23. Uncle Bob’s new watch: Don Noyce to Nancy and Don Noyce, 29 Sept. 1972, DSN.
24. If I made the simplest request: Penny to Mummy, Polly, and Bill, 11 Aug. [1972], courtesy Penny Noyce. Crash of the charter plane: Penny Noyce, interview by author; Bill Cohen, interview by author; note dated 3/12[/74], courtesy Penny Noyce, reading, “Your 414 is down. Mr. _ and three other people are aboard. They have a report of a radio beacon in the Carson City area. Please call for more details.”
25. Society’s negative attitude towards technology: Noyce, 1982 Reid interview.
26. Didn’t like myself, tried to switch: Noyce in Davidow, Flath, Noyce oral history, IA.
27. Only bad mothers weren’t home for their children: Penny Noyce, interview by author.
28. Intel like the war effort: Judy Vadasz, interview by author.
29. Too much executive ability: Penny Noyce, interview by author. Just another husband carrying a briefcase: Phyllis and Bob Kefauver, interview by author. Betty Noyce yelling or crying: multiple interviews, all requesting anonymity on this detail.
30. Smoking a pack of cigarettes each: Jim Angell, interview by author.
31. Simpler to get on a plane to New York: Glenn Leggett, interview by author.
32. I’m not afraid of the responsibility: Bill to Da, 18 Oct. 1973, courtesy Penny Noyce. Noyce’s letter to Bill is lost, but this reply directly references Noyce’s objections.
33. I am overwhelmed, awed: Penny Noyce to Bob Noyce, 6 Nov. 1974.
34. Betty’s unsent letter to her mother: Betty Noyce to Mimi [her mother], 25 April 1974, courtesy Penny Noyce. All quotes from Betty regarding the divorce come from this letter.
35. Divorce was wrong: Gaylord Noyce, interview by author.
36. Profit margin and net income statements: 1974 Intel annual report. 60 percent of plant space, 70 percent of employees: Andy Grove quoted in William Doyle, “Intel Out to Prove Drucker Wrong,” Oakland Tribune, 27 Feb. 1974. Could be bought for less than one-tenth of a penny: “Boom Times Again for Semiconductors,” Business Week, 20 April 1974, 66.
37. A billion bits per month: “Intel Sees New Products Cutting Into Profit Margins,” Electronic News, 4 March 1974. Eighteen competing microprocessors: Noyce, “Microprocessors,” Electronic Engineering Times Anniversary Issue (Nov. 1987): A15–A20, IA.
38. Skipped the adventures: Steve Kress, interview by author.
39. It was outright warfare: Anonymous interview by author.
40. Money is just one part: Paul Hwoschinsky, True Wealth (Berkeley, Ca.: Ten Speed Press, 1990): 2.
41. If you walk off a cliff: Paul Hwoschinsky, interview by author, 3 June 2003.
42. The bulk was Intel stock: Paul Hwoschinsky, interview by author, 3 June 2003.
43. What’s this?: All quotes in the discussion of the shoebox startups are from Paul Hwoschinsky, interview by author, 3 June 2003.
44. Well, so what?: Les Vadasz, interview by Evan Ramstad.
45. Page Mill Partners drinking group: Jack Melchor, interview by author.
46. Da is a little sad: Penny Noyce to Betty Noyce, 4 Sept. 1974, courtesy Penny Noyce. Choose parent for parents’ weekend: Margaret Noyce to Betty Noyce, 5 Oct. 1974, courtesy Penny Noyce. Nothing else I’ve done matters: interview with a person at the dinner who requested anonymity.
47. Precipitous drop in Intel’s share: this stemmed from a bizarre coincidence of events. After the market closed on Wednesday, July 3, Intel announced that its second-quarter revenues were lower than expected. The traders familiar with Intel stock were not at their desks to hear the news, however. Their annual convention was being held the following week, and most of them had decided to spend a long Independence Day holiday near the convention site in Florida. When the stock market reopened on Friday, July 5, the reserve traders, having read the reports of Intel’s lower-than-expected sales, began furiously selling Intel stock. The price of an Intel share plummeted from 63½ to 44½. Details of the same-day stock-sale program: Bob Harrington, interview by author.
48. Virtually all: Larry Hootnick [vice president, finance] to Andy Grove, 2 April 1975, IA.
49. Seed came from: Bob Harrington, interview by author.
50. 1974 layoffs in the semiconductor industry: “Intel Shuts Down for Week; AMI Cuts 230; Cite Flatness,” Electronic News, 6 Sept. 1974; “Intel, Intersil Trim Payroll,” Electronic News, 12 Aug. 1974, 16.
51. Microma pretax loss in Dec. 1974: Larry Hootnick to Board of Directors, “Subject: Microma—December, 1974 Actual vs. Plan 75.0,” 15 Jan. 1975, IA. Intel second-sourcing Mostek: Electronic News, 30 Dec. 1974. AMD, Signetics, and Mostek performance: AMD 1975 annual report, Signetics 1974 annual report, Mostek 1975 annual report.
52. Necessary to have a reduction in our work force: Noyce to all employees, 7 Oct. 1974, IA.
53. Layoff data: Real, Revolution in Progress, 47. For a few goddamned points: Regis McKenna, interview by author.
54. Did not anticipate changes, tremendous price attrition: Martin Gold, “Intel’s Noyce: No Semicon Upturn in Next 6 Months,” Electronic News, 14 Oct. 1974. Paul Plansky,” Protests Mark Wema Meeting,” Electronic News, 2 Dec. 1974.
55. Nearly 20 percent laid off: Ramon C. Sevilla, “Employment practices and industrial restructuring: A case study of the semiconductor industry in Silicon Valley, 1955–1991,” (PhD dissertation, UCLA, 1992), Table 3.10, 179. Noyce a dominant force: “WEMA Medal of Achievement to Intel’s Dr. Robert Noyce” [WEMA Press Release], 27 Sept. 1974, ASB. Slogans on signs: Paul Plansky,” Protests Mark Wema Meeting.”
56. Rock conjectures: Arthur Rock speaking at the San Jose memorial service, 18 June 1990. It was not unusual: Gordon Moore, interview by author, 1 July 2004.
57. Grove wanted more and more: Richard Hodgson, interview by author. Andy had gotten over his PhD: Gordon Moore, interview by author, 1 July 2004.
58. Five-week cycle for staff meetings: Noyce record book, 3 Jan. 1972.
59. From outside Bob running: Intel employee who requested not to be attributed on this point.
60. How can we get you ready/give me the job: Andy Grove, interview by author.
61. Noyce and Grove planned: Noyce’s 1975 datebook.
62. Wild expansionist: Moore quoted in Lindgren, “Two-Headed Monster.” Walking the thin line next to the cliff: Noyce quoted in Lloyd Watson, “A Classic Case of Growth,” San Francisco Chronicle, no date, but clearly 1973.
63. Our five year goal: Noyce in Davidow, Flath, Noyce oral history, IA.
64. Let’s take the hill: Roger Borovoy, interview by author.
65. Fully functional $300 computer: Gelbach, Grove, Jenkins oral history.
66. Bill Noyce’s comments to his grandmother: a photo of the computer screen in a family photo album, courtesy Polly Noyce. Computer/motor analogy: Bill Noyce, interview by author.
67. Thought he would either faint or hit me: Gelbach in Gelbach, Grove, Jenkins oral history. Ours is not a general purpose microcomputer: Andy Grove, interview by author. It is interesting to note that in an interview from the mid-1980s (“Machine that Changed the World” interview, IA), Noyce says that he “missed the personal computer”—that he did not appreciate the potential size of the market nor the probable impact of the device. This comment may mean that Noyce envisioned the Intel machine for business use, or that he simply underestimated the size of the market—or that he was being characteristically self-effacing. In any case, Gelbach, Grove, and Moore all independently told very similar stories about Noyce’s push for an Intel computer. Documentary evidence has yet to emerge.
