Intel in India and China

James W. JarrettVP, Global Public Policy

Intel CorporationSeptember 25, 2007

Intel SnapshotIntel Snapshot–Founded in 1968–World’s largest semiconductor

company–> 80% of the company’s $35.4 billion

2006 sales were outside the U.S.~ $10 billion annual investment in

R&D and capital investments–>90,000 employees; 60% in U.S.

Technical Policy & Standards – Corporate Technology Group

IrelandIrelandFab 24,IFOFab 24,IFO

IsraelIsraelFab 8,18, 28Fab 8,18, 28

OregonOregonFab 20,D1C,D1D, AFOFab 20,D1C,D1D, AFO

CaliforniaCaliforniaD2D2

ColoradoColoradoFab 23Fab 23

ArizonaArizonaFab 12,22,32Fab 12,22,32

New MexicoNew MexicoFab 11,11X, Fab 11,11X,

F7 TestF7 Test

Mass.Mass.Fab 17Fab 17

Costa Rica Costa Rica A/TA/T

Penang Penang A/TA/TKulimKulim A/TA/T

Shanghai Shanghai A/TA/T

Cavite Cavite A/TA/T

Intel Worldwide Manufacturing and Assembly/Test Network

Chengdu Chengdu A/TA/T

FabAssembly/Test

VietnamVietnamA/TA/T

Intel Worldwide R&D Locations

ChinaChinaBeijingBeijing

ShanghaiShanghaiShenzhenShenzhen

IndiaIndiaBangaloreBangalore

IsraelIsraelHaifaHaifaPTKPTK

JerusalemJerusalemYakumYakum

RussiaRussiaMoscowMoscow

St. PetersburgSt. PetersburgNizhnyNizhny

NovosibirskNovosibirskSarovSarov

TaiwanTaiwanTaipeiTaipei

IrelandIrelandShannonShannon

GermanyGermanyBraunschweigBraunschweig

BruhlBruhlUlmUlm

DenmarkDenmarkCopenhagenCopenhagen

PolandPolandGdanskGdansk

CaliforniaCaliforniaSanta ClaraSanta Clara

FolsomFolsomBerkeleyBerkeleyFremontFremont

IrvineIrvineSacramentoSacramentoSan DiegoSan Diego

Thousand OaksThousand Oaks

OregonOregon

ColoradoColoradoFort CollinsFort Collins

IllinoisIllinoisChampaignChampaign

MexicoMexicoGuadalajaraGuadalajara

New HampshireNew HampshireNashuaNashua

New JerseyNew Jersey

New YorkNew YorkBuffaloBuffalo

North CarolinaNorth CarolinaRaleighRaleigh

South CarolinaSouth CarolinaColumbiaColumbia

VirginiaVirginiaChantillyChantilly

UKUKGlasgowGlasgow

CambridgeCambridgeFordingbridgeFordingbridge

WinnershWinnersh

Other EUOther EUBarcelonaBarcelonaKontichKontich

NiceNiceVilniusVilnius

CanadaCanadaAlbertaAlberta

VancouverVancouver MassachusettsMassachusettsHudsonHudson

WashingtonWashingtonDupontDupont

MalaysiaMalaysiaPenangPenangKulimKulim

TexasTexasAustinAustin

AddisonAddison

JapanJapanTokyoTokyo

KoreaKoreaSeoulSeoul

ChinaChinaBeijingBeijing

ShanghaiShanghaiShenzhenShenzhen

IndiaIndiaBangaloreBangalore

IsraelIsraelHaifaHaifaPTKPTK

JerusalemJerusalemYakumYakum

RussiaRussiaMoscowMoscow

St. PetersburgSt. PetersburgNizhnyNizhny

NovosibirskNovosibirskSarovSarov

TaiwanTaiwanTaipeiTaipei

IrelandIrelandShannonShannon

GermanyGermanyBraunschweigBraunschweig

BruhlBruhlUlmUlm

DenmarkDenmarkCopenhagenCopenhagen

PolandPolandGdanskGdansk

CaliforniaCaliforniaSanta ClaraSanta Clara

FolsomFolsomBerkeleyBerkeleyFremontFremont

IrvineIrvineSacramentoSacramentoSan DiegoSan Diego

Thousand OaksThousand Oaks

OregonOregon

ColoradoColoradoFort CollinsFort Collins

IllinoisIllinoisChampaignChampaign

MexicoMexicoGuadalajaraGuadalajara

