www.broadcom.com

The Need for STEM Professionals

STEM Summit 2010: Early Childhood Thru Higher EducationFebruary 18, 2010

Host: National Academy of Engineering

Dr. Henry SamueliCo-Founder and Chief Technology Officer

Broadcom Corporation

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The invention of the transistor 60 years ago – which evolved into the integrated circuit a decade later – has probably had more impact on society than any other invention in the last 100 years!

Profound Impact ofSemiconductor Innovation

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About Broadcom

• Founded in 1991 by two UCLA alumni

• Initial public offering in April 1998 (NASDAQ-BRCM)

• Global leader in semiconductors forwired and wireless communications

• 2009 revenue of $4.5 billion

• Fortune 500 company

• 7,500 full-time employees worldwide– 5,600 are engineers (75%)

• Broad patent portfolio with over 12,000 issued and pending U.S. and foreign patents

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Broadcom’s Global Presence

Headquarters in Irvine, CA50 R&D Centers24 Sales Offices

Japan

Singapore

SouthKorea

TaiwanShenzhen

Beijing

ShanghaiDuluth

MorrisvilleDallas

Austin

San Diego

San Jose

Matawan

Seattle

Sunnyvale

Houston

Richmond, BC

Germantown

Santa Clara

Andover

Colorado Springs

Edina

Irvine

Tempe

Longmont

Québec

Fort Collins

Glen Rock

MarkhamKanata

India

GermanyBelgiumNetherlands

Israel

France

Sweden Finland

Denmark

Greece

United Kingdom

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Engineering Degree Distribution Corporate Wide

Education Level

Number of Employees

% of Employees

High School 79 1.4%

Two-Year College 86 1.6%

Bachelor’s 2,001 37.5%

Master’s 2,707 48.3%

Doctorate 617 11.2%

60% of Broadcom’s engineering workforce has advanced degrees

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Engineering Gender Distribution Corporate Wide

Gender Number of Employees

% of Employees

Male 5,036 89.2%

Female 612 10.8%

Something must be done to encourage more women to pursue engineering careers!!!

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U.S. Engineering Ethnic Distribution

Ethnicity Number of Employees

% of Employees

American Indian 8 0.2%

Asian 1,970 53.4%

Black 27 0.7%

Hispanic 57 1.5%

Multi-Ethnic 3 0.1%

Pacific Islander 6 0.2%

White 963 26.1%

Undeclared 655 17.8%

Under-represented minorities are virtually non-existent in the engineering workforce – not good!!!

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Average Broadcom Salaries for U.S. College Graduates

Degree Average AnnualSalary (US$)

Bachelor’s $70,000

Master’s $80,000

Doctorate $100,000

Salaries for engineering graduates are among the highest of any college field!

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Engineering Employee Distribution and Salaries by Country

Country Number of Engineers

% of Engineers

Average AnnualSalary (US$)

Canada 255 4.5% $106,000

China 217 3.8% $29,000

Europe 363 6.4% $95,000

India 438 7.8% $33,000

Israel 165 2.9% $101,000

Korea 78 1.4% $58,000

Singapore 95 1.7% $61,000

Taiwan 240 4.3% $54,000

United States 3,795 67.2% $128,000

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Conclusions

• Innovation in the STEM fields is the only way the U.S. can maintain its standard of living– If we lose our edge in STEM our standard of living will drop precipitously

• U.S. hi-tech companies cannot survive without an elite STEM workforce– Today a significant percentage of this talent is acquired via foreign graduates of U.S.

universities. The U.S. has historically been a magnet for the best and brightest international students

– As STEM opportunities increase overseas, the pool of elite international students will naturally decrease and therefore must be replaced by U.S. students otherwise companies will simply expand in international locations to acquire the talent

• There is a severe shortage of females and under-represented minorities in the STEM fields– This has very negative long-term social implications since the STEM fields have much

higher than average salaries– High salaries alone are clearly insufficient to stimulate interest in the STEM fields

Cultural transformations are required to stimulate interest in STEM beginning in early childhood education