1. Investing and Operating in MICs The World Bank Conference
Khaled Elamrawi
General Manager
Egypt, Levant and North Africa
Intel Corporation
Cairo
March 2008
Introduction Page

2. Nearly 40 Years of Experience
From our founding in 1968, we’ve grown into the world’s leading silicon innovator with nearly 100,000 employees, approximately 300 facilities in 50 countries, and $38.8 billion in revenues.
Within the industry, and the market at large, we are uniquely positioned. Intel is the world's largest and leading innovator in silicon technology, with nearly 40 years of history. The fact is, we define the industry we lead.
Presenter: review facts on slide:
Year founded: 1968
Number of employees: Approximately 99,000 Revenues: $38.8 Billion (2005) Products and services: over 450 Worldwide offices and facilities: approximately 300
Employees in 50 countries worldwide
We have sales and marketing programs in more than 1,200 cities worldwide, and our global distribution network includes 160,000 members in over 100 countries.
Having a presence in more than 50 countries means we can tap into markets, talent and cost advantages available in those locations. This allows us to best serve our customer base and remain competitive on a worldwide basis. Our global presence continues to grow as emerging markets embrace information technology to increase competitiveness, productivity and economic development. At the same time, Intel will continue to increase its reach in high growth regions overseas, investing in important new markets and tapping into local talent.

3. Agenda Intel’s Manufacturing Presence & Impact Intel Capital
Intel in Middle East, Turkey and Africa
World GDP and Investment Trend
Role of Government
Agenda Page

4. Penang
1972
2005

5. Intel Direct and Indirect Impact
Semicon Assembly Facilities - Malaysia
Company H.Q. Year Employees
Intel Corporation U.S ,600
Agilent Technologies U.S ,000
AMD U.S ,716 Fairchild Semiconductor U.S ,366
Freescale Semiconductor U.S ,293
National Semiconductor U.S ,500
Renesas Semiconductor Japan ,020
Texas Instruments U.S ,500
Carsem Semiconductor Malaysia ,500
Infineon Technologies Germany ,200
Toshiba Japan ,700
STATS ChipPAC Singapore ,100
STMicroelectronics France ,800
ON Semiconductor U.S ,150
Fujitsu Japan
IDT U.S
Rectron Taiwan
Rohm-Wako Japan ,000
Carsem Malaysia ,300
Globetronics Malaysia ,500
ASE Test Taiwan ,500
Unisem Malaysia ,200
Philips Netherlands ,400
AIC Semiconductor Malaysia ,500
Major Multinationals Follow Intel in New Sites
(*Source: Intel Malaysia Economic Impact study, W J Siang)

6. FINANCIAL STRATEGIC Intel Capital Intel Capital
Make and manage financially attractive investments in support of Intel’s strategic objectives
Intel
Capital
FINANCIAL
STRATEGIC

7. Historic Investment Data Since 1991
US $7.5+ Billion Invested
About 1,000 Companies
45 Countries Worldwide
168 IPOs &
212 Mergers & Acquisitions

8. Technology Focus Mobile Internet Consumer Solutions
Next Gen Wireless – WiMAX
Mobile Internet
Content Distribution
Digital Media; Gaming
New Apps & Usages
Consumer Solutions
Platforms:
Manageability/Storage/Security
Software:
OS/Digital Office/Business Internet
Enterprise Solutions
Materials (Nanotech Forum)
Biotech; Digital Health
Memory
Advanced Patterning/Litho
Manufacturing,
Memory & Digital Health

9. 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
Numbers represent 2005 forecast - YOY growth 2005 to 2004

10. Intel Impact - The “Virtuous” Cycle
Education
Increased
Productivity /
Knowledge
Technology
Infrastructure
Increased
Technology
Access
Increased
Personal /
Business Wealth
Employment
Infrastructure:
Use APC and CPC to win
versus used/refurbished PCs
- Build the ecosystem for new
Technologies such as
WiMax and VOIP
Education:
Drive sell up opportunities with
home learning platforms
-Fulfill basic needs with entry level
platforms (APC)
Unemployment
Drive new biz models such as community PC and community phones.
In addition we are looking at other entertainment and SMB opportunities.
3 Major Government Objectives

11. World GDP growth ($B) Top Economies: 2005 to 2020
United States
China
Japan
Germany
United Kingdom
India
France
Russia
South Korea
Italy
Canada
Spain
Brazil
Mexico
, , , , , ,000
2005
2020
China will eclipse Japan
and Western Europe
India may eclipse France
Korea may eclipse Italy
Source: EIU
2005
Shows total “required” KSF, not total GSF KSF (excludes shell KSF) or not growth KSF (which would be lower as some divestments happen in some locations at the same time the new space happens).
2020
Asian economies on the rise
Western Europe declining
USA maintains primacy

