Intel Corporation: A Global Technology Leader Innovating and Investing in the United States 2011

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1 Intel Corporation: A Global Technology Leader Innovating and Investing in the United States 2011

2 INNOVATION THAT S CHANGING THE WORLD Intel has been making headlines since 1968, when two American entrepreneurs, Gordon Moore and Robert Noyce, founded the company in Mountain View, California. From its start, Intel has been pushing the boundaries of technology to improve how people live, work, and play. As the world s largest semiconductor chip maker, Intel enables innovation by building successive generations of microprocessors that offer higher performance, more capabilities, and better energy efficiency. The company s products provide intelligence for computers, netbooks, tablets, smart TVs, smartphones, medical devices, factory robots, cars, consumer electronics, and thousands of other devices in today s digital world. INVESTING IN AMERICA While Intel generates approximately three-fourths of its revenue outside of the U.S, it maintains three-fourths of its microprocessor manufacturing in the country. No other silicon manufacturer comes close to Intel s U.S. capital investment. Even during the strained economic climate of the last few years, Intel has continued to invest to stimulate economic and job growth. In February 2009, the company announced a $7 billion upgrade to its manufacturing facilities in Oregon, Arizona, and New Mexico projects that are helping to maintain approximately 7,000 highwage, high-skill U.S. jobs while providing 4,000 contract jobs for technicians and construction workers. In 2010, Intel announced that it will spend an additional $6 billion to $8 billion over the next several years to bring next-generation manufacturing technology to several existing factories across the U.S. and to build a new development factory in Oregon. This new investment will support approximately 6,000-8,000 additional U.S. construction jobs during the building phase, and will eventually add up to 1,000 Intel high-skilled, highwage jobs. U.S. Employment Over 45,000 Intel employees more than half of the company s workforce of about 82,500 people work in the U.S. in high-value, high-tech jobs with a broad range of benefits. Intel s American presence has helped spawn entire new industries across the country and worldwide, resulting in thousands of employment opportunities outside the company. The company s supply chain alone included some 9,000 U.S. companies in With support from other corporations and venture capital firms, Intel is leading the Invest in America Alliance, an initiative to support investment in U.S.-based growth-oriented industries. As part of the alliance, launched in 2010, Intel and 17 other technology and corporate leaders have committed to increase their hiring of college graduates, a group whose unemployment rate has been significantly higher than the national average. Research and Industry Innovation Intel is committed to investing in world-class technology development, particularly in the design and manufacture of products based on silicon technology. The company s research and development expenditures in 2010 alone totaled $6.6 billion, a large portion of which funded projects in the U.S. 2

3 In addition, Intel s global investment organization, Intel Capital one of the largest venture capital organizations in the world seeks out and invests in promising technology companies. Since 1991, Intel Capital has invested more than $9.8 billion in more than 1,100 companies. In 2010, Intel Capital made 119 investments, for a total of about $327 million, with approximately 56 percent of the funds going to companies in the U.S. and Canada. The Invest in America Alliance includes a commitment from Intel Capital and 24 venture capital firms to invest $3.5 billion in U.S.-based technology companies over a two-year period. These investments include a $200 million Intel Capital Invest in America Technology Fund, which targets key innovation and growth segments, such as clean technology, information technology, and biotechnology. Intel Capital has already invested the original $200 million commitment, and in early 2011 pledged to invest an additional $200 million in American technology companies in support of a new White House initiative, Startup America. Intel Capital has also joined the Startup America Board of Advisors. Inventions and Patents As a prolific inventor of technologies that solve real-world challenges, Intel was granted 1,657 patents in The development of new technologies enables Intel to offer leading-edge products like the recently introduced 2nd generation Intel Core processors. "The new 2 nd generation Intel Core processors represent the biggest advance in computing performance and capabilities over any other previous generation," said Mooly Eden, vice president and general manager, PC Client Group, Intel. "The built-in visual capabilities enabled by these new processors are stunning. This, combined with improved adaptive performance, will revolutionize the PC experience in a way that is obvious for every user to see and appreciate visibly smarter performance." PROMOTING ENVIRONMENTAL SUSTAINABILITY Intel applies its passion for innovation to address complex environmental issues such as climate change and natural resource conservation. Building on years of support for renewable energy generation, the company announced that it will purchase 2.5 billion kilowatt hours of renewable energy credits (RECs) in 2011.This commitment is a 75 percent increase over Intel s 2010 commitment to purchase 1.43 billion kilowatt hours of RECs, and equates to more than 85 percent of Intel s estimated purchased electricity needs in the United States for In addition, Intel has completed nine solar electric installations at the company s locations in Arizona, California, New Mexico, Oregon and Israel, collectively generating more than 3.8 million kilowatt hours per year of clean solar energy. The RECs from many of these solar electric installations are transferred to the local utility to meet their regulatory obligations. Conservation and Protection of Precious Resources Intel continually works to reduce the environmental impact of its operations by reducing emissions, conserving and managing water and electricity usage, minimizing waste, building environmentally responsible facilities, and more. Since 2001, Intel has invested more than $35 million and completed over 1,300 projects that have helped the company save more than 640 million kilowatt hours of energy enough to power more than 55,000 U.S. 3

