Intel’s Move to Microprocessors: Challenges and Solutions in Disruption

Case Study

Intel Corporation, a leading name in the technology industry, is renowned for its pivotal role in the development and proliferation of microprocessors. This success story, however, did not unfold without significant challenges and strategic shifts. In the 1970s, Intel faced intense competition and declining profitability in the memory chip market. This case study examines Intel’s strategic pivot to microprocessors, detailing the challenges, the solution, and the outcomes that led Intel to become a dominant force in the microprocessor market, driving the personal computing revolution and securing long-term growth.

Background Information

Intel’s Early Days and Focus on Memory Chips

Intel was founded in 1968 by Robert Noyce and Gordon Moore, two pioneers in the semiconductor industry. Initially, Intel focused on developing semiconductor memory chips, particularly DRAM (Dynamic Random-Access Memory). These memory chips quickly became the company’s primary product, positioning Intel as a leader in the semiconductor market during the early 1970s.

The Growing Competition in the Memory Market

By the mid-1970s, the memory chip market had become highly competitive. Japanese firms, in…