Q4 2023 Ginkgo Bioworks Holdings Inc Earnings Call

February 29, 2024

Unknown Executive: You gotta make sure you're covered. I'm talking about enterprise-grade security built into your site and fully managed for you. Check this out. First up, prevention. The Wix platform is secure by design.

I'm talking about enterprise grade security built into your site and fully managed for you.

Check this out.

First up prevention.

The waste platform is secured by design.

Unknown Executive: Security experts are in the dev process, performing threat modeling, penetration testing, and designing cool reviews. And you get strong encryption for your data in transit and data at rest. Ecom sites?

Security experts are in the process performing threat model penetration texts and designing crude reviews and you get a strong encryption for your data in transit and data at rest.

Unknown Executive: Wix is compliant with the highest level of PCI DSS, and it doesn't stop there. The top international privacy and security regulations? They're all in place. You see, it's all about staying ahead of the game with real-time detection. Wix security never sleeps.

I'm sorry.

Which is compliant with the highest level of PCI DSS and it doesn't stop there the top international privacy and security regulations.

Theyre all in place.

You see it's all about staying ahead of the game with real time detection.

Unknown Executive: 24-7, 365, the Security Operations Center is on a mission to monitor and hunt down threats. Plus, anti-DDoS protection, data analysis, machine learning, and let's not forget, the number one rule in cybersecurity is, nobody is 100% unhackable. That's why Wix goes all out with a bug bounty program for independent security researchers, a.k.a. ethical hackers. And that's not all.

Security never says never.

20, $473 65, the security Operation Center is on a mission to monitor and hot down threat.

Plus anti Ddos protection data analysis machine learning and let's not forget the number one rule in cyber security is nobody is 100% on Apple.

That's why Wix goes all out with a bone building program for independent security researchers Vaca ethical hackers.

And that's not all.

Unknown Executive: It's time for response. Even in the unlikely event of an extreme situation, your business stays up and running. The IR team gets it done. They're trained to act fast, and there's a BCP for reliable continuation and smooth recovery. So look, you take care of business; security's on Wix. Atera is the IT painkiller.

Tom for response, even in the unlikely event of an extreme situation your business stays up and running the IR team gets it done differently to act fast and there's a BCP for reliable continuation and smooth recovery.

So look.

Take care of business Securities on Wix.

Tara is the painkiller remote monitoring and management remote access helpdesk and ticketing smart animations patchy.

Unknown Executive: Remote monitoring and management, remote access, help desk and ticketing, smart animations, patching, software deployment, scripting, and the amazing thing is that it does all this while still being easy to use. It's magical. Just this clean, intuitive UI where everything is where it's supposed to be and does what it's meant to do. Sorry, I get emotional. Not to mention, with predictive alerts, you solve real IT issues before they become IT problems. I'm sorry, I can't hear you over the sound of how awesome I am at fixing your computer.

<unk> software deployment scripting and the amazing thing is that it does all of this while still being easy to use it's magical just as clean intuitive UI or everything is where it is supposed to be.

That's what it's meant to do.

Sorry.

Get emotional.

Not to mention with predictive alerts you solve real issues before they become problems I'm, sorry, I can't hear you over this down to help Boston Miami fixing your computer and with advanced reporting and analytics management can finally understand why I'm the real MVP.

Unknown Executive: And with advanced reporting and analytics, management can finally understand why I'm the real MVP. Also, per technician, instead of per device, pricing saves us 50% of our IT costs and makes me the new company hero. Minds show up. Real heroes wear headsets, and you'd be like, maybe you're not buying this, and that's fine because you don't have to buy anything. You can try it out right now for free, setting it up as a breeze.

Yeah.

Also perfect mission instead of per device pricing that saves us 50% of our it costs and makes me the new company here in lines show up.

Real heroes wear headsets.

And you'd be maybe youre not buying this and that's fine because you don't have to buy anything you can try it out right now for free setup as a breeze just did the Lincoln tried to frame.

Unknown Executive: Just hit the link and try the thing. It's glorious. Aterra, it's what IT ought to be. Except cookies.

It's Courtney.

Oh tariffs.

What I see out of it.

Accept cookies.

Unknown Executive: Okay, it's accepted. As a reminder, today's presentations include forward looking statements subject to a number of risks and uncertainties. More information can be found on this slide and in Intel's filings with the SEC. I take a breath, I'm not gonna lose Won't look down, got no regrets I was made for this I was made for this Born in the wild, born in the fire Built for the battle I was made for this I was made for this And I know what matters I'm not the doubter I have the power I'm the soul of the wild That's where I feel alive Open up the skies I was made for this I was made for this Born in the wild, born in the fire Built for the battle I was made for this I was made for this, Please welcome the CEO of Intel, Pat Gelsinger. Hey, welcome.

Yeah.

Okay.

Okay, Great you accepted.

Yes.

As a reminder, today's presentations include forward looking statements subject to a number of risks and uncertainties more information can be found on this slide and in Intel's filings with the S. E C.

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Please welcome the CEO of Intel at Gill.

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[music].

Hey, welcome welcome to direct connect 2024.

Unknown Executive: Welcome to Direct Connect 2024. And I am just thrilled and excited to have all of you here with us today. Last week marked my three-year anniversary as the CEO of Intel. And when I came back to the job, I said we have three goals. We're going to rebuild this iconic company, the company that Grove, Moore, and Noyce built. Second, we're going to restore the critical role it has and plays in the technology industry writ large. And third, we're going to rebuild Western manufacturing at scale, a resilient, sustainable, trusted supply chain, and I think of today as a day three years in the making as we open the doors to delivering on that mission. When I came back to Intel in 2021, we held this event just a couple of months after my return called Intel Unleashed.

I am just thrilled and excited to have all of you here with US today last week marked my three year anniversary as the CEO of Intel.

And when I came back to the job I said, we have three goals, we're going to rebuild this iconic company the company that Grove more noise built second we're going to restore the critical role it has in place in the technology industry writ large.

Third we're going to rebuild western manufacturing at scale resilient sustainable trusted supply chains.

And I think of today as a day three years in the making as we open the doors on delivering on that mission.

When it came back to Intel in 2021, we presented this event just a couple of months. After my return called Intel Unleashed and we shared our perspective on the tremendous opportunities ahead. The plans that we had a motion for this fundamental rebuilding of Intel setting a course for new era of technology.

Unknown Executive: And we shared a perspective on the tremendous opportunities ahead, the plans that we had in motion for this fundamental rebuilding of Intel, setting a course for a new era of technology and innovation. We announced plans at that point to become a world-class foundry. And we said we were going to be a major provider of U.S. and European-based capacity. And when we rolled that strategy out, some were like, yeah. Others were like, yeah, right, and others were just, no way were they going to be able to pull this off, right? They had fallen behind. They stumbled over something.

And the innovation, we announced plans at that point to become a world class foundry and we said we're going to be a major provider of U S and European based capacity.

When we rolled that strategy out somewhere like yeah.

Others were like yeah right.

And others were just no way are they going to be able to pull this off.

They have fallen behind they stumbled could they possibly get back to leadership and our employees as we spoke to them. They said yeah. We can do this we're going to reestablish that leadership position.

Unknown Executive: Could they possibly get back to leadership? And our employees, as we spoke to them, they said, yeah, we can do this. We're going to reestablish that leadership position, and our pessimists were challenging, some of them I called perma-bears, right? They were so far in hibernation, they ain't ever coming out.

And Ah pessimists were challenging.

Some of them I called Perma bears right. They were so far in hibernation they had ever coming out.

Unknown Executive: But here we are today, three years later. And today, this vision of Unleashed becomes real. Today, the best of Foundry, the Silicon ecosystem, what could be, is today what is. And with that, I'm thrilled today to announce. Simply put, Intel Foundry is a renaming, a reorganization, a new organizational model for Intel that includes our three major elements, technology development, leading bending physics, our global manufacturing and supply chain, and our Intel Foundry services and ecosystem operation, all three together, a rebuilding of Intel. And for that, as I said, we're not fixing one company; we're establishing two vibrant new organizations, Intel Foundry to serve internal and external customers at scale, to manage supply chains, to assure capacity corridors, and Intel Products, our client data center and networking products, two distinct and separate organizations.

But here we are today three years later and today. This vision of unleashed becomes real today. The best are foundry the silicon ecosystem, what could be today is what is.

And with that I'm thrilled today to announce Sim.

Simply put Intel foundry.

This is a renaming of reorganization our new organizational model for Intel that includes our three major elements technology development right, leading bending physics Hill, our global manufacturing.

<unk> and supply chain, and our Intel foundry services and ecosystem operation all three together Intel foundry, a rebuilding of Intel and before that as I said, we're not fixing one company, we're establishing two vibrant new organizations Intel foundry to serve internal.

<unk> and external customers at scale to manage supply chains to assure capacity corridors and until products are client data center and networking products two distinct and separate organizations and as I think about that you know they're dependent elder.

Unknown Executive: And as I think about that, you know, they're dependent on the wafers, the factories, you know, that leadership technology thrust. I need the product group and the founder group working intimately together. Who's going to drive the wafers to run those fabs? Intel Products. But they're also independent because you, the foundry ecosystem, need to have an independent for your designs, your fab, your intellectual property, your capacity corridors. In a word, independent.

Wafers, the factories that leadership technology thrust I need the product group and the foundry group working intimately together, who is going to drive the wafers to run those fabs Intel products.

But they're also independent because you the foundry ecosystem need.

You need to have an independent your designs your fab your intellectual property your capacity corridor corridor, and a word independent and a word dependent or simply put interdependent Intel products Intel foundry all under the Intel banner that begins to.

Unknown Executive: In a word, dependent. Or simply put, interdependent. Intel products, Intel foundry, all under the Intel banner. That begins today.

Today.

Unknown Executive: And when we think about this era of AI, you know, making it more accessible at scale and delivering AI end to end. And as we say, from the data center to the cloud, to the networking, to the edge, and to the client, this AI continuum. And as I came back to Intel, I was sort of, you know, thinking about computing and, you know, I'm, you know, young, vibrant yet, but it's been over 40 years since I've been in the computing industry. And with that, you know, when I showed up, it was like, sort of, this is boring.

And when we think about this this era of AI.

You know, making it more accessible at scale and delivering AI end to end and as we say from the datacenter to the cloud to the networking to the edge into the client this AI continuum.

And as I came back to Intel I was sort of thinking about computing and you know I'm a young.

Young vibrant yet, but it's been over 40 years since I've been to the computing industry and with that I sort of when I showed up it was like sort of this is boring.

Unknown Executive: You know, let's add a few more cores to the chip. You know, let's make PCIe a little bit faster. You know, let's increment DDR. Boring, and then AI happened. End of boring.

Yeah, Let me add a few more cores on the chip.

Make PCI E a little bit faster, let's incremented DDR boring.

And then AI happened and a boring this is transforming everything about our computing the explosion in systems and thermal envelopes and interconnect capabilities everything that we do is coming to bear in this AI period, and as I think about Intel we're engaging in a hurry.

Unknown Executive: This is transforming everything about computing, the explosion of systems and thermal envelopes and interconnect capabilities. Everything that we do is coming to bear in this AI period. And as I think about Intel, we're engaging in 100% of the AI TAM, clearly through our products and the edge and the PC and clients, and then the data center. But through our foundry, I want to manufacture every AI chip in the industry. Internal, right, you know, that is being done by the cloud service providers, those merchant providers, you know, the technology providers.

<unk> percent of the AI Tam clearly through our products on the edge and the P. C and clients and then the data centers, but through our foundry I want a manufacturer every AI chip in the industry. Those in turtle right now that are being done by the cloud service providers those merchant provider.

The technology providers, we are engaging in 100% of the AI Tam.

Unknown Executive: We're engaging in 100% of the AI TAM. And with that, we need a new model of what the foundry requirements are for that industry, and that's simply put, what we call the systems foundry for the AI era. Where semis are essential, this lowest layer, this world-class foundry. And, as you'll hear from us today, Moore's Law is alive and well. Until the periodic table is exhausted, we're not done with Moore's Law. Do you understand that? Yeah, that's it. Come on, get excited.

And with that we didn't new model of what the foundry requirements are for that industry and that's simply put what we call. The systems foundry for the AI era, where semis are central this lowest layer of this world class foundry and as you'll hear from us today Moore's law.

All are alive and well until the periodic table is exhausted, we're not done with Moore's law, you get that yeah, that's right.

Well I'll get excited.

Unknown Executive: We bend the laws of physics, we create molecules, we do amazing things. And Moore's Law is alive and well. And we're doing it through new transistors with RibbonFET, new power delivery with PowerVIA, new advanced lithography with EUV and HiNA. But it's even better than that, because now we're doing it not just in X and Y, right, monolithic silicon; we're doing it in Z as well with advanced packaging, X, Y, and Z, and new systems of networking, glass, and optics But we have to do it a different way.

We've been physics, we create molecules, we do amazing things and Moore's law is alive, and well and we're doing it through new transistors with ribbon fed new power delivery with power via New advanced lithography, you with EU V and high N a.

But it's even better than that because now we're doing it not just in X and Y right a monolithic certainly silicon we're doing it in Z as well with advanced packaging X Y and Z and new systems of networking and glass and the optics and in package capabilities and thermals.

But we have to do it a different way, we have to enable globally resilient sustainable and trusted supply chain and at the end of our conference today I'm joined by our Sam Altman Who's made a little news of late you might've heard right for it and I'm a pretty aggressive guy.

Unknown Executive: We have to enable globally resilient, sustainable, and trusted supply chains. And at the end of our conference today, I'm joined by Sam Altman. He's made a little news of late, you might have heard, right, for it. And, you know, I'm a pretty aggressive guy.

Unknown Executive: Man, am I conservative. And he's going to challenge the capacity needs of the industry. And Kayvon's going to spend some time talking today about our capacity strategy, you know, and this next generation of world-class silicon process packaging is all at your disposal. You know, and this idea of all this coming together in advanced packaging, it's not because we said, hey, you know, let's put them all into a package. Physics is driving us that way.

Man My Conservative.

And he's got a challenge the capacity needs of the industry and Kayvon, it's going to spend some time talking today about our capacity strategy.

And this next generation of World class Silicon process packaging is all at your disposal.

This idea of this coming together and advanced packaging, it's not because we said hey, you know, let's put them all into a package physics is driving us that way, you'll where thermal envelopes interconnect speed of light is driving us to put these together, you'll Iraq is becoming a system a system is becoming a system on a chip or a package and.

Unknown Executive: You know, where thermal envelopes interconnect at the speed of light is driving us to put these together. You know, a rack is becoming a system. A system is becoming a system on a chip or in a package. And the system of chips needs new capabilities, new tests, and advanced packaging capabilities, and that's what a systems foundry does. And Stu is going to describe today how we're making all of this real and available to you. Every aspect of Intel to enable your innovation. Bringing all of this together, right, and the people, the systems, the processes, you know, that we're standing up with Intel foundry to ensure your supply chains, the confidentiality of your information, and to do it with your EDA and IP partners. And throughout the day, you're going to see this vision come to life.

The system of chips needs new capabilities, New test advanced packaging capabilities and that's what our systems foundry does and stew is going to derive to describe today, how we're making all of this real and available to you every aspect of Intel to enable your innovation, bringing all of this.

Together right and the people the systems the processes that we're standing up with Intel foundry to ensure your supply chains. The confidentiality of your information to do it with your E D E and IP partners.

And throughout the day, you're going to see this vision come to life.

