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1986 Intel Annual Report

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1986 Intel Annual Report

According to Dataquest, a market research firm, Intel gained EPROM market share in both 1985 and 1986. This was an expensive but necessary victory. EPROMs are our highest volume chips; we need them for manufacturing process technology development. Also, in anything resembling normal business conditions, we can be profitable in EPROMs.

We concentrated on strengthening relationships with our customers. We significantly improved delivery performance and started programs that enable customers to forego incoming inspection of Intel products, the latter made possible by our high end product quality. As a result of these and other programs, customer satisfaction indicators have improved markedly.

We also worked to protect our intellectual property. In a landmark decision in 1986, the court agreed with our position that microcode, a computer program embedded in silicon, is covered by U.S. copyright laws, just like any other computer program. Innovation has always been one of our highest priorities.

As we move into 1987, we are especially pleased by the strength of Intel’s component and system-level product line. There is no better example of this strength than the 80386, a new product received by the market with an enthusiasm unprecedented in our experience. The power of this 32-bit microprocessor, its compatibility with the large base of software already written for Intel microprocessors, and its architectural enhancements account for the market’s excitement. The first 386-based products were introduced in the third quarter of 1986. Production of this component is increasing rapidly.

Complementary to the 80386 are a math coprocessor and two highly integrated VLSI peripheral chips scheduled for unveiling in the first quarter of 1987. These products should be very attractive to many designers of 286-based systems.

Read the full 1986 Intel Annual Report.