1. ACCE Conference: Sacramento, CA
Michael Jacobson
Corporate Affairs Manager
Intel Corporation
August 2, 2007
Introduction Page

2. Agenda Intel Corporation Investment Trends
Role of Economic Development
The Economic Development Imperative
Why Intel cares
Conclusion
Agenda Page

3. Nearly 40 Years of Experience
From our founding in 1968, we’ve grown into the world’s leading silicon innovator with nearly 92,000 employees, approximately 300 facilities in 50 countries, and $36 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.

4. Intel’s Worldwide Manufacturing & Assembly Test Operations
Washington
Systems Mfg.
Ireland
Fab 14/24
China
Pudong A/T
Colorado
Fab 23
Chengdu A/T
Oregon
D1C/D1D
Fab 20
Israel
Fab 8/18
Mass.
Fab 17
Board Mfg.
California D2
Vietnam
HCMC A/T
Costa Rica
San Jose A/T
Arizona
Fab12/22
New Mexico
Fab 11/11X
Note: SCM – Subcon Manufacturing
TMG represents about ½ the employees within Intel (~40K), and are located world-wide. Fab plants located in the US, Europe, and the Middle East. We have substantial portions of our fab capacity in 300 mm and continuing to grow our capacities. Our Fab process development is in CA and OR. Our A/T locations are located in Asia and Latin America. we recently began a new factory in china which is producing our microprocessors, in addition to chipsets and flash products. world-wide presence. our a/t development is in AZ and in Asia.
Our boards business is significantly outsourced with our primary locations in Asia. Our board development is in OR and Asia.
We are truly a global enterprise.
A/T Dev
Malaysia
Penang A/T
Kulim A/T
Philippines
Cavite A/T

5. Investment Trends Are Changing
Capital investment has shifted dramatically to emerging economies
Alignment of capability, cost and marketplace
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
If you provide the infrastructure and workforce needs, the cost of doing business becomes the competitive advantage

6. Role of Economic Development
Create policy to promote economic growth, via the attraction of investment, that is designed to:
Increase job growth
Increase capital flows and investment
Increase research, development and technological transfers
Stimulate economic growth
And ultimately to produce and maintain a sustainable economic base that can support the underlying needs of the community or society

7. Economic Development Imperative
To compete you need a strategy
To develop a strategy you need to understand
community capability
data gathering
community desire
stakeholder management
To implement the strategy you need
commitment
resources
A strategic and tactical economic development plan is the key to success

8. Why does Intel care?
Intel’s success is intrinsically tied to the success of the regions we call home
Sufficient technical workforce capacity
Reliable, quality infrastructure at competitive price
Ease and cost of doing business
Employee amenities
Supply chain
The sum of the whole is greater than the sum of the parts
Direct link between being a “good corporate citizen “ and shareholder value
If done right it is an investment that drives quantitative results

9. Examples Fort Worth Chamber of Commerce Intel Sacramento
“Controlling Our Destiny”
5 year funding model
1997 – Fort Worth reached Site Selection magazines top five
Intel
The Portland Business Alliance, The Greater Phoenix Economic Council
26K jobs
$10B Annual Economic Impact (AEI)
Sacramento
“Partnership for Prosperity”
Green Energy; Workforce development & Civic Amenities
Metro Pulse
Business retention program

10. Conclusions Competition is global Need strategy to compete
Build from strength
Think regionally
Gain multi-year commitment
Be both strategic and tactical