Partners in Innovation Prakash Mallya

Country Manager, Intel Malaysia & Singapore

2

Forces Driving Our Business

1 Source: Cisco® Visual Networking Index (VNI) Forecast (2011-2016) 2 Source: Gartner Worldwide IT Spending Forecast, 2Q12 Update 3 Source: Top 500 list: Top 10 change from November 2007 to November 2012 4 Source: Facebook public statements

Cloud HPC Intelligent

Devices Big Data

$200B Cloud services

In 20162

2X Annual growth in supercomputing

FLOPS3

19B Connected devices

by 20161

300M Facebook*

photos per day4

South East Asia Audience

SOME KEY TRENDS IN THE

SEA YOUTH MARKET

532 M EST. TOTAL POPULATION

55% EST. UNDER 34 YEARS OLD

MOBILE INTERNET GROWTH

Basic (sub-$30)

Smart Phones

Affordable

broadband bundles

Social mobile

apps

Highly-social,

hyper-local communities

CONTENT

CREATION BOOM

HOLLYWOOD &

ASIAN POP

INFLUENCES

IMPROVING ACCESS

TO CREDIT

O N L I N E & M O B I L E E N V I R O N M E N T

150M EST. INTERNET

POPULATION

80M+ EST. MOBILE

INTERNET USERS

87M+ EST. FACEBOOK

ACCOUNTS

USERS WHO WATCH

ONLINE VIDEOS

60%

75M EST. ONLINE

GAMING POP

14M EST. TWITTER

USERS

70% WHO ACCESS IN

INTERNET CAFES

1M+ FANS OF INTEL SEA

FACEBOOK PAGES

Key Milestones....

2004: Centrino™

2001: Pentium® 4 2008: Netbooks

2011: Ultrabook™

TODAY: 2-in-1

Ultrabook™

and Notebooks

Tablets and

Smartphones

Consumption Creation

Mobile Computing

Touch is Everywhere and Changing Everything.

2013+

“2-in-1” Computing

4th Generation Intel® Core™ Processor

2012 Ramp into

Mainstream Price Points + Touch

3rd Generation Intel® Core™ Processor

2011 Category

Introduction

2nd Generation Intel® Core™ Processor

*Measured as Scenario Design Power

Low Power 4th Gen Intel® Core™ Processors

35W

17W 7W* 6W*

Greatest

Battery Life Increase in Intel History!

75X Improvement since 2006

Up to 2X Graphics Performance in Ultrabooks™

Over Previous Generation

a l w a y s

l i s t e n i n g f o r y o u r …

voice

fresh

enabling new experiences…

Gesture

Control

r e s p o n d s t o y o u r

gestures

Facial Login

CATALYSING LOCAL INNOVATION

GROW EMBEDDED SYSTEMS INDUSTRY

Embedded Systems growing…. and Malaysia has competency in it

Huge growth in Embedded Systems...

Malaysia already has skillset in embedded systems and

local companies well positioned for future

• Malaysian SMEs have strong skill set in

embedded systems

• 30 companies in E&E cluster have some

form of design capability while

potentially 70 others have systems

integration skill sets.

• ~2000 skilled embedded systems

engineers in Malaysia

• " I have no problem recruiting embedded

solutions engineers, espcecially in

Penang"

- RFID Solutions startup , 2006

• In addition, due to highly customized nature of

embedded systems, Malaysian SMEs rather

than foreign electronics MNCs based in

Malaysia will drive embedded systems

industry

...while Malaysia fortunately has many companies across

electronics ecosystem (incl. embedded systems)

Global Market for selected embedded segments1 (USD Bn)

100

50

0

1.9x

2020

75

2010

40

1. Digital Signage, Surveillance, Home Energy management, Set top boxes & Point of Sale systems, which are selected embedded segments that Malaysia currently serves and is well-positioned to serve going forward Source: Interviews with SME, ABI Research

Chips ODMs System

Integrators

Branding/

Distribution

...

...

...

...

...

...

...

...

...

...

...

...

Embedded systems Some countries (eg. India) have

system integrators, but no chips

But we need to play more at end of value chain, where Malaysia can easily improve

Chip design,

manufacturing, test and

assembly

Original Design

Manufacturer Systems Integrator

Branding/

Distribution

Intel, Altera, Agilent,

Renesas, Spansion,

Motorola, Silterra

Flextronics, Jabil,

Celestica, Sanmina,

Kontron

Pradotec, Dallab,, Xyreon,

Kioskmedia,

EmbeddedLabs, Pensonic

Sony, Samsung, Motorola,

Pensonic Players

Malaysia's current level

of participation in area

Ease of improving

capabilities in space

High margins at end of value chain Low High

Margins 18%1 Single digit

margins2

40 %

1. Intel 2. Flextronics, 3. Interview with Intel; all numbers fromfrom 2006-2011 Source:Interviews with industry experts; Team Analysis

Embedded systems

wafer fabs require

significant capex;

chip design talent hard to

grow (eg. 7 years to train

RF designer)

ODMs not very profitable Highly profitable, and skill barrier not as high as chip

design (eg. embedded engineers can be trained in 3

years)

Large number of wafer

fabs (eg. Intel), though few

design houses

Fair number of ODMs,

though not as many as

Taiwan

Few if any well known local embedded players; have

~100 small companies

Numerous segments in embedded

systems space Based on three filters...

• Over 80 segments (some examples above)

Malaysia well positioned to play in 5 segments

...Malaysia especially well positioned to

play in 5 segments, which we define as

our embedded market

Segments that Malaysian embedded

companies have strength in

Segments that are growing fast globally

Segments that are

aligned with needs of GTP/ETP

Point of

Sale

Digital

Signage

Digital

Survei-

llance

Home

Energy

Manage-

ment

Set Top

Box

Source: Intel; Team Analysis

1

2

3

Market size is USD 40B in 2010

Roles and Responsibilities

Grow Embedded

Systems Industry Project

Pilot Projects

Technology

Consultant

Centre of Excellence

Public sector

champion

Opportunity for Local Company: • Technology access • Embedded training • GTM assistance • Work with technology leaders • Embedded pilot funding

How can this benefit local players

Build pilot & industry

enablement

• Provide engineering support & matchmaking for prototype and reference designs.

• Provide access to SDK and testing tools for selected SMEs.

• Jointly with MDeC, help select relevant SMEs for pilots.

Training & Talent Dev

• Provide selected curriculum & training on Embedded to selected SMEs at the CoE.

• Provide embedded training support via Intel’s Online Sales Centre.

GTM & scaling

• Provide SME specific global matchmaking support (e.g. linkage to channel partners, distributors).

• Provide publicity and media coverage as relevant.

• Introduction to Intel Capital for venture funding opportunities as relevant.

CONNECTING THE DOTS....

IAG-SMG Rotation Program

Past Experience - 10 yrs in Manufacturing - developing new high-speed boards to test/ burn new

products - 3+ yrs in Design - developing substrates/packages for chipset - 5+ yrs in Design - developing PC & tablet system/platforms

Learning/Key Takeaways from 4 month rotation - Understanding of consumer expectations(Smartphone & Tablets) - Emerging market product needs for entry smartphones - Telco & retail smartphone biz models & partnership approaches - Go to market thinking on providing an experiential environment for consumers

Score: 8 / 10

Summary

• Emerging Markets like SEA provide significant demographic opportunity

• Intel design and field teams work closely to address such market needs

• Intel design footprint – provides an opportunity to accelerate local innovation