In November, 1971, a company called Intel publicly introduced the world's first single chip microprocessor, the Intel 4004 (U.S. Patent #3,821,715), invented by Intel engineers Federico Faggin, Ted Hoff, and Stan Mazor.
"The Intel_4004is generally regarded as the first microprocessor, and cost thousands of dollars. The first known advertisement for the 4004 is dated November 1971 and appeared in Electronic_News. The project that produced the 4004 originated in 1969, when Busicom, a Japanese calculator manufacturer, asked Intel to build a chipset for high-performance desktop calculators. Busicom's original design called for a programmable chip set consisting of seven different chips. Three of the chips were to make a special-purpose CPU with its program stored in ROM and its data stored in shift register read-write memory. Ted_Hoff, the Intel engineer assigned to evaluate the project, believed the Busicom design could be simplified by using dynamic RAM storage for data, rather than shift register memory, and a more traditional general-purpose CPU architecture. Hoff came up with a four-chip architectural proposal: a ROM chip for storing the programs, a dynamic RAM chip for storing data, a simple I/O device and a 4-bit central processing unit (CPU). Although not a chip designer, he felt the CPU could be integrated into a single chip. This chip would later be called the 4004 microprocessor"
This is usually credited to Ted Hoff at Intel, the 4004.
Actually, the first commercial microprocessor was the AL1 developed by Four Phase Systems. See the Description of this chip on the Computer History Museum timeline: http://www.computerhistory.org/revolution/digital-logic/12/282/1523
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