Global Science andEngineering Labor Force

Jeff WheelerCorp Real Estate Site Development

Strategic PlanningOctober 31, 2005

2

Agenda

• Growth in jobs in India & China (greenfield)• Origin of jobs (by region)• Type of jobs (percentage)• US trends in engineering graduates• US trends in engineering enrollments• Global competition in semiconductor

industry (# of 300mm fabs & country oforigin)

3

Hi-Tech Jobs Created: 1/2003 6/2005

Top locations (greenfield):•Shenzhen (9,500)•Shanghai (6,600)•Suzhou (5,900)•Dalian (4,750)•Chengdu (2,840)

Top locations (greenfield):•Bangalore area (42,000)•Chennai (30,000)•Hyderabad (17,000)•Calcutta (16,000)•Pune (14,000)

Total jobs: 46,000Total jobs: 155,000

ChinaIndia

Source: IBM-PLI

4

AsiaAsia(developed)(developed)WesternWestern

EuropeEurope12%12%

43%43%

20%20%

ChinaChina

36%36%53%53%

8%8%

IndiaIndia

NorthNorthAmericaAmerica

25%25%

AsiaAsia(developing)(developing)

AsiaAsia(developing)(developing)

NorthNorthAmericaAmerica

WesternWesternEuropeEurope

AsiaAsia(developed)(developed)

2%2%

Region of Origin for Hi-Tech Job growth:1/2003 6/2005

Source: IBM-PLI

5

ProductionProductionProduction/Production/

R&DR&D19%19%

40%40%

29%29%

ChinaChina

36%36%38%38%

45%45%

IndiaIndia

10%10%

R&DR&D

6%6%

Type of Hi-Tech Job growth:1/2003 6/2005

OtherOther

ServicesServices

ProductionProduction

R&DR&D

10%10% OtherOther

Source: IBM-PLI

6

Graduates from USA (EE & CE degrees)

0

2500

5000

7500

10000

12500

15000

17500

20000

22500

25000

27500

30000

32500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

All BS

Foreign

US

0100020003000400050006000700080009000

10000110001200013000140001500016000170001800019000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

All MS

US

Foreign

BS Degrees MS Degrees

Source: Engineering Workforce Commission0

250

500

750

1000

1250

1500

1750

2000

2250

2500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

All PhD

Foreign

US

PhD Degrees

7

Enrollments from USA (EE & CE degrees)

BS Enrollments MS Enrollments

PhD Enrollments

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1999 2000 2001 2002 2003 2004

MS

US

Foreign

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

1999 2000 2001 2002 2003 2004

BS

US

Foreign

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

1999 2000 2001 2002 2003 2004

PhD

US

Foreign

Source: Engineering Workforce Commission

8

300mm Global Fab Landscape

Source: Intel Corp, TMG Strategic Research

9

World s Top 20 Capital Spenders(semiconductor industry)

Asia countries

Bill

ion

10

Country Legend

United States

Korea

Taiwan

Japan

European Union

China

11

Where the growth isWhere the growth is

ChinaFreescale (OS/PowerPC lab)IBM (s/w R&D center)NEC (s/w dev and 3G R&D)Siemens (3G s/wdevelopment)LG (A/T factory)Hitachi (Mfg. lead frames)Ericsson (R&D)Google (s/w)Novell (s/w services)AMD (64-bit s/w dev. Center)Microsoft (technology center)Cisco (Telecom)Applied Materials (R&D)

IndiaAdobe (software R&D)Versant (s/w R&D center)Redhat (s/w development)Microsoft (tech center)Cognizant (software R&D)LG (electronics mfg)Qualcore (Analog designQualcomm (wireless R&D lab)Siemens (s/w R&D)Agere (software R&D)Nvidia (R&D)Rambus (design center)Motorola (networking R&D)Nokia (handset mfg.Avaya (Telecom s/w R&D)ATI (chipset R&D)Sun Microsystems (s/w R&D)AMD (design center)

RussiaIBM (java s/w center)HP (s/w test)Alcatel (mobile s/w R&D)Nokia (regional offices)Siemens (mobile s/w R&D)Google (s/w R&D)

BrazilEDS (s/w R&D plant)Sagem (cell phone mfg.)TIM (s/w devopment)Kathrein Mobilcom (handsetmfg.)

ArgentinaHuawei (handset mfg.)Motorola (handset mfg.)

ChileAppear Networks (s/w R&D)

MexicoNokia (handset mfg.)Pantech Mobile (mfg. plant)Lexmark (laser printermfg.)

PeruTata Group (s/w dev)

United StatesIBM (300mm wafer fab, IC dev)Google (s/w development)Bearing Point (s/w R&D)Samsung (wireless R&D)Linear Tech (IC development)Microsoft (s/w R&D)Jabil Circuit (A/T)Ericsson (wireless R&D)Qualcomm (wireless R&D)Agere (IC development)Fairchild Semiconductor (IC dev.)Hynix (nanotech R&D)

DubaiCognos (s/w consulting)Cisco (s/w services)Sierra Atlantic (s/w R&D)CADS S/W (s/w R&D)Fast Search (s/w services)Calf. S/W (s/w services)

HungarySAP (s/w R&D)IBM (Financial services)Nokia (electronics mfg.)Tata (s/w R&D)Eloteq (handset mfg.)Huawei (backoffice)Oracle (backoffice)ZTE (HR service center).

PolandHP (backoffice work)LG (electronicsmfg./R&D)Siemens (mobile s/w dev)Motorola (s/w R&D)Samsung (R&D center)

Czech RepublicSun Microsystems (s/w R&D center)Monster Tech (s/w R&D)Computer Associates (s/w R&D)

RomaniaInfineon (R&D center)Motorola (backoffice work)Alcatel (telecom R&D)HP (IT service center)Siemens (call center)

2005 has seen continued growth outside Chinaand India. Eastern European countries remainstrong and Latin America has also attracted someelectronics mfg. and software R&D work.