Intel

Pentium Chip Flaw

Submitted By: Kamal Syal - B54 Konark Garg- A10 Naved Imran- A13

The History of Intel Corporation

Started with 12 employees in 1968 and grew to 15,000 employees by 1980 (12 years) In 1980 IBM adopted the 8086 chip for their personal computer. Sales increased to $885 million in 1980 Intel developed 32-bit microprocessors during the 1980s (386 and 486 chips) The 386 was most widely used chips in the market (IBM, Compaq Computer, and Dell Corporation) In 1989 the 486 chip was developed mainframe on a chip

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The History of Intel Corporation

By 1991 Intel became the largest U.S. semiconductor supplier Intel earned a net profit of $2.3 billion in sales of $8.7 billion in 1993 55% Microprocessor Sales 20% Memory Chips Remaining % from LAN products based on their chips Present CEO Paul S. Otellini

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Intel Pentium Chip Problem

Problems began for Intel in October, 1994 Mathematician uncovered a division error, a flaw in the microprocessors floating point unit that could lead to errors in calculations Example: 4,195,835 ((4,195,835/3,145,727) x 3,145,727) answer should be 0 (zero) but reported 256! Intel failed to perform a basic test that would have uncovered this error.

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Intel Pentium Chip Problem(Timeline)

June, 1994:Dr. Thomas R. Nicely, a professor of mathematics at Lynchburg College, Virginia, notices a small difference in two sets of numbers Wednesday, October 19: After testing on several 486 and Pentium-based computers, Dr. Nicely is certain that the error is caused by the Pentium processor.

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Intel pentium Chip Problem(Timeline)

Monday, October 24: Dr. Nicely contacts Intel technical support. Intel's contact person duplicates the error and confirms it, but says that it was not reported before. Sunday, October 30: After receiving no more information from Intel, Dr. Nicely sends an email message to a few people, announcing his discovery of a "bug" in Pentium processors.

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Intel pentium Chip Problem(Timeline)

That same day, Andrew Schulman, author of Unauthorized Windows 95, receives Dr. Nicely's email. Tuesday, November 1: Schulman forwards Dr. Nicely's message to Richard Smith, president of Phar Lap Software in Cambridge, MA. Realizing the significance of the flaw, Smith immediately forwards Dr. Nicely's message to important Phar Lap customers, to Intel, and to people at compiler companies, including Microsoft, Borland, Metaware and Watcom. He also posts the message to the Canopus forum of CompuServe with a note asking people to run Dr. Nicely's test and report results back to Smith. This is the first public disclosure of the flaw.

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Intel pentium Chip Problem(Timeline)

Monday, November 7: Wolfe's article runs in Electronic Engineering Times, headlined INTEL FIXES A PENTIUM FPU GLITCH. In the story, Intel says it has corrected the glitch in subsequent runs of the chip, and Steve Smith of Intel dismisses the importance of the flaw, saying, "This doesn't even qualify as an errata (sic). This is only the first print article about the flaw, but by this time there are hundreds of postings about it

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Intel pentium Chip Problem(Timeline)

Tuesday, November 22: CNN's Money line program looks at the issue. Steve Smith of Intel says the Pentium processor's problem is minor. Wednesday, November 23: Math Works sends out what is a press release on the issue, MATHWORKS DEVELOPS FIX FOR THE INTEL PENTIUM FLOATING POINT PROCESSOR.

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Intel pentium Chip Problem(Timeline)

Thursday, November 24: The New York Times runs a story by John Mark off, CIRCUIT FLAW CAUSES PENTIUM CHIP TO MISCALCULATE, INTEL ADMITS. In the story, an Intel spokesman says the company is still sending out the flawed chips. A similar story by the Associated Press is printed by more than 200 newspapers and run on radio and television news. Intel Applications Support Manager Ken Hendren posts a message on America Online and the Internet, revealing that Intel has no one providing customer support on the Internet. Intel seems unaware of the solidity of opinion on the Net about the Pentium processor's flaw. At this point, an offer by Intel to replace any flawed Pentium chips would have smoothed the waters. Instead, Intel makes an offer to replace a Pentium chip only after Intel had determined you used the chip in an application in which it would cause a problem. Intel customers are irate. The chip hits the fan.

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Intel Pentium Chip Problem(Timeline)

Sunday, November 27: A notice appears on the Internet newsgroup comp.sys.intel, from Intel's president, Dr. Andrew Grove, but bearing someone else's "return address". This posting has two problems. 1. Since Grove's message was not posted from his own address, many readers assumed that it was a spoof--a forged message--and had been written by someone other than Grove. 2. It should not have been released on the Internet first. There are some things you should not use the Internet to do. Put out standard press releases, yes.. It should have called a press conference. Grove's email only fuelled the flames.

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Intel Pentium Chip Problem(Timeline)

Monday, December 12: IBM issues a press release: IBM HALTS SHIPMENTS OF PENTIUMBASED PCS. Intel counters with INTEL SAYS IBM SHIPMENT HALT IS UNWARRANTED. Internet analysts immediately demonstrate that IBM's claims are exaggerated, but at the same time no one believes Intel. Wednesday, December 14: Intel releases a white paper explaining the situation rationally. Too late. Intel's communications are jammed with tens of thousands of phone calls and email messages from worried and angry customers.

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Intel pentium Chip Problem(Timeline)

Friday, December 16: Intel stock closes at $59.50, down $3.25 for the week. Tuesday, December 20: Intel finally apologizes and says it will replace all flawed Pentiums upon request. It sets aside a reserve of $420 million to cover costs. It hires hundreds of customer service employees to deal with customer requests. It dedicates four fulltime employees to read Internet newsgroups and respond immediately to any postings about Intel or its products

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What Intel could have done!!!

The first thing is to respond to emailed complaints as quickly as possible.

Another obvious conclusion is that when you see hundreds of email messages and newsgroup postings which all say you have a problem, and you don't think you have a problem, think twice: you really do have a problem. You might not have a technical problem, but you have a PR problem.

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What Intel could have done!!!

Unlike traditional news media, the Internet has no filtering process. Messages come quickly and from many sources. It is impossible for your media relations people to put a spin on Internet postings. That is why it is important for you to monitor what is being posted on the Net, and why you need to post proactive information. If Intel would have posted information about the Pentium flaw in June, it would have prevented almost everything that happened afterwards.

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What Intel could have done!!!

Another result of the lack of filters on the Internet is that newsgroups can exaggerate. If someone posts exaggerated or angry newsgroup messages or sends flaming email about your business, you can employ the procedures Intel now uses. If there is a continuing situation regarding your company, and that situation is discussed repeatedly on the Net, don't post one message and then go away for a week. Someone from your company will need to provide a continuing voice in the discussion, even if to just repeat your side of a story. The balance of postings in the Pentium story was easily more than a hundred postings by the public to every one posting by Intel.
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What Intel could have done!!!

Don't try to do all your public relations on the Net. Use the Internet as one ingredient in your mix, but not for everything. Some things--as Andy Grove's Internet message demonstrated--will have better results when done off the Net.

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Ethical Issues
Ethical Issues Company should have responded to the pubic and immediately replaced the flawed chips instead of trying to hide it from the public! Intels customers were victims of this flawed chip by no fault of their own. Intel should have been loyal and trustworthy to their customers. Arrogance, pride, and greed took over Intels decision making in solving the flawed chip issue. What if the chip would have been used in the space shuttle or making a life/death decision?

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References
The Pentium Chip Story: A Learning Experience http://www.emery.com/1e/pentium.html Wikipedia Flawed Pentium http://en.wikipedia.org/wiki/Pentium_FDI V_bug IBM stops shipping Pentium-based PCs, will replace flawed chips. http://www.allbusiness.com/technology/ computer-hardware/463212-1.html

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