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Investing and Operating in MICs The World Bank Conference. Khaled Elamrawi General Manager Egypt, Levant and North Africa Intel Corporation Cairo March 2008. Nearly 40 Years of Experience. - PowerPoint PPT Presentation
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Investing and Operating in Investing and Operating in MICs MICs The World Bank ConferenceThe World Bank Conference
Khaled ElamrawiKhaled ElamrawiGeneral ManagerGeneral ManagerEgypt, Levant and North AfricaEgypt, Levant and North AfricaIntel CorporationIntel Corporation
Cairo Cairo March 2008 March 2008
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Nearly 40 Years of Nearly 40 Years of Experience Experience
From our founding in 1968, weFrom our founding in 1968, we’’ve ve grown into the worldgrown into the world’’s leading silicon s leading silicon innovator with nearly 100,000 innovator with nearly 100,000 employees, approximately 300 employees, approximately 300 facilities in 50 countries, and $38.8 facilities in 50 countries, and $38.8 billion in revenues.billion in revenues.
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AgendaAgenda
Intel’s Manufacturing Presence & Intel’s Manufacturing Presence & ImpactImpact
Intel Capital Intel Capital Intel in Middle East, Turkey and Intel in Middle East, Turkey and
AfricaAfrica World GDP and Investment TrendWorld GDP and Investment Trend Role of GovernmentRole of Government
44
19721972
20052005
PenangPenang
55
Intel Direct and Indirect Impact Intel Direct and Indirect Impact Semicon Assembly Facilities - Malaysia
Company H.Q. Year Employees Intel Corporation U.S. 1972 7,600Agilent 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
(*Source: Intel Malaysia Economic Impact study,
W J Siang)Major Multinationals Follow Intel in New Sites Major Multinationals Follow Intel in New Sites
STRATEGICSTRATEGICSTRATEGICSTRATEGIC FINANCIALFINANCIALFINANCIALFINANCIALIntelIntelCapitalCapital
Intel Capital Intel Capital
Make and manage financially attractive Make and manage financially attractive investments in support of Intel’s strategic investments in support of Intel’s strategic objectivesobjectives
Historic Investment Data Since Historic Investment Data Since 19911991
US $7.5+ Billion InvestedUS $7.5+ Billion Invested
168 IPOs &168 IPOs &212 Mergers & Acquisitions212 Mergers & Acquisitions
About 1,000 About 1,000 CompaniesCompanies
45 Countries Worldwide 45 Countries Worldwide
Next Gen Wireless – WiMAX
Content Distribution Digital Media; GamingNew Apps & Usages
Platforms: Manageability/Storage/SecuritySoftware: OS/Digital Office/Business Internet
Materials (Nanotech Forum)Biotech; Digital HealthMemoryAdvanced Patterning/Litho
Mobile Internet
Consumer Solutions
Enterprise Solutions
Manufacturing,Memory & Digital Health
Technology FocusTechnology Focus
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)
• $50M Intel Capital fund allocated
• Strong engagement with governments on computing and telecom infrastructure build up
Intel Impact - The “Virtuous” Cycle Intel Impact - The “Virtuous” Cycle
IncreasedIncreasedTechnologyTechnology
AccessAccess
IncreasedIncreasedPersonal / Personal / BusinessBusinessWealthWealth
IncreasedIncreasedProductivity / Productivity / KnowledgeKnowledge
TechnologyInfrastructure
Education
Employment
3 Major Government Objectives 3 Major Government Objectives
1111
World GDP growth ($B)World GDP growth ($B)Top Economies: Top Economies: 2005 to 20202005 to 2020
20052005
20202020
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 Japanand Western Europe
India may eclipse France
Korea may eclipse Italy
Source: EIU• Asian economies on the rise• Western Europe declining • USA maintains primacy
1212
Investment trendsInvestment trends
Emerging economies are becoming more Emerging economies are becoming more attractive attractive – Reliable Reliable infrastructureinfrastructure with quality service is now more with quality service is now more
readily availablereadily available
– EducationEducation commitment in emerging economies has commitment in emerging economies has created a competitive workforcecreated a competitive workforce
– The The market placemarket place changed with the growth in Asia, changed with the growth in Asia, Eastern Europe, Latin America and METAEastern Europe, Latin America and META
– The cost of doing business becomes the The cost of doing business becomes the competitive advantagecompetitive advantage
Capital Investment Is Shifting to Emerging EconomiesCapital Investment Is Shifting to Emerging Economies
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Role of GovernmentRole of Government
Stable economic and political environment – Stable economic and political environment – increased job growth and capital flow, minimal increased job growth and capital flow, minimal restrictions on ownership, and open currency restrictions on ownership, and open currency exchangeexchange
Investment in education, human capital, Investment in education, human capital, research and development and technology research and development and technology transfertransfer
Investment in infrastructure - transportation, Investment in infrastructure - transportation, logistics, and telecommunicationlogistics, and telecommunication
Clear and transparent laws and regulations – Clear and transparent laws and regulations – Intellectual Property registration and protection Intellectual Property registration and protection
Semiconductor Industry Requires Sophisticated Semiconductor Industry Requires Sophisticated Education and InfrastructureEducation and Infrastructure
Backup
Global Site SelectionGlobal Site Selection& Development& 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 SelectionGlobal Site Selection& Development& Development
Impact of Intel PresenceSite 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
Global Site SelectionGlobal Site Selection& Development& DevelopmentSecondary Investment flows Chengdu:
Rapid High Tech Growth
Company Product Investment
Molex Connectors $100m
MPS Power systems $12m
UNISEM AT $210
PSI AT $70m
SMIC AT $175m
Source: IntelSource: Intel
Intel broke ground February 2004 in Chengdu High Tech Park; almost immediately secondary investment followed:
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
eLearningEnvironments
eLearning Ingredients
Technology Connectivity
Professional Development
Digital Curriculum
Improved Learning Methods
Intel Capital 2007Intel Capital 2007
US US $639M $639M IncludingIncluding$554M in New Deals$554M in New Deals
166166 Deals Deals
6363 International Deals International Deals Outside the U.S.Outside the U.S.
37%37% of Dollars Outside the U.S.of Dollars Outside the U.S.
Including Including 77 77 New DealsNew Deals
1111 IPOs & IPOs & 2323 M&A M&A
Brazil Fund
Communications Fund
Digital Home Fund
China Technology Fund
India Technology Fund
Mid-East & Turkey Fund
• Launched March ‘03• $200M Committed• 30+ Companies
• Launched March ‘03• $200M Committed• 30+ Companies
• Launched Sept. ‘99• $500M Committed• 60+ Companies
• Launched Sept. ‘99• $500M Committed• 60+ Companies
*Other names and brands are property of their respective owners
• Launched June ‘05• $200M Committed• 14 companies
• Launched June ‘05• $200M Committed• 14 companies
Intel Capital: Key Funds
• Launched December ‘05• $250M Committed• 6 companies
• Launched December ‘05• $250M Committed• 6 companies
• Launched November ‘05• $50M Committed• 1 company
• Launched November ‘05• $50M Committed• 1 company
• Launched March ‘06• $50M Committed• Launched March ‘06• $50M Committed
Intel Impact Intel Impact
In addition to capital investment, employment, and direct In addition to capital investment, employment, and direct spending, Intel contributes byspending, Intel contributes by– improving the investment environmentimproving the investment environment– community/education developmentcommunity/education development– development of the local technology industry development of the local technology industry