2. 2
Forces Driving Our Business
1 Source: Cisco® Visual Networking Index (VNI) Forecast (2011-2016)
2 Source: Gartner Worldwide IT Spending Forecast, 2Q12 Update
3 Source: Top 500 list: Top 10 change from November 2007 to November 2012
4 Source: Facebook public statements
Cloud HPC
Intelligent
Devices
Big Data
$200B
Cloud services
In 20162
2X
Annual growth in
supercomputing
FLOPS3
19B
Connected devices
by 20161
300M
Facebook*
photos
per day4
3. South East Asia Audience
SOME KEY TRENDS IN THE
SEA YOUTH MARKET
532 M
EST. TOTAL POPULATION
55%
EST. UNDER 34 YEARS OLD
MOBILE INTERNET GROWTH
Basic (sub-$30)
Smart Phones
Affordable
broadband bundles
Social mobile
apps
Highly-social,
hyper-local communities
CONTENT
CREATION BOOM
HOLLYWOOD &
ASIAN POP
INFLUENCES
IMPROVING ACCESS
TO CREDIT
O N L I N E & M O B I L E E N V I R O N M E N T
150M
EST. INTERNET
POPULATION
80M+
EST. MOBILE
INTERNET USERS
87M+
EST. FACEBOOK
ACCOUNTS
USERS WHO WATCH
ONLINE VIDEOS
60%
75M
EST. ONLINE
GAMING POP
14M
EST. TWITTER
USERS
70%
WHO ACCESS IN
INTERNET CAFES
1M+
FANS OF INTEL SEA
FACEBOOK PAGES
11. a l w a y s
l i s t e n i n g f o r y o u r …
voice
fresh
enabling new
experiences…
Gesture
Control
r e s p o n d s t o y o u r
gestures
Facial
Login
14. Embedded Systems growing….
and Malaysia has competency in it
Huge growth in Embedded Systems...
Malaysia already has skillset in embedded systems and
local companies well positioned for future
• Malaysian SMEs have strong skill set in
embedded systems
• 30 companies in E&E cluster have some
form of design capability while
potentially 70 others have systems
integration skill sets.
• ~2000 skilled embedded systems
engineers in Malaysia
• " I have no problem recruiting embedded
solutions engineers, espcecially in
Penang"
- RFID Solutions startup , 2006
• In addition, due to highly customized nature of
embedded systems, Malaysian SMEs rather
than foreign electronics MNCs based in
Malaysia will drive embedded systems
industry
...while Malaysia fortunately has many companies across
electronics ecosystem (incl. embedded systems)
Global Market for selected embedded segments1 (USD Bn)
100
50
0
1.9x
2020
75
2010
40
1. Digital Signage, Surveillance, Home Energy management, Set top boxes & Point of Sale systems, which are selected embedded segments that Malaysia currently serves and is
well-positioned to serve going forward
Source: Interviews with SME, ABI Research
Chips ODMs
System
Integrators
Branding/
Distribution
...
...
...
...
...
...
...
...
...
...
...
...
Embedded systems
Some countries (eg. India) have
system integrators, but no chips
15. But we need to play more at end of value
chain, where Malaysia can easily improve
Chip design,
manufacturing, test and
assembly
Original Design
Manufacturer
Systems Integrator
Branding/
Distribution
Intel, Altera, Agilent,
Renesas, Spansion,
Motorola, Silterra
Flextronics, Jabil,
Celestica, Sanmina,
Kontron
Pradotec, Dallab,, Xyreon,
Kioskmedia,
EmbeddedLabs, Pensonic
Sony, Samsung, Motorola,
Pensonic
Players
Malaysia's current level
of participation in area
Ease of improving
capabilities in space
High margins at end of value chain
Low High
Margins
18%1 Single digit
margins2
40 %
1. Intel 2. Flextronics, 3. Interview with Intel; all numbers fromfrom 2006-2011
Source:Interviews with industry experts; Team Analysis
Embedded systems
wafer fabs require
significant capex;
chip design talent hard to
grow (eg. 7 years to train
RF designer)
ODMs not very profitable Highly profitable, and skill barrier not as high as chip
design (eg. embedded engineers can be trained in 3
years)
Large number of wafer
fabs (eg. Intel), though few
design houses
Fair number of ODMs,
though not as many as
Taiwan
Few if any well known local embedded players; have
~100 small companies
16. Numerous segments in embedded
systems space Based on three filters...
• Over 80 segments (some examples above)
Malaysia well positioned to play in 5 segments
...Malaysia especially well positioned to
play in 5 segments, which we define as
our embedded market
Segments that Malaysian embedded
companies have strength in
Segments that are growing fast globally
Segments that are
aligned with needs of GTP/ETP
Point of
Sale
Digital
Signage
Digital
Survei-
llance
Home
Energy
Manage-
ment
Set Top
Box
Source: Intel; Team Analysis
1
2
3
Market size is USD 40B in 2010
17. Roles and Responsibilities
Grow
Embedded
Systems
Industry Project
Pilot
Projects
Technology
Consultant
Centre of
Excellence
Public
sector
champion
Opportunity for Local Company:
• Technology access
• Embedded training
• GTM assistance
• Work with technology leaders
• Embedded pilot funding
18. How can this benefit local players
Build pilot &
industry
enablement
• Provide engineering support & matchmaking for prototype and reference designs.
• Provide access to SDK and testing tools for selected SMEs.
• Jointly with MDeC, help select relevant SMEs for pilots.
Training &
Talent Dev
• Provide selected curriculum & training on Embedded to selected SMEs at the CoE.
• Provide embedded training support via Intel’s Online Sales Centre.
GTM &
scaling
• Provide SME specific global matchmaking support (e.g. linkage to channel partners,
distributors).
• Provide publicity and media coverage as relevant.
• Introduction to Intel Capital for venture funding opportunities as relevant.
20. IAG-SMG Rotation Program
Past Experience
- 10 yrs in Manufacturing - developing new high-speed boards to test/ burn new
products
- 3+ yrs in Design - developing substrates/packages for chipset
- 5+ yrs in Design - developing PC & tablet system/platforms
Learning/Key Takeaways from 4 month rotation
- Understanding of consumer expectations(Smartphone & Tablets)
- Emerging market product needs for entry smartphones
- Telco & retail smartphone biz models & partnership approaches
- Go to market thinking on providing an experiential environment for consumers
Score: 8 / 10
21. Summary
• Emerging Markets like SEA provide significant
demographic opportunity
• Intel design and field teams work closely to address such
market needs
• Intel design footprint – provides an opportunity to
accelerate local innovation