4 homes for one year. In addition, since 1998, Intel has invested more than $100 million in water conservation programs at its facilities around the world, saving more than 36 billion gallons of water, or enough for about 335,000 U.S. homes for a year. Design for the Environment Intel considers the environmental impact of its products at all phases from design, to manufacturing, to use, to eventual disposal. Given the growing demand for more powerful electronics, the increasing cost of energy, and the corresponding impact on the environment, the company strongly emphasizes energy efficiency in new product development. Each new generation of silicon manufacturing process technology allows Intel to build microprocessors that can have improved performance and energy efficiency, resulting in important benefits for consumers and the environment. For example, Intel estimates that the conversion to the energy-efficient Intel Core microarchitecture saved up to 26 terawatt-hours of electricity between 2006 and 2009, compared to the technology it replaced. That is equivalent to eliminating the CO2 emissions associated with the annual electricity use of more than 2 million U.S. homes. TRANSFORMING EDUCATION Intel believes that students everywhere deserve to have the tools they need to be part of the next generation of innovators. Over the last decade, Intel and the Intel Foundation have invested more than $1 billion toward improving education around the world. In 2010, in conjunction with U.S. President Barack Obama s Educate to Innovate Campaign, Intel announced a 10-year, $200 million commitment to advance education in math and science in the United States. Intel is also one of four founding companies of Change the Equation, a CEO-led initiative designed to answer the president s call to move the U.S. to the top in science and math education over the next decade. Over the past two years, Intel has also increased its collaboration on education initiatives with other technology companies. In 2009, Intel, Cisco, and Microsoft announced a research initiative the Assessment and Teaching of 21st Century Skills and formed five working groups with more than 60 leading scholars focused on how to best define, measure, and teach the skills needed to compete in today s global knowledge economy. Science Competitions The Intel Foundation is the lead sponsor of two premier pre-college science competitions, the Intel International Science and Engineering Fair (Intel ISEF) and the Intel Science Talent Search (Intel STS), which are both programs of Society for Science & the Public. The competitions encourage students to solve real-world problems and tackle challenging scientific questions through original research. In 2008, Intel committed to invest $120 million to extend its support of Intel ISEF, Intel STS, and related initiatives for 10 years. By celebrating students achievements and encouraging open-minded science research and learning, Intel hopes to encourage young people to pursue advanced education and careers in math, science, and engineering. 4

