ba401intel corporation part3
TRANSCRIPT
![Page 1: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/1.jpg)
Intel Product Line and Situation in Late 1984
![Page 2: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/2.jpg)
Intel Product Line and Situation in Late 1984
By the end of 1984, logic product were the dominant source of Intel’s revenue.
The 80186 and 80286 were tremendously successful.
IBM PC purchased microprocessors either from Intel .
![Page 3: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/3.jpg)
Intel Product Line and Situation in Late 1984
The only serious 16-bit architectural
competitor was Motorola.
Intel had developed a microcontroller
which integrated logic and memory to
provide one-chip computer which
were used to control everything
from house fans to complex satellites.
![Page 4: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/4.jpg)
Intel Product Line and Situation in Late 1984
Late 1985 was the successor to the 80268, the 32-bit 80386 microprocessor.
Motorola had developed a strong 32-bit product, the 68020,and was
already in the marketplace
winning designs.
![Page 5: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/5.jpg)
Intel Product Line and Situation in Late 1984
The 80386 was scheduled to be one of the
first product made with the new
complementary MOS (CMOS) process.
![Page 6: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/6.jpg)
Intel Product Line and Situation in Late 1984
In 1984, the Livermore group was developing two distinct processes for SRAM and microprocessor.
The high-volume SRAM segment demanded a new four-transistor cell design and process. By contrast, the high-speed SRAM and the new 80386 microprocessor both demand six-transistor CMOS design.
![Page 7: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/7.jpg)
Intel Product Line and Situation in Late 1984
The high-volume SRAM process required a complex polysilicon resistor technology.
Eventually,they decided to drop the polysilicon resistor process and go with six-transitor (focus on 386).
![Page 8: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/8.jpg)
Intel Product Line and Situation in Late 1984
Development the 386 with a double
metalization process while as the same
time to reducing line widths to 1.5µm
(from 2µm) and implementing the CMOS process.
![Page 9: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/9.jpg)
Intel Product Line and Situation in Late 1984
Market and technology development which may have contributed to the loss of a competitive SRAM product.
- SRAM received less attention for high-quality designer.
- They had a strong position in high-speed SRAM but they give it up without really making a conscious decision.
![Page 10: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/10.jpg)
Intel Product Line and Situation in Late 1984
The end of 1984 represented the same
30% of revenue that MSO had represented
in 1973. While a great deal of system business
comprised development products aimed at
microprocessor and microcontroller users.
![Page 11: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/11.jpg)
Manufacturing and Process Fungibility
![Page 12: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/12.jpg)
Manufacturing and Process Fungibility
Intel took great pain to standartlize each facility as it expanded its manufacturing base
Each Intel chip would
“look and taste” the same
no matter which facility produced it
![Page 13: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/13.jpg)
Manufacturing and Process Fungibility
As larger-diameter silicon wafers became available,Intel developed a process on one line and then transferred the technology to its other facility.
By 1984,Intel had seven fab in the united States.Due to more stringent manufacturing standard, the cost of a fab area had risen dramatically since the 1970s.
![Page 14: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/14.jpg)
Manufacturing and Process Fungibility
Around the time they were deciding to put up a fab in Israel or Japan
- Israel had tremendous government subsidies and good labor market.
- Japan have a tapped the expertise
of Japanese DRAM technology
development,silicon maker and
the infrastructure support.
![Page 15: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/15.jpg)
Manufacturing and Process Fungibility
There are three main process areas : fabrication,assembly and test.
Fabrication is usually the bottleneck in times of tight capacity. – the good one was allocation.
The finance group thought of DRAM as a “low ROI,high beta” product line.
![Page 16: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/16.jpg)
Environmental Forces
![Page 17: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/17.jpg)
Environmental Forces- Competitors -
1.U.S. full line digital design and supply houses
- Motorola: produced DRAM,
microcontroller and microprocessor
- National Semiconductor
- Texas Instrument : microprocessor
![Page 18: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/18.jpg)
Environmental Forces- Competitors -
2. AMD
3. Japan- Hitachi, Fujitsu, NEC, Toshiba
- DRAM SRAM and EPROM. Served second source to U.S. microprocessor microcontroller suppliers
![Page 19: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/19.jpg)
DRAM Situation in 1984Loss of Leadership Position
![Page 20: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/20.jpg)
DRAM Situation in 1984Loss of Leadership Position
By the end of 1984,Intel had lost significant market share in DRAM.The first real difficulties had come with the 64K generation.
Ron Whittier said that 64K version,
the memory cell size was reduced,
but the actual die size still had to be increased significantly.
![Page 21: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/21.jpg)
DRAM Situation in 1984Loss of Leadership Position
The DRAM group calculated that the
required die size would be too big.The 64K
DRAM would be too slow to be acceptable,
In order to boost yield,the group decided to
build in redundancy at the chip level.
![Page 22: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/22.jpg)
DRAM Situation in 1984Loss of Leadership Position
Redundancy – Intel added an extra column of memory elements so that in the event of a process-induced defect,the auxiliary column could be activated.There was a physical switch, or “fuse” built into each column which could be address by the tester machinery.
![Page 23: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/23.jpg)
DRAM Situation in 1984Loss of Leadership Position
TI ,engineers had concluded redundancy would not be economical and
had deferred the discussion
until the next generation.
![Page 24: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/24.jpg)
Attempts to Regain Leadership Position
![Page 25: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/25.jpg)
Attempts to Regain Leadership Position
NMOS to CMOS
- CMOS circuit was more complex
- used in laptop Intel produced CMOS 64K and 256K
DRAM in a niche strategy.
![Page 26: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/26.jpg)
Attempts to Regain Leadership Position
In1983
Demand was in an upswing,and Intel seemed to have a techonology strategy which could lead to dominance in the 1-meg DRAM.
![Page 27: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/27.jpg)
Attempts to Regain Leadership Position
In 1984
CMOS DRAM price at about one and a half to two times the prevailing NMOS price.
Niche strategy : differentiate the product from other offering, and sell it on features.
![Page 28: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/28.jpg)
Attempts to Regain Leadership Position
The price of NMOS DRAMs fell by 40% from
May to August 1984. By late 1984 Intel was down to less than 4%
of the 256K market and had lost its position
entirely in 64K DRAMs.
![Page 29: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/29.jpg)
Attempts to Regain Leadership Position
In the future The 1-meg DRAM will be a technically
outstanding product, at least one and a half
to two years ahead any competition. A technology transfer deal should with
a Korean chip manufacturer. New competitor
![Page 30: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/30.jpg)
Option for DRAM
![Page 31: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/31.jpg)
Option for DRAM
1. drop it all together. 2. stay on the business as a niche
player. 3. license the technology to another
company 4. invest in DRAM capability at the 1-
meg level and commit to a low-margin business.
![Page 32: Ba401Intel Corporation Part3](https://reader034.vdocuments.us/reader034/viewer/2022052622/559080f21a28abbf518b476f/html5/thumbnails/32.jpg)
Option for DRAM
We have been trying to find a clever way
to stay in this business without betting
everything we have, but maybe there
is none.