Unknown Executive: And a year ago, as we began this next phase of our journey, we said, hmm, we need people who are advising us on that journey. And it was a true pleasure of mine to go to some of the Intel board members, but also some of the leaders in the industry, to help us set this up, to assure the establishment of the Intel Foundry, to assure that we've established the business processes to change the DNA of Intel, to become maniacally customer-focused, as we look forward, and to assure that we have efficient operations. And my advisory board is here with us today. And I'd like them to stand up and acknowledge that these are the people that are helping guide us. So over here, Joe Kaiser, former CEO of Siemens, and Chi-Fu Chen, former Synopsys co-CEO. My many decades-long friend, Lipu Tan, brother and friend.

And a year ago as we began this next phase of our journey. We said you know we need people who are advising us on that journey and it was a true pleasure of mine to go to some of the Intel Board members, but also some of the leaders of the industry to help us set us up to assure right the establishment.

Of the Intel foundry to assure that we've established the business processes to change the DNA of Intel to become maniacally customer focused as we look forward to assure that we have efficient operations and my advisory Board is here with us today and I'd like them to stand up and acknowledged that these are the people that are helping.

Guy at Us so over here.

Yes.

Joe Kaiser former CEO of Siemens Chefoo, Chen former Synopsys co CEO.

My many decades long friend are lip Bu Tan brother and friend and over here, let's get a light over here to Sue J K.

Unknown Executive: And over here, let's shine a light on Sujay King, one of the most honored members of the semiconductor research and academic community. So these are the people that are helping advise us and guide us on the journey to set up and become what I've called the world's number two system foundry. So thank you for joining us on this great journey.

One of the.

Yes.

Most are honored members of the semi conductor our research and academic community. So these are the people that are helping advise us and guide us on the journey to setup and become.

What I've called the world's number two system foundry. So thank you for joining us on this great journey.

Unknown Executive: And as we describe this vision to become the number two foundry in the world, we realize there are only a few companies that can do this, right? You know, that have the capital capacity, that have the R&D, the longevity to go do this. And we announced this vision in the middle of COVID. Boy, did we realize how much we needed resilience at that time, at that period of time.

Okay.

And as we describe this vision to become the number two foundry of the world. We realize there's only a few companies that can do this right that have the capital capacity that have the R&D. The longevity to go do this and we announced this vision.

In the middle of Covid Boy did we realize how much we needed resilience at that time at that period of time and now as we're in an economic downturn welcomed the semiconductors.

Unknown Executive: And now as we're in an economic downturn, welcome the semiconductors, right? You know, this is a tough, you know, business. And then the AI explosion and the cyclicality of the industry. And we've seen the geo-instability and active wars in Israel and Ukraine and, you know, the tensions in the Taiwan Straits.

This is a tough business and then the AI explosion and the cyclicality of the industry and we've seen the G O instability and active wars in Israel in Ukraine, and the tensions in Taiwan Straits ill. This is anything but a resilient supply chain today.

Unknown Executive: You know, this is anything but a resilient supply chain today, and even as we seek to be peacemakers and see global prosperity, we know that the best way to do that is through a resilient, sustainable supply chain. And for that, we said, yes, get to be a large, meaningful, the second largest foundry, but become the world's most sustainable foundry, the world's most resilient foundry, because that's exactly what the world requires.

And even as we seek to be peacemakers.

Alright to see global prosperity, we know that the best way to do that is through resilient sustainable supply chains and for that we said he has got to be a large meaningful the second largest.

Foundry.

But become the world's most sustainable foundry the world's most resilient foundry because that's exactly what the world requires and this exponential explosion of AI demands, a new way of delivering silicon with the lowest possible and buyer mental footprint in this part of Intel's.

Unknown Executive: And this exponential explosion of AI demands a new way of delivering silicon with the lowest possible environmental footprint. And as part of Intel's Climate Transition Action Plan, we're approaching 99% global renewable energy, 100% renewable in the US for over a decade. Driving conservation in our energy, the water management processes, responsible use of chemicals, reducing, abating, and replacing greenhouse gas chemicals. You know, as I like to say, Gordon was an environmentalist before it was cool.

Climate transition action plan, we're approaching 99% global renewable energy, 100% renewable in the U S for over a decade, you'll driving conservation in our energy the water management processes responsible use of chemicals, reducing abating and replacing greenhouse gas chemicals.

It was I like to say Gordon wasn't environmentalist before it was cool.

Unknown Executive: He built it deep into the DNA of Intel. We don't do this because it's driven by some expectations in the industry. We do it because it's the right thing for humanity and for the planet. You know, one time my daughter-in-law was giving me a bad time, and she said, hey, you're sort of proud of all the great advancements that you have made, huh? And then she said, But did you have to bankrupt my planet?

He built a deep into the DNA of Intel we don't do this because it's driven by some expectation in the industry. We do it because it's the right thing for humanity and for the planet. One time my daughter in law was giving me a bad time.

Hey, you're sort of proud of all the great advancements that you drove her and then she said, but did you have to bankrupt my planet to do so.

Unknown Executive: do so. I think all of us are left with that same question. Are we going to be responsibly turning over our planet to the next generation? And in the face of things like this explosion of AI capabilities, it isn't just doing good things. It's doing the right things for tomorrow as well. So, sustainable foundry, but also resilient, and we're seeing global politics has been dominated for the last 50 years by where the oil reserves are. COVID was a big wake-up call, you know, for us all. You know, an auto factory building a $50,000 car being stopped for a $1 semiconductor. How did that happen?

Let's take all of US are left with that same question of are we going to be responsibly, turning over our planet to the next generation and in the face of things like this explosion of AI capabilities. It isn't just doing good things its doing the right things for tomorrow as well.

So sustainable foundry, but also resilience.

And we're seeing global politics has been dominated for the last 50 years by where the oil reserves are COVID-19 was a big wake up call Youll for US All you know what auto factory building, a 50000 dollar car being stopped for a one dollar semiconductor how did that happen.

Unknown Executive: Semiconductor advanced computing is to the world's geopolitics what oil has been for the last 50 years. And silicon, fortunately, isn't restricted to where it's found. It's the second most abundant element on Earth.

Semis advanced computing is to the world's Geopolitic, what oil has been for the last 50 years.

And silicon Fortunately isn't restricted to where it's found its the second most abundant element on Earth I call. It God's gift to humanity. This four by four crystal and the structure that we can bend and shape and shelf different elements into it is just the magic that these tiny chips are enabling.

Unknown Executive: I call it God's gift to humanity, this four by four crystalline structure that we can bend and shape and shove different elements into. It's just magic that these tiny chips are enabling the modern economic cycle that we are in today. But stunningly, you know, in 1990, 80% of the semiconductors were built in the U.S. and Europe. Today, 80% are built in a small concentrated area in Asia.

The modern economic cycle that we're in today.

But stunningly.

You know in 1990, 80% of the semiconductors are built in U S and Europe.

Today, 80% and a small concentrated area in Asia.

Unknown Executive: You know, we've seen this long, steady decline, right, in terms of our supply chains for the world. Nothing should be reliant on a single port in a single country, a single place in the world. We need resilience, resilient access to supply chains and capacity in the right regions at the right time. And thus, you know, the choice and the opportunity to drive systemic change in where and how we drive the most important aspect of our future, where the technology supply chains are. And as I've liked to say, the moonshot is 80 to 20, 20 to 50, 50 in a decade, rebalancing the supply chains of the world. It was a proud day when I got to stand on the White House lawn when we signed the U.S. CHIPS Act, a moment to rebuild the supply chains of the world. And with that, it was a thrill to do so with the President, but the tireless championing that we saw from Secretary of Commerce Gina Raimondo, and it's my pleasure to have her join us now here at Intel Direct Connect. I know how this looks, but this taco night is going to be great.

We've seen this long steady decline right in terms of our supply chains for the world nothing should be reliant on a single port to a single country a single place in.

In the World, we need resilience act resilient access to supply chains and capacity in the right regions at the right time.

And thus the choice the opportunity to drive systemic change and where and how we drive the most important aspect of our future where the technology supply chains are and as I'd like to say you know the Moon shot is 80 to 2020 to 50 50 in a decade rebalancing.

The supply chains of the world. It was a proud day when I got to stand on the White House lawn when we signed into law. The U S. So chips act a moment to rebuild the supply chains of the world and with that there was a thrill to do so with a precedent but.

The tireless championing that we saw through secretary of Commerce, So Gina Raimondo and it's my pleasure to have her join US now here at Intel direct connect Secretary Rimando.

Gina Raimondo: With McCormick by your side for over 130 years, it's going to be great. Thank you, Gina. Thank you, Secretary. It is such a pleasure, and you and I agree how important the CHIPS Act has been, you know, and I'd love for the audience to hear directly from you your perspective and your passion for this piece of industrial policy. Hello, everybody.

Okay.

I know how this works.

But this Taco night.

It's going to be great.

With Mccormick by your side for over 130 years, it's going to be great.

Gina Raimondo: Pat, I love the energy. I love listening to your presentation, and it's exciting. You know, we've never quite done anything like this before, or at least not for a long time. If you want to find a precedent of when the United States government has acted this strategically in terms of industrial strategy, I think you'd have to go back 60 years to the space race. I think that's the closest parallel, a time when the federal government came together with the private sector and academia at every level to spur innovation and ensure America's technological leadership in the face of fierce competition. Of course, then it was Russia; now it's other countries.

Thank you Gena. Thank you secretary it is such a pleasure and you and I agree how important the chips actors Ben ill and I'd love for the audience to hear directly from you your perspective and your passion for this piece of industrial policy.

Uh huh.

Pat.

Listening to your presentation and it's exciting.

You know we've never quite done anything like this before.

Or at least not for a long time, if you want to find a precedent of when the United States Government has acted this strategically in terms of industrial strategy I think you'd have to go back 60 years to the space race I think that's the closest parallel a time when the federal government came together with the private sector.

Gina Raimondo: That's what this is about. I mean, you just said a couple of minutes ago... After COVID, the vulnerabilities in our semiconductor supply chain were on full display for the world. You know, on full display for the world.

In academia at every level to spur innovation and ensure America's technological leadership in the face of fierce competition of course, then it was Russia now into other countries.

Gina Raimondo: The fact that we are so overly dependent to a couple of countries in Asia to access semiconductor chips that we need for life-saving medical equipment, cars, every piece of technology, showed us we got to get to work. We need to get back to work making more chips in America, and so this is a moment you know our generation this is our moment and but it's it's making more chips in america you know bringing back the silicon to silicon valley if you if you will um but it isn't just that it's then getting a massive flywheel going in the united states of america from from research and development all the way through to advanced packaging uh and everything in between so and i hope in the process we will create hundreds of thousands of high-paying jobs for america but also if we do our job right pat and i guess i'm talking myself here but i have to do it in partnership with you and the folks in your audience, 10 years from now, engineering degrees all over this country will be taught in a different way, will be tailored for the chip industry, it'll be exciting, the top graduates of our schools will say, I want to go work in a chip factory, in a chip design operation in the United States. And so I'm psyched about it, and you've been a fantastic partner.

That's what this is about I mean, you just said in a couple of minutes ago.

After COVID-19 the vulnerabilities in our semiconductor supply chain were on full display in the world now full display for the world. The fact that we are so overly dependent to a couple of countries in Asia to access semiconductor chip that we need for lifesaving.

Medical equipment cars every piece of technology showed us are we going to get to work we need to get back to work, making more chips in America and so this is a moment in all our generation. This is our wellness.

It's making more chips in America you know.

Bringing back the silicon to Silicon Valley, if you if you will.

But it isn't just that it's been getting them massive flywheel going in the United States of America from from research and development all the way through to advanced packaging and.

And everything in between so and I hope in the process, we will create hundreds of thousands of high paying jobs for America, but also if we do our job right, Pat and I guess I'm talking to myself here, but it has to do it in partnership with you and the folks in your audience.

Gina Raimondo: So say a little bit more about building those chips in the U.S., why it's so important, and a little bit about the AI surge and how you see that affecting the Chips Act and affecting the AI future. So, look, I want to be clear. We can't and do not want to make every.

10 years from now.

Engineering degrees all over this country will be taught in a different way will be tailored for the chip industry it'll be exciting top graduates of our schools will say I wanted to work in chip factory in a chip design operation in the United States and so I am excited about it and you've been a fantastic partner.

Gina Raimondo: You know, we don't want to make every chimp... that isn't reasonable. But we do need to diversify our semiconductor supply, have much more manufacturing in the United States, particularly of leading-edge chips, which will be essential for AI, as you well know, and we need just have more resiliency and more diversification. So the goal isn't to be self-sufficient, you know, to produce and package everything we consume in this country, but we do need a self-propelling engine of innovation and production, and that balance that's a lot of balance. We maintain our leadership in design, and in the software, etc. But we sacrificed our manufacturing capacity and, with that, our capacity to conduct the advanced research and development that we need to maintain our global leadership. People ask me all the time, you know, how do we compete with China? We run faster in America.

So say a little bit more about building those yeah yeah.

So I'll say, a little bit more about building those chips in the U S. Why so important and a little bit about the AI surge and how you see that affecting the chips acton affecting the AI future.

So.

Look I wanted to be clear we lead.

Can and do not want to make everything in America.

Don't want to make every chip in America that is a reasonable goal, but we do need to diversify our semiconductor supply chain.

Much more manufacturing in the United States, particularly of leading edge chips, which will be essential for AI as you well know.

And we need to just have more resiliency and more diversification. So the goal isn't to be self sufficient to produce and package everything we consume in this country.

But we do need a self propelling engine.

Gina Raimondo: You know, we out-innovate the world. We manufacture it in the United States. We expand and modernize our manufacturing capacity. And that's what this is all about. With respect to AI, you know, I think that's unbelievable.

Nation and production.

And that balance.

That's how I would doubt we maintained our.

<unk>.

<unk> ship in the design.

And in the software et cetera, but we sacrifice our manufacturing capacity.

Gina Raimondo: Like, first of all, as an American and as the U.S. Secretary of Commerce, it kind of gives me the chills to realize how the United States of America leads in AI because of our great entrepreneurs, you know, in the whole stack up and down. That's a source of competitive advantage. We need to continue to invest, but for you, frankly, it's a source of great upside and opportunity and customers. When I mentioned Sam Altman, when I talked to him or other customers in the industry, the volume of share that they project they need is mind-boggling, even if you take their projections and cut them in half. It's still mind-boggling. So, you know, it's exciting. It's exciting what AI can do to advance. Advanced Technology and Medical Care and such.

And with that our capacity to conduct the advanced research and development that we need to maintain our global leadership.

People ask me all the time, how do we compete with China, we run faster in America.

Our innovate the world, we manufacture in the United States, we expand and modernize our manufacturing capacity.

And that's what this is all about with respect to AI.

You know I think that's unbelievable, how like first of all as an American and in the U S. Secretary of Commerce. It kind of gives me the chills to realize.

How the United States of America lead in AI.

Because of our great entrepreneurs in the whole stack up and down the stack. That's a source of competitive advantage, we need to continue to invest in that.

Gina Raimondo: Of course, you have to keep a lid on the risks, which I'm hard at work on. But I think it's really, perfect convergence for you at the time you have IFS, that you know the demand for 2 and 3 nanometers and 18a is just going to explode. Thank you.

But for you frankly, it's a source of great upside and opportunity in customers. When I, you mentioned, Sam Altman, when I talk to him or other customers in the industry. The volume of chips that they project. The need is mind boggling, even if you take their projections and cut them in half.

Gina Raimondo: And, you know, maybe say, you know, the CHIPS Act: are we, are we done? Do we, you know, have all the R&D underway? Do we need a CHIPS II, Secretary? You know, I'm out of breath running as fast as I can to implement CHIPS 1, but it's amazing.

It's still mind boggling.

So.

It's exciting what AI can do to.

Advance.

Advanced technology in medical care and such of course, you have to keep a lid on the risks, which I'm hard at work on but I think it's really.

Gina Raimondo: We were at Global Foundries yesterday, a billion-five investment. That's the third of our investments. And I think, you know, there'll be a steady drumbeat of those announcements to come in the coming weeks and months. We announced a week ago that we've launched NatCast, which is a purpose-built nonprofit. It'll be a public-private partnership. We announce Deidre Hanford. Many of you know, she was at Synapses for a long time. She's going to run this.

Perfect convergence for you at the time you have the ISS that you know the demand three two and three.

Three nanometer at 18, a is just going to explode.

Thank you and maybe say in the chip sector. We have redone do we do we have the all the R&D underway do we need a chips to secretary.

You know.

Gina Raimondo: And that's going to be our hub for research and development and workforce training. We'll be putting billions of dollars into that. All of that being said, I suspect there will have to be, whether you call it chip stew or something else, continued investment. If we want to lead the world, you know, look, we fell pretty far. We took our eye off the ball.

Yeah.

As I can to implement chips one.

But.

Yes.

Yesterday billion size investment that's a third of our investments and I think there will be a steady ramp of those announcements to come in the coming weeks and months.

We announced a week ago that we've launched Nat cat, which is a purpose built nonprofit it'll be a public private partnership.

Gina Raimondo: We used to manufacture 40 percent of the world's chips in the country. You know the numbers better than I do, but I don't know what 12, 15% of leading-edge chips, and now we're down to almost none in this country, so if we want to really compete globally, yeah, we're going to have to continue to invest. Yeah, thank you.

We announced theater Hanford many of you know she's at synapses for a long time, she is going to run this and that's going to be our hub for our research and development and workforce training will be putting billions of dollars into that all of that being said.

Gina Raimondo: And maybe, you know, just as we finish up here, obviously, we haven't announced our chip grant yet, yet, very soon, right? We're making that happen. But maybe just a final message for this audience, you know, and here at Intel Foundry Day, what's your message to them? Get excited, get ready, get ready to lead the world. America is a great country because we are... We out.

I suspect they will have to be whether you call it chips to or something continued investment if we want to lead the world.

We felt pretty far we took our eye off the ball, we used to manufacture 40% of the world's chips.

In this country, we used to manufacture you know the numbers better than I, but I don't know what 12, 15% of leading edge chips and now we're down to almost none in this country. So if we want to really compete globally. Yeah, we're going to have to continue to invest.

Gina Raimondo: And what CHIFT is about is a much bigger vision than just, you know, incentivizing 10 new fabs all around the world. If that's all we do, then shame on us. What this is about is getting the flywheel going, developing a deep and sustainable ecosystem again in this country. Intel is this country's... It's an American champion company with a very huge role to play in this revitalization, and I just, I'm excited. I'm ready to go.

And maybe just as we finish up here, obviously, we haven't announced our chip screen it yet.

Yet very soon right, we're making that happen, but maybe just a final message for this audience, you know and hear the Intel foundry day, what's your message to them.

Gina Raimondo: We did a big announcement yesterday. There's more to come. And I believe we will be very, very happy. Well, thank you so much for joining us today. Thank you, Gina, my friend, my partner in this great, incredible journey. Thank you again.

Get excited get ready get ready to lead the World America is a great country.

Because we we are competitive.

We out innovate, we outcompete and what chip is about is much bigger vision than just incentivizing 10, new fabs all around the country. If that's all we do then shame on US. What this is about is getting flywheel going developing a deep.

Unknown Executive: You know, we've described this as, you know, the critical underlayment. I just ask you, what aspect of your life is not becoming more digital? Well, everything is your health care, your finances, your social.

And sustainable ecosystem again in this country.

Unknown Executive: And with that, we simply call it the silicon economy, silicon and the economy becoming fused together in an inextricable way today. You know, 15 percent of every economic endeavor is expected to be 25 percent. And that's before we account for the implications of A.I. driving that more rapidly.

Intel is this country's.

Champion Chip company.

It's an American champion company, a very huge roles of play in this revitalization and.

I, just I'm excited I'm ready to go.

We did a big announcement yesterday theres more to come and I believe we will be very very successful well. Thank you so much for joining us today.

Happy to be here.

Thank you Gino my friend my partner in this great incredible journey. Thank you again.

Unknown Executive: And as stewards of Moore's Law, we see this relentless pursuit of more efficient, more capable, more scalable computing. And for that, we've been on this journey. And when we announced our, you know, Intel Unleashed, we also announced that we're going to get five nodes in four years. We're going to do something unheard of in the industry to return Intel to process technology leadership. And while we're not finished today,

We've described this as you know.

This critical underlayment I'd just ask you what aspect of your life is not becoming more digital.

Well everything is your health care your financial your social.

And with that we simply call it silicon and me silicon and the economy, becoming fused together in an inextricable way today, 15% of every economic endeavor heroes expected to be 25% and that's before we account for the implications of AI driving that more rapidly and as.

Unknown Executive: We see the end is soon in front of us on that journey. And Intel 7, you know, shipping and ramping and volume. Intel 4 with our core ultra launch, shipping, ramping, and volume. Intel 3 is production certified and will be with our server products launching in the first half of the year, going into volume production. So with this, we've gone on an incredible journey, but it continues into what we call the Angstrom era.

Two words of Moore's law, we see this relentless pursuit of more efficient more capable more scalable computing and for that we've been on this journey and when we announced our you know Intel unleashed. We also announced that we're going to get five nodes in four years, we're going to do something unheard of in the.

Unknown Executive: And for this, you know, Intel 20A and Intel 18A, the adoption of RibbonFED, a new transistor structure, Power Via, power delivery technology, the embrace of EUV. You know, and for this, you know, the first major new transistor re-architecting since 2012. And I'll tell you, I've been studying SEM diagrams for over 40 years. This is a Mona Lisa.

Industry to return Intel to process technology leadership, and while we're not finished today.

We see the end as soon in front of us on that journey, and Intel seven shipping and ramping in volume until four with our core ultra launch shipping and ramping in volume Intel three as production certified and will be with our server products launching in the first half of the year going into volume production.

Unknown Executive: No, no. This is a Rembrandt. No, no, no. I think it's a Michelangelo, right?

Unknown Executive: Sculpted in silicon, right? You know, for these truly are works of art. And I am thrilled with the progress our TD teams are making to bring us back to technology, you know, leadership, you know. And with that, the finish is 18A.

With this we've gone on an incredible journey, but then if continues into what we call. The angstrom era and for this you know Intel 20, Ey and Intel 18, a the adoption of ribbon fed a new transistor structure of power via power delivery technology, we embrace of EU V.

Unknown Executive: And with that, we've already sent to FAB our first 18A products. And this is a test chip for Clearwater Forest. In Clearwater Forest, Intel 18A top die, but then we're putting it on Intel 3 base die, a construction that you saw in the, you know, cartoon there that's being broken out.

And for this you know the first major new transistor, we are protecting since 2012 and I'll tell you I've been studying some diagrams for over 40 years.

Unknown Executive: It takes advantage of EMIB. It also takes advantage of Foveros Direct, the first copper-on-copper without solder ball bonding that will allow us to go below 10 micron pitches between the interface of the top and bottom dies for the first ever time. You know, you're going to hear Chun talk today about our assembly and test technology, singulated die testing, advanced packaging capabilities, but the testing to go with it as well. And how we're working with our partners and the EDA ecosystem that are represented here, Synopsys, Cadence, Ansys, Siemens, to enable these capabilities, delivering these advancements in technology, but also not just in our products, but for the first time So, I'm thrilled. This is what we call a family photo modem. So, kids, come to Papa.

This is a Mona Lisa no no. This is a Rembrandt no no no I think it's a michelangelo sculpted and silicon right for these truly are works of art and I am thrilled for the progress our T. Deems TD teams are playing to bring us back to tech.

Knowledge.

Leadership and with that the finishes a TNA and with that we've already sent into fab. Our first 18, a products and this is a test chip for Clearwater Forest and Clearwater Forest Intel 18, a top die, but then we're putting it on Intel.

Satya Nadella: Here we go, five nodes in four years. And I do want to announce, describe, and give a moment to our latest, newest 18A customer, my decades-long friend, Satya Nadella, speaking for Microsoft as the newest 18A customer. So let's hear from Satya now. Thank you so much, Pat.

Three base die of construction that you saw in the cartoon there that's being a broken out that takes advantage of <unk>. It also takes advantage of <unk> direct the first copper on copper without solder ball bonding that will allow us to go to below 10 micron pitched pitches between.

Satya Nadella: It's great to join you at your launch event. It's clear that we are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry. To achieve this vision, we will need a reliable supply of the most advanced high-performance and high-quality semiconductors, and all of us at Microsoft are committed to supporting Intel's efforts to build a strong supply chain right here in the United States. That's why we are so excited to work with Intel Foundry Services and why we have chosen a chip design that we plan to produce on Intel's 18A process. We look forward to sharing more details in the future, and I can't wait to see all that we will be delivering together for our customers in the years ahead. Thank you so very much.

The interface of top and bottom by the first ever time Youre going to hear tune talk today about our assembly and test technology simulated die testing advanced packaging capabilities, but the testing to go with it as well you know and how we're working with our partners in EDA ecosystem that are represented here synopsys cadence.

To answer the Siemens or to enable these capabilities delivering.

Delivering these advancements in the technology, but also not just in our products, but for the first time ever making them available to the entire industry. So I'm thrilled. This is what we call a family photo mode. So kids come to Papa here, we go five nodes in four years.

And I do want to announce describe you know and give a moment to our latest newest 18, a customer my decades long friends Satya Nadella speaking for Microsoft is the newest 18 eight.

Unknown Executive: Thank you, Satya. And, you know, now that we see the light at the end of the tunnel and have finished five nodes in four years, are we finished? Now that we've gotten back to leadership? No!

Unknown Executive: Having gone on this grueling trek to five nodes in four years, Moore's Law is alive and well, and you're going to hear more about that today. So can I tell you more about what comes after 18A? Yeah.

Customers, let's hear from such them now.

Thank you so much Pat it's great to join you at your launch event. It's clear that we are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry.

Unknown Executive: And today, we're announcing that we're extending these nodes. We're adding major and minor nodes to them, a combination of older and leading-edge nodes to ensure our customers have access to the process technology they need. Today, we are announcing Intel 14A for the first time. You can think about this like 4, 1.4 nanometer technology, but Intel 14A is venturing deeply into the Angstrom era.

To achieve this vision, we will need a reliable supply of the most advanced high performance and high quality semiconductors, and all of US at Microsoft are committed to supporting Intel's effort to build a strong supply chain right here in the United States. That's why we are so excited to work with Intel foundry services and why.

Unknown Executive: But we're also announcing that we're extending our nodes, as you see here, adding P-nodes, enhancements to those existing, you know, adding performance capabilities, adding T-nodes through Silicon VIA, new feature enhancements with E-nodes on the roadmap, filling out that roadmap of capability. And today we're announcing for the first time Intel 16E, enhancements to our Intel 16 technology as So we're filling out that full set of nodes in the roadmap that we have to go beyond it, you know, and for that, we're, you know, continuing to see a broader set of portfolios of interest from the industry. And we're thrilled to have Jason Wang here, the UMC president. And we just announced a partner. Where are you, Jason?

We have chosen a chip design that we plan to produce on Intel's 18, a process. We look forward to sharing more details in the future and icon wait to see all that we will be delivering together for our customers in the years ahead. Thank you so very much.

Thank you Sacha.

And now that you know, we we see the light at the end of the tunnel and finishing five nodes in four years, our refinished now that we've gotten back to leadership no having gone in this grooming track to five nodes in four years, Moores law alive, and well and you're going to hear me.

More about that today, so can I tell you more about what comes after a TNA.

Yes.

And today, we're announcing that we're extending these nodes, we're adding major and minor notes to it a combination of older and leading edge nodes to ensure our customers have access to the process technology. They need today, we are announcing Intel 14, a for the first time.

Unknown Executive: You're supposed to be right there. So, right. So, Jason Wang from UMC joining us as well, a partnership to add a 12 nanometer node, you know, building out a real foundry roadmap and working with our customers to continuously evolve our offerings on Intel's leading and mature node technologies. But as we've seen, as we've gone through this period of time, this AI era explosion, wafers are cool packaging, something that we sort of kept in the corner of Intel and So, Intel foundry offers a broad set now of advanced assembly and test technologies, and we're under volume ramp. You know, we're seeing more and more customers taking advantage of the capacity and the technology that we offer to optimize power to innovate in X, Y, and Z as well, being able to take these technologies of EMIB and Foveros and Foveros Direct, bringing higher density pitch and working on next generation. Intel, 25 years ago, drove the standardization of organic packages. Now we're driving the next generation of glass-based packages, and with that, the ability to directly interface with optics and waveguides directly into the package construct for the most advanced system capabilities as well. Chun-Li, this afternoon, will give a full roadmap of these capabilities now available to the industry.

Think about this like four 1.4 nanometer technology, but Intel 14, a venturing deeply into the angstrom era 14, a first processes.

But we're also announcing that we're extending our nodes as you see on here, adding P nodes enhancements to those existing adding performance capabilities, adding T nodes through silicon via new.

Feature enhancements with E nodes on the roadmap filling out that roadmap of capability. You know today, we are announcing for the first time, Intel 16 E enhancements to our Intel 16 technology as well. So we're filling out that full set of nodes in the roadmap that we have to go beyond that hill and <unk>.

For that we're continuing to see a broader set of portfolio of interest from the industry and we're thrilled to have Jason Wang here. The UMC precedent, we just announced the partner argue Jason there's supposed to be right. There so right, so, but Jason Wang from UMC, joining us as well a partnership to add.

12 nanometer node, you're building out a real foundry roadmap and working with our customers to continuously evolve our offerings on intel's, leading and mature node technologies, but as we've seen as we've gone through this period of time this AI era explosion.

Unknown Executive: And we've seen extraordinary interest from customers and the momentum that they have. Intel Foundry has added a number of additional AI customers to our portfolio of packaging offerings as well. The AI era needs advanced wafers, but it also needs more systems and packaging capabilities, an area that Intel is the clear leader in. And this now includes, as customers, some of the largest AI companies in the world. And I'm happy to share that we now have an expected lifetime deal value of over $15 billion for customers in our foundry customer business into the future.

Wafers are cool packaging.

So that we sort of kept in the corner of Intel and private has gotten to be really cool. So Intel foundry offers a broad set now of advanced Assembly and test technologies, and we're undervalued ramp we're seeing more and more customers taking advantage of the capacity and the tech.

Unknown Executive: Including the Microsoft announcement today, the advanced packaging customers that we described on leading-edge nodes as well as mature nodes. We're continuing to see great responses from our customers for Intel foundry. As I conclude my time on stage.

Knowledge that we offer to optimize power to innovate in X y and Z.

As well being able to take these technologies of <unk> and force and Faubourg Rossa direct bringing higher density pitch and working on next generation Intel 25 years ago drove the standardization of organic packages now we're driving the next generation of glass.

Unknown Executive: Today is a day three years in the making, and I couldn't be prouder of the team at Intel that has rallied behind this rebuilding of this iconic company. And you're going to hear from a number of those leaders today, bringing together the world's first system foundry capabilities for the AI era. And with that, it's my pleasure to introduce to the stage a friend for decades now and the zealous leader of our foundry services, none other than Stu Pan. Please welcome Stu to the stage. Good morning.