New HampshireNew HampshireNashuaNashua

New JerseyNew Jersey

New YorkNew YorkBuffaloBuffalo

North CarolinaNorth CarolinaRaleighRaleigh

South CarolinaSouth CarolinaColumbiaColumbia

VirginiaVirginiaChantillyChantilly

UKUKGlasgowGlasgow

CambridgeCambridgeFordingbridgeFordingbridge

WinnershWinnersh

Other EUOther EUBarcelonaBarcelonaKontichKontich

NiceNiceVilniusVilnius

CanadaCanadaAlbertaAlberta

VancouverVancouver MassachusettsMassachusettsHudsonHudson

WashingtonWashingtonDupontDupont

MalaysiaMalaysiaPenangPenangKulimKulim

TexasTexasAustinAustin

AddisonAddison

JapanJapanTokyoTokyo

KoreaKoreaSeoulSeoul

Intel India and ChinaIndia China

Founded 1988 1985Headcount 2500 7000Investment $700M $4BSoftware labs ü üChip R&D ü üIntel Capital ü üSales/Marketing ü üIntel Education ü üManufacturing ü

2008 PRC 34% of WW2008 PRC 34% of WWEmerging Market TAMEmerging Market TAM

Source: CMR EM TAM 2H06

Country, Mu, % of WW EM TAM in ‘08

In ‘08, PRC > next 6 top EM countries combinedIn ‘08, PRC > next 6 top EM countries combined

Climbing The Value Chain

• Shanghai Software Lab: started in 1994 to do low-complexity programming; now 1 of Intel’s top 7 labs. Focus on system-level software.

• Channel Platforms Group, Shanghai, manages 5 labs in emerging markets.

• Bangalore: started in 1999 to do software. Now 50% of employees working on chip development.

Tera-Scale Prototype• 80 tiles with floating point

engines– Power efficiency is key

focus• Interconnect fabric for

next generation Tera-scale products– High bisection bandwidth– Low latency

• Low power techniques with fine-grain power management– Dynamic and static

80 TILES

TILE

PowerPower--Efficient PerformanceEfficient Performance

International Local Hire Program

• Permanently brings home Chinese and Indian employees who have U.S. Intel training.

• Fills the management void that exists in both countries.

• Currently over 15% of Intel India employees are ILHs.

Filling The Talent Pipeline

Extensive Education Program; part of a worldwide effort:

-- 1.6 million K-12 teachers trained in India and China

-- Active relationships with >100 universities.

-- Provide research grants-- Introduce new curriculum materials-- Sponsor contests

Intel Multi-core Technology based textbooks in China

Investing In Innovative Companies

• Intel Capital has made ~ 110 venture capital investments in India and China since 1998.

• Investments are in companies that are driving the growth of Information Technology and the Internet.

• “Trans-Pacific” companies emerging: founded by U.S.-trained engineers; operations in both Asia and the U.S. Examples: AsiaInfo, UT Starcom, Lenovo.

300mm Global Fab Landscape

Chip Manufacturing

• Intel has Assembly and Test facilities in Shanghai and Chengdu

• Broke ground this month on wafer fab in Dalian. Will make chipsets; online in 2010. 90nm technology.

• India hampered by infrastructure. Lacked incentive policy until this year.

• India strong in chip design; utilizing Asian foundries for fabrication

Technical Policy & Standards – Corporate Technology Group