INTEL CORPORATION (Exact Name of Registrant As Specified in Its Charter) Delaware 94-1672743 State Or Other Jurisdiction of (I.R.S
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Intel was built with a purpose: to ponder what might be possible—to imagine, question, and then do wonderful things in pursuit of a better future. Our 50th anniversary is an important moment for us to honor our heritage and accomplishments of the past while celebrating how we’re creating a bright future for Intel today and a better world tomorrow. 1968 Intel is founded. 1968 – A NEW VENTURE 1985 – FOCUS ON MICROPROCESSORS Robert Noyce and Gordon Moore leave Fairchild Semiconductor and Intel exits the DRAM business that was fundamental to its early incorporate their new venture as N M Electronics. Soon after, they success to concentrate on microprocessors. purchase the rights to use the Intel name from a company called Intelco. 1988 – INTEL FOUNDATION ESTABLISHED 1971 – IPO AND 4004 With a commitment to improving lives around the world, the Intel Foundation invests in science, technology, engineering, and Intel goes public at $23.50 per share, raising $6.8 million, and îâõéæîâõêäô¡ÚÛÌÔ¢ñóðèóâîôñóð÷êåæôåêôâôõæóóæíêæçâïåâîñíêįæô íâöïäéæôõéæøðóíåĕôįóôõäðîîæóäêâííúâ÷âêíâãíæîêäóðñóðäæôôðó the impact of employee donations and volunteerism. the 4004. 1993 – PENTIUM® PROCESSOR ARRIVES 1979 – FORTUNE 500 A Fortune cover story heralds Intel’s powerful new processor as the Intel debuts on the Fortune 500 at position 486, and Fortune leading player in “The New Computer Revolution.” names Intel one of 10 “Business Triumphs of the Seventies.” ARTIFICIAL 5G AUTONOMOUS Intel at 50 Innovation platform INTELLIGENCE NETWORKS DRIVING for a new era 2068 The future is what we make it. 2018 Transforming from PC to data-centric. 1999 – JOINING THE DOW 2011 – A NEW DIMENSION IN TRANSISTORS Intel is added to the Dow Jones Industrial Average stock market Intel’s 3-D Tri-Gate transistors represent a fundamental departure index. çóðîõéæİâõõóâïôêôõðóôõéâõéâ÷æñðøæóæåæ÷æóúåâúåæ÷êäæôçðó years, boosting computing performance to new levels. 2003 – THINNER, LIGHTER LAPTOPS 2015 – TRANSFORMING FOR DATA-CENTRIC ERA Intel® Centrino® processor technology brings high performance, longer battery life, and integrated wireless LAN capability to a new Intel acquires Altera, signals transformation for growth in data- generation of laptops. driven markets like AI and autonomous driving. 2008 – LEADING IN GREEN POWER 2018 – ADVANCING DIVERSITY AND INCLUSION Intel becomes the largest voluntary corporate purchaser of green ÐïõæíĕôÜÚøðóìçðóäæóæİæäõôõéæñæóäæïõðçøðîæïâïå power in the U.S., and continues to increase its investment in underrepresented minorities available in the U.S. skilled labor subsequent years, with 100% of its U.S. and European power market. coming from renewable sources by 2018. Intel’s impact on the world has been felt through constraints. It will power experiences informed a progression of tech waves, including the by data that are always-on, always-learning, personal computer, the Internet, and cloud and able to excel at specialized tasks. With computing. The next and even more profound our manufacturing and engineering expertise, DATA-RICH digital transformation is the integration of we continue to deliver the products and computing into virtually every human activity. technologies that are the foundation for the WORLD world’s innovation. Êðîñöõêïèêôâãðöõõðãæäðîæêïįïêõæíúîðóæ diverse. It will evolve into new form factors and adapt to extreme cost and environmental [THIS PAGE INTENTIONALLY LEFT BLANK] LETTERFROMYOURCEO We find ourselves today at a significant moment in the history of the technology industry, and of Intel. We enter our second half-century as the world is reordering in ways that promise to make our company even more central to its future. The fact that this year also marks my first as CEO leading this extraordinary team—and this annual report my first to you, our owners—brings all of this home to me in a highly personal way. The opportunities and the responsibilities are, frankly, both humbling and energizing as I meet Intel employees, partners and customers around the world. When Intel was created in 1968, the world was witnessing an explosion of hardware capability. Propelled by Gordon Moore’s famous law, Intel, its partners and its customers transformed business and society by providing a run of innovation that rivaled the Industrial Revolution. At various points along the way, some believed that semiconductors had become commodities. Always, technology, together with software innovation, created new possibilities and opportunity that dwarfed everything that had come before it. Today, computing is distributed into all things, now capable of entirely new and more powerful kinds of work—most notably, machine learning, deep learning and other forms of artificial intelligence (AI). We find ourselves again, not at an end, but at a beginning. The data-centric era is bringing volumes and varieties of information that make entirely new demands on our technology. A diversity of innovation will be required to make the leaps forward in performance, efficiency, latency, security and form factors that create value for our customers across the spectrum of new workloads. In response, your company has been on a journey of transformation. One principally fueled by “Our ambitions have never been opportunity. This is visible in our financial performance. Exceeding the goals we set in January, greater, but with an expanded we achieved record revenue in 2018, up 13 percent due to strong demand in both our data- market comes new competition.” centric and PC-centric businesses. We grew operating income faster than revenue, and earnings per share even faster. Improvements in operational efficiency contributed to these strong results, while we also invested a record $28.7 billion in R&D and capital spending to strengthen our competitive position. We continued improving the performance and capabilities of our industry-leading CPUs while expanding our efforts to win in growth areas like AI, autonomous driving and 5G. We are developing new, purpose-built processors and technologies enabling new classes of products for our customers. We can do this because Intel is uniquely able to invest billions of dollars across six pillars of innovation that will drive computing forward: process and packaging technology, architectures, memory, interconnects, security technologies, and software. At the same time, we are researching completely new approaches to computing like neuromorphic, probabilistic and quantum that could unlock even greater opportunities. Today, Intel is not only the CPU leader in PC and server segments, but we are positioned to compete and hungry to win in a market for silicon that has expanded to more than $300 billion1—the largest in our company’s history. Finally, because our work is inherently linked to the growth not only of business but of society, innovation and economic impact must be accompanied by continued extension of our role as a global citizen and leader. The many dimensions of this are described in our Corporate Responsibility Report at www.intel.com/responsibility. I am especially proud of the outstanding diversity and inclusion accomplishment in which Intel reached full representation2 of women and underrepresented minorities in our U.S. workforce and gender pay equity across our global workforce. Also, to celebrate our 50th anniversary, Intel employees contributed 1.5 million volunteer hours around the world. The path ahead, while enormously promising, remains challenging. As Andy Grove reminded us, it helps to be paranoid, and we take nothing for granