Intel R&D in PRC
“Strategic Implications for the
future”
May 28, 2005
Intel Corporation
®
Intel China Research Center
Intel in China

1985, Established Rep Office
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Jan. 1994, Established IADL in
Shanghai
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Harbin
Nov. 1996, A/T Facility ‘ground
breaking’ in Pudong
Shenyang
Beijing
May 1998, Announced Intel China
Research Center in Beijing
Jinan
Jan 2001, Established IXA
Development Center in Beijing
2002, Established APAC ADC in
Shenzhen
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2003 Intel A/T Facility in Chengdu

Now > 4,000 Employees and Sales
Offices in 14 cities
Intel China Research Center
Intel confidential
Xi’an
Nanjing
Chengdu
Chongqing
Wuhan
Shanghai
Chongqing
Fuzhou
Guangzhou
Shenzhen
Hong Kong SAR
Factory
Lab
Sales Office
Intel Solution Center
APAC ADC
®
Technology R&D in China
Intel Capital
Investments
Academia R&D
Engagements
Gov’t Standards
& Regulatory
Industry R&D
Engagements
Research and
Technology
Development
Mission: Establish world-class technology research &
development and build ecosystem support for key technology
initiatives to ensure Intel’s technology leadership position in PRC
®
Intel China Research Center
Intel confidential
Intel R&D Phased Development
Model
Competency Center
(Level 2)
Core competencies
under development
Core competencies
clearly established
Projects defined and
led by US Labs
Projects in core
technology areas
aligned with US Labs
and locally led
Developing local
strategy and
technology focus
Labs agenda influenced
by local strategy and
focus
Limited local influence /
R&D engagement
Coherent strategy for
local influence / R&D
engagement
Influential R&D Center
and Technology Leader
Competency / Maturity
Lab Extension
(Level 1)
Competency
Center
Lab
Extension
Organization Impact
A framework to grow R&D in China in a
substantial and yet manageable way
®
Intel China Research Center
Intel confidential
R&D Evolution Spanning 10 Years
As R&D continues to grow & mature in PRC, it
will develop deeper competencies and take on
more local market influence
World-class
research
Year 6-8
Year 3-5
Year 0-2
Establish
initial presence
Year 9+
Deep core
competencies
Imperatives:
• Center of excellence/gravity
• Research oriented
• Local industry & market
Imperatives:
impact
• Core competency & depth
• Technology oriented
• Initial local market influence
Imperatives:
• World class results
• Broad industry impact
• Part of effective global
network
Develop local
capabilities
Imperatives:
• Capture local competencies
• Development oriented
• Close alignment w/US lab
Where we are today
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Intel China Research Center
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Today’s Changing Environment
World Order Changing
Desirability for PC
OEMs today very
different from 10 years
ago
PC low on desirability
in EM
Channel Shift is
happening
CE and Communication
Devices competing for
Share of Wallets
The rise of new
customer base
The next 1B
New Usage Model
Unique Requirements
e.g., Power,
connectivity, physical
space
Fragmented,
Technology deprived,
Affordability
Need to lead and respond differently!
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Intel China Research Center
Intel confidential
The Future: Local Innovations
Disruptive
Innovations to Lead
in Emerging Markets
TAM Reach
New
customers
Existing
‘channels’
Local Usage Oriented
Innovation
Sustaining
Innovation
Cost Reduction
New Usage
Models
Local applications
& solutions
Catalyze markets
Unique local
requirements
Create new
opportunities
Derivative Products
Short Term < 1yr
Time
Longer Term
Key to success lies in disruptive innovations and
unique solutions for local needs
®
Intel China Research Center
Intel confidential
Thank You!
®
Intel China Research Center
Intel confidential