Andrew Grove

Andrew Grove

Overview
Andrew Stephen Grove (born 2 Sept 1936), is a Hungarian-born Jewish-American Businessman/ Engineer, Author & a science pioneer in the semiconductor industry
Semiconductor industry
The semiconductor industry is the aggregate collection of companies engaged in the design and fabrication of semiconductor devices. It formed around 1960, once the fabrication of semiconductors became a viable business...

. He escaped from Communist-controlled Hungary at the age of 20 and moved to the U.S., where he finished his education. He later became CEO of Intel and was a pioneering figure in transforming the company into a giant.

In 1968, along with colleagues Robert Noyce
Robert Noyce
Robert Norton Noyce , nicknamed "the Mayor of Silicon Valley", co-founded Fairchild Semiconductor in 1957 and Intel in 1968...

 and Gordon Moore
Gordon Moore
Gordon Earle Moore is the co-founder and Chairman Emeritus of Intel Corporation and the author of Moore's Law .-Life and career:...

, Grove co-founded Intel Corporation
Intel Corporation
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most...

 after the three left Fairchild Semiconductor
Fairchild Semiconductor
Fairchild Semiconductor International, Inc. is an American semiconductor company based in San Jose, California. Founded in 1957, it was a pioneer in transistor and integrated circuit manufacturing...

.
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Encyclopedia
Andrew Stephen Grove (born 2 Sept 1936), is a Hungarian-born Jewish-American Businessman/ Engineer, Author & a science pioneer in the semiconductor industry
Semiconductor industry
The semiconductor industry is the aggregate collection of companies engaged in the design and fabrication of semiconductor devices. It formed around 1960, once the fabrication of semiconductors became a viable business...

. He escaped from Communist-controlled Hungary at the age of 20 and moved to the U.S., where he finished his education. He later became CEO of Intel and was a pioneering figure in transforming the company into a giant.

In 1968, along with colleagues Robert Noyce
Robert Noyce
Robert Norton Noyce , nicknamed "the Mayor of Silicon Valley", co-founded Fairchild Semiconductor in 1957 and Intel in 1968...

 and Gordon Moore
Gordon Moore
Gordon Earle Moore is the co-founder and Chairman Emeritus of Intel Corporation and the author of Moore's Law .-Life and career:...

, Grove co-founded Intel Corporation
Intel Corporation
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most...

 after the three left Fairchild Semiconductor
Fairchild Semiconductor
Fairchild Semiconductor International, Inc. is an American semiconductor company based in San Jose, California. Founded in 1957, it was a pioneer in transistor and integrated circuit manufacturing...

. He became the start-up company's chief operating officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

 (COO), where he directed all management functions, and in 1987 became its chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

 (CEO). During his tenure as CEO, Grove oversaw an increase in Intel's stock value by 2,400%, making it one of the world's most valuable companies. With Grove managing development and promotion of Intel's microprocessors, they would, in the 1980s, be used to power all IBM PCs as well as those of IBM's competitors.

As a result of his work at Intel, and from his books and professional articles, Grove had a considerable influence on the management of modern electronics manufacturing industries worldwide. He has been called the "guy who drove the growth phase" of Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...

. One source notes that by his accomplishments at Intel alone, he "merits a place alongside the great business leaders of the 20th century." He has received numerous industry awards, including the IEEE Engineering Leadership Recognition award (1987), and the AeA
AeA
The AeA was a nationwide non-profit trade association that represented all segments of the technology industry...

 Medal of Achievement award (1993). In 1997, CEO magazine chose him as its "CEO of the Year," and Time magazine made him "Man of the Year."

Early life and education


Grove was born Andras Istvan Grof, to a middle-class Jewish family in Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

. Growing up, he was known to friends as "Andris". At the age of four he contracted scarlet fever
Scarlet fever
Scarlet fever is a disease caused by exotoxin released by Streptococcus pyogenes. Once a major cause of death, it is now effectively treated with antibiotics...

, which was nearly fatal and caused partial hearing loss. When he was eight, the Nazis occupied Hungary and deported nearly 500,000 Jews to concentration camps. He and his mother took on false identities and were sheltered by friends. His father was taken to an Eastern Labor Camp to do forced labor, but was reunited with his family after the war. During the Hungarian Revolution of 1956, when he was 20, he left his home and family and escaped across the border into Austria, where he eventually made his way to the United States in 1957. There, he changed his name to Andrew S. Grove.

Grove summarizes his first twenty years of life in Hungary in his memoirs:
Arriving in the United States in 1957, with little money, Grove retained a "passion for learning." He earned a bachelor's degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...

 in chemical engineering
Chemical engineering
Chemical engineering is the branch of engineering that deals with physical science , and life sciences with mathematics and economics, to the process of converting raw materials or chemicals into more useful or valuable forms...

 from the City College of New York
City College of New York
The City College of the City University of New York is a senior college of the City University of New York , in New York City. It is also the oldest of the City University's twenty-three institutions of higher learning...

 in 1960, and earned a Ph.D.
Doctor of Philosophy
Doctor of Philosophy, abbreviated as Ph.D., PhD, D.Phil., or DPhil , in English-speaking countries, is a postgraduate academic degree awarded by universities...

 in chemical engineering from the University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...

 in 1963.

Soon after arriving in New York in 1957, he met his future wife, Eva, who was a fellow refugee. They met while he held a job as a busboy and she was a waitress. They married in June 1958 and have remained married ever since, having two daughters.

Helping start up Intel


After graduating college in 1963, Grove worked at Fairchild Semiconductor
Fairchild Semiconductor
Fairchild Semiconductor International, Inc. is an American semiconductor company based in San Jose, California. Founded in 1957, it was a pioneer in transistor and integrated circuit manufacturing...

 as a researcher, and by 1967 had become its assistant director of development. His work there made him familiar with the early development of integrated circuits, which would lead to the "microcomputer revolution" in the 1970s. In 1971, he wrote a college textbook on the subject, Physics and Technology of Semiconductor Devices.

In 1968 he joined Fairchild colleagues Robert Noyce
Robert Noyce
Robert Norton Noyce , nicknamed "the Mayor of Silicon Valley", co-founded Fairchild Semiconductor in 1957 and Intel in 1968...

 and Gordon Moore
Gordon Moore
Gordon Earle Moore is the co-founder and Chairman Emeritus of Intel Corporation and the author of Moore's Law .-Life and career:...

 to co-found
Intel Corporation
Intel Corporation
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most...

, becoming its third employee. Fellow Hungarian émigré Leslie L. Vadász
Leslie L. Vadász
Leslie L. Vadász is a Hungarian-American engineer and manager, one of the founding members of Intel Corporation. He holds a bachelor's degree in electrical engineering from McGill University and completed AMP studies at Harvard University .He moved to the United States in 1961, first working for...

 was Intel's fourth employee. Grove worked initially as the company's director of engineering, and helped get its early manufacturing operations started. In 1983 he wrote a book, High Output Management, in which he described many of his methods and manufacturing concepts.

Initially, Intel primarily manufactured dynamic memory chips, DRAM
Dram
Dram or DRAM may refer to:As a unit of measure:* Dram , an imperial unit of mass and volume* Armenian dram, a monetary unit* Dirham, a unit of currency in several Arab nationsOther uses:...

s. By 1976, with less demand for their memory, production problems, and the challenges created by Japanese "dumping
Dumping (pricing policy)
In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market...

" of memory chips at below cost prices, Grove was forced to make radical changes. As a result, he chose to discontinue producing DRAMs and focus instead on manufacturing microprocessors. Grove played a key role in negotiating with IBM to use only Intel microprocessors in all their new personal computers.

Over the 30 years since its founding, the company's revenue increased from $2,672 in its first year, to $20.8 billion in 1997. Grove was Intel's president in 1979, its CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

 in 1987, and its Chairman and CEO in 1997. He relinquished his CEO title in May 1998, having been diagnosed with prostate cancer a few years earlier, and remained chairman of the board until November 2004. Grove continues his work at Intel as a senior advisor and has been a lecturer at Stanford University. He reflects back on Intel's growth during the years:
Grove is credited with having transformed Intel from a manufacturer of memory chips into one of the world's dominant producers of microprocessors. During his tenure as CEO, Grove oversaw a 4,500% increase in Intel's market capitalization from $4 billion to $197 billion, making it the world's 7th largest company, with 64,000 employees. Most of the company's revenues were reinvested in research and development, along with building new facilities, in order to produce improved and faster microprocessors.

Management methods and style


As director of operations, manufacturing became Grove's primary focus and his management style relied heavily on his management concepts. As the company expanded and he was appointed chairman, he became more involved in strategic decision-making, including establishing markets for new products, coordinating manufacturing processes, and developing new partnerships with smaller companies. He helped create the Intel Architecture Laboratory (IAL) in Oregon to ensure that software was developed in time to take advantage of their new microprocessors. Grove states that "you are making decisions about what the information technology world will want five years into the future. . .""

Grove created a culture within Intel that allowed innovation to flourish. As CEO, he wanted his managers to always encourage experimentation and prepare for changes, making a case for the value of paranoia in business. He became known for his guiding motto: "Only the paranoid survive," and wrote a management book with the same title. According to Grove, "Business success contains the seeds of its own destruction," explaining that "Success breeds complacency. Complacency breeds failure. Only the paranoid survive." As a result, he urges senior executives to allow people to test new techniques, new products, new sales channels, and new customers, to be ready for unexpected shifts in business or technology. Biographer Jeremy Byman observes that Grove "was the one person at Intel who refused to let the company rest on its laurels." Grove explains his reasoning:
Intel Senior Vice President Ron Whittier notes that Grove preferred to keep open channels of communication between employees, and encouraged people to speak their minds: "People here aren't afraid to speak up and debate with Andy." They termed this style "constructive confrontation." According to Grove's successor at Intel, Craig Barrett, "It's give and take, and anyone in the company can yell at him. He's not above it." Grove insisted that people be demanding on one another, which fostered an atmosphere of "ruthless intelligence."

Grove's office was an 8-ft by 9-ft cubicle like the other employees, as he disliked separate "mahogany-paneled corner offices." He states, "I've been living in cubicles since 1978 — and it hasn't hurt a whole lot." Preferring this egalitarian atmosphere, he thereby made his work area accessible to anyone who walked by. There were no reserved parking spaces, and Grove parked wherever there was a space. This atmosphere at work was partly a reflection of his personal life. Some who have known him, such as venture capitalist Arthur Rock
Arthur Rock
Arthur Rock is an American venture capitalist of Silicon Valley, California. He was an early investor in major firms including Intel, Apple Computer, Scientific Data Systems and Teledyne....

, have stated that "he has no airs." Grove has lived modestly without expensive cars or an airplane.

Grove was noted for making sure that important details were never missed, with one of his favorite sayings being, "The devil is in the details." Intel Vice President Dennis Carter states that "Andy is very disciplined, precise, and detail oriented. . . But at the same time, he has an element of intuition and creativity that is fundamental to Intel's innovation." According to Industry Week magazine, Grove feared that the "brilliance that sparked the creation of Intel" during its early years, "might come to nothing if somebody didn't pay attention to details." Carter recalls that Grove would even correct his spelling errors:

Other accomplishments


Grove is also a noted author and scientist. His first book on semiconductors, Physics and Technology of Semiconductor Devices (1971), has been used by leading universities. Another book on business operation methods, High Output Management (1983), has been translated into 11 languages. He has also written over 40 technical papers and holds several patents on semiconductor devices.

Grove received honorary degrees from the City College of New York
City College of New York
The City College of the City University of New York is a senior college of the City University of New York , in New York City. It is also the oldest of the City University's twenty-three institutions of higher learning...

 (1985), Worcester Polytechnic Institute
Worcester Polytechnic Institute
Worcester Polytechnic Institute is a private university located in Worcester, Massachusetts, in the United States.Founded in 1865 in Worcester, WPI was one of the United States' first engineering and technology universities...

