Investing and Operating in MICs The World Bank Conference

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

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.

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

4. Penang 1972 2005

5. Intel Direct and Indirect Impact Semicon Assembly Facilities - Malaysia CompanyH.Q.YearEmployees 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)

6. 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 • 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

10. Intel Impact - The “Virtuous” Cycle Education Increased Productivity / Knowledge Technology Infrastructure Increased Technology Access Increased Personal / BusinessWealth Employment 3 Major Government Objectives

11. 0 5,000 10,000 15,000 20,000 25,000 30,000 United States China Japan Germany United Kingdom India France Russia South Korea Italy Canada Spain Brazil Mexico China will eclipse Japan and Western Europe India may eclipse France Korea may eclipse Italy 2005 2020 Source: EIU World GDP growth ($B)Top Economies: 2005 to 2020 2005 2020 • Asian economies on the rise • Western Europe declining • USA maintains primacy

12. 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

17. Secondary Investment flows Chengdu: Rapid High Tech Growth Intel broke ground February 2004 in Chengdu High Tech Park; almost immediately secondary investment followed: 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

19. eLearning Environments eLearning Ingredients Digital Curriculum Professional Development Improved Learning Methods Technology Connectivity

20. 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. 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 March ‘06 • $50M Committed • Launched November ‘05 • $50M Committed • 1 company *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