<unk> packages and with that the ability to directly interface with optics and wave guides directly into the package construct for the most advanced system capabilities as well Choon. Lee. This afternoon will give you a full road map of these capabilities now available to the industry and we.

Stu Pan: Thank you all for coming this morning. What I'd like to do is break down that top sentence, a systems foundry for the AI era. First off... I want to show you why we believe we are a founder. We have the table stakes, we have the ability to deliver what you need, when you need it. I want to establish what a systems boundary is.

<unk> seen extraordinary interest from customers and the momentum that they have you know an Intel foundry has added a number of additional AI customers to our portfolio of packaging offerings as well AI era needs advanced wafers, but have even needs more systems and packaging capabilities.

Stu Pan: A lot of questions we talk about in the press like, Systems of Foundry, Foundry of Systems, what does it mean? And then I'm going to talk about why the AI era is driving significant upside demand for all of us and is an incredible tailwind for us. But first, I want to offer up a personal perspective on Intel, the company. The thing that the IBM PC and I have in common is that we both came to Intel in 1981. So, a long time, 43 years.

And the area that Intel is the clear leader in and this now includes as customers. Some of the largest AI leaders in the world and I'm happy to share that we now have expected lifetime deal value of over $15 billion of customer in our foundry customer business into the <unk>.

Future.

The Microsoft announcement today, the advanced packaging customers that we described on leading edge nodes as well as our mature nodes, we're continuing to see great response from our customers for Intel foundry.

Stu Pan: And so I have a sense of history about this place. And one of the things I'd like to talk about first is the people, because it's the people that make this company. Our people can sense and feel this momentum. You can hear it in their voices. You can see it in their actions.

Hello.

As I conclude my time on stage.

Today is a day three years in the making.

And I couldn't be prouder of the team at Intel that has rallied behind this rebuilding of this iconic company and you're going to hear from a number of those leaders today.

Stu Pan: You even get the occasional high five in the factory. They know that you don't need to be in Taiwan to build the world's most advanced semiconductor. They've realized this five nodes in four years. This audacious goal that Pat laid out, you can see the check marks across all the boxes here.

Bringing together the world's first system foundry capabilities for the AI era, and with that it's my pleasure to introduce to the stage a friend for decades, now and the zealous leader of our foundry services, none other than Stewpan. Please welcome student space.

Stu Pan: So it's an honor to represent the 52,000 scientists, engineers, factory people, logistics people, order managers, and all this organization. We're ready to earn the right to be your foundry supplier. Nobody's going to give us that.

Okay.

Yes.

Good morning. Thank.

Thank you all for coming this morning, what I would like to do is break down that top sense, our system's foundry for the AI era.

First off I want to show you why we believe we are a foundry.

We have the table Stakes, we have the ability to deliver what you need when you need it.

Stu Pan: We want to earn it. So that's one perspective. I want to offer up a second perspective, and this comes from Chris Miller, the author of the book Chip War. This is a New York Times bestseller, and the Financial Times Book of the Year. It took Chris 10 years to write it, and it's incredibly timely.

I want to establish what is the system's foundry a lot of questions we talk Presley.

Systems of foundry foundry or systems, what does it mean.

And then I'm going to talk about why the AI era.

Is driving significant upside demand for all of US and is an incredible tailwind for us.

But first I want to offer up a personal perspective on Intel the company.

Stu Pan: Considering what Secretary Raimondo just talked about. He talked about the development of the transistor on up through the last few years. Now, Chris in a speech in October said this quote to the employees, quote unquote, Intel is the most important company of the last 50 years. So I called Kristen, and I said, are you okay if I say this publicly?

The thing that the IV N P C than I have in common.

As we go came to Intel and 1981.

My time 43 years.

And so I have a sense of history about this place.

And one of the things I like to talk about first is the people because the people that make this company.

Our people can sense and field. This momentum you can hear it in their voices.

You can see it in their actions.

Get the occasional high five and factory.

Stu Pan: Yeah, okay. Go ahead. Good publicity for the book. You know, I've been associated with Intel, like I said, for 43 years. 37 years as an employee, and six years as the Chief Supply Chain Officer of HP.

They know that you don't need to be in Taiwan to build the world's most advanced semiconductors.

They realize this five nodes in four years. This audacious goal that Pat laid out you can see the check marks across all the boxes here. So it's an honor to represent the 52000 scientists engineers factory people logistics people or imagine all of this organization.

Stu Pan: I came back to Intel three months after Pat did because I believed this quote to be true, and I believed it long before Chris said it, and what you're going to hear in the next 40 minutes or so is all the reasons why Chip War, Season 2, is about to begin. So let's start from the beginning. Gordon's original paper was called Cramming More Components on Integrated Circuits and it was published in 1965.

We're ready to earn the right to be your foundry supplier nobody's going to give us that we want to earn it.

So that's one perspective.

I Wonder if a second perspective.

And this comes from Chris.

Chris Miller, the author of the book Chip War.

This is a newer times' bestseller, if I cant financial times book of the year.

Stu Pan: Every time I read it, I'm stunned by how present he was. But if you read all the way through the paper, and by the way, I know Pat talks about physics and Moore's Law and periodic tables. Read the paper; it's also about economics, and, in fact, it's the foundation for Moore's Law. It's about driving strong economics. In the last section of the paper, Gordon remarks, We've come to a day of reckoning.

To Chris' 10 years to write it and it's incredibly timely.

Considering what secretary, we might've just talked about he talked about the development of transistor honest.

The last few years now.

Now Chris in a speech in October.

Said this close to the employees.

Unquote Intel is the most important company of the last 50 years.

So I called Christmas at our U K, if I say this publicly.

Stu Pan: Quote-unquote, it may prove to be more economical to build large systems out of smaller functions, which are separately packaged and interconnected. And this is why I believe we're in the area of the systems foundry. You can no longer do just monolithic devices. You have to break it up.

Okay go ahead.

For the book.

You know I've been associated until they said for 43 years.

37 years as an employee.

Six years as the chief supply chain officer of HP.

I came back to Intel three months after Pat dead, because I believe this quote to be true.

Stu Pan: You have to adjust for thermal profiles. You have to address cost. You have to have flexibility, and this is all driving a new level of systems thinking into the foundry business. And at Intel, we're no strangers to systems thinking. We started in 1980 with Multibus.

And I believed it long before Chris said it.

And what Youre going to hear in the next 40 minutes or so.

Is all of the reasons why chip war.

Season, two is about to begin.

So let's start from the beginning.

Gordon's original paper was called Cramming more components on integrated circuits as published in 1965.

Stu Pan: 1990 with PCI Express, the idea that you could put a common bus architecture inside of a PC and create whole new markets. We moved on to Centrino, where wireless created an explosion of notebook demand. And today we're at the AI Systems Foundry. This idea that you have to do open architectures, reference platforms, and open standards in order to foster all the innovation you need to meet the demand for what AI requires. In this systems era, you not only have to have open standards between devices, you have to have standards on the device itself. Think about the fact that to do a training model a day requires 100,000 CPUs, all running in concert, all on the same data set.

Every time I read it I'm stunned by how pressing he was.

But if you read all through the paper by the way I know Pat talks about physics, and Moore's law and periodic tables.

Read the paper thoughts about economics and in fact, it's the foundation for Moore's law.

It's about driving strong economics.

In the last section of the paper Gordon's remarks.

We've come to a day of reckoning.

Quote unquote, it may prove to be more economical to build large systems out of smaller functions.

Which are separately packaged and interconnected and this is why I believe we're in the area of the system's foundry you can no longer do just monolithic devices you have to break it up you have to adjust for thermal profile. So you have to address cost you have to have flexibility.

And this is all driving a new level of systems thinking into the foundry business.

Stu Pan: The next round of training models will require a million CPUs. That's something that requires standards everywhere, from chips inside to chips outside. This is what's necessary for our customers to succeed, and this is the fundamental reason why Intel is a systems company turning into a foundry, not the other way around. And that's what makes our entry into this market so powerful. So now that we've described system thinking, let's look at how the original Foundry model was created. Now,

And at Intel We're no strangers to systems thinking we started 19 eight with multi bus 1990 with PCI Express the idea that you could put a common bus architecture inside of RPC and create whole new markets. We moved onto send train O where wireless create an explosion of notebook demand and today.

We're at the AI systems foundry. This idea that you have to do open architectures reference platforms.

Stu Pan: Since CC Way has been kind enough to mention us in his last few earnings calls, I thought I'd return the favor and talk about TSMC in my presentation. Now, this was a presentation that Morris Chang gave at MIT last October. In it, he describes the foundry model. He says it's research and development, it's wafer fabrication, it's advanced packaging, and he says in the red line that's what TSMC does, and said in the blue line Intel, everybody else does everything else. You might even call that an IBM 1.0 kind of manufacturer. Now,

Often standards in order to foster all the innovation you need to go meet the demands of what AI requires.

In this system Zera, you can not only have to have open standards between devices you have to have standards on the device I think about the fact of to do a trading model day requires 100000 Cpus all running in concert all on the same dataset. The next round of training models require a million seats.

To us that's something that requires standards everywhere from chips inside to chip's outside this is what's necessary.

Stu Pan: TSMC has been incredibly successful with this model. Discipline Execution, Discipline Strategy, Consistent Innovation. But to quote Bob Dylan.

For our customers succeed and this is the fundamental reason why Intel is a systems company turning into a foundry not the other way round and that's what makes our entry in this market. So powerful so now that we described system thinking let's look at how the original foundry model was created.

Stu Pan: Times are changing. Let me tell you why. There's an idea of systems technology co-optimization where you look at application workloads, software, system architecture, memory interconnect, Advanced Packaging Technology, Corp., all these different things. What happens today is people focus on their layer and maybe the layer up on top of it. And, in fact, this is really what a classic foundry does today. But we're now in the realm of the exponential. You know, Sam Altman is going to come out later this afternoon and talk about how he doesn't have enough capacity to do what he wants. And as we talk to our customers around the world, we're now realizing that it's not just enough to do Moore's Law; it's not just enough to do a systems kind of implementation. You have to look at all of these combinations.

Now.

Since the Seaway has been kind enough to mention us in his last few earnings call I thought I return the favor.

And talk about TSMC in my presentation.

Now this is a presentation that Morris Chang gave at Ni M. I T last October and as he described the foundry model. He says its research and development its wafer fabrication, it's advanced packaging.

And he says in the Red line, that's what TSMC, Todd and then in the Blue line Intolerably Elster everything else you might've been call that an IV M 1.0 kind of manufacturer.

Now.

He is TSMC has been incredibly successful small.

Disciplined execution disciplined strategy consistent innovation.

But to quote Bob Dylan.

The times they are changing.

Stu Pan: You can get a couple of things right, but to do a system that coordinates the activities of solving a training model across 100,000 CPUs requires you to get all the gear ratios right. If you're mismatched in memory, if you're mismatched in networking, you wind up throwing away valuable cycles and valuable resources. So we've got to get 100x more out of what we're doing. And we describe the evolution. Now let's build out the strategy and talk about what the revolution is. We like to think about this in three basic layers. First off, we have to be a world-class foundry, right? Renwen Chen, the CEO of Qualcomm, talks about the fact that Silicon Speaks, and Silicon Speaks in four different ways. Without that, performance, power, area, and cost would be greatly reduced.

Let me tell you why.

There's the idea of assistance technology co optimization, where you look at application workloads software system architecture memory interconnect advanced packing Tech packaging Technology Corp. All of these different things.

What happens today is people focus on their layer in maybe the layer on top of it and in fact this is really what a classic foundry does today.

But we're now in the realm of the exponential Psammoma is going to come out later on this afternoon to talk about he doesn't have enough capacity to do what he wants to do.

And as we talk to our customers around the world. We're now realizing that it's not just enough to do Moore's law, it's not just enough to do with systems.

Implementation you have to look at all of these combinations you can get a couple of things right, but to do assistant that coordinates the activities of solving a training model across 100000 Cpus.

Stu Pan: You're not in the business. And so we're absolutely focused on making sure we are world-class across all four of those dimensions. On top of that, you have to have an ecosystem. We're going to talk about the ecosystem at length throughout the day. That ecosystem is what allows you to take advantage of PPAC. The next layer of the triangle of the pyramid is all about resilient, sustainable supply. And that's what Pat just talked about earlier, and that's what Secretary Romano talked about, too.

Requires you to get all the gear ratios right, if you're mismatched in memory. If your mismatch in networking you wind up throwing away valuable cycles of the idle resources. So we gotta get a hunter next more out of what we're doing so we describe the evolution now let's build out the strategy and talk about what's the.

All of this.

We'd like to think about this in three basic layers.

First off we have to be a world class foundry.

Stu Pan: This need to have the capability around the world to build it, and to build it in a sustainable fashion. The top layer of the pyramid is this idea of systems of chips. We're putting systems inside a chip, and we're working with our Foundry partners to create these systems. So let's walk you through what that means. Now Pat obviously was very proud of his children, his grandchildren, and their relatives. I'm not quite sure.

Rowan Chen the CEO of Qualcomm talks about the fact that silicon speaks.

And silicon speaks in four different ways performance power.

Area and cost.

Without that youre not in the business and so we're.

Absolutely focused on making sure we are world class across all four of those dimensions.

On top of that you have to have an ecosystem, we're going to talk about the ecosystem at length throughout the day that ecosystem. As it allows you was is what allows you to take advantage of P. P. A C.

Stu Pan: So I won't go into a lot of detail on this, but I will point out to you, and you'll hear from Anne a little bit later this afternoon, that what we do with 18A has been incredibly well received by the hyperscaler community. Why?

The next layer of the triangle of the pyramid is all about resilient sustainable supply and that's what Pat just talked about Arun that's what secretary amount of talk about this need to have capability around the world to build this and to build it in a sustainable fashion.

Stu Pan: Because AT&T has two creatives. One has, we think, the world's best transistor structure. But it also has this idea of power via this idea that you supply power to the bottom of the device. Why is that important? Because these AI devices are 1,000 watt devices. They take hundreds of amps of current. To do this the right way means you have to come up with a totally different way of developing backside power.

The top layer of the pyramid is this idea of systems of chips.

We're putting system inside a chip and we're working with our foundry partners great systems of chips. So let's walk you through what that means.

Now Pat obviously, it was very proud of as his children and his grandchildren or relatives are not quite sure.

So I won't go into a lot of detail on this but I will point out to you and you'll hear from Ann.

Stu Pan: And I will talk to you about how we've developed that and why we think it's so robust. Pat mentioned we're extending our note family. The thing I want to just spend a little bit of time on, since you're going to hear a lot more about the roadmap, is the bottom, where it talks about Tower and the partnership we signed with them just recently for our New Mexico factory and what we're doing with UMC. What's so important about those partnerships, those collaboration agreements? is that they give us a way to load balance our factories to give us the best possible cost structure, take advantage of the investments we've made in tools and people in Building, and rounds out our cost structure dramatically. And in fact, we are now in conversations with Tower about ways we can develop the next extension, possibly even 40 nanometer, just started. These abilities to take advantage of this world-class factory network and extend it in multiple ways is the thing that helps us get the C part of PPAC, the cost part of PPAC.

Little bit later on this afternoon.

That what we do with 18, a has been incredibly well received.

By the Hyperscale community why because a teeny as to creatinine is one it has we think the world's best transistor structure, but it also has this idea of power via this idea that you supply power of the bottom of the device.

Why is that important because these AI devices are thousand what devices. They take hundreds of amps of current.

To do this the right way means you have to come up with a totally different way of developing backside power and I'll talk to you how we've developed that and why we think it is so robust.

