Transcript Intel - World Bank

Investing and Operating in MICs
The World Bank Conference
Khaled Elamrawi
General Manager
Egypt, Levant and North Africa
Intel Corporation
Cairo
March 2008
1
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.
2
Agenda
 Intel’s
Manufacturing Presence & Impact
 Intel
Capital
 Intel
in Middle East, Turkey and Africa
 World
 Role
GDP and Investment Trend
of Government
3
1972
Penang
2005
4
Intel Direct and Indirect Impact
Semicon Assembly Facilities - Malaysia
Company
Intel Corporation
Agilent Technologies
AMD
Fairchild Semiconductor
Freescale Semiconductor
National Semiconductor
Renesas Semiconductor
Texas Instruments
Carsem Semiconductor
Infineon Technologies
Toshiba
STATS ChipPAC
STMicroelectronics
ON Semiconductor
Fujitsu
IDT
Rectron
Rohm-Wako
Carsem
Globetronics
ASE Test
Unisem
Philips
AIC Semiconductor
H.Q.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
Japan
U.S.
Malaysia
Germany
Japan
Singapore
France
U.S.
Japan
U.S.
Taiwan
Japan
Malaysia
Malaysia
Taiwan
Malaysia
Netherlands
Malaysia
Year
1972
1972
1972
1972
1972
1972
1972
1972
1973
1973
1973
1974
1974
1976
1988
1988
1989
1990
1992
1992
1992
1992
1994
1997
Employees
7,600
5,000
2,716
1,366
8,293
2,500
1,020
3,500
3,500
4,200
1,700
2,100
3,800
2,150
730
568
650
1,000
4,300
2,500
2,500
3,200
2,400
1,500
(*Source: Intel Malaysia Economic Impact study,
W J Siang)
Major Multinationals Follow Intel in New Sites
5
Intel Capital
Make and manage financially attractive investments in
support of Intel’s strategic objectives
STRATEGIC
Intel
Capital
FINANCIAL
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
Next Gen Wireless – WiMAX
Consumer Solutions
Content Distribution
Digital Media; Gaming
New Apps & Usages
Enterprise Solutions
Manufacturing,
Memory & Digital Health
Platforms:
Manageability/Storage/Security
Software:
OS/Digital Office/Business Internet
Materials (Nanotech Forum)
Biotech; Digital Health
Memory
Advanced Patterning/Litho
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)
• $50M Intel Capital fund allocated
• Strong engagement with governments on
computing and telecom infrastructure build
up
Intel Impact - The “Virtuous” Cycle
Education
Increased
Productivity /
Knowledge
Technology
Increased
Infrastructure Technology
Access
Increased
Personal /
Business
Wealth
Employment
3 Major Government Objectives
World GDP growth ($B)
Top Economies: 2005 to 2020
0
5,000
10,000
15,000
20,000
25,000
30,000
United States
China
Japan
China will eclipse Japan
and Western Europe
Germany
2005
United Kingdom
India
India may eclipse France
France
Russia
South Korea
Italy
Korea may eclipse Italy
2005
Canada
Spain
2020
Brazil
Mexico
Source: EIU
• Asian economies on the rise
• Western Europe declining
• USA maintains primacy
2020
11
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
12
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
13
Backup
Global Site Selection
& Development

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.
Global Site Selection
& Development
Impact of Intel Presence
Site
Companies following Intel
Penang
(1972)
• >20 major MNCs established operations after Intel
• Employment base has multiplied, high socioeconomic 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
Global Site Selection
& Development
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
AT
$70m
SMIC
AT
$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
eLearning Ingredients
Digital
Curriculum
Improved
Learning Methods
Technology
eLearning
Environments
Professional
Development
Connectivity
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
Intel Capital: Key Funds
Communications Fund
• Launched Sept. ‘99
• $500M Committed
• 60+ Companies
Digital Home Fund
• Launched March ‘03
• $200M Committed
• 30+ Companies
China Technology Fund
• Launched June ‘05
• $200M Committed
• 14 companies
India Technology Fund
• Launched December ‘05
• $250M Committed
• 6 companies
Mid-East & Turkey Fund
• Launched November ‘05
• $50M Committed
• 1 company
*Other names and brands are property of their respective owners
Brazil Fund
• Launched March ‘06
• $50M Committed
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