68. World’s largest computer manufacturer: Noyce quoted in Gene Bylinsky, “Here Comes the Second Computer Revolution,” Fortune, Nov. 1975.
69. Emphasis shifting to control: “Intel’s Robert Noyce Kicks Himself Upstairs,” Business Week, 14 Dec. 1974.
70. Leadership by personal contact: “Intel’s Robert Noyce Kicks Himself Upstairs,” Business Week, 14 Dec. 1974. McIntel and high-technology jelly beans: V
ictor K. McElheny, “High Technology Jelly Bean Ace,” New York Times, 5 June 1977. Grove originally made these comments to a meeting of security analysts in 1974.
71. Bob practically disappeared: Andy Grove, interview by author.
72. Population of Crete: approximation based on census data. $50,000 donation: Philip Heckman to Bob Noyce, 21 June 1975, ASB.
73. Dedication of the Noyce Chapel at Doane College: Unless otherwise noted, the description and quotes are from a booklet of recollections Harriet Noyce assembled, “The Noyce Chapel, A Service of Tribute and Dedication,” ASB.
74. How deeply it moves me: Ralph Noyce to Bob Noyce, 21 May 1975.
Chapter 10: Renewal
1. Ann Bowers biography: Ann Bowers, interview by author, 5 Aug. 2004 and 16 Aug. 2004.
2. He could recall slogan: In his 1982 interview with T. R. Reid, Noyce recited this slogan without any prompting from Reid.
3. Largest single stockholder: Betty Noyce quoted in “Betty Noyce Starts a Bank of Her Own,” Maine Times, 4 Oct. 1991. Rumors that Betty Noyce: “Intel Founder’s Ex-Wife Reported Selling Shares,” San Francisco Examiner, 25 June 1976.
4. On Betty Noyce’s philanthropy: Ellen Goodman, “Making a Difference,” San Francisco Chronicle, 26 Sept. 1996); “Betty Noyce Starts a Bank of Her Own,” Maine Times, 4 Oct. 1991; obituaries in Portland Press Herald (23 Sept. 1996) and Bangor Daily News (19 Sept. 1996); articles on the opening of the public market and an L.L. Bean store from June and July, 1996 in Portland Press Herald and Maine Sunday Telegram. An excellent profile of Betty Noyce is Kim Strosnider, “Noyce shuns limelight while showing the way,” Maine Sunday Telegram, 3 Dec. 1995. All articles courtesy Libra Foundation and Owen Wells.
5. Bowers conversation with Grove: Ann Bowers, interview by author, 5 Aug. 2004.
6. All quotes this paragraph: Gordon Moore to employees, 4 June 1976, IA.
7. Non-union and wish to remain so: “Non-Union Seminar Slated,” Palo Alto Times, 26 Dec. 1973. The seminar was conducted in January 1974, PSC. A copy of the leaflet on every desk: Mike Eisenscher quoted in Sevilla, “Employment Practices and Industrial Restructuring,” 295.
8. 25 percent more: Charles Goldstein quoted in Ron Iscoff, “Wages Not Key Factor in Employee Unionization,” West Coast Electronic News, 18 April 1977, PSC. 5,000 workers struck: “3 Electronics Firms Hit By Strikes in Bay Area,” Electronic News, 8 April 1968; Sevilla, 156.
9. Intel bonus meetings: Sevilla 296. If you believe: Charles Goldstein quoted in Ron Iscoff, “Wages Not Key Factor in Employee Unionization,” West Coast Electronic News, 18 April 1977, PSC.
10. Scary places to work: Gene Flath in Davidow, Flath, and Noyce oral history, IA. Big 1103 machine: Real, “Revolution in Progress,” 41, IA.
11. We were petrified: Linda Erlich, interview by Rachel Stewart, IA.
12. They were just so nervous: Gene Flath in Davidow, Flath, and Noyce oral history, IA.
13. 36 percent to 27 percent: Statistical Abstract of the United States, 1990, Chart 728; Statistical Abstract of the United States, 1984, Chart 698. Demographics of production workers: Sevilla, “Employment Practices and Industrial Restructuring,” 172, 292. 1979 turnover rates: Sevilla, “Employment Practices and Industrial Restructuring,” 299.
