Intel India
Introduction
Intel was founded in 1968 by Robert Noyce and Gordon Moore in Santa Clara, California. These two gentlemen later renamed the company Intel Corporation. Intel is the largest semiconductor manufacturer in the world, with major facilities in the U.S., Europe, and Asia. Intel Corp. invented the first microprocessor that allowed for the first handheld calculators and PC’s possible. Intel’s product line includes the motherboard, flash memory, hubs, switches, routers, and other products for Ethernet networks. In 1997 Intel founded Intel Technology India Pvt. Ltd. The company is based in Bangalore, India with main subsidiaries in Mumbai, New Delhi, Chennai, Chandigarh, and Kolkatta, India. Bangalore is the largest non-manufacturing division outside of the U.S. and home to the IIDC; Intel India Development Centre. This division is responsible for the development of hardware and software, sales, and supply chain applications for Intel’s lineup.
U.S. Market Sector
Intel Corporation with its semiconductor and electronics industry is the key driver of America’s economy. The Intel semiconductor industry now employs almost a quarter of a million workers and added jobs three times faster than the rest of the US economy, according to an analysis of government data by the Semiconductor Industry Association (SIA). This company is also the world leader semiconductor maker based on revenue and the number one since 1192. Intel’s industry subsectors include the microprocessors, application specific integrated circuits, digital signal processors, analog or linear semiconductors and memory. With its variety of semiconductors, Intel reached the $53.3 billion sales on 2012 and a net income of $11 billion (Seeking Alpha, 2012)
Main Competitors
The firm’s main competitors are Advanced Micro Devices, Inc. (AMD), Texas Instruments Inc. (TXN), Samsung Electronics Co., Ltd., and Qualcomm. The following chart shows the percentage of market share owned by each company.
Main Customers
Intel’s main clients include:
Original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who make computer systems, cellular handsets and handheld computing devices, and telecommunications and networking communications equipment;
PC and network communications products users (including individuals, large and small businesses, and service providers) who buy PC components and board-level products, as well as our networking and communications products, through distributor, reseller, retail and OEM channels throughout the world; and
Other manufacturers, including makers of a wide range of industrial and communications equipment.
India Market Sector
On the other hand, India does not manufacture electronics or semiconductors needed to assemble electronic devices in the country. India continues to develop and thanks to that, the use of electronic devices is on high demand. For such reason, India outsources semiconductors and on 2012, the country spent $8.2 billion importing such electronics. However, demand is too high; currently growing at a rate of 20% and it is reaching non sustainable levels. According to the New York Times, “Imports of electronics are growing so fast that by 2020, they are projected to eclipse oil as the developing country’s largest import expense”. Therefore, the government of India enacted a policy mandating that at least half of all laptops, computers, tablets, etc., come from domestic sources even if it is from a multinational corporation established in the country.
Strategy Formulation
Intel Corporation is an American multinational semiconductor chipmaker corporation headquartered. It is also the world’s largest and highest valued semiconductor chipmaker based on revenue. At least half of all laptops, computers, tablets and dot-matrix printers procured by government agencies come from domestic sources, according to Dr. Ajay Kumar, joint secretary of the Department of Electronics and Information