Pat mentioned, we're extending out our node families.

I wanted to spend a little bit of time on since you're going hear a lot more about the roadmap is the bottom.

Where it talks about tower the partnership we signed with them just recently for our New Mexico factory and what we're doing with UMC, what's so important about those partnerships those collaboration agreements.

Is that they give us a way to load balancer factories to give us the best possible cost structure to take advantage of the investments we've made in tools and people and buildings.

And rounds out our cost structure dramatically and in fact, we just are now in conversations with tower about ways. We can develop the next extension with them, possibly even 40 nanometer just started just recently.

Stu Pan: By building at scale, we'll absolutely be able to hit that. The next part of the ecosystem is around all the folks you saw walking into this hallway, the 30 plus suppliers, the EDA vendors, the IP vendors, the people bringing complex IP so that when you get our process, you have the capability to design all sorts of things because we have a rich assortment of IP and EDA solutions. We're not asking you to pick a certain path.

These abilities to take advantage of this world Class factory network and extended multiple ways is the thing that helps us get the C. Part of P. P. A C. The cost part of Tpa see by building at scale, we will absolutely be able to hit that.

The next part of the ecosystem.

Is around all the folks you saw walking into this hallway, the 30 plus suppliers the EDA vendors the IP vendors that people, bringing complex IP. So that when you get our process you have the capability design all sorts of things because we have a rich assortment of IP and EDA solutions, where.

Stu Pan: We're making sure we cover as many paths as possible. So the way you do your business now is the way that you can do it with us. We round that out with design services and cloud providers. We just announced a partnership with Faraday in order to help our customers build out complex, Our cloud providers run all these EDA systems in a cost-effective way. And lastly, we're creating a separate ecosystem for military and aerospace customers. It's important that their needs are taken care of.

And I'd ask you to pick a certain path, we're making sure we cover as many past as possible. So the way you do your business now is the way that you can do it with us.

We round that out with design services and cloud providers, we just announced a partnership with parity.

In order to help our customers build out complex ethics are cloud providers run all these EDI eight systems at a cost effective way and lastly, we're creating a separate ecosystem for the military and aerospace customers. It's important that their needs are taken care of so with folks with cadence Synopsys was seen.

Stu Pan: So the folks at Cadence, Synopsys, Siemens, FlexLogic, Draper, Trusteo, these are the folks who help us develop specific things for military applications. And it's a very powerful thing for us as a country when they do that. So this is how we make it easy for our customers. And I would encourage you as you're walking out through the showcases, and by the way, we sort of made it so you had to walk past them. Some are really duty-free, same kind of thing. Talk to them.

<unk> Flex logic Draper trustee of these are the folks who help us develop specific things for military applications and it's a very powerful thing for us as a country when they do that.

So this is how we make it easy for our customers and I would encourage you as you're walking out through the showcase and by the way we sort of made it. So you had to walk past them.

Duty free same kind of thing.

Talk to them. They have made an incredible investment with us and we're going to talk a lot more about this a little bit later now the next layer of the pyramid.

Stu Pan: They have made an incredible investment with us, and we're going to talk a lot more about this a little bit later. Now, the next layer of the pyramid. This idea of resilience.

This idea of resilient sustainable supply.

Stu Pan: Sustainable Supply. You know, Pat touched on this, and later in the afternoon, Kayvon will lay out targets for what that means because sustainable supply is not about PowerPoint slides. It's about a culture that works at this for decades. And I would strongly invite all of our competitors to match the targets that Kayvon is going to lay out. They are tough.

You know Pat touched on this.

And later on in the afternoon.

Kayvon will lay out targets for what that means because sustainable supply is not about powerpoint slides.

It's about our culture that works at this for decades, and I would strongly invite all of our competitors to match the targets that kayvon, it's going to lay out they are tough they are demanding they are essential.

Stu Pan: They are demanding. They are essential in this world where we all want sustainable. Resilient. Supply. Now there's another box in here.

In this world, where we all want.

Sustainable resilient supply.

Now there's another box in here.

Stu Pan: Security. Why is security so important? In a speech given by Matt Kay at one of our federal conferences a few months ago, Dr. K talked about the need to give our troops an asymmetric advantage in the battlefield. What does that mean?

That's security.

Why security so important.

In a speech given by Matt Kay at one of our federal conferences, a few months ago.

Doctor Kate talked about the need.

To give our troops asymmetric advantage in the battlefield, what does that mean it means we give them today's technology today that technology that was done 10 years ago.

Stu Pan: It means we give them today's technology today, not technology that was done 10 years ago. And in our discussions with the defense community, they've always wanted this. But we haven't found a way to take the things that they regard that give us that asymmetric advantage, the things that are highly confidential. How do you build it cost-effectively? How do you get it out on time?

And yeah.

Discussions with defense community they've always wanted this but we haven't found a way to take the things that they regard they give us that asymmetric advantage of things that are highly confidential.

How do you build it cost effectively how do you get it out on time by.

Stu Pan: By working closely with our DoD partners, we have solved that problem. And that's one of the reasons the US government gave us a billion-dollar contract a few months ago to take that to the next level, to be able to create this trusted, secure environment. So the things that our colleagues in DOD know about, the things they want to embed in our silicon, but the things they want to protect, will be done so in a secure fashion, and it's super powerful because we all want to give our troops an Now I talked earlier about this day of reckoning and what that means. It's happening now.

By working closely with our <unk> partners, we have solved that problem.

And that's one of the reasons the U S government gave us a $1 billion contract a few months ago is to go take that to the next step to go be able to create this trusted secure environment. So the things that our colleagues in D. O D know about the things they want to embed in our silicon, but the things they want to protect will be done so in a secure fashion.

And it's super powerful because we all want to give our troops asymmetric advantage.

Now I talked earlier about this day of reckoning, what that means it's happening now we can no longer do designs at a monolithic level. We are now at radical limited design. The die sizes that are 800 square millimeters of silicon.

Stu Pan: We can no longer do designs at a monolithic level. We are now at reticle limited designs, design sizes that are 800 square millimeters of silicon. The vast majority of customers we talked to are absolutely moving this idea of this aggregated design because we have to move beyond record limits and thermal constraints and, by the way, even cost constraints because when you're building these really big, they're really expensive. Isn't there a better way, as Pat talked about, with clear water forests, to take smaller tiles on the more advanced nodes, get better yields out of them, package them together, and have more flexibility?

The vast majority of customers we talked to you are absolutely moving this idea of this aggregated designed because we have to move around right beyond rectal limits in thermal constraints and finally, even cost constraints because when you're building these really big die sizes, they're really expensive.

Isn't there a better way to take advantage as Pat talked about with Clearwater fast.

For us to take smaller tiles on the more advanced nodes get better yields out and package them together.

Have more flexibility to do all of that really requires he will assist them on a chip. So you can see in the animation here, how we build it out and this is literally how we're going to build out and the factory. The idea of a substrate. The idea based is the idea of logic tiles. The idea of I O titles on the side.

Stu Pan: To do all that really requires, if you will, a system on a chip. So you can see in the animation here how we build it out. And this is literally how we're going to build it out in the factory. The idea of a substrate, the idea of base dyes, the idea of logic tiles, the idea of IO tiles on the side. Why do this?

Why do this.

Stu Pan: It gives our customers the ability to optimally trade for what they need for their design. The things that you do for a training engine will be different than what you do for an inference engine, and only by having all these levers to pull can you get this done. Now, we learned a lot through a device called Ponte Vecchio, or as the branding people call it, Intel Data Center GPU Max. I call it Ponte Vecchio.

Gives our customers the ability to optimally trade for what they need for their design.

The things that you do for training engine will be different than what you do for an inference engine.

And only by having all of these levers to go Paul can you get this done.

Now.

We learned a lot through device called <unk> or is the branding people call Intel data Center GPU Max series.

I call it part of Ikea.

Stu Pan: It's an SoC, it's a billion transistor, a hundred billion transistor SoC. It's dozens of chiplet tiles, 47. It's multiple suppliers, by the way; we coexist with TSMC in the same package. We developed testing techniques to go off and do that. We have this idea of singulated dye tests.

It's an SFC, it's a billion transistor 100 billion transistor S O C.

It's dozens of chip led tiles 47 of them.

It's multiple suppliers by way, we coexist with TSMC in the same package right.

We developed testing techniques to go off and do that we do this idea of simulated dye test what does that mean it means every single die that goes into that package is a known good die.

Stu Pan: What does that mean? It means every single dye that goes into that package is a known good dye. Why is that important? Because you want every one of them to be good.

Why is that important because you want every one of them to be good the assembly test yield.

Stu Pan: The assembly test yields on this device are 95% plus. It is the Super Bowl of Integrated Design. Now, what do you do with it? If you're Argonne National Labs and our partners at HPE, you build a really big supercomputer, and they built a computer that was 66,000 Ponte Vecchios, 20,000 Sapphire Rapids, and it looks,... Okay. What do you do with something like that?

And this device is 95% plus it is the Super Bowl.

Of integrated design now what do you do with it well if your Argonne National Labs, and our partners at HPE, you build a really big supercomputer and they build a computer that was 66000 upon Novak is 20000 Sapphire Rapids.

And it looks like this.

Okay.

What do you do with something like that well.

Stu Pan: Well, you solved some really hard science problems. If you want to model the airflow across the wing, you can do that on a workstation.

You saw some really hard science problems, if you want to model the airflow across the wing you can do that on a workstation. If you want to model the airflow across a plane.

Stu Pan: If you want to model airflow across a plane, you do it on this. If you want to model fusion reactions, which are pretty tricky things to model, you do it on a device like this. If you want to model cancer-curing drugs at the molecular level, you do it like this.

You do it on this if you want to model fusion reactions, which are pretty tricky things to model you do it on a device like this if you want a model if you want them all cancer.

Turing drugs at the molecular level you do it like this.

Stu Pan: It's 600 tons of computing power. It's for tennis courts, is the weight of an Airbus. It has 300 miles of optical cable. It takes 34,000 gallons a minute. By the way, your faucet at home?

It's 600 tons of compute it's.

It's for tennis courts.

It is the weight of an Airbus.

It has 300 miles of optical cable.

It takes 34000 gallons a minute too.

It's a cool by the way your faucet at home the gallon a minute 34000 gallons a minute. So when we talk about how design and stuff we have to find ways to make this more power efficient to make us more cost effective.

Stu Pan: It's a gallon a minute. 34,000 gallons a minute. So when we talk about how to design this stuff, we have to find ways to make this more power efficient, to make this more cost-effective. This today is the second fastest supercomputer in the world, by the way, at 100,000 CPUs roughly. You know, to handle the demands of AI, we're going to go far beyond that. And that's why this idea of scalability is so important.

This today is the second fastest supercomputer in the world by the way at 100000 Cpus roughly.

You know to handle the demands of AI, we're going to go far beyond that and that's why this idea of scalability is so important.

Stu Pan: Now let's go through the top of the pyramid, this idea of systems of chips. You know, systems of chips require great packaging technology, and we're making that packaging technology available to all of our customers. It requires this idea of standards.

Now, let's go through the top of the pyramid. This idea of systems a chip.

Systems of chip requires Pat mentioned great.

Great packaging technology, and we're making that packaging technology available to all of our customers. It requires this idea of standards. We've created standard called <unk>, which allows chip to chip connectivity I think of it as the PCI Express.

Stu Pan: We've created a standard called UCIE, which allows chip-to-chip connectivity. Think of it as the PCI Express of what we did back in the mid-90s, this idea that you can add mix and match. By the way, you can mix and match different foundry suppliers. We like that because we're sort of an underdog in all this.

Of what we did back in the mid Ninety's. This idea that you can add mix-and-match, right, where you can mix and match different foundry suppliers, we like that because we're sort of an underdog in August some of our competitors not so much but.

Stu Pan: Some of our competitors, not so much. Our customers want this kind of flexibility, and we're going to talk extensively about this later in the afternoon. June's going to talk about optical interconnects as an example. But there's one thing I really want to point out at the bottom, and that's that little IEEE signal for Ethernet. So, as you can see from the rendering.

Our customers want this kind of flexibility.

And we're going to talk exactly about this later on the afternoon tune is going to talk about optical interconnects as an example, but there's one thing I really want to point out the bottom and that's that little I Tripoli signal for Ethernet.

So as you can see from the rendering.

Stu Pan: What we're doing is taking... Systems Ownership, and with new Ethernet standards, we are working closely with a number of partners. You were going to be building systems of chips. Why do you need systems of chips? Because it's the same problem I mentioned earlier.

What we're doing is taking.

Systems on a chip.

And with new Ethernet standards are working closely with the.

A number of partners.

You were gonna viewed building systems of chips, why do you need systems of chips, because it's the same problem I mentioned earlier, you need to train miles with 100000, Cpus now and a million potentially down the road and maybe up to $10 million.

Stu Pan: You need to train models with 100,000 CPUs now and a million potentially down the road and then maybe up to 10 million. When you're moving and coordinating data across all of these devices, you need standards and connectivity, and that's what we provide. And really, when you think about it... What is it going to take to bring AI everywhere? How do you make it cost-effective?

When you're moving a coordinating data across all of these devices.

You need to have standards and connectivity and that's what we provide.

And really when you think about it.

What is what's it going to take to bring AI everywhere, how do you make it cost effective how do you make it capital efficient.

Stu Pan: How do you make it capital efficient? You know, yes, yeah, I know Sam's asking for trillions. But we want to make sure we spend all that money in the most cost-effective manner possible. So Let's break that out, you have data center chips doubling year on year, but the efficiency needs are the things that are really... You know, the New York Times ran an article that AI could soon need as much electricity as an entire country. So I'm sure you're curious, like, which countries? Sweden?

Yes, Yeah, I know Sam's asking for trillions, but we want to make sure.

You're spending all that money in the most cost effective manner possible. So.

Let's break that out.

You have data center chips doubling year on year, but the efficiency needs of the things that are really eye catching.

New York Times ran an article that AI could soon need as much electricity as an entire countries. So I'm sure you're curious like which countries, Sweden, the Netherlands, Argentina. If you were to run all of the AI servers that market estimates have.

Stu Pan: The Netherlands, Argentina, if you were to run all of the AI servers that market estimates have on DGX-100, those kind of devices, you would take 85 to 134 kilowatt hours, kilowatt hours. By the way, the great state of California, its entire power generation capability today is 30 terawatts for the entire state. So bringing AI everywhere is going to require us and our foundry partners to figure out how to do this cost effectively. And this is why the essential elements of an AI foundry are these things. Start out with us being the stewards of Morse law, right?

On D. G X tube Dx 100, those kind of devices.

You would take 85 to 134 Terawatt hours terawatt hours by the way the great State of California, It's entire power generation capability today is 30 terawatt hours for the entire state.

So.

Bringing AI everywhere is going to require us in our foundry partners to figure out how to do this cost effectively and this is why the essential elements of an AI foundry are these things.

Start out with us being the stewards of Moore's law right. The idea that we're in a double the amount of transistors every couple of years and make them power efficient.

Stu Pan: The idea that we're gonna double the amount of transistors every couple of years and make them power efficient. Add that to continuing system innovation, and you know that one size won't fit all.

Add that with continuing systems innovation.

One size wont fit all.

Stu Pan: And in this AI era, foundries are going to have to do a lot more. So what I'd like to do is sort of build that out for you for the next five years, because this is what this roadmap is going to take. And this, I think, is what makes us different from other foundry approaches. You have to start off across with the table stakes, right?

And in this AI era of foundries are going to have to do a lot more so wed like to do is sort of build that out your fab for you for the next five years because.

