Intel Open LabMunich, Germany

Jessica HittnerCarrie Martinelli

Innovation & Marketing SystemsDr. Bohlmann

Corporate Overview

Overview - www.intel.com • Founded in July 1968 as Integrated Electronics Corporation • Silicon Technology and Manufacturing • Inventor of the x86 series of microprocessors, the processors found in most personal computers • World's largest semiconductor chip maker, based on revenue

Our mission“Delight our customers, employees, and shareholdersby relentlessly delivering the platform and technology advancements that become essential to the way we work and live.”

2009 Revenues $35.1 Billion Net

2009 R&D Dollars $5.7 Billion

Employees 79,800 people worldwide, with just overhalf in the United States

20%Americas

15%Europe

10% Japan

55%Asia-Pacific

Geographic Spread (Sales)

Major Customers - OEMs, ODMs, Consumers • Computer Systems • Cellular Handsets • Handheld Computing Devices • Telecommunications • Networking Communications Equipment • Industrial Equipment

Sale through distributor, reseller, retail and OEM channels throughout the world

Product Lines • Microprocessors • Chipsets • Motherboards • Wireless and wired connectivity products • Platforms that incorporate these components

CompetitorsAMD, nVIDIA, QualComm, IBM, Sun Microsystems, Freescale Semiconductor, Inc. , and Texas Instruments

Corporate Overview

Innovation System

TICK

2009

TICK

2011

TICK

SiliconProcess

Technology

Microarch-itecture

SiliconProcess

Technology

Microarch-itecture

TOCK TOCK

2008 2010 2012

Intel’s Tick-Tock ModelInnovation Driven By Manufacturing Process and Microprocessor Advances

Year 1: First the "Tick"

Intel delivers new silicon processtechnology, dramatically increasingtransistor density while enhancingperformance and energy efficiencywithin a smaller, more refined version of our existing microarchitecture.

Year 2: Then the "Tock"

Intel delivers entirely new processormicroarchitecture to optimize the valueof the increased number of transistors and technology updates now available.

Fuels Performance, New Capabilities, Energy Efficiency, and Form FactorAdvances, Moore’s Law

1970 1980 1990 2000

PRE MPU Delivery Speed, Price

MPU 1 Architecture/Technology

MPU 2 Total Solution

MPU 3 Mass/IngredientBranding

2010

PHA

SES

TIME

Marketing Systems Growth

Source: “Microprocessor Marketing Wars: Chip Makers Discover the Consumer,” Computer History Museum Lecture Series, November 2009, http://www.youtube.com/watch?v=pLzBYfNhRF8

Intel Open Lab Munich

Overviewhttp://www.intel.com/corporate/techtrends/emea/eng/labs/index.htm

• Established: March 2009 • Intel Labs Europe - ILE was formally established as a central means of coordinating activities across Intel’s diverse network of labs and to further strengthen Intel’s commitment to and alignment with European R&D for best resource allocation

Mission • Foster cooperation between Intel, global industry segment leaders and academia through joint research and innovation programs • Enhance synergies that can be converted into commercial opportunities, strengthening existing businesses and creating new ones.

Technological Focus Areas • Automotive - In-Vehicle Infotainment • Automation - Embedded Computing

Munich Joint Innovation Research Programs • FOCUS: ITC - Information and Communications Technology • University Partnerships Technical University of Munich - Power and Automation Technologies Saarland University - Interactive Computer Graphics and Natural Interfaces German Research Center for Artificial Intelligence

• Education and Sustainability

Intel® Atom™ Processor microarchitecture, a very low–power implementation of Intelarchitecture, Intel continues to meet the design requirements of mobile computing andsmall form factor embedded applications

http://www.intel.com/design/embedded/infotainment/products.htm

EXAMPLE

OpenLab In-VehicleInfotainment (IVI) Technology

IVI Technology Ecosystem

OpenLab In-Vehicle Infotainment (IVI) Technology

Driving Technology: Open Infotainment Platforms (OIP) based on Intel® Atom™ Processor microarchitecture

Network Effects: Common hardware and software architecture, scalable across product lines/generations, greatly reduced R&D costs, greater debug/validation efforts , simplifies product upgrades, speeds time-to-market, firms canreallocate resources to new app/service development that can be downloaded onto already-validated IVI systems

AutomotiveManufacturers

Automotive Suppliers (OEMs)

In-Vehicle ServiceProviders

IVI ApplicationDevelopers

Consumers

Intel Embedded and Communications Alliancehttp://www.intelcommsalliance.com/rosterA broad 3rd-party ecosystem - robust and interoperabledevelopment environment of hardware/software vendors

NICHEKEY

STONE

COMMODITYPHYSICAL

DOMINATORIECA

Consumer ElectronicsVendors

Experience Innovation

EVENT • Navigation • Entertainment • Communication

EVENT CONTEXT • Location/Destination • Internet Connection - limitless • Business or Leisure

INVOLVEMENT • Setting location, adjusting directions • Freedom to choose • Home Entertainment Sync • Instant Messaging, Hands-Free

PERSONAL MEANING • Safety, Stress Relief • Enjoyable • Productivity

OpenLab IVI Technology Experience

Holding Hands Strategy

RESEARCH DESIGN SOURCE MANUFACTURE MARKET SELL SERVICE

COMPLEX SYSTEMS

Research - Working with ecosystem(industry leaders, academia) to developand further customized solutions

Market - Large supplier network (Intel IECA) plus complicated upstream eco-system > Collaboration is critical!

Sell - Must bring together the IECA tofacilitate the buying decision > Relation-ships are critical!

Service - Pre-sale solutions and post-sale upgrade consultations > High-touch

VOLUME OPERATIONS

Research - High volume of Atom™ Processors distributedto OEMs > Must be scalable!

Design - Must fit as a component to be incorporated intomany OEM-specific end solutions > Must be simple and flexible!

Source - OEMs take on majority of engineering costs >Price is important!

Manufacture - One component of a variety of complexsystems > Standards-based uniformity in manufacturing iscritical for compatibility across end solutions!

OpenLab IVI Technology Value Chain

Suggested Questions

Q1. Considering the “Holding Hands Strategy,” what are some of the specific challenges that Intelfaces in the hand-offs between operations and sales/marketing? How is Intel working to resolvethese issues?

Q2. How does OpenLab Munich specifically contribute to continuing Moore’s Law?

Q3. Are there additional IP protection concerns when employing an open-platform strategy such asOpen Infotainment Platforms (OIP)? If so, what is Intel’s response?

Q4. Intel often rotates between niche and keystone roles in technological markets. How does Intelidentify and develop these niche market opportunities?

Q5. Is ingredient branding important for the IVI market as it was for the PC market? If not, do you thinkit ever will be? Does Intel intend to use this strategy in other (future) consumer electronics markets?

Q6. Provide more program details on the Joint Innovation Research Programs- current universityprojects and industry collaborations. What is the biggest breakthrough achieved by this program(OpenLab Munich) to date?