At the invitation of Intel President Andy Glov and Chairman Gordon Moore, Lin Johnson and Li Jing briefly visited the Intel headquarters in Silicon Valley.

The headquarters of this world-renowned microprocessor manufacturer is an office building with blue glass, which looks very ordinary.

Intel is not that awesome now, and it has not unified the world. Now their mainstream product is still ram random memory, which is memory.

The performance of a computer is largely determined by memory, which is very expensive and has a profit that is no less than that of microprocessors. Because Intel's first-class technology and good performance, the company quickly made money after entering the memory market.

This situation was not until the early 1980s, when memory was still Intel's main product. At this time, Japanese semiconductor technology rose. When the Japanese wanted to occupy the memory chip market, they suddenly adopted a price war with Intel and other chip manufacturers. Every time American companies responded to the price, Japanese manufacturers would immediately reduce the selling price by 10%, thus squeezing the market share of US memory.

In response to the provocative strategies of Japanese manufacturers, Intel has only two options to choose from, designing more advanced memory chips, or retreating to a market that Japanese manufacturers are not interested in. In the end, Intel decided to give up its memory chip business and instead focus on developing more powerful microprocessors for personal computers.

Gordon Moore and Andy Glov had to do this in the face of the Japanese attack and the decline of the company's memory business. Intel produced memory backlogs like a mountain in the warehouse. Coupled with the failure of capital turnover, choosing to give up the ram memory business in the face of a deep crisis is the wisest choice in their opinion. Because chip manufacturers such as Intel are at a disadvantage compared to their competitors, Japanese manufacturers have strong support from their governments and sufficient bank loans.

The "small and sophisticated" industry of semiconductors is regarded by the Japanese as an industry that is extremely suitable for Japan. Due to the long-term support of national policies, Japan's semiconductor technology has completely risen in 70s and 80s, and strong companies such as Toshiba, Hitachi, and Mitsubishi Electric were produced.

In the era when Japanese semiconductors were strong, there were six of the top ten semiconductor companies in the world. In this era, even Americans respected and feared Japan's semiconductor industry.

It is said that at a sales meeting, Andy Glov, who was short and unsightly, said in a long tone in his Hungarian accent: "Intel is the last hope for the US electronics industry to face the Japanese electronics industry."

At that moment, hundreds of young Intel men and women were in high spirits. They seemed to be attracted by a common destiny and were willing to sacrifice everything to complete a sacred mission, just like a battle of life and death!

Unlike outsiders' imagination, Intel is not luxurious, and even a little simple. Gordon Moore and Andy Glove led Lin Johnson and Li Jing to a brief tour. They took a look at the second floor of Intel's headquarters. The simple large-space design is no different from other companies, making it difficult for Lin Johnson to believe that this is the overlord of the processor industry in his mind.

Afterwards, they came to Gordonmore's office of more than ten square meters. It is said that this is the largest office in the company. The four of them seemed a little cramped, and it was like a secret meeting when they closed the door.

Andy Grov has always been known for his strictness. Under his leadership, Intel employees must register themselves when they are late. He has registered himself, and he also asked employees to show "125%" of work enthusiasm. In the Grov era, Intel was called "the sweatshop of Silicon Valley" by the industry.

Glov said directly to Lin Johnson: "Mr. Lin, the memory business is still Intel's main industry. Therefore, when the two parties have not reached their actual intentions, I hope you will not disclose the content of our negotiations to the outside world!"

Lin Johnson and Li Jing looked at each other, then turned to look at Glov and Gordon Moore. The two in front of him were the founders of Intel. There was also a Noyce who had stepped down. It turned out to be just a legendary character. This time he really sat in front of him, which made Lin Johnson a little distracted for a moment.

"Mr. Lin?" Grove's voice rose slightly.

Lin Johnson recovered from his senses, looked at Glov and Gordon Moore, ignored Li Jing who looked at him in surprise, and said, "Sorry, you two. I have heard too many of your previous legendary stories. I finally met the real person this time! Don't worry, I will not disclose the content of our conversation to the outside world, nor will you reveal your plan to sell the memory business."

Moore was very happy and said, "Mr. Lin, thank you! After all, the memory business is still Intel's main industry now, and many people are difficult to understand about selling this department!"

As he said that, he looked at Lin Johnson and smiled and said, "I know some of your deeds. I resolutely came to the United States to make gold and invest in the financial industry at a young age, and then entered the semiconductor field and the personal computer market. And I have achieved success in these aspects, which is amazing!"

He pointed to Lin Johnson and said, "The vertical case you created is eye-catching! Now our company's computers use this layout, which is indeed very convenient, making personal computers more modern, fashionable and cool!"

Lin Johnson thanked Gordon Moore and said, "Thank you for your praise. Creating products that are satisfactory for your customers has always been my principle!"

He looked at Gordon Moore's split computer, and then said to the two: "Although I think Intel's best choice to give up the memory business and focus on developing microprocessors! But without your consent, I would never disclose this news to the outside world. Please rest assured about this!"

Then he asked Gordonmore and Glov: "Then I have a question. Sir, what price do you plan to sell Intel's memory department?"

Moore and Glov looked at each other. They were very surprised. How did the young man in front of him know that they wanted to concentrate on the microprocessor?!

Selling the memory department is the idea that started in the middle of the year. Now only a few people in the upper class of the company know this plan. Since ram memory is Intel's starting product, it is difficult for many people in the company to sell this business, but Moore and Glov also know that it is time to make a decision. It takes most of the effort to develop microprocessors only, and Intel no longer has the energy to look around!

Intel had a crisis in 1980. At that time, Japan's semiconductor industry rose and entered the US market with great force. Intel's memory was severely impacted. Fortunately, due to Glov's strong management policy, the company finally supported it. However, due to this crisis, ibm itself did not value Intel. Because the memory market was severely impacted by Japanese goods, Intel, which was still a memory manufacturer at the time, suffered a lot of losses. So ibm sold 20% of the shares it owned.

I don’t know if ibm has ever regretted it. “There was once a sincere love in front of me, and I didn’t cherish it. I regret it when I lost it. This is the most sad thing in the world!”

Intel struggled to survive the crisis, but fortunately, in 1982, the 80286 processor emerged and saved the company. In October this year, 80386 was about to be put into production. Both Moore and Glov felt that their microprocessor business was mature, and they both believed that the personal computer industry had a bright future, so they decided to give up the ram memory business.

In fact, this is not the first time Intel has made such a move to cut off its arm. In the early 1970s, electronic watches were regarded as high-tech products at that time. At the beginning, the average price of electronic watches could reach US$200.

Intel also saw business opportunities, intending to enter the electronic watch market, and its ambition was too small!

So Intel acquired an electronic watch company called Mira, hoping to open up a world of electronic watches through the company's LCD technology and its own chip technology!

But things didn't go as expected. After Intel entered the market, Japanese LCDs surged in in large quantities. The price of LCDs dropped rapidly. The price of electronic watches that could be sold for $200 quickly fell to around $10 within two years. The large-scale production of Japanese companies has caused the product prices to fall rapidly and hugely.

At that time, Japan felt like China, and it turned the product to a bargain price!
Chapter completed!