I. Introduction After Andrew Grove sadly passed away in 2016, his name gained even more popularity. Grove is credited wi
Posted: Thu May 26, 2022 7:28 am
I. Introduction
After Andrew Grove sadly passed away in 2016, his name gained even more popularity. Grove is credited with having transformed Intel from a manufacturer of memory chips to the world’s largest producer of microprocessors for PCs, servers, and general-purpose computing. Apart from that, he is accredited for his warning that America’s economy was in danger.
In this coursework, I am going to look into Andrew Grove’s brief history, his famous warning and his views about the economy of America. Alternative viewpoints on the subject will also be presented.
II. Andrew Grove
Andrew Stephen Grove (born András István Gróf; September 2,1936) was a Hungarian-American businessman, engineer, and Intel Corporation's CEO. At the age of 20, he fled Communist-controlled Hungary for the United States, where he completed his education. He joined Intel as the business's third employee and eventually became its third CEO, converting it into the world's largest semiconductor manufacturer.
Grove’s work at Intel, along with his books and professional articles, resulted in him having and considerable influence on electronics manufacturing industries not only in the USA but worldwide. Know as “the guy who drove the growth phase” of the Silicon Valley, Grove won the “Man of the Year” award in 1997, for being the person who contributed most to phenomenal growth in the power and innovative potential of microchips.
In 2000, he was diagnosed with Parkinson’s disease and thus became a main sponsor to several foundations that searched for a cure. Eventually, Andrew Grove died at this home on March 21,2016; yet, the cause of his death remains not publicly disclosed.
III. A Warning from Intel’s Founder
When Grove issued a harsh warning about the demise of American high technology in 2010, a lot of people took notice: He suggested that the loss of manufacturing jobs in technology sectors weakens the environment for future innovation.
According to Grove, startups were tremendous, but they could not increase tech jobs on their own. What happens after the invention in the garage, when technology progresses from prototype to mass production, is as essential.This was the stage at which business expanded. They (startups) figured out design intricacies, found out how to create things cheaply, constructed factories, and recruited tens of thousands of people. Scaling was difficult, but it was crucial for innovation to succeed.The scaling process was no longer taking place in the United States. And as long as that was the case, investing in emerging firms that establish their factories in other countries would continue to produce a poor return in terms of American employment.
Grove was more concerned about the overall detrimental effect on America, rather than the success and fortune of those companies and entrepreneurs. "What sort of a society are we going to have if it consists of highly compensated individuals performing high-value-added work—and millions of unemployed?" – Grove said.He believed that job development was contingent on those firms' capacity or desire to expand within the United States. According to Grove, Silicon Valley's "innovation machine" has not added many employments in recent decades, while American tech companies have been "adding jobs like crazy" in Asia. While American investments in startups have expanded considerably, he wrote that these expenditures have resulted in fewer employment: "Simply put," he wrote, "the United States has become outrageously inefficient at producing American tech jobs.” He campaigned to maintain Intel's production in the United States, with the corporation employing 90,000 people in 2010.
He outlined the causes and impacts of various companies' expansion strategies:
“Each company, ruggedly individualistic, does its best to expand efficiently and improve its own profitability. However, our pursuit of our individual businesses, which often involves transferring manufacturing and a great deal of engineering out of the country, has hindered our ability to bring innovations to scale at home. Without scaling, we don't just lose jobs—we lose our hold on new technologies. Losing the ability to scale will ultimately damage our capacity to innovate.“
To address the problem, he argued that "job creation," as it is in Asian countries, should be America's top priority. One option he thought was worth investigating was imposing a tax on imported goods, with the proceeds going to help American firms expand their operations in the United States. Grove accepted the fact that his views would be controversial : "If what I'm suggesting sounds protectionist, so be it." Knowing that these steps could lead to conflicts with America’s trade partners he added : “If the result is a trade war, treat it like other wars—fight to win."
When Grove’s statement became public, he was concerned about the corrosive and social and economic effect of high unemployment – 9,7 % nationally at that time. Surprisingly, unemployment rate dropped significantly since then, yet the problems remained. Insecure, low-paying, par time and dead-end jobs prevailed.
IV. Conclusion and opinion.
In conclusion, Andrew Grove will remain in history as a significant personality. His work at Intel, in addition to his books and articles helped Grove to become a person with a serious contribution to the technological world. The development of the microchip and the microprocessor, along with his dedication to the USA’s economy won him the sobriquet “the guy who drove the growth phase” of the Silicon Valley.
Apart from his phenomenal career, Andrew Grove will be remembered for his famous warning to the USA’s economy. Grove’s general concept was that, although startups were a great innovation and a promising undertaking, they could not ensure jobs in the long term. Scaling for him was something sacred and was at the base of the whole American Economy. According to him, if there was no scaling, economic growth and future development were impossible. If job exportation, to Asia mainly, was not stopped, failure was inevitable. Another problem for him was the large portion imports had in America’s economy. Grove was brave enough to reveal his controversial ideas, knowing the possible consequences, yet his articles led to a significant drop in unemployment rate in USA in 2010 and afterwards.
In my opinion, Andrew Grove has had an enormous impact on the development of not only the microchip, the microprocessor and technology as a whole, but also to the entire economic system of the United States of America. His critical thinking and sharp mind, undisputedly were of service to his high reputation.
After Andrew Grove sadly passed away in 2016, his name gained even more popularity. Grove is credited with having transformed Intel from a manufacturer of memory chips to the world’s largest producer of microprocessors for PCs, servers, and general-purpose computing. Apart from that, he is accredited for his warning that America’s economy was in danger.
In this coursework, I am going to look into Andrew Grove’s brief history, his famous warning and his views about the economy of America. Alternative viewpoints on the subject will also be presented.
II. Andrew Grove
Andrew Stephen Grove (born András István Gróf; September 2,1936) was a Hungarian-American businessman, engineer, and Intel Corporation's CEO. At the age of 20, he fled Communist-controlled Hungary for the United States, where he completed his education. He joined Intel as the business's third employee and eventually became its third CEO, converting it into the world's largest semiconductor manufacturer.
Grove’s work at Intel, along with his books and professional articles, resulted in him having and considerable influence on electronics manufacturing industries not only in the USA but worldwide. Know as “the guy who drove the growth phase” of the Silicon Valley, Grove won the “Man of the Year” award in 1997, for being the person who contributed most to phenomenal growth in the power and innovative potential of microchips.
In 2000, he was diagnosed with Parkinson’s disease and thus became a main sponsor to several foundations that searched for a cure. Eventually, Andrew Grove died at this home on March 21,2016; yet, the cause of his death remains not publicly disclosed.
III. A Warning from Intel’s Founder
When Grove issued a harsh warning about the demise of American high technology in 2010, a lot of people took notice: He suggested that the loss of manufacturing jobs in technology sectors weakens the environment for future innovation.
According to Grove, startups were tremendous, but they could not increase tech jobs on their own. What happens after the invention in the garage, when technology progresses from prototype to mass production, is as essential.This was the stage at which business expanded. They (startups) figured out design intricacies, found out how to create things cheaply, constructed factories, and recruited tens of thousands of people. Scaling was difficult, but it was crucial for innovation to succeed.The scaling process was no longer taking place in the United States. And as long as that was the case, investing in emerging firms that establish their factories in other countries would continue to produce a poor return in terms of American employment.
Grove was more concerned about the overall detrimental effect on America, rather than the success and fortune of those companies and entrepreneurs. "What sort of a society are we going to have if it consists of highly compensated individuals performing high-value-added work—and millions of unemployed?" – Grove said.He believed that job development was contingent on those firms' capacity or desire to expand within the United States. According to Grove, Silicon Valley's "innovation machine" has not added many employments in recent decades, while American tech companies have been "adding jobs like crazy" in Asia. While American investments in startups have expanded considerably, he wrote that these expenditures have resulted in fewer employment: "Simply put," he wrote, "the United States has become outrageously inefficient at producing American tech jobs.” He campaigned to maintain Intel's production in the United States, with the corporation employing 90,000 people in 2010.
He outlined the causes and impacts of various companies' expansion strategies:
“Each company, ruggedly individualistic, does its best to expand efficiently and improve its own profitability. However, our pursuit of our individual businesses, which often involves transferring manufacturing and a great deal of engineering out of the country, has hindered our ability to bring innovations to scale at home. Without scaling, we don't just lose jobs—we lose our hold on new technologies. Losing the ability to scale will ultimately damage our capacity to innovate.“
To address the problem, he argued that "job creation," as it is in Asian countries, should be America's top priority. One option he thought was worth investigating was imposing a tax on imported goods, with the proceeds going to help American firms expand their operations in the United States. Grove accepted the fact that his views would be controversial : "If what I'm suggesting sounds protectionist, so be it." Knowing that these steps could lead to conflicts with America’s trade partners he added : “If the result is a trade war, treat it like other wars—fight to win."
When Grove’s statement became public, he was concerned about the corrosive and social and economic effect of high unemployment – 9,7 % nationally at that time. Surprisingly, unemployment rate dropped significantly since then, yet the problems remained. Insecure, low-paying, par time and dead-end jobs prevailed.
IV. Conclusion and opinion.
In conclusion, Andrew Grove will remain in history as a significant personality. His work at Intel, in addition to his books and articles helped Grove to become a person with a serious contribution to the technological world. The development of the microchip and the microprocessor, along with his dedication to the USA’s economy won him the sobriquet “the guy who drove the growth phase” of the Silicon Valley.
Apart from his phenomenal career, Andrew Grove will be remembered for his famous warning to the USA’s economy. Grove’s general concept was that, although startups were a great innovation and a promising undertaking, they could not ensure jobs in the long term. Scaling for him was something sacred and was at the base of the whole American Economy. According to him, if there was no scaling, economic growth and future development were impossible. If job exportation, to Asia mainly, was not stopped, failure was inevitable. Another problem for him was the large portion imports had in America’s economy. Grove was brave enough to reveal his controversial ideas, knowing the possible consequences, yet his articles led to a significant drop in unemployment rate in USA in 2010 and afterwards.
In my opinion, Andrew Grove has had an enormous impact on the development of not only the microchip, the microprocessor and technology as a whole, but also to the entire economic system of the United States of America. His critical thinking and sharp mind, undisputedly were of service to his high reputation.