microprocessor in Intel’s history

19. Bob Reed , chief financial officer , underlined the importance of intellectual property to Intel and to the semiconductor industry.

20. In order to support the sole-sourcing strategy, Intel converted their new Israel facility, originally designed for EPROMs, to make microprocessor products.

22. During 1990, NCR was the first Intel customer to decide to use Intel microprocessors throughout its entire product line.

24. Scott McNealy, president of Sun Microsystems , believed that Intel was charging too much for its processors.

25. He initiated the development of news processor using a computing architecture called RISC.

27. RISC chip was capable of supporting some version of UNIX operating system environment.

29. As several companies announced new RISC chips, Intel developed and internal jargon referring to the competitor chips as YARPs, for “yet another RISC processor”

30. A designer named Les Kohn had been trying for several years to initiate a RISC program

32. In February 1989 , Intel announced the I860 not as a co-processor , but rather as a stand-alone RISC processor.

35. In 1985 , top management had made the strategic decision to increase the systems business share of total revenue.

36. Some industry observes believed Intel’s Systems Business represented a bold strategy which could alienate its customers.