Microsoft Sales meeting Nov 2002

1

• Information Technology at Intel

• Overview and Drivers

Vish Viswanathan Director, Manufacturing
Computing IT, Intel Corporation
Other brands and names are property of their
respective owners
Intel is a registered trademark of Intel
Corporation or its subsidiaries in the United
States and other countries.
2
Moores Law - Drives the Industry
1 billion transistor CPU by 2007
Moore's Law Continues!
3
Microprocessor Clock Frequency
10 GHz by 2007
10,000
Pentium 4 Processor
1,000
Pentium II Processor
Pentium III Processor
486 Processor
100
Pentium Processor
MHz
286
386 Processor
10
8085
8086
4004
1
8080
0.1
1970
1980
1990
2000
2010
Source Intel
4
Entering Intels Third Era
Technology, product market synchronization is
critical
Different market segments have different
business drivers and timelines
5
Semiconductor Fab Costs
10,000
3 B
1,000
Fab Cost ( M)
100
10
1
1970
1975
1980
1985
1990
1995
2000
2005
Moore's 2nd Law Factory costs increase
exponentially to meet demand
6
Capital Cost are High
Capital Cost for a 300mm Factory
3B Technology Lifecycle - 2 years
Drives the need for high utilization of equipment
and high employee productivity
2002 Capital Spending
7
Global Manufacturing
Washington Systems mfg


Ireland Fab
Oregon Fab, Board mfg

Colorado Fab


Israel Fab
California Fab
Mass Fab
Shanghai Assembly/test
Arizona Fab, A/T
Philippines Assembly/Test
New Mexico Fab
Malaysia Assembly/Test, Board/module mfg
8
Improvement in 12 years
Circa 1988
Drives need for internal availability of data and
supply chain synchronization
9
Key IT Business Challenges

• Enable 100 e-Corporation
• Satisfy the demand for ever increasing computing
  power and bandwidth by business groups
• Operations Excellence (Keep the business running)
  
• Increase employee productivity
• Information security
• Reduce TCO

10
Intel IT Growth Indicators
The Growth of Intel and IT
1998
2001
Increase
Intel Employees Supported
65,800
83,000
26
Enterprise Release/Production Transactions/Month
20M
41.25M
106
End-user customer satisfaction
60
87
27
Intel Sites with IT Employees
25
70
180
Telephony Minutes per Month
7.8M
28M
259
Average LAN Bandwidth Available per Employee
2.25Mbps
11Mbps
389
Engineering Computing Capacity Hours
80,000
500,000
525
Different Software Applications Distributed
100
800
700
1376
E-Business and Enterprise Application Servers
Supported
145
2140
4.5M
Emails per day
1.7M
165
32
4,100
3,100
IT Employees
IT Spending
32
789M
598M
Many server transfers (support) from business
units to IT Data is for 1999
11
100 e-Corporation
DSS
12
Hard Work on e-Business Has Just Begun
3 Phases of e-Business Evolution
Early
Advanced
Integrating
This content was provided by IBM. IBM CIO
Conference, March 5, 2002
13
Many Supply Chain Linkages
14
Enabling Supply Chain e-Business
INTRANET Internal
INTERNETCustomer
15
Supply Chain

• Improved Inventory Management
• Faster time to Information
• Procurement Savings
• Standards (RosettaNet)

200 Suppliers
300 Suppliers

• Spending

• Total 15B

1000 Suppliers
32,000 Suppliers
Extensive supply chain network needs to be
coupled to development and manufacturing
16
Example- Connectivity with Equipment Suppliers
Intel factories
17
Supplier Linkages
18
Enabling Supply Chain e-Business
INTRANET Internal
INTERNETCustomer
INTERNETSupplier
19
Mfg Computing The environment

• Mission critical environment
• Non-stop computing (24x7x365) , Uptime gt 99.99
• Tight change control security
• Enterprise class capabilities
• Complex Application Integration (gt 100 Apps, gt
  2000 msgs/sec)
• Capability introduction synchronized with new mfg
  process generations (every 2 years)
• Long sustaining life cycle (10 years/process
  generation)
• Maintain lower TCO - Mainstream products
  technologies.

20
Managing innovation and risk
21
300mm Wafer Factory Fully Integrated System
Goal Direct tool to tool material movement
without human intervention
22
Automation Components
Process Equipment
Interface
Manufacturing
HW, networks and
Automated
Execution
User interfaces
Material Handling
Engineering
Analysis
23
Mfg Computing The environment

• Mission critical environment
• Non-stop computing (24x7x365) , Uptime gt 99.99
• Tight change control security

Any downtime for all wafer fabs combined per week
24
IA/Windows The Backbone in Mfg
Other brands and names are property of their
respective owners
Intel is a registered trademark of Intel
Corporation or its subsidiaries in the United
States and other countries.
25
Migration to Intelâ Architecture(IA) 452M Cost
Saving 5 year Results
Projected spending to achieve equivalent RISC
capacity
Computing growth versus spending
300
200M
180M
Computing Demand 86 annual growth rate
250
Year RISC Replaced Ms Saved
97-00 3,413 99M
2001 4,931 143M
2002 7,241 210M
Total 452M
160M
140M
200
120M
Capital (M)
150
100M
Compute Capacity
Normalized Hrs
80M
100
60M
40M
50
20M
0
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
Computing Growth
New Capital (M)
IA savings (M)
Actual spending levels

• About 70 of computing now on IA gt 452M savings
  by end of 2002
• Replacing 35K RISC-Unix box with 7K IA/Linux
  box for same RTL function
• Majority of this is TIER 1, some TIER 2
  (front-end RTL simulation in design flow)
• All compute servers coupled together with
  peer-peer system

Intel is a registered trademark of Intel
Corporation or its subsidiaries in the United
States and other countries.
26
Enabling Supply Chain e-Business
INTERNETCustomer
INTRANET Internal
INTERNETSupplier
27
Productivity OpportunityThe Next Revolution
Collaboration, mass mobility, Windows XP,
Windows .NET, knowledge management
Mobility
First wave notebooks
User Productivity
Mainframe to PC
Internet
PC eMail
Time
Today
Other brands and names are property of their
respective owners
28
Increase CompetitivenessPC Performance Gap Is
Widening
2001-2002 1 GHz Gap!
1999 lt400 MHz Gap
29
Inside Intel.Were Buying High
Platform Performance
Windows 2000 capable
Windows NT4 capable
Deployment goalGA90
1997 1998 1999 2000 2001 2002
Stable platforms enable us to balance efficiency
and effectiveness
29
Other brands and names are property of their
respective owners
30
(No Transcript)