The man behind the microchip

After completing his PhD, Robert Noyce had job offers from Bell Laboratories, IBM, and Philco, choosing Philco for its smaller team and the opportunity to be a significant contributor.

Noyce married Betty Bottomley shortly before joining Philco, where he was involved in pioneering semiconductor research and won his first patent. However, the limited scope of research, funded primarily by the U.S. Navy for Sidewinder missile production, and his wife's dissatisfaction with Philadelphia, led Noyce to seek new opportunities.

William Shockley, a key figure in the development of the transistor at Bell Labs, invited Noyce to join his new venture, Shockley Semiconductor Laboratories, in Palo Alto. Shockley's company aimed to innovate in silicon transistor technology, a decision that proved technically sound. The team included notable individuals like Gordon Moore and Jean Hoerni, among others, working in a collaborative environment that contrasted with Philco's formal structure.

The eight Shockley dissidents approached Hayden, Stone and Company, a small investment banking firm based in New York. This firm had recently arranged financing for General Transistor, the first publicly held transistor manufacturer. Bud Coyle and Arthur Rock, the bankers' scientific guru, met with the group and suggested they start their own firm instead of looking for existing companies to hire them. They offered to help secure $1 million in start-up funding. After about thirty rejections, Fairchild Camera and Instruments agreed to provide the necessary money.

Fairchild Semiconductor was incorporated on September 19, 1957, with 1,325 shares of stock. Each of the eight founders purchased 100 shares at $5 each. Hayden Stone purchased 225 shares at $5 each. Three hundred shares were reserved for future managers. Fairchild Camera and Instruments agreed to loan Fairchild Semiconductors $1.38 million over 18 months in exchange for control of the company and an option to buy it outright for $3 million within three years or $5 million within seven years. Noyce was appointed acting general manager until a permanent replacement could be hired, at which time he would become the company's director of R&D.

Despite Fairchild Semiconductor's early success in the semiconductor manufacturing business, Robert Noyce was frustrated by the company's inability to penetrate the integrated circuit market.

In 1957, computers were still a novelty, and the concept of integrated circuits was foreign to many. Fairchild's first sale to IBM marked the beginning of its involvement in the computer market, which was rapidly growing.

By 1961, Fairchild introduced six integrated circuits that could be used to build a computer, sparking significant interest. However, sales were disappointing, totaling less than $500,000 by the end of the year.

Noyce, determined to increase consumer adoption of integrated circuits, decided to sell them at a price lower than the cost of individual components. This strategy was a gamble on two fronts: Noyce believed that customers would prefer integrated circuits over discrete components and that Fairchild could reduce production costs through experience and economies of scale, eventually turning a profit.

Noyce and Moore officially incorporated NM Electronics Inc. on July 18, 1968, with both investing in 245,000 shares at $1 each for start-up funding. Noyce took the role of president, Moore as executive vice president, and venture capitalist Arthur Rock as board chair. They focused on Large Scale Integrated (LSI) circuits and aimed their first product at computer memories.

The name "Intel," an abbreviation for "Integrated Electronics," was chosen for the company. With reputations that attracted $2.5 million in start-up funding from investors including Warren Buffett, Intel was set for success. Noyce's plan involved Intel being cash flow positive within two years by focusing on state-of-the-art devices and maintaining secrecy to ensure a competitive edge.

“When the lightbulb was invented, people did not complain that it was too dim.” – Steve Jobs. This quote encapsulates the spirit of innovation and acceptance of new technology, a spirit that was very much alive in the early days of Intel. In 1972, Intel's 1103 memory chip sales soared, generating $23.4 million in revenue. Although the 4004 microprocessor's sales were slow, the development of the 8008 chip was promising.

Intel, debt-free with a 40-percent pretax profit margin, was optimistic about the future, especially after acquiring digital watch manufacturer Microma, anticipating the sale of 200 million digital watches worldwide in the next five years. By the end of 1973, Intel's market value exceeded $160 million, making founders Bob Noyce and Gordon Moore worth $26 million each.

Robert Noyce, co-founder of Intel and a pioneer in the semiconductor industry, continued to influence technology and innovation even after his official retirement. His post-retirement activities included angel investing, where he provided early-stage funding to companies before they attracted venture capital attention. Noyce's passion for aviation led him to learn to fly a jet and pilot his own airplane. He also served on the boards of various technology startups, contributing to the growth and success of the industry.

Intel, under the leadership of Gordon Moore and Andy Grove, saw significant growth, with profits soaring to $78 million in 1979, a substantial increase from previous years. Noyce's initial investment in Intel grew exponentially, reflecting the company's success. Despite the challenges faced by the U.S. semiconductor industry in the mid-1980s, including competition from Japanese manufacturers and significant financial losses, Noyce supported Intel's strategic shift from memory to microprocessors, a move that proved crucial for the company's survival.