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As of year-end 2005, the majority of our microprocessors were manufactured on 300mm wafers using
our 90-nanometer process technology. We also began production of our dual-core microprocessors using
our industry-leading 65-nanometer process technology. This is our most advanced high-volume production
process. It offers higher performing microprocessors, as well as products that consume less power
and cost less to manufacture.
To augment capacity in the U.S. and internationally, we use subcontractors (foundries) to manufacture
wafers for certain components, including networking and communications products. We primarily use
subcontractors to manufacture board-level products and systems. We also purchase certain communications
networking products from external vendors, primarily in the Asia-Pacific region. Intel manufactures
microprocessor- and networking-related board-level products primarily in Malaysia.
Following manufacture, the majority of our components are subject to assembly in several types of
packaging, and then testing. We perform the majority of our components assembly and testing at Intel
facilities in China, Costa Rica, Malaysia and the Philippines. To augment capacity, we use subcontractors
to perform assembly of certain products, including flash memory, chipsets, and networking and communications
products.
For all of our suppliers, we set expectations for performance related to business integrity and ethics,
as well as environmental, health and safety compliance. We communicate our expectations regularly,
reinforcing them with periodic assessments, and working with our suppliers to implement any necessary
improvements. Our performance expectations are the same regardless of where our supplier and subcontractor
operations are based. Our employment practices are consistent, at a minimum, with local country
law, and we expect our suppliers and subcontractors to abide by those laws. In addition, we impose a
minimum employee age requirement regardless of local allowances.
Research and Development
We continue to invest in world-class technology development, particularly in the design and manufacture
of integrated circuits. Research and development (R&D) expenditures in 2005 amounted to $5.1 billion
(compared to $4.8 billion in fiscal 2004 and $4.4 billion in fiscal 2003). Additionally, we increased the
number of our employees engaged in R&D to approximately 29,000 as of December 2005 compared to
approximately 25,000 in December 2004.
Employees
As of December 31, 2005, we employed approximately 99,900 people worldwide, with more than 50%
of these employees located in the U.S.
Intel Corporate Responsibility Report 2005 • Our Business
www.intel.com/go/responsibility
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