11

Investing and Operating in Investing and Operating in MICs MICs The World Bank ConferenceThe World Bank Conference

Khaled ElamrawiKhaled ElamrawiGeneral ManagerGeneral ManagerEgypt, Levant and North AfricaEgypt, Levant and North AfricaIntel CorporationIntel Corporation

Cairo Cairo March 2008 March 2008

22

Nearly 40 Years of Nearly 40 Years of Experience Experience

From our founding in 1968, weFrom our founding in 1968, we’’ve ve grown into the worldgrown into the world’’s leading silicon s leading silicon innovator with nearly 100,000 innovator with nearly 100,000 employees, approximately 300 employees, approximately 300 facilities in 50 countries, and $38.8 facilities in 50 countries, and $38.8 billion in revenues.billion in revenues.

33

AgendaAgenda

Intel’s Manufacturing Presence & Intel’s Manufacturing Presence & ImpactImpact

Intel Capital Intel Capital Intel in Middle East, Turkey and Intel in Middle East, Turkey and

AfricaAfrica World GDP and Investment TrendWorld GDP and Investment Trend Role of GovernmentRole of Government

44

19721972

20052005

PenangPenang

55

Intel Direct and Indirect Impact Intel Direct and Indirect Impact Semicon Assembly Facilities - Malaysia

Company H.Q. Year Employees Intel Corporation U.S. 1972 7,600Agilent Technologies U.S. 1972 5,000 AMD U.S. 1972 2,716 Fairchild Semiconductor U.S. 1972 1,366 Freescale Semiconductor U.S. 1972 8,293 National Semiconductor U.S. 1972 2,500 Renesas Semiconductor Japan 1972 1,020 Texas Instruments U.S. 1972 3,500 Carsem Semiconductor Malaysia 1973 3,500 Infineon Technologies Germany 1973 4,200 Toshiba Japan 1973 1,700 STATS ChipPAC Singapore 1974 2,100 STMicroelectronics France 1974 3,800 ON Semiconductor U.S. 1976 2,150 Fujitsu Japan 1988 730 IDT U.S. 1988 568 Rectron Taiwan 1989 650 Rohm-Wako Japan 1990 1,000 Carsem Malaysia 1992 4,300 Globetronics Malaysia 1992 2,500 ASE Test Taiwan 1992 2,500 Unisem Malaysia 1992 3,200 Philips Netherlands 1994 2,400 AIC Semiconductor Malaysia 1997 1,500

(*Source: Intel Malaysia Economic Impact study,

W J Siang)Major Multinationals Follow Intel in New Sites Major Multinationals Follow Intel in New Sites

STRATEGICSTRATEGICSTRATEGICSTRATEGIC FINANCIALFINANCIALFINANCIALFINANCIALIntelIntelCapitalCapital

Intel Capital Intel Capital

Make and manage financially attractive Make and manage financially attractive investments in support of Intel’s strategic investments in support of Intel’s strategic objectivesobjectives

Historic Investment Data Since Historic Investment Data Since 19911991

US $7.5+ Billion InvestedUS $7.5+ Billion Invested

168 IPOs &168 IPOs &212 Mergers & Acquisitions212 Mergers & Acquisitions

About 1,000 About 1,000 CompaniesCompanies

45 Countries Worldwide 45 Countries Worldwide

Next Gen Wireless – WiMAX

Content Distribution Digital Media; GamingNew Apps & Usages

Platforms: Manageability/Storage/SecuritySoftware: OS/Digital Office/Business Internet

Materials (Nanotech Forum)Biotech; Digital HealthMemoryAdvanced Patterning/Litho

Mobile Internet

Consumer Solutions

Enterprise Solutions

Manufacturing,Memory & Digital Health

Technology FocusTechnology Focus

Intel - Middle East, Turkey and Africa

• Physical presence in 9 countries

• Major investments in developing local hardware and software industries

• Major investments in education (k12 and Higher Ed)

• $50M Intel Capital fund allocated

• Strong engagement with governments on computing and telecom infrastructure build up

Intel Impact - The “Virtuous” Cycle Intel Impact - The “Virtuous” Cycle

IncreasedIncreasedTechnologyTechnology

AccessAccess

IncreasedIncreasedPersonal / Personal / BusinessBusinessWealthWealth

IncreasedIncreasedProductivity / Productivity / KnowledgeKnowledge

TechnologyInfrastructure

Education

Employment

3 Major Government Objectives 3 Major Government Objectives

1111

World GDP growth ($B)World GDP growth ($B)Top Economies: Top Economies: 2005 to 20202005 to 2020

20052005

20202020

United States

China

Japan

Germany

United Kingdom

India

France

Russia

South Korea

Italy

Canada

Spain

Brazil

Mexico

0 5,000 10,000 15,000 20,000 25,000 30,000

2005

2020

China will eclipse Japanand Western Europe

India may eclipse France

Korea may eclipse Italy

Source: EIU• Asian economies on the rise• Western Europe declining • USA maintains primacy