5 Teacher Development Since 1999, the Intel Teach Program has provided in-depth professional development for K-12 teachers, helping them to effectively integrate technology and create active learning environments in their classrooms. More than 9 million teachers, including 400,000 in the U.S., have received in-depth training through Intel Teach online, via CD, or through face-to-face instruction. Through the program, Intel builds capacity and ensures sustainability by training Intel Teach trainers, who, in turn share their new skills with other teachers in their regions. The program encourages teachers to engage students with appropriate use of technology, Web 2.0, and social networking, and to apply their learning to real-life situations. I have seen a major change in teachers who have completed the training, said Vincent McHale, an Intel Master Teacher from New Jersey. Their students complete projects that not only demonstrate mastery of information, but also demonstrate analysis, synthesis, and evaluation of that information. Intel Computer Clubhouse Network The Intel Computer Clubhouse Network is a community-based, after-school education program operated by the Boston Museum of Science in collaboration with the MIT Media Lab. Clubhouses are hosted by community organizations and are funded by the Intel Foundation and other partners. They offer an environment of trust and respect where young people can develop technological fluency and collaborative work skills. More than 100 clubhouses, including 63 in the U.S., serve over 25,000 youths each year. Intel Schools of Distinction Schools that win Intel Schools of Distinction Awards exemplify 21st century teaching and learning environments, and offer innovative programs that inspire students in the U.S. to excel in math and science. To be named an Intel School of Distinction, a school must develop curriculum that meets or exceeds benchmarks, including national mathematics and science content standards, and provide an environment that fosters excellence and excitement in these critical subject areas. Winning programs serve as models for schools across the country. Intel hopes that by replicating proven programs, schools everywhere can reinvigorate their own science and math teaching. Higher Education, Research, and Entrepreneurship Intel and the Intel Foundation support university programs for faculty and students to advance research and education in computer science and engineering, as well as initiatives aimed at increasing the percentage of women and under-served populations in these fields. In early 2011, Intel announced that it plans to invest $100 million directly into U.S. university research over the next five years to drive innovation in computing and communications. The company plans to open Intel Science and Technology Centers across multiple universities, focused on projects in technology areas that align with Intel s research agenda, including visual computing, mobility, security and embedded solutions. As a result of this new approach, Intel expects that U.S. researchers will receive up to five times more funding from Intel Labs Intel s university research organization when compared to the previous research support model. 5

6 CARING FOR COMMUNITIES Intel s passion for innovation is accompanied by a strong commitment to the communities where the company operates. By combining technical expertise, the talent and energy of its employees, and strategic giving, Intel is helping to improve lives across America and around the globe. Hands-on Involvement In 2010, 48 percent of Intel s employees generously volunteered more than 1 million hours, including more than 785,000 hours in the U.S. Through the Intel Involved Matching Grant Program, the Intel Foundation makes cash donations to qualified nonprofits and schools where Intel employees and retirees volunteer 20 hours or more in a year. Since the original version of the program was launched in 1995, Intel employees have earned more than $32.4 million for schools and nonprofits through volunteerism, including $25.4 million in the U.S. Employee Giving Through annual Intel Community Giving campaigns, employees make contributions to nonprofit organizations of their choice. The Intel Foundation matches employee contributions with donations to United Way. U.S. employee and retiree contributions to the Community Giving Campaign generated more than $14.5 million in one-time gifts and pledges during the 2010 campaign. With the Intel Foundation match to United Way organizations, the overall 2010 contribution was $24.5 million. The Intel Foundation The Intel Foundation, funded solely through donations from Intel Corporation, provides monetary support to organizations and initiatives that promote and improve math and science education, empower women and underserved youth, provide disaster relief, and support other selected programs. The Foundation sponsors several of Intel s education and after-school programs, including the Intel STS and Intel ISEF science competitions, the Intel Schools of Distinction Awards, the Intel Computer Clubhouse Network, and more. In 2010, Intel Foundation donations in the U.S. totaled more than $36 million. For additional information about Intel, please visit Programs of the Intel Education Initiative are funded by the Intel Foundation and Intel Corporation. 2011, Intel Corporation. All rights reserved. Intel, the Intel logo, Intel386, Intel486, Intel Atom, Intel Centrino, Intel Education Initiative, the Intel Teach Program, and Pentium are trademarks of Intel Corporation in the U.S. and other countries. *Other names and brands may be claimed as the property of others. 6

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