14. Our non-union status: Gordon Moore to all employees, 6 July 1976, IA.
15. Too strong: Gordon Moore, interview by author, 1 July 2004. Noyce speaking on automotive electronics: See, for example, Noyce, “Power Train Control: A Convergence of LSI Technologies,” Automotive Electronics, 1978, IA; Noyce and Craig R. Barrett, “The Automobile and the Microcomputer Revolution—Solving the Reliability Problem,” [1984?], IA. Noyce analyst presentation: Noyce, “Intel Corporation Presentation to the New York Society of Security Analysts,” 31 Jan. 1978, ASB.
16. I ran into Noyce: Tom Rowe in Innes, Rowe oral history, IA.
17. I’ve been doing a lot of venture stuff: Paul Hwoschinsky, interview by author.
18. Noyce most likely among them: in his interview with the author, Eugene Kleiner stressed that it had been very difficult to find limited partners for the first Kleiner Perkins fund. Kleiner and Noyce had already invested in each other’s companies once (Kleiner in Intel and Noyce in Kleiner’s peripherals company Cybercom). It is thus almost certain that Kleiner would have offered Noyce an opportunity to invest in his venture fund. Noyce almost certainly would have taken him up on this offer, but a firm’s list of limited partners is, of course, proprietary. It should be noted, however, that Ann Bowers says that after their 1975 marriage, Noyce was not a limited partner in any Kleiner Perkins fund.
19. Invest and hope: Eugene Kleiner, interview by author.
20. First fund returned 40 times: Eugene Kleiner, interview by Charlie Sporck.
21. Can only lose 100 percent: Paul Hwoschinsky, interview by author, 3 June 2003.
22. Callanish Fund: Unless otherwise noted, information is from Paul Hwoschinsky, interview by author, 3 June 2003. The names of many Callanish companies appear throughout Noyce’s datebooks.
23. Noyce’s other company: Jay Palmer, “Achieving Recognition—Caere, the Other Noyce Company, is Coming into Its Own,” Barron’s, 5 Aug. 1991.
24. Helped convince his friends: Among the investors in Caere were Grinnell College, Venrock Associates (with whom Noyce had invested at Intel and Coherent Radiation), and Asset Management Partners (whose principal Pitch Johnson was a major investor in Coherent Radiation). Caere IPO Prospectus, 19 Oct. 1989, courtesy Bob Teresi.
25. Caere: Unless otherwise indicated, information is from Bob Teresi, interview by author.
26. Paying back the system: Jim Dutton, interview by author.
27. Probably $250,000: Neither Dutton nor Teresi recalls the precise amount. Since the company was privately held at the time, no record of the transaction was filed with the Securities and Exchange Commission.
28. Electronics company of the year: unidentified clipping, IA.
29. I propose: Gordon Moore to Ricard Gottier (Control Data Corporation), 4 Apr. 1975. Will you two please look: Moore to R. S. Borovoy and L. R. Hootnick, 18 July 1975. You should concentrate: Moore to W. F. Jordan, 20 Jan. 1975. Ann Bowers has announced: Moore to employees, 20 May 1976. Grove amplifying Moore: Gordon Moore, interview by Rachel Stewart, no date. All items, IA.
30. Noyce’s personality was so outstanding: Gordon Moore, interview by Adam Noyce, no date [probably 2000], GCA.
31. What really differentiates: Regis McKenna, interview by author.
32. I was just born: Bob Harrington, interview by author.
33. Business Week cover: “New Leaders in Semiconductors,” Business Week, 1 March 1976. New York Times profile: Viktor K. McElheny, “Dissatisfaction as a Spur to Career,” New York Times, 15 Dec. 1976.
