H1-B Program and Intel

Jeff WheelerBusiness Operations Manager

Corp Real Estate Site DevelopmentJanuary 18, 2008

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Intel Confidential

Agenda

• Intel’s global real estate trend

• Distribution of revenue (by region)

• H1-B hiring versus External hiring trend

• Global trends in hiring & future college graduates

• Trends in new jobs

• Trends in US graduates

• Trends in semiconductor capital investment

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Intel Confidential

Craig Barrett on H1-Bs:

“To be competitive in the global economy, U.S. companies depend on specialized talent coming out of U.S. graduate schools. These scientists and engineers are often foreign-born, as more than half of U.S. engineering master's students and PhD recipients are international students. Yet America shuts the door on many of these highly educated graduates, forcing them to look abroad for opportunities -- and our competitors are capitalizing on our failed policies.”

Dec 23, 2007 Washington Post

“It has never been an issue of these foreign immigrants taking jobs from American citizens but, rather, these immigrants making the American system more successful. Any one who fears this foreign talent or looks at it as a threat to American engineers is simply focusing on the wrong issue. Either the US has the best talent and has the best environment for innovation or we fall behind.”

Jan 2, 2008 Intel blog comment

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Intel Confidential

0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2001 2002 2003 2004 2,005 2006 2007

Corporate Real Estate Trend

CRESD Manages Intel’s Global Real Estate Portfolio of over 51MSF in 59 countries

2000 2001 2002 2003 2004 2005 2006

Americas

EMEA

Asia

Mill

ion S

quare

Feet

50MSF

40MSF

30MSF

20MSF

10MSF

•Fab23•Fab22

•Fab20•Fab11X

•Fab24•D1D

•A7T7•Fab32

64%

18%18%

After Dot Com bubble, invested in Mfg

2007

73%

16%

11%

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Intel Confidential

AsiaAsia

EMEAEMEA28%28%

20%20%

19981998

JapanJapan7%7%

Geographic Breakdown of Intel Revenue: 1998 vs. 2007

AsiaAsia50%50%

20072007

JapanJapan10%10%

AmericasAmericas45%45%

EMEAEMEA21%21%

AmericasAmericas19%19%

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Intel Confidential

0

5,000

10,000

15,000

20,000

25,000

30,000

1998

1999

2000

2001

2002

2003

2004

2,00

520

0620

07

0

500

1,000

1,500

2,000

2,500

3,000

H1-B Hiring vs External Hiring Trend

Intel hires approximately 4% of external hires as H1-Bs each year

Exte

rnal H

ires

H1

-B H

ires

Ext Hires

H1-Bs

1998 2001 2002 2003 2004 2005 2006 20071999 2000

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Intel Confidential

Hi-Tech Jobs Created: 2003 – 2006 (click country or region)

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Intel Confidential

Czech Rep

UK

Mexico

Malaysia

Singapore

Germany

Ireland

China

India

USA

0 20,000 40,000 60,000 80,000 100,000

2003

20032003

USA-origin job growth: Top 10 Destination Countries (2003 vs. 2006)

Source: IBM-PLI

20062006

Canada

Ireland

Brazil

Philip.

Malaysia

Ukraine

Singapore

USA

India

China

0 20,000 40,000 60,000 80,000 100,000

2006

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Intel Confidential

Graduates/Enrollments from USA (EE & CE degrees)

Source: Engineering Workforce Commission

• BS graduates/enrollments declining• MS graduates improving; foreign national declining; enrollments down• US and Foreign Nationals rising; divergence growing; US enrollments improving; foreign-born declining

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Intel Confidential

World’s Top 20 Semiconductor Capital Spenders

+1 -1 +1 +4 +6 -3 * -2 +11 -1 * * 0 -7 +1 -11 -5 * -2 *

Deltas in position after 2 years shows the intense competition in the semiconductor industry