12. Capital Investment Is Shifting to Emerging Economies
Investment trends
Emerging economies are becoming more attractive
Reliable infrastructure with quality service is now more readily available
Education commitment in emerging economies has created a competitive workforce
The market place changed with the growth in Asia, Eastern Europe, Latin America and META
The cost of doing business becomes the competitive advantage
Capital Investment Is Shifting to Emerging Economies

13. Role of Government
Stable economic and political environment – increased job growth and capital flow, minimal restrictions on ownership, and open currency exchange
Investment in education, human capital, research and development and technology transfer
Investment in infrastructure - transportation, logistics, and telecommunication
Clear and transparent laws and regulations – Intellectual Property registration and protection
Semiconductor Industry Requires Sophisticated
Education and Infrastructure

14. Backup

15. 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.

16. Impact of Intel Presence
Site
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

17. Secondary Investment flows Chengdu: Rapid High Tech Growth
Intel broke ground February 2004 in Chengdu High Tech Park; almost immediately secondary investment followed:
Company
Product
Investment
Molex
Connectors
$100m
MPS
Power systems
$12m
UNISEM AT
$210
PSI
$70m
SMIC
$175m
Source: Intel

18. 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
[This is a section head slide – allows field person to establish rapport before “diving in.”]
Global Competition Demands Education Transformation
1. Rise of the Information Society – our world is increasingly connected
2. Global economic climate is getting more competitive.
3. 21st Century Learning Skills
Transition: Need for Education Transformation
1. Rise of the “Information Society”
Rise of the “Information Society” has created a new economic environment based on a foundation of information technology.
2. New “Economic Climate" is knowledge based
Knowledge economy can be succinctly described as “one in which the generation and exploitation of knowledge play the predominant part in the creation of wealth."
Knowledge is the principal commodity.
In the new global economy, where technology and knowledge are the key factors of production, access to information and computing technology – ICT – is a necessity for individuals and economies to be competitive.
Demand for skilled workforce: 21st Century Skills
This environment requires new skills to be competitive.
Technology and media literacy
Effective communication
Critical thinking
Problem solving
Collaboration
What is needed: Education Transformation:
Education has always played an important role in preparing students for success in work and life.
But now it’s also seen as the critical path to enable nations to compete in a rapidly changing, knowledge-based global economy.
There’s increasing pressure to improve educational quality and outcomes.
[Transition]
We need to take education to a new level.
One that will enable a future built on knowledge.
Education must teach 21st century skills.
The best learning environment to acquire these skills is an “eLearning” environment
Access to ICT (Information and Communication Technology) has emerged as a key strategy to take education to a new level – by creating effective eLearning environments

19. eLearning Ingredients
Digital Curriculum
eLearning
Environments
Improved Learning Methods
Professional Development
Whether you’re introducing or expanding ICT in your schools, successful implementation takes several key components working together:
Strong technology
Connectivity
Professional development
Improved learning methods
and Digital curriculum
All of these contribute to an eLearning environment where 21st century skills flourish and students thrive.
Technology: PCs, servers, PDA/handhelds, cell phones, iPods*. Also: Wired communications and computing networks; wireless communications and computing networks.
Connectivity: Wired or wireless. Wi-Fi and WiMAX are optimum.
Professional development: Many flavors available. Intel’s Teach to the Future program offers professional development for teachers in 35 countries today.
Improved learning methods: Student-centric learning, project-based learning, group collaboration, goal of developing higher-order thinking skills.
Digital curriculum: Includes digital content, but is not the same thing as digital content. A digital curriculum is a teaching/learning approach that assumes that technology and connectivity are involved, and that takes advantage of those. So lesson plans are different, resources are different, AND the content is digital (from the Net, multimedia, CD-ROM, etc. – electronic-based, not paper-based).
Technology
Connectivity

20. 37% of Dollars Outside the U.S. 63 International Deals
Intel Capital 2007
US $639M Including
$554M in New Deals
166 Deals
Including 77 New Deals
37% of Dollars Outside the U.S.
63 International Deals
Outside the U.S.
11 IPOs & 23 M&A

21. *Other names and brands are property of their respective owners
Intel Capital: Key Funds
Communications Fund
Digital Home Fund
China Technology Fund
India Technology Fund
Mid-East & Turkey Fund
Brazil Fund
Launched Sept. ‘99
$500M Committed
60+ Companies
Launched March ‘03
$200M Committed
30+ Companies
Launched June ‘05
$200M Committed
14 companies
Launched December ‘05
$250M Committed
6 companies
Launched November ‘05
$50M Committed
1 company
Launched March ‘06
$50M Committed
*Other names and brands are property of their respective owners

22. Intel Impact
In addition to capital investment, employment, and direct spending, Intel contributes by
improving the investment environment
community/education development
development of the local technology industry 
Agenda Page