1212

Investment trendsInvestment trends

Emerging economies are becoming more Emerging economies are becoming more attractive attractive – Reliable Reliable infrastructureinfrastructure with quality service is now more with quality service is now more

readily availablereadily available

– EducationEducation commitment in emerging economies has commitment in emerging economies has created a competitive workforcecreated a competitive workforce

– The The market placemarket place changed with the growth in Asia, changed with the growth in Asia, Eastern Europe, Latin America and METAEastern Europe, Latin America and META

– The cost of doing business becomes the The cost of doing business becomes the competitive advantagecompetitive advantage

Capital Investment Is Shifting to Emerging EconomiesCapital Investment Is Shifting to Emerging Economies

1313

Role of GovernmentRole of Government

Stable economic and political environment – Stable economic and political environment – increased job growth and capital flow, minimal increased job growth and capital flow, minimal restrictions on ownership, and open currency restrictions on ownership, and open currency exchangeexchange

Investment in education, human capital, Investment in education, human capital, research and development and technology research and development and technology transfertransfer

Investment in infrastructure - transportation, Investment in infrastructure - transportation, logistics, and telecommunicationlogistics, and telecommunication

Clear and transparent laws and regulations – Clear and transparent laws and regulations – Intellectual Property registration and protection Intellectual Property registration and protection

Semiconductor Industry Requires Sophisticated Semiconductor Industry Requires Sophisticated Education and InfrastructureEducation and Infrastructure

Backup

Global Site SelectionGlobal Site Selection& Development& Development

In addition to capital investment, employment, direct spending, and indirect contribution of the economic multiplier, Intel contributes by

– improving the investment environment– community/education development– development of the local technology industry 

In addition to capital investment Intel spends $20M to $50M per year to local service for goods and service suppliers generating additional jobs and spending in the local economy.

We strive to provide a safe and healthy workplace, to conserve natural resources, and to minimize the impact our manufacturing operations have on the environment and neighboring communities.

Working with governments and educators from around the world, Intel is helping students prepare for the knowledge-based economy of the 21st century.

Global Site SelectionGlobal Site Selection& Development& Development

Impact of Intel PresenceSite Companies following Intel

Penang(1972)

• >20 major MNCs established operations after Intel• Employment base has multiplied, high socio-economic impact

Pudong, PRC (1998)

• 12 companies establish operations after Intel in 1998 (4 US, 4 PRC, 3 Taiwan, 1 Singapore)

Chengdu, PRC (2004)

• 4 companies announce plans post Intel in 2004 (ON Semiconductor, PSi, SMIC, UNISEM

Cavite, Philippines

• 320 companies set up operations in the vicinity post Intel’s investment

Global Site SelectionGlobal Site Selection& Development& DevelopmentSecondary Investment flows Chengdu:

Rapid High Tech Growth

Company Product Investment

Molex Connectors $100m

MPS Power systems $12m

UNISEM AT $210

PSI AT $70m

SMIC AT $175m

Source: IntelSource: Intel

Intel broke ground February 2004 in Chengdu High Tech Park; almost immediately secondary investment followed:

Global Competition Demands Education Transformation

The information society created a new environment

Global economic climate is knowledge-based and increasingly competitive

21st century skills are becoming essential for today’s workforce

Education must be transformed for countries to compete

21st Century Skills• Technology and media literacy

• Effective communication

• Critical thinking

• Problem solving

• Collaboration

eLearningEnvironments

eLearning Ingredients

Technology Connectivity

Professional Development

Digital Curriculum

Improved Learning Methods

Intel Capital 2007Intel Capital 2007

US US $639M $639M IncludingIncluding$554M in New Deals$554M in New Deals

166166 Deals Deals

6363 International Deals International Deals Outside the U.S.Outside the U.S.

37%37% of Dollars Outside the U.S.of Dollars Outside the U.S.

Including Including 77 77 New DealsNew Deals

1111 IPOs & IPOs & 2323 M&A M&A

Brazil Fund

Communications Fund

Digital Home Fund

China Technology Fund

India Technology Fund

Mid-East & Turkey Fund

• Launched March ‘03• $200M Committed• 30+ Companies

• Launched March ‘03• $200M Committed• 30+ Companies

• Launched Sept. ‘99• $500M Committed• 60+ Companies

• Launched Sept. ‘99• $500M Committed• 60+ Companies

*Other names and brands are property of their respective owners

• Launched June ‘05• $200M Committed• 14 companies

• Launched June ‘05• $200M Committed• 14 companies

Intel Capital: Key Funds

• Launched December ‘05• $250M Committed• 6 companies

• Launched December ‘05• $250M Committed• 6 companies

• Launched November ‘05• $50M Committed• 1 company

• Launched November ‘05• $50M Committed• 1 company

• Launched March ‘06• $50M Committed• Launched March ‘06• $50M Committed

Intel Impact Intel Impact

In addition to capital investment, employment, and direct In addition to capital investment, employment, and direct spending, Intel contributes byspending, Intel contributes by– improving the investment environmentimproving the investment environment– community/education developmentcommunity/education development– development of the local technology industry development of the local technology industry