34. It is rare: James M. Early to Noyce, 9 Dec. 1977, ASB.
35. Model of entrepreneurial endeavor: general Christmas letter from Ann Bowers and Bob Noyce, 7 Dec. 1978, Grant Gale Papers, GCA. Only risk: Viktor K. McElheny, “An Industrial ‘Innovation Crisis’ is Decried at MIT Symposium,” New York Times, 10 Dec. 1976. Entrepreneur not John Wayne: Noyce, “Speech Outline: Entrepreneurship, MIT,” [no date, but clearly delivered at the MIT symposium], IA. Be confident of success: Robert Noyce, “Innovation: Nothing to Fear but Fear” [summary of MIT Symposium on the management of Innovation], Technology Review, Feb. 1977.
36. A little humble, a little proud: clip from an unidentified interview included in “Remembrance of a Life Well Lived,” video, IA.
37. Several people hasten to tell me: Herb Caen, “Update,” San Francisco Chronicle, 5 Feb. 1980.
38. My father was good at everything: Penny Noyce, interview by author, 9 Apr. 2002.
39. You’ve got a nice family: interview subject requested anonymity.
40. Make Andy more visible: Regis McKenna, interview by author. Feature article on Grove: Viktor K. McElheny, “Spotlight: High-Technology Jelly Bean Ace,” New York Times, 5 June 1977.
&nb
sp; 41. Showoff side to Bob: Ann Bowers, interview by author, 22 Jun. 2002. Hell of a diving show: Charlie Sporck, interview by author. K2 jacket story: Richard Hodgson speaking at the Intel memorial service for Noyce, video, ASB. Liked being special: Jim Lafferty, interview by author.
42. Noyce stepped in front of me: Harry Sello, interview by author.
43. Jackie Onassis: Harriet Noyce to Girls, 8 Feb. 1984, DSN. Pictorial salute to Noyce: much-altered Playgirl, Jan. 1984, ASB.
44. Sales of $500 billion: Wells Fargo Bank, N.A., “Economic Forecast—Santa Clara County: Growth Prospects to 1990,” April 1982, 9, IA. 18 percent annual growth: Wells Fargo Bank, “Economic Forecast,” 9. 1.5 million manufacturing workers: Susan Benner, “Storm Clouds Over Silicon Valley,” Inc., Sept. 1982, 84. High-technology employment grew: Association of Bay Area Governments, “Silicon Valley and Beyond: High Technology Growth for the San Francisco Bay Area,” (Working Papers on the Region’s Economy, No. 2), 1; “The Silicon Valley Economy,” FRBSF [Federal Reserve Bank of San Francisco] Weekly Newsletter, Number 92–22, 29 May 29 1992. (Jobs increased from 380,000 to 665,000.) Sixty pages of advertisements: Sevilla, “Employment Practices and Industrial Restructuring,” 238. Per capita personal income growth: Wells Fargo Bank, “Economic Forecast,” 17.
45. More millionaires: Kindel and Teitelman, “Go East, Young Man,” 132. More than 1,000 companies: “A U.S. Revolution: Instant Tycoons in Silicon Valley,” San Francisco Chronicle, 23 Sept. 1980. If there is any hope: Arthur Levitt, Jr., quoted in Alexander L. Taylor III, “Striking It Rich,” Time, 15 Feb. 1982.
46. Small entrepreneurs depend totally: Robert Noyce, Testimony before Congress, Telecommunications and Finance Subcommittee of the House Energy and Commerce Committee, High Definition Television: Hearing Before the House Telecommunications and Finance Subcommittee of the House Energy and Commerce Committee, 13 Sept., 1989.
47. Apple founding: Mike Markkula, interview by author; Steve Jobs, interview by author; Michael Moritz, The Little Kingdom: The Private Story of Apple Computer (New York: William Morrow and Co., 1984).
48. Nothing else was in Intel’s interest: Mike Markkula, interview by author. Even a supplier-customer relationship between Intel and Apple failed to materialize. Wozniak had originally chosen a Motorola processor for Apple machines, and even though Markkula says he and Grove met several times to discuss whether a switch to an Intel chip was warranted, “the timing was never right,” and so Apple stayed with Motorola.
The Man Behind the Microchip Page 54
