MGNT6030V Group Presentation_Intel_1026_D2_1.pptx

research on intel

1. FLow Part I: Background & Overview  Eric HE Part II: Key Dimensions  Jenny SUN & Arpit AGARWAL Part III: Suggestions & Directions  Qian Cai & Henry WANG

2. INTEL: INTegrated ELectronoics Founded 1968 by Gordon Moore (Moore’s Law) and Robert Noyce. + Andrew Grove, known as the “Intel Trinity” 121,000+ employees 2021FY: $79 Bn Total Revenue, $15.2 Bn R&D Investment (19% of TR)

3. The chip market overview C hip - the electronic circuitry that executes instructions comprising a software program Market size over $600 billion IDM vs. Fabless + Foundry Huge cost of designing chips and fabricating chips as chips become increasingly complex Only 3 leading-edge logic manufacturers are left after the last 20-year’s competition: Intel, Samsung and TSMC

4. Intel’s success – CPU as a platform CPU - Central Processing Unit the unit that controls all of the hardware devices in your computer or other smart devices Intel – dominant market share for over 20 years in the high-performance CPU market, an $80 billion market IDM business model, with leading manufacturing capabilities in the world Tick-tock s trategy and insistence on Moore’s law x86 architecture, an instruction set platform that links hardware customers and software developers Based on purchase

5. Major Opportunities from booming data Emerging need from Big data, cloud, metaverse, and AI/machine learning CPU is the foundation of any tech/electronic innovation, insanely huge market Within the next two to three years, AI/ machine learning could potentially generate $35-40 billion value annually

6. Key pain points of target customers - why is it failing now Hardware customers are leaving Intel Higher price pressure from Intel keeps its customer away ASP is the only growth driver of I ntel’s PC revenues and represents about two-thirds of Intel’s server revenues growth Challenges from AMD’s competition and customers’ designing their own chips Higher performance and lower power-consuming chips are needed in the emergent market Intel lost its competition to Qualcomm in mobile CPU Intel’s history showed constant failures in developing chips other than CPU NVIDEA has already set up its supremacy as GPU become the dominant architecture in the AI chip segment

7. Why we chose Intel Great impact from helping them turn around Potential to recover Still have a huge amount of money and R&D investment Emerging opportunities from its core market Sense of urgency For the first time, AMD’s market cap bypassed Intel, and Intel’s manufacturing technology fell behind TSMC and Samsung Closely related to all the concepts we learned in this class (I n 100 million USD)

8. Part II Key Dimensions

9. Dimension One:  Old Economy vs. Digital Economy Intel offers advanced features, unique platform capabilities, and verified solutions across a broad partner ecosystem Intel® Solutions are designed to securely accelerate the digital transformation for their clients  Transforming from a traditional Manufacturer/Designer to a tech solution provider based on digital platforms

10. Dimension Two: Innovation vs. Customer Centricity Every major transistor innovation for 20 years has been delivered by Intel Failure to capture value from the mobile boom Intel too arrogant to incorporate customer need of mobile chip: Power efficiency over absolute performance Faster design turnaround Overall different playground, different architecture/mindset needed A leader of innovation from 1968 to 2010