 (1989), and Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

 (2000). He has also taught graduate computer physics courses at the University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...

, and at Stanford University Graduate School of Business. In 2004 the Wharton School of Business recognized him as the "Most Influential Business Person of the Last 25 Years."

In an interview in Esquire
Esquire (magazine)
Esquire is a men's magazine, published in the U.S. by the Hearst Corporation. Founded in 1932, it flourished during the Great Depression under the guidance of founder and editor Arnold Gingrich.-History:...

magazine in 2000, Grove encouraged America to be "vigilant as a nation to have tolerance for difference, a tolerance for new people." He pointed out that immigration and immigrants are what made America what it is.

Honors and awards

  • The 1st Annual Heinz Award
    Heinz Award
    The Heinz Award is an award currently given annually to ten honorees by the Heinz Family Foundation. The Heinz Awards recognize outstanding individuals for their contributions in the five areas of: Arts and Humanities, the Environment, the Human Condition, Public Policy, and Technology, the Economy...

     in Technology, the Economy and Employment. Grove received the award in 1995, and he was honored by the foundation for representing a story "as old as America: the story of a young immigrant rising to great success." The donors of the award added that Grove "has played perhaps the single most pivotal role in the development and popularization of the twentieth century's most remarkable innovation - the personal computer."

  • On August 25, 2009, California Governor Arnold Schwarzenegger
    Arnold Schwarzenegger
    Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....

     announced that Grove would be one of 13 California Hall of Fame
    California Hall of Fame
    Conceived by First Lady Maria Shriver, the California Hall of Fame was established at The California Museum for History, Women and the Arts to honor individuals and families who embody California’s innovative spirit and have made their mark on history...

     inductees in The California Museum's yearlong exhibit. The induction ceremony was on December 1, 2009 in Sacramento
    Sacramento, California
    Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...

    .
  • Strategic Management Society's Lifetime Achievement Award (2001)
  • IEEE Medal of Honor
    IEEE Medal of Honor
    The IEEE Medal of Honor is the highest recognition of the Institute of Electrical and Electronics Engineers . It has been awarded since 1917, when its first recipient was Major Edwin H. Armstrong. It is given for an exceptional contribution or an extraordinary career in the IEEE fields of...

     (2000)
  • Time Magazine's Man of the Year (1997)
  • "1997 Technology Leader of the Year", IndustryWeek.com, Dec. 15, 1997
  • CEO magazine's CEO of the Year (1997)
  • Medal of Achievement from the American Electronics Association (1993)
  • IEEE Engineering Leadership Recognition Award (1987)
  • Franklin Institute
    Franklin Institute
    The Franklin Institute is a museum in Philadelphia, Pennsylvania, and one of the oldest centers of science education and development in the United States, dating to 1824. The Institute also houses the Benjamin Franklin National Memorial.-History:On February 5, 1824, Samuel Vaughn Merrick and...

     Certificate of Merit (1975)
  • In 2006 he made a 26,000,000 USD donation to City College of New York
    City College of New York
    The City College of the City University of New York is a senior college of the City University of New York , in New York City. It is also the oldest of the City University's twenty-three institutions of higher learning...

    , the largest donation ever made to that school.

Quotes



  • "City College is the American Dream Machine."
  • "When TV first came, people tried to look at it as a radio with pictures. We're at the stage now where the Internet is TV with poor connections."
  • "A fundamental rule in technology says that whatever can be done will be done."
  • "Success breeds complacency. Complacency breeds failure. Only the paranoid survive."
  • "Just as you would not permit a fellow employee to steal a piece of office equipment, you shouldn't let anyone walk away with the time of his fellow managers."
  • "Stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite."
  • "You have to pretend you're 100 percent sure. You have to take action; you can't hesitate or hedge your bets. Anything less will condemn your efforts to failure."
  • "Technology happens, it's not good, it's not bad. Is steel good or bad?"
  • "People can't memorize computer industry acronyms"
  • "Your career is your business, and you are its CEO"

External links