This is what this roadmap is going to take in this I think is what makes us different.

Then other foundry approaches.

You have to start off cross first off with table Stakes, where as I mentioned or you have to start off with a great process.

Stu Pan: As I mentioned, you have to start off with a great process, and with what you'll hear from Anne, Choon, and Kayvon, we have a great process delivered at scale. Add to that packaging, which is, we believe, a unique differentiator for us. Why?

And with what you'll hear from Ann and tune came on we have a great process delivered at scale.

Add to that packaging, which is we believe a unique differentiator for us why.

Stu Pan: We build a lot of servers. And we're taking everything that we learned from our server business and offering it up to our Foundry partners. These are table stakes, and this is what it takes to be a Foundry player.

We built a lot of server parts.

And we're taking everything that we learn from our server business and offering up to our foundry partners. These are table Stakes.

And this is what it takes to be a foundry player.

Stu Pan: And we'll innovate for the next five years. And I think this is one of the conversations we have with customers that's so intriguing, that we're not just one and done. We have this planned out literally across all these dimensions for the next five years.

And we will innovate for the next five years and I think this is one of the conversations we have with customers. It's so intriguing is we're not just one and done we have this planned out literally across all these dimensions for the next five years, so and substrates Intel is the worlds largest consumer substrates, so as such we play.

Stu Pan: So in substrates, Intel is the world's largest consumer of substrates. So, as such, we play a pretty influential role in how substrates get driven. Later on today, Chun is going to talk about this idea of glass substrates. Why do you care about glass substrates?

Pretty influential role in how substrates get driven later on today. She was going to talk about this idea of glass substrates why do you care about glass substrates, you can put a lot of parts in a package on a glass substrate it doesn't bend.

Stu Pan: You can put a lot of parts in a package on a glass substrate. It doesn't bend, and we're going to work closely with our partners to give the world a new way of looking at substrates through glass. Now, let's talk about cooling. I mentioned that argon needs 34,000 gallons a minute to cool it off.

And we're going to work closely with our partners to give the world a new way of looking at substrates through glass.

Let's talk about cooling I mentioned that argon needs 34000 gallons a minute to cool it off.

Stu Pan: The next wave of devices are going to have to be immersion cooled, and today Intel's Xeon product line is the only product that offers an immersion cooling warranty. Immersion cooling allows us to deliver power much more effectively in a data center. We're going to take what we've learned there, and we're going to offer that to our Foundry customers so that when you start looking at 2,000 watt devices five years from now, we'll have a way to cool them. Memory.

The next waves of devices are going to have to be emerging cooled and today Intel's Xeon product line is the only product that offers an immersion cooling warranty emerging pulling allows us to deliver power much more effectively in a data center, we're going to take what we've learned there and we're going to offer that up to our foundry customers. So that when you start <unk>.

Looking at 2000, what devices five years from now we're going to have a way to cool does.

Stu Pan: Pat mentioned this idea of a base die technology. We're working with all the major memory manufacturers right now. How do we optimize that interface? For HBM3E, for HBM4.

Memory.

Pat mentioned this idea of a base dye technology, we're working with all the major memory manufacturers right now how do we optimize that interface for H B M. Three ive for H P. M for how to perhaps do we put memory on the device itself.

Stu Pan: How do we perhaps put memory on the device itself? So it's more computationally cost-effective, and over the next five years, you're going to hear us talk a lot about new technologies and new ways to increase memory bandwidth while decreasing the need for energy consumption. A 5-year kind of look.

So it's more computationally cost effective and over the next five years, you're going to hear US talk a lot about new technologies and new ways to increase memory bandwidth.

By decreasing the need for energy consumption of <unk>.

Five year kind of look.

Stu Pan: Interconnects. Interconnects Between Chips, the idea of having high-speed SERTIs, high-speed interconnects, all the things that you expect from a foundry provider are what we're going to give you, and we're going to plan out for just what's out there today. Keep in mind, as a standards company, we do this across all different standards, and it's our job to make those standards available to all of you. And last, you know, put on that Network. Think about a neck card that's capable of handling the demands of AI modeling.

Interconnects.

Interconnects between shifts the idea of having high speed series high speed interconnect all the things that you expect from a foundry provider is what we're going to give you and we're going to that playing out for just what's out there today keep in mind is the standards company. We do this across all different standards and it's our job to make those stairs available to all of you.

And last but on that networking.

Think about a Nic card.

That's capable of handling demands of AI modeling, what you do with Ethernet today isn't good enough. So working closely with a number of Ethernet standards partners to figure out ways, how do we make Ethernet more capable to develop the idea of systems of chips and Ethernet provides that low cost high bandwidth.

Stu Pan: What you do with Ethernet today isn't good enough. So we're working closely with a number of Ethernet standards partners to figure out ways of making Ethernet more capable. The idea of systems of chips and Ethernet provides that low cost, high bandwidth potential to go off and do that. Add to that photonics. Add to that technologies beyond that. Here again, it's another five-year road. And then, lastly.

So to go off and do that add to that photonics added that technologies beyond that here again, it's another five year road map.

And then lastly.

Stu Pan: We have 18,000 software engineers. Why don't we harness those software engineers and help people figure out how to make these systems boot up, how to develop the firmware and software necessary to optimize and get those gear ratios absolutely correct? So for us, this is what True Systems Foundry means to us, and it's why we believe we have a differentiated approach in the marketplace. The only way we're going to get to this exponential scale is by taking all these elements and multiplying them together, and that's why we think we have a new way of looking at the Foundry business for all of you. You can't do it alone.

We have 18000 software engineers at Intel.

Why don't we harnessed those software engineers and help people figure out how to make these systems boot up how to develop the firmware and software necessary to optimize and get those gear ratios absolutely correct.

So for US this is what true systems foundry means to us and it's why we believe we have a differentiated approach in the marketplace.

The only way, we're going to get to this exponential scale.

Is by taking all of these elements and multiplying them together.

And that's why we think we have a new way of looking at the foundry business for all of you.

To do that we can't do it alone.

Stu Pan: We have to have partners, and we're doing everything we can to give our customers choice and to have a full stack of availabilities from a number of EDA parts. To have a full stack of capabilities from a number of EDA parts, to do systems technology co-optimization, to have open standards and reference designs available to speed the innovation that these fundamental technologies provide. And we're not going to just do it with the folks of today.

We have to have partners and we're doing everything we can to give our customers choice.

To have a full stack of availability from a number of EDA partners.

To do systems technology co optimization to have open standards and reference designs available to speed the innovation.

That is fundamental technologies provide.

And we're not going to just do it with the folks are today.

Stu Pan: We're also going after partners to fuel the next wave of innovation. Intel Capital makes equity investments in companies, and Startups. Strategic Investments in Scale Partnership, they make ecosystem investments for foundry at scale. And there are a number of examples that Intel Capital is successfully invested in, where people are bringing unique technology. AIR Labs, a photonics startup, doing some incredible work in photonics. That's how we're going to capture customers, large and small. But we have to start back even further than that. We have to go to the university and talk to them about what the students need to learn.

We're also going after.

Partners to fuel the next wave of innovations Intel capital makes equity investments in start ups, they make strategic events and strategic investments in scale partnerships.

They make ecosystem investments for foundry, it's scale and there are a number of examples that Intel capital has successfully invested in the people who bring a unique technology are labs at photonics startup doing some incredible work in photonics.

That's how we're going to capture customers large and small, but we have to start back even further than that we have to go to the universities.

And talk to them about what the students need to learn as gene around and said how do we create an.

Stu Pan: As Gina Rahn said, how do we create an engineering population capable of taking what we're doing in these factories and making it available to our base? So I'm proud to announce today that we, our first 18-A partners, the University of Michigan, my home school, and Berkeley Sujay's Home School. No connection whatsoever.

In engineering population capable of taking what we're doing these factories and making a real broad base. So I'm proud to announce today that we are first to 18 eight partners the University of Michigan by home School.

And Berkeley, Sue Jase homeschool.

No connection whatsoever.

Stu Pan: 500 academics, 60 research groups, 100 reviews, test chips. What we're doing, with U of M and with Berkeley, is we're finding a way to bring 18-A and make it available to students. Today's technology, not yesterday's or three years ago, but today's technology. And we're developing innovative ways to provide tiny tiny shuttles that students can run their test chips through our faculty, and it's going to be fascinating to watch this develop as we go out and embrace the university community with this new technology. We have one more thing to talk about. Oops, I'm sorry, go back.

500 academic 60 Research group 100, Rus test chips, what we're doing.

With you a M and with Barclays. We're finding way to bring 18, a and make it available to students today's technology not yesterday's of three years ago, but today's technology and we're developing innovative ways to provide little tiny shuttle seats.

Students can run their test chips through our factories and it's going to be fascinating to watch this develop as we go out and embracing universe community with this new technology.

So.

We have one more thing to talk about some sorry go back one slide.

Stu Pan: We're not only doing this with partners and universities, with Intel Capital. This morning, we're announcing a new partnership with ARM, the Merging Business Initiative.

We're not only.

Doing this.

With partners and universities with Intel capital.

This morning, we're announcing a new partnership with arm.

Emerging business initiative, how do we take advantage of all the programs at arm has to offer to bring.

Stu Pan: How do we take advantage of all the programs that ARM has to offer to bring design capability and design education to all their customers? We're doing this with ARM. We will make co-investments. We'll do joint programs, we'll provide shuttles at scale, and ARM will provide IP at scale. And this is how we're going to fuel this next wave of innovation, and it's truly exciting. Now, I mentioned we have our 30 ecosystem partners out there in the hallway, but there are five of them coming on stage today that I'd like to introduce you to.

Design capability design education out to all of their customers.

We're doing this with arm, we will make co investments.

We'll do joint programs will provide shuttles at scale arm will provide IP at scale and this is how we're going to fuel. This next wave.

Of innovation and it's truly exciting.

Now I mentioned, we have our 30 ecosystem partners out there in the hallway.

But there are five of them coming on stage today.

Stu Pan: Talk to you. Arm, www.globalonenessproject.org, Arm, Ancest, Cadence, Semen, and Synopsis. The big five.

I'd like to talk to you about.

Arm.

Yeah.

Arm Anthos cadence Siemens synopsis, the big five.

Stu Pan: The folks that you turn to when you're doing their design. So after the break, you'll hear from the EDA CEOs. In a research report that I read yesterday, one of the commentators remarked, "Is the ecosystem really going to show up?" Are they really going to be here? What are they going to say?

The folks that you turn to when Youre doing their designs.

So after the break you'll hear from the EDA Ceos.

And our research report that I read yesterday, one of the commentaries remark.

Is the ecosystem really going to show up if you're really going to be or what are they going to say.

Stu Pan: What you're going to hear from these four companies is hard data, not marketing slides, although there are a couple slides on AI. You'd expect that, hard engineering data. What does ATA performance look like? What does it take to design with it?

What you're going to hear.

From these four companies is hard data not marketing slide. So there are a couple of slides on AI you'd expect that.

Hard engineering data what does a ta performance look like what does it take to design with it what are they seeing from US why do they like what theyre seeing from us and why they view us as a great partner in this journey.

Stu Pan: What are they seeing from us? Why do they like what they're seeing from us? And why do they view us as a great partner in this journey? But for the next few moments.

But for the next few moments.

Stu Pan: I want to talk about our most important partner, and that partner is, believe it or not, Renee Haas from ARM.

I want to talk about our most important partner.

And that partner is.

Believe it or not.

Wait for it.

Rene half from arm.

Unknown Executive: So I'd like to now invite Ray to come up on stage with me and talk to you about what we're doing with them. Hello, sir. So, Renee, it's really unusual for an Intel business unit leader to make this statement. Arm is my most important business partner, and in what kind of universe would you have ever thought that you'd see Arm and Intel standing together? But, you know, this is a brave new world for us. And when we started talking with Renee and his team about a partnership, you know, we rapidly came to the realization that 80% of the wafers TSMC makes have an armed device. There is no way you can be in the foundry without a partnership with ARM. And so we kicked out the discussions months ago.

So I'd like to know about rain come up on stage with me. We can talk you about what we're doing with them.

Okay.

Yes.

Okay.

Hello, Sir so good to have you here. So Renee you know first off.

Yeah, it's really unusual for an Intel business unit leader to make this statement.

Arm is my most important business partner and what kind of universe would you've ever thought.

That you'd see arm and Intel standing together.

But you know this is a brave new world for us.

And when we started talking with Rene and his team about a partnership.

You know we rapidly came to the realization that 80% of the wafers TSMC runs.

Has an armed device in them. There is no way you can be in the foundry business without a partnership with arm.

And so we kicked out discussions months ago, they have been absolutely fascinating and I think you'd like to probably tell us about a few of them starting with perhaps the announcements you made this morning, yeah, well. Thank you for having me.

Unknown Executive: They have been absolutely fascinating, and I think you'd probably like to tell us about a few of them, starting with perhaps the announcements you made this morning. Yeah, well, thank you for having me. As you said, this is a bit of strange bedfellows. I was trying to think of a parallel that I might give relative to the story, and the only thing I can think of is for those who can harken back to when Walt Mossberg asked Steve Jobs what it was like to see iTunes run on Windows, and I think he said it was like ice water in hell, but I won't go that far. I won't go that far.

As you said this is a bit of a strange bedfellows I was trying to think of a parallel that I might give relative to story.

Only thing I could think of is for those who can harken back is when Walt mossberg as Steve jobs, what it was like to see itunes run on Windows.

Sure.

And I think he said it was like an ice water and hell, but I won't go that far.

Won't go that far.

Unknown Executive: Now, it has been fantastic. We started these conversations, you know, not long after I took over as CEO at ARM because we felt, you know, fundamentally that the technology that Intel was bringing to bear is industry-leading and industry-changing, and we need to be a part of it. So thank you so much for having me. It's great to have you here. So you know, the announcements that we made earlier today. Those are about our Neoverse product line, which is the product line that we use for the data center, which has just been exploding. It is on a very, very high growth trajectory. Prior to the AI wave, and now it's become even stronger, the Neoverse V3 that we announced today, which is 50% faster than the Neoverse N2, and then our N3 Neoverse, which is 20% faster, but also much more efficient.

Now it has been it's been fantastic we started these conversations.

Not long after I took over as CEO at arm because we felt.

Fundamentally that the technology that Intel is bringing to bear as you've just shown earlier between you and Pat is industry, leading industry, changing and and we need to be a part of it. So thank you so much for having us great to heavier so the announcements that we made earlier today was.

It was around our <unk> product line, which is the product line that we use for the data center.

Which has just been exploding it was in a very very high growth trajectory.

Prior to the AI wave and now it's become even even stronger the new University three that we announced today, which is 50% faster than the new universe and two and then are in three new universe, which is 20% faster, but also much more efficient and when you think about these AI data centers, which are pulling.

Unknown Executive: And when you think about these AI data centers, which are pulling hundreds of megawatts and more, efficiency matters. So yeah, today was a big day for ARM. We just made that announcement earlier today. Congratulations.

Hundreds of megawatts and and more efficiency matters. So yeah today. It was a big day for arm. We just made that announcement earlier today, congratulations and we're super excited about it.

Unknown Executive: We're super excited about it. Thank you. So let's talk. You and I have been in many, many meetings; our teams have been in many meetings. Yes, as we talked, I remember one of the senior staff members of our company said, you know, one of our lead engineers said, you don't talk to us like a founder, and that's good, because we're doing so much in the way of systems innovation. We may talk about the dynamics of how we're working together. Yeah, transparency is required.

