1. ® Intel China Research Center Intel R&D in PRC “Strategic Implications for the future” May 28, 2005 Intel Corporation

2. Intel confidential ® Intel China Research Center Intel in China Chongqing Beijing Guangzhou Chengdu Xi’an Shenyang Wuhan Nanjing Fuzhou Jinan Hong Kong SAR Harbin Chongqing Factory Lab Sales Office Shanghai Intel Solution Center Shenzhen APAC ADC 1985, Established Rep Office 1985, Established Rep Office Jan. 1994, Established IADL in Shanghai Jan. 1994, Established IADL in Shanghai Nov. 1996, A/T Facility ‘ground breaking’ in Pudong Nov. 1996, A/T Facility ‘ground breaking’ in Pudong May 1998, Announced Intel China Research Center in Beijing May 1998, Announced Intel China Research Center in Beijing Jan 2001, Established IXA Development Center in Beijing Jan 2001, Established IXA Development Center in Beijing 2002, Established APAC ADC in Shenzhen 2002, Established APAC ADC in Shenzhen 2003 Intel A/T Facility in Chengdu 2003 Intel A/T Facility in Chengdu Now > 4,000 Employees and Sales Offices in 14 cities Now > 4,000 Employees and Sales Offices in 14 cities

3. Intel confidential ® Intel China Research Center Academia R&D Engagements Industry R&D Engagements Research and TechnologyDevelopment Gov’t Standards & Regulatory Intel Capital Investments Technology R&D in China Mission: Establish world-class technology research & development and build ecosystem support for key technology initiatives to ensure Intel’s technology leadership position in PRC

4. Intel confidential ® Intel China Research Center Intel R&D Phased Development Model A framework to grow R&D in China in a substantial and yet manageable way Influential R&D Center and Technology Leader CompetencyCenter Competency / Maturity Lab Extension Organization Impact Lab Extension (Level 1) Competency Center (Level 2) Core competencies under development Core competencies clearly established Projects defined and led by US Labs Projects in core technology areas aligned with US Labs and locally led Developing local strategy and technology focus Labs agenda influenced by local strategy and focus Limited local influence / R&D engagement Coherent strategy for local influence / R&D engagement

5. Intel confidential ® Intel China Research Center R&D Evolution Spanning 10 Years Establish initial presence Develop local capabilities Deep core competencies World-classresearch Imperatives: Capture local competencies Development oriented Close alignment w/US lab Imperatives: Core competency & depth Technology oriented Initial local market influence Imperatives: Center of excellence/gravity Research oriented Local industry & market impact Imperatives: World class results Broad industry impact Part of effective global network As R&D continues to grow & mature in PRC, it will develop deeper competencies and take on more local market influence Year 0-2 Year 3-5 Year 6-8 Year 9+ Where we are today

6. Intel confidential ® Intel China Research Center Today’s Changing Environment World Order Changing OEMs today very different from 10 years ago Channel Shift is happening The rise of new customer base PC low on desirability in EM CE and Communication Devices competing for Share of Wallets Desirability for PC New Usage Model Unique Requirements e.g., Power, connectivity, physical space Fragmented, Technology deprived, Affordability The next 1B Need to lead and respond differently!

7. Intel confidential ® Intel China Research Center Catalyze markets Create new opportunities Disruptive Innovations to Lead in Emerging Markets New Usage Models Local Usage Oriented Innovation Local applications & solutions Unique local requirements SustainingInnovation Cost Reduction Derivative Products Longer Term TAM Reach Short Term < 1yr Existing‘channels’ Newcustomers Time The Future: Local Innovations Key to success lies in disruptive innovations and unique solutions for local needs

8. Intel confidential ® Intel China Research Center Thank You!