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

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.

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

Penang 1972 2005

Intel Direct and Indirect Impact Semicon Assembly Facilities - Malaysia Company H.Q. Year Employees Intel Corporation U.S. 1972 7,600 Agilent 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 Major Multinationals Follow Intel in New Sites (*Source: Intel Malaysia Economic Impact study, W J Siang)

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

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

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

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

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

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

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

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

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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.

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

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

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

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

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

*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

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