So let's start with you I've been in many many meetings our teams have been many meetings and yeah as we talked I remember one of the senior staff members that arm.

Said, you know Lou one of our lead engineers.

Just like a foundry and that's good.

Because we're doing so much in the way of systems innovation was maybe talk about the dynamic of how we're working together yeah. The transparency is is required you know we're working on.

Unknown Executive: You know, we're working on cutting-edge technology. When you talk about 18A and System Foundry and the packaging, this is the tip of the spear in terms of innovation. So when the engineering teams are working together, we need total transparency, seamless communication, and we need to act like we're working with Intel Foundry and not the side of the house that we might be considered a competitor. And you guys have been terrific.

On cutting edge technology, when you talk about 18, a and system foundry in the packaging. This is the tip of the spear in terms of innovation. So when the engineering teams are working together we need to.

Total transparency seamless communication, we need to act like we're working with Intel foundry and not the side of the house that we might be considered a competitor and you guys have been terrific.

Unknown Executive: It has been an absolute joy to work with your groups. The level of engineering engagement, the depth of the technical discussions, the information that we get, we would not be able to announce the partnership that we've forged without it. Thank you. We appreciate that. So we've had a lot of discussions about process technology. And, you know, how do the engineers feel about what they're seeing? Oh, it's great.

It has been an absolute joy to work with your groups the level of engineering engagement the depth of the technical discussions.

Information that we get we would not be able to announce the partnership that we've forged without it. Thank you and we appreciate that so we've had a lot of discussions about process technology and how.

How do the engineers feel about what theyre, saying.

Unknown Executive: I mean, the results so far are terrific. I think later today, Ann is going to show some very specific, detailed data about what we've seen from a performance standpoint, also in terms of area, and I think you'll see it's compelling. You guys have done a great job, and we are ready to take that next phase and have customers start using the product. So one final question before we talk a little bit about Faraday.

Alright, great I mean, the results. So far are terrific I think later today and is going to show some very specific detailed data about what we've seen from a performance standpoint also in terms of area.

And I think you'll see it's compelling you guys have done a great job and we are ready to take that next phase and have customers start using the product. So one final question for we talked a little bit about fair day.

Unknown Executive: Let's talk a little bit about the role Faraday plays in Neoverse and CSS, and maybe define for the audience what CSS is and why it is so important for everybody here in the audience. Yeah, so we announced a new strategy some months ago around what we call compute. And the way to think about this is, essentially, rather than ARM delivering blocks of IP, a mesh network, a memory controller, and the CPUs themselves. We deliver a full subsystem, fully verified and completed. That is, if you want 64 cores, 96 cores, or 128 cores for a CPU, we deliver everything in terms of that system, validated, and verified, and it will work. Now, one of the big benefits of this is simply the fact that time waits for no one, the classic, you know, classic quote.

Talk a little bit of what the real fairly plays in universe in CSS and why.

We've defined for US what is CSF that why is it so important for everybody here in the audience, yes, So we announced a new strategy some months ago around what we call compute sub systems and the way to think about this as essentially rather than arm delivering blocks of IP, a mesh network of memory controller the Cpus.

<unk>.

We deliver a full sub system fully verified completed that is if you want 64 cores 96 core is 120 of course are a CPU, we deliver everything in terms of that system validated verified and it will work now one of the big benefits of this is simply the fact that time.

Waits for no one the classic classic quote.

Unknown Executive: The amount of time it takes to design these SOCs is really, really hard, and it's really, really long. If we're delivering final IP to a customer, they still need to put all those pieces together. If we can put all of that together for them prior to, at the same date they would have got the block of IP, that's a huge, huge benefit. And then when you add on to it, you know, the processing cycle times that are getting longer and longer. I know you guys are doing your best, but you know, more EUV steps means more complexity. Time through the FAB.

The amount of time it takes to design. These <unk> is really really hard and it's really really long.

If we're delivering final IP to a customer or are they still need to put all those pieces together. If we can put all of that together for them. Prior at the same date, they would've got the block of IP, that's a huge huge benefit.

And then when you add onto it the processing cycle times that are getting longer and longer I know you guys are doing your best.

But you know more easy steps means more complex.

Time through the fab and that just means that ultimately the processing times are long you have complex packaging that adds a lot of time. So anything you can do on the front end to benefit. The design time is really beneficial. So we announced this program called arm total design of which Intel as a partner and in that model.

Unknown Executive: And that just means that, ultimately, the processing times are long, you have complex packaging, you know, that adds a lot of time. So anything you can do on the front end to benefit design time is really beneficial. So we announced this program called ARM Total Design, of which Intel is a partner. And in that model, customers can come to their partners and work with those folks to get their design out, and that's what Faraday is. So Faraday is basically doing that.

Customers can come to their partners and work with those folks to get their design out and that's what favorite Data's. So fair day is basically doing that they'll be able to put their IP together with our blocks and something that just you know 'end-quote works and everyone wins the products out faster.

Unknown Executive: They'll be able to put their IP together with our blocks and something that just, you know, end quote, works and everyone wins. The product's out faster, it's compliant, and you know it's gonna work. Outstanding. Well, Renee, thank you for coming and joining us on stage today. My pleasure. I totally appreciate the partnership and everything we're doing together and everything we're going to do together. Thanks again.

It is compliant and you know what's going to work outstanding or and I. Thank you for coming and joining us on stage today pleasure totally appreciate the partnership and everything we're doing together everything we're going to do together. Thanks again, thanks all.

Unknown Executive: Thanks, all. Thank you. Okay. So we're now moving to our fireside chat. It's my pleasure to bring on stage Eric Fisher.

Okay.

So we're now moving to our fireside chat.

It's my pleasure to bring on stage Erik Fischer, the president of Mediatek North America.

Eric Fisher, Zhongling Li: President of Mediatek North America, and Dr. Zhongling Li, Vice President, Central Engineering for Broadcom. Folks, come on out. So before we get started, Eric, tell us a little bit about MediaTek and what they're driving for, and maybe some words on what their AI strategy is, but most importantly, what is Miitech doing today? What's their big focus? Sure, it's an interesting company. It's an exciting company. We are. We've had a nice little spurt of growth during the last four years.

And Dr. Zhong Ling, Li Vice President Central Engineering for Broadcom folks come on out.

Okay.

Travis Thank you.

Okay.

So before we get started Eric tussle with Mediatek and what they're driving forward, maybe some words on you know what there are strategies, but mostly.

What does mediatek doing today whats your big focus sure.

It's an interesting company its exciting company. We are a we've had a nice little spurt of growth during the last four years, we've doubled the size of the company since 2019 or pretty close to that and it's really been drilled around four key areas of focus and investment.

Eric Fisher: We've doubled the size of the company since 2019, or pretty close to that, and it's really been driven around four key areas of focus and investment. First is our investment in our capability in our modem technology, trying to make sure that we stay, you know, differentiated in the leadership role in modem technology. Second is our Wi-Fi connectivity technology. And the third area for us is really making sure that we keep a focus on high-performance, low-power design methodologies for our ARM-based SoCs.

First is.

Our investment in our capability our modem technology.

Trying to make sure that we stay.

Differentiated in a leadership role in modem second is our Wifi connectivity technology.

And the third area for Us is <unk>.

Really making sure that we keep a focus on high performance low power design methodology around our arm based hustle CS and the fourth pillar for US is our investment capability.

Zhongling Li: And the fourth pillar for us is our investment capability in AI, particularly at the edge, given the number of devices that we service across the edge and really staying focused and investing our capabilities there. And what that's done for us is created the breadth of products we have today. We're in everything from mobile handsets, where we have a number one market share position in Android-based handsets. We are in TVs with our SoCs, we're in tablets with our SoCs, and we're in OTT with our SoCs. And then, in addition to our traditional markets, it's allowed us to pivot into new markets where we're gaining momentum in automotive, gaining momentum in data center and carrier infrastructure, and then, of course, industrial and IoT. It's truly an honor to share the stage with you and Eric today.

In AI, particularly at the edge given the number of devices that we service across the edge and really staying focused and investing in our capabilities there.

And what that's done for US is created the breadth of products. We have today, we're in everything from mobile handsets, where we have a number one market share position in Android based handsets. We are in Tvs with our S. O sees where in tablets with the rest of the CS We're in OTT with the rest of the seas.

And then in addition to our traditional markets, it's allowed us to pivot into new markets, where we're gaining momentum in automotive gaining momentum in data center and carrier infrastructure, and then of course industrial and Iot.

Outstanding.

Okay.

Thank you stew, it's truly an honor to share the stage with you and Eric today.

Zhongling Li: Broadcom, as you know, we offer a broad range of semiconductor enterprise software and security solutions. We provide connectivity from the edge to the cloud. As an example, at the edge, we have Wi-Fi and broadband products.

Broader com.

As you know we offer a broader range of semiconductor enterprise software and security solutions.

When you provided.

Connectivity from the edge to the cloud.

As an example, after the edge, we have Wi Fi and broadband products.

Zhongling Li: Connecting Consumers and Enterprises to the Internet, and then you move to the service providers. We have routing and switching products, Powering the Core and Natural Network.

Connecting consumers and enterprises to Internet.

And then you move it to the Suez provides providers.

We have a routing switching products.

Powering the core on the Metro networks.

Zhongling Li: In the cloud and data center space, we have server storage, connectivity, optics, and networking products. So we take pride in the fact that 99% of the world's internet traffic passes through at least one Broadcom network. So, you know, as a technology company, we look to continue to invest in key areas like AI and HPC workloads. AI, as we all know, has reshaped the industry landscape completely. We have gone from CPUs to GPUs to now clusters of tens, maybe hundreds or thousands of GPUs interconnected together. As large language models are getting larger, so are the clusters, and then the online workloads running on those clusters have also started evolving. The Ultra Ethereal Consortium, which promotes the open hardware ecosystem, has been formed. And Intel and Broadcom are the two proud steering members of UEC. So UEC provides the connectivity technology, mainly Ethernet technology, which connects both the front end and also the back end network of the cluster.

On the.

Cloud and data center space, we have.

Our server storage connectivity optics and networking products. So we take a pride that the fact that the 99% of the world's internet traffic passes through at least the one broadcom chip.

So.

As a as a technology company.

We look to continue invest in key areas like AI and.

The H P. C workloads, so AI as we all know has reshaped the industry landscape completely.

We have gone from Cpus to GPU to now the clusters of 10th maybe you said hundreds or thousands of Gpus.

In a connected together.

As the largest language models are getting larger so the other clusters and then the underlying workloads.

Ronnie owners clusters, all have a start evolving.

The Ultra Ethernet consortium.

Which promotes the open hardware E coat system.

Has it been formed.

And the Intel and Broadcom or the two are proud steering members of the U E C.

So you see a lot of connectivity technology.

The Ethernet technology, which connects the bowl of the front end and also the backend network of the clusters.

Zhongling Li: So, you know, I also want to mention the optics, which are used to interconnect clusters, and within clusters, corpus are used for interconnection. Thanks to Broadcom's industry-leading, long-reach, 3rd-stage technology. And as you attempt to build larger systems, the line rates going from 100 gigabits per second to 200 gigabits per second per lane, it becomes apparent that the co-packaged optics, and you mentioned as well, silicon photonics-based technology, becomes necessary to allow the economy to scale and also to provide additional, about a 40% power reduction in the era of AI.

So.

You know I always wonder like the mansion about.

The optics the optics are used to interconnect the clusters and within clusters corpus are used for interconnecting.

Thanks to Broadcom, the industrial leading.

Long reach sued as technology and as you a chance to build larger systems.

The line of rates going from 100 gigabit per second to 200 gigabit per second per Lang.

Apparent that the the.

The co pegged off decks, and then you mentioned as well Silicon Photonics based technology.

It comes the necessary to allow economy to scale.

And also to provide additional about a 40% power reduction in an ear of AI.

Zhongling Li: So, you know, that's the market we are going after. And that's outstanding because, yeah, we know today from published papers that, you know, only 30% of the flops in these big systems are effectively used, and a lot of it goes to waste. So having that kind of connectivity is so important to get this right. So I'd like to, perhaps, just move on to a couple of questions for you. You know, Eric, we started with Meditech a few years ago in this, you know, really disruptive supply chain area. And, you know, when you first started working with us, what were your considerations? But you know, how'd you feel about the journey? And what will we do together?

So that's the market, we're going after and that's S. Tam because yeah. We know today from published papers that only 30% of the flops in these big systems are effectively used in a lot of it goes to waste so having that kind of connectivity is so important to get this right. So I'd like to maybe perhaps just move on to <unk>.

Couple of questions for you.

You know, Eric we started with Mediatek a few years ago back in this really disruptive supply chain area.

And you know.

As you first started working with US what were your considerations, but how do you feel about the journey and what do we do together and how do we address issues together.

Eric Fisher: And how do we address issues together? The things we looked at... As we look for new partners, our capability and credibility, for sure. You know, diversification, resiliency of the supply chain, and making sure there's a global footprint. Kind of partnership. How are we going to work together? And, you know, what capabilities that partner brings. So when you look at where we started with Intel Foundry, the credibility and capability was there, right? Intel's been investing in silicon manufacturing for well north of 50 years, and I think that provided a lot of confidence to the team that clearly Intel knew what they were doing in that space. And then you've got other factors to consider as well as, you know, you've got this massive dependency on silicon from a global...

So the things we looked at.

As we look for new partners, our capability and credibility for sure.

Diversification resiliency in the supply chain and making sure Theres a global footprint.

And then kind of the partnership how are we going to work together.

The.

What capabilities that partner brings so when you look at where we started with with Intel foundry.

The credibility and capability was there right until it's been investing in silicon manufacturing for well north of 50 years, and I think that provided a lot of confidence in the team that clearly until knows what they're doing in that space.

And then you've got other factors to consider as well as you know.

<unk> got this massive dependency on the silicon from a global.

Eric Fisher: Global Application Perspective across all industries. So it's crucial to have diversification across your supply chain. It's crucial to have resiliency across your supply chain as well. So those were factors we took into consideration. Also, having a really strong partner.

Global application perspective across all industries. So it's crucial to have diversification across your supply chain is crucial to have resiliency across your supply chain as well. So those are factors we took into consideration.

Also having a really strong partner.

Eric Fisher: One kind of interesting fact is MediaTek ships north of 2 billion chipsets every year. And we need somebody that can scale so that we can get a steady, competitive, and innovative supply of technology and components. As you know, we've got a long history of having a diverse supply base, and we push really hard on our partners. We have high expectations, and we felt that Intel could step up and meet and exceed those expectations. The final thing that we looked at was, what else other than Foundry could we get? And you showed that earlier on your screen, right?

One kind of interesting factors Mediatek ships north of 2 billion chipsets every year.

And we need somebody that can scale and we can get a steady competitive and innovative supply of technology and components.

As you know, we've got a long history of of having a diverse supply base and we push really hard on our partners and we have high expectations and we felt that until could step up and meet and exceed those expectations.

The final thing that we looked at was.

What else other than foundry can we get and you showed it earlier on your screen right. So you talked about packaging and substrate.

Eric Fisher: So you talked about, you know, packaging and substrate, and interconnect capabilities. All those are really important to having when you look at a partner, not just Foundry, but having access to all those other technologies and capabilities as well. And we think that with this partnership with Intel Foundry, we can accomplish our strategic goals really around diversification of our supply chain and keeping that resiliency high. Thank you for the vote of confidence. Okay, your thoughts. Yeah, sure.

Interconnect capabilities all of those are really important to having you know when you look at a partner now.

