386 microprocessor

During this period Andrew Grove dramatically redirected the company, closing much of its DRAM business and directing resources to the microprocessor business. Of perhaps greater importance was his decision to "single-source" the 386 microprocessor. Prior to this, microprocessor manufacturing was in its infancy, and manufacturing problems frequently reduced or stopped production, interrupting supplies to customers. To mitigate this risk, these customers typically insisted that multiple manufacturers produce chips they could use to ensure a consistent supply. The 8080 and 8086-series microprocessors were produced by several companies, notably Zilog and AMD. Grove made the decision not to license the 386 design to other manufacturers, instead producing it in three geographically distinct factories in Santa Clara, California; Hillsboro, Oregon; and the Phoenix, Arizona suburb of Chandler; and convincing customers that this would ensure consistent delivery. As the success of Compaq's Deskpro 386 established the 386 as the dominant CPU choice, Intel achieved a position of near-exclusive dominance as its supplier. Profits from this funded rapid development of both higher-performance chip designs and higher-performance manufacturing capabilities, propelling Intel to a position of unquestioned leadership by the early 1990s.