When Andy Grove Changed Intel’s Mission Statement
In September 1999, Andy Grove, co-founder and the then chairman of Intel, came to London and announced that Intel had changed its mission statement to become the ‘building block supplier to the Internet economy’ from the old mission statement which was to be ‘the building block supplier to the new computer industry’.
In pursuit of the new mission statement, Grove said that the company had invested in 250 companies involved in such diverse Internet-related activities from providing optical components (Bookham Technology) to providing last minute deals on flights and hotel rooms (lastminute.com).
Some of Intel’s investments – like network processor company Softcom and comms chip supplier Level One – were for 100 per cent of the companies, others were for minority stakes.
Collectively, said Grove, the amount of money spent on these investments was out-running the amount of money Intel was investing in its own business.
“The last year we have spent more money acquiring some seven companies than we have spent on capital spending – for the first time ever : $4 billion on acquisitions, $3 billion on capital spending”, said Grove.