Just foundry, but having access to all those other technologies and capabilities as well and we think that with this partnership with Intel foundry that we can accomplish our strategic goals really around diversification of our supply chain and keeping that resiliency hi. Thank you for the vote of confidence Okay. Your thoughts yeah sure you know as an industry.

We are used to to the doubling of bandwidth throughput and performance from every new generation of products.

Zhongling Li: You know, as an industry, we are used to the doubling of bandwidth, throughput, and performance from every new generation of product. You know, those developments, and as we look at content growth, essentially, despite all the innovations on the design side that we do, the chip is already almost approaching the full radical size of the disorder of the step. So we would have to restructure the chip architecture and the system solution because content grows faster or much faster than the process can scale. So you would have to disaggregate the main compute jobs into multiple dives across multiple dyes. So when you do that, you're essentially trying to mitigate the area scaling challenge, and then less scalable content like analog and I.O. stuff could be left down in less advanced nodes. Furthermore, the on-die ARAMs, for instance, could also split from the main dyes to maximize the real estate, silicon real estate for the main dyes.

And are those developments.

And as we are.

Look at the content growth.

Essentially in our despite all the innovations on the design side than we do.

So the chip already almost approaching the full reticle size of the lithography steppers.

So.

We would have to.

Restructure the chip architecture, and our system solutions.

Because our content grows faster or much faster.

Then the process can scale. So you would have to disaggregate the main compute jobs into multiple dies.

Across smart with is the way to do that.

You're essentially.

Chance to mitigate the area scaling challenge.

And then less scalable contents like analog Io stuff.

They couldn't be left them in.

Less advanced nodes for the more the on the Ace ramps for instance.

Could also split from the main dies to maximize the real estate silicon real estate for the merchandise.

Zhongling Li: All those sorts of things are done through Chippewa technology. Chippewa technology has gained traction, significant traction as an industry. We want to thank Intel Foundry for driving the triple technologies forward. And then, you know, in triple technology, essentially, at the end of the day, a product is no longer just one chip. It is a collection of numerous, mainly heterogeneous tiles or dyes.

All of those sort of things are down through chip technology.

Triple Technology has gained traction.

Significant attraction as an industry trend.

We want to thank you Intel foundry for driving the Triple technologies forward and then you know in the Triple technology essentially at the end of the day Prada.

Product is no longer just one chip.

It is a collection of neumiller, mainly heterogeneous tires or dies.

Zhongling Li: They are interconnected laterally or vertically through some very fine interconnect technology, as we also pointed out today, to accomplish the one complete product function. So, you know, in my perspective, that is really the trend that we're going after. And I think, you know, in the conversations we're having now, we're really exploring how far we can push this technology. How, you know, some of the switches you do, the Tomahawk switch, for example, have thousands of connections. I mean, these require huge packages.

In a connected led Italy are vertically through some very fine interconnect technology as he also pointed out that today too.

To accomplish they won't compete.

Alex function so.

In my perspective that is really the trend that we're going after and I think you know in the conversations we're having now we're really exploring how far can we push this technology.

Switches, you do hallmarks, which for example.

The connections I mean, these are require huge packages and I think we've had some fascinating engineering discussions on what that might look like in the future.

Zhongling Li: And I think we've had some fascinating engineering discussions on what that might look like. Absolutely. You know, we have been looking at your technology for a while. And so Chippewa technology addresses the area scaling challenge. But the power challenge must also be addressed. The backside power, as you also showed in the morning, does provide or is promised to provide a significant savings on both area and power, mainly for the power reasons.

Absolutely.

Yeah.

We have been.

Looking at.

Your technology for a while and.

So.

Triple a technology address this area scaling challenge.

The power challenge must be honest the addressed the backside power as the author showed in the morning.

Does provide is promised to provide a significant savings on both area in our power mainly for power reasons. Those are the much needed additional area and empower benefits that customers are looking for.

Zhongling Li: Those are the much needed additional area and power benefits that customers are looking for. So again, I want to again thank your team for very strong support and excellent collaboration. And we've been looking at your technology and working together to evaluate your technology. And we're gonna look through all those offerings that you have, and we'll actually go through the process, and then we'll assess the suitability of applying the offering from your funder, Intel Funding, to the needs of our product. So, you know, Eric, we've got it.

So again I want to again, thank European with very strong support and.

Excellent collaboration.

And we've been looking at your technology and are working together to evaluate your technology.

And we're gonna looking through all of this offerings that you have and it would be actually going through the process and the war assessed.

Assess the suitability of applying the offering from your foundry Intel foundry.

To the needs of our products.

So yeah, Eric we've got.

Eric Fisher: You know, some interesting things that we've learned over the years with you. When we first started out, right, you know, things we learned a lot. So I wonder if you could talk about the experience you heard from your factory people. Sure. How we did, what we learned, where we're at. Sure. I think I can kind of put it into three kind of buckets, if you will.

You know some interesting is that we have learned over the years with you. When we first started out with things we learned a lot and I Wonder if you talk about the experience you heard from your factory people sure. How we how we did what we learn where we're at.

Sure I think.

I think I can kind of put it into three kind of buckets. If you will one was.

Eric Fisher: One was, you know, the experience around the engagement and enablement side. And in that particular... Buckethead, I'll call it I guess, the team really looked to align with your teams to figure out, you know, how do we optimize, right? How do we refine the designs?

The experience around the engagement and enabling site.

And in that particular bucket as I'll call. It I guess is is the team.

Really look to align with your teams to figure out you know.

How do we optimize right how do we refine the designs how do we work best together.

Eric Fisher: How do we work best together to maximize power performance and area? And I think what we found, the team was very pleased with, you know, we got to a point where Intel founder really leaned in, and in many cases, put people on site from an engagement perspective, working side-by-side to help us with those things to help us make sure that that we understood you know how your process worked and it was optimized with the tools and then you know your team understanding what our design priorities were and so that design engagement was really critical and that enablement side and there's multiple instances where the team was really pleased with the engagement and and the reaction that Intel took to support us.

To maximize power performance and area and I think what we found the team was very pleased with you know we got to a point where in total foundry really leaned in.

In many cases put people on site from an engagement perspective.

Working side by side to help us with those things to help us make sure that that we understood.

How your process worked and it was optimized with the tools and then.

Your team understanding what our design priorities work and so that design engagement was really critical.

And that enablement side, and Theres multiple instances, where the team was.

Really pleased with the engagement and the reaction that did until took to support us. The second part of this is just the overall interaction around fab and fab operations and manufacturing readiness.

Eric Fisher: The second part of this is just the overall interaction around fab and fab operations and manufacturing readiness. You know, the team really felt that Intel listens to feedback and that they were open to that feedback. That they would take the time to thoroughly understand the issue and then respond in a way that addressed the issue. And it might have taken a little bit of time to understand it, but once we figured it out, there were commitments in place. So I would say that.

The team really felt that the Intel listens to feedback and.

That they were open to that feedback that they they would take the time to thoroughly understand the issue.

And then respond in a way that addressed the issue.

And it might have taken a little bit of time to understand it but once we figured it out and there were commitments in place the Intel quickly executed to it so I.

Eric Fisher: The comment was made that there was exceptional capability from a fab operations perspective from our team. The one challenge we had early on was with the test chip yields, as you're well aware. And the team was really pleased with how quickly the Intel team reacted and worked with our team. And in less than nine months, we went from really challenging yields to very, very competitive, and the team, the word that they used was remarkable progress on that. So, the yield ramp was exceptional. You know, once we got it, the challenge was fixed.

I would say that the comment was made that there is exceptional capability from a fab operations perspective from our team.

The one challenge we had early on was in the test chip yields as you're well aware.

And the team was really pleased with how quickly the Intel team reacted and worked with our team and in less than nine months. We went from really challenging yields to very very competitive yields and the team that the word that they are they used was remarkable progress on that so the yield ramp was was.

Once we got it.

Eric Fisher: And then the third part that I would comment on is just the overall mindset and the culture of Intel Foundry focused on our success. We believe that Intel truly understands what it's required to be a Foundry partner and what we need as a customer. We think that they've made significant adjustments along the way, both organizationally and in their processes and workflows over the last couple of years. We found them, like I said earlier, to be very open-minded in their approach, very customer-oriented in making us successful.

How much is fixed.

Then the third part that I would comment on is just the overall mindset and the culture of until foundry focused on our success.

We believe that until truly understands what's required to be a foundry partner.

What are what we need is a customer we think that they've made significant adjustments along the way both organizationally and in their process and workflows over the last couple of years.

We found him like I said earlier to be very open minded in their approach very customer oriented and making us successful.

Eric Fisher: And so, overall, the team is very confident that with the level of collaboration and teamwork we have with the Intel Foundry team and the commitment just to continuous improvement, that the partnership is going to allow us to really effectively service our customers going forward. Well, we truly appreciate your feedback and talking to our customers this morning. Yeah, I think what you've heard from R2 customers up here on stage today is that we are committed.

And so overall the team is very confident that with the level of collaboration and teamwork, we have with it with the Intel foundry team and their commitment to continuous improvement that the partnership is going to allow us to really effectively service our customers going forward.

We truly appreciate your feedback.

In talking to our customers.

After this morning, Yeah, I think what you've heard from our two.

Customers up here on stage today is.

Stu Pan: You know, we are listening. We are providing what I hope to always be exceptional service and support. And we have the table stakes necessary to make both Broadcom and MediaTek successful.

As we are committed.

We are listening we are providing what I hope to always be exceptional service and support and we have the table stakes necessary to make both broadcom and mediatek successful so with that thank you for joining me on the phone today today really appreciate it. Thank you. Thank you. Thank.

Stu Pan: So with that, thank you for joining me on stage today. I really appreciate it. Thank you. Thank you. Thank you.

Thank you appreciate it.

Okay.

Yes.

Uh huh.

Okay.

Stu Pan: Thank you. Thank you. I appreciate it.

So.

I hope the last 90 minutes of discussion. This morning has helped illustrate the progress.

Stu Pan: Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

That we've made as a company.

I think you'd see.

Stu Pan: I hope the last 90 minutes of discussion this morning have helped illustrate the progress that we've made as a community. I think it's the... what we've established is a strong foundation of technology and innovation across multiple dimensions. I hope you see that we have resilient & Sustainable Supplies. I hope you see that we have this idea of a system foundation that allows us to create not just systems on but systems of. So to finish out my talk, I'd like to go back to where I started.

What we've established is a strong foundation of technology and innovation across multiple dimensions I hope you see that we have resilient secure sustainable supply chain.

I hope you see that we have this idea of a systems foundry.

That allows us to create not just systems on a chip.

But systems of chips.

So to finish out my talk I'd like to go back to where I start which was our people because our people as you heard from Eric So eloquently speak about our people is what makes the difference their commitment to be in this business.

Stu Pan: Which was our people, because as you heard Eric so eloquently speak about, our people are what makes the difference. Their commitment to being in this business. They're the ones that make the everyday miracles of physics happen, scale.

They're the ones that make the everyday miracles of physics happen.

Stu Pan: So, our factory teams are also the teams that inspired the iconic bunny mask. This was an ad rolled out at the Super Bowl in 1997, the year the Green Bay Packers beat the Patriots and the halftime show was the Blues Brothers and James Brown.

At scale.

So.

Our factory teams are also the teams that inspired the iconic Bunny man.

This is an AD rolled at the Superbowl 1997, the year, the Green Bay Packers with Patriot. The halftime show was the Blues brothers, James Brown and was eight years. After Taylor Swift was born.

Stu Pan: And it was eight years after Taylor Swift was. I had to do it. You can't associate Super Bowls with Taylor Swift.

I had to do is you can associate sucrose without elsewhere.

Stu Pan: You know, and this commercial was iconic. But, you know, things have changed a lot over the last several years. And that change is only going to accelerate as AI impacts www.ginkgo.com your business and your life. AI is a key theme today. For our next session, when you return, our EDA partners are going to talk to you about how AI has impacted the design cycle, how AI improves the capability for your engineers to do so much more with so much less effort. So what we decided to do with this commercial... was take a generative AI view of... In this commercial, nobody, no people were harmed. We did 100% AI rendering. It was done by a very creative director, Dave Clark out of Los Angeles, and he's a big advocate of using AI tools.

Yeah, and this commercial was iconic.

But you know things have changed a lot.

Over the last several years and that change is only going to accelerate as AI impact your work.

Your business your life.

A key theme today.

For our next session. When you returned our EDA partners are going to talk to you about how AI is impacted the design cycle, how AI improves the capability for your engineers to do so much more with so much less effort. So we decided to do with this commercial.

Was take a generative AI view of it.

So this commercial nobody people were harmed.

Did 100% AI rendered it was done by very creative director, Dave Clark out of Los Angeles.

And he's a big advocate of using AI tools.

Stu Pan: Not to take away creativity, but to amplify creativity. So as you leave our session today, remember this, that the only imitation, to what we can do with AI, is your imagination. Thank you. We don't, we don't, we don't stop We don't, we don't, we don't stop Outside, inside, we don't stop Global worldwide, we don't stop From the bottom to the top, we don't stop From the perch to the clock, we don't stop [inaudible] Turn the lights out, don't waste a tombe time Gotta steal the show everywhere we go Got a super ego, but not a hero I keep the flow hot like it came from below The people say she old, man, she dope She got a little swag, but I heard he's broke Well, money ain't the thing that brings me peace, so I've been looking for more lately Than cars and whores daily Enlightenment you couldn't afford, baby Look for some new hubs on my new accord, baby Got a determination you couldn't reward, baby The vision don't come with ease, you gotta learn it Ain't not any life free, you gotta earn it We the winners, it's already determined Bars on a thousand degrees, I'm about to burn Outside, inside, we don't stop Global worldwide, we don't stop From the bottom to the top, we don't stop From the perch to the clock, we don't stop Outside, inside, we don't stop Global worldwide, we don't stop From the bottom to the top, we don't stop From the porch to the block, we don't stop Dress too sharp, I might shank ya Check the resume, I'm gangster Payin' on me, I might thank ya Green is not your color, let me paint ya A picture that's worth more than a thousand words I'm so gifted, prolific, don't miss it So different, who ain't cheatin', there ain't no competition I got a proposition for my opposition Smooth as a horn when they come in He ain't like the man on the drummin' I am the light if you wanna let the sun in I can make a hit like a boxer when he crunchin' I can make a hit like a...

Not to take away creativity, but to amplify creativity. So as you leave our session today remember this that the only limitation.

To what we can do with AI.

As your imagination. Thank you.

Hum.

We don't we don't know.

No.

Okay.

Yes.

Okay.

Now that shows that.

Hum.

No.

[music].

As.

That readout.

Well, we know that trying to paraphrase it.

Some of those data readouts.

It's a really great job.

While we dealt with that.

So.

Some of those sort of drug with known how backend loaded the smelting said man analytes outgrow it.

Got it.

Everywhere, we don't guarantee worldwide now actually grow actually does look like.

And I can tell you from being now done before how they dealt it got a little quiet.

Well money frankly.

Frankly now abbvie.

Sure.

Alright.

The Ana Paula.

Demanding onboard maybe terminated as a reward inhibitor downtown.

Data mining.

Great.

We had a win in this rate environment was on a thousand agreed upon acquiring out there.

Yes.

Well he knows that it's kind of complicated.

Does that kind of goes to the black widow.

There we go.

Well go worldwide shelves that kind of pattern.

We know that the public cloud.

Bill.

Let me start by my 19.

I'm good.

Pardon me I might think green natural color, let me take the uptake there that's worth a thousand words themselves.

Okay great.

No compensation.

Digital myopathy.

When the county.

Yeah.

One of them.

Pardon me.

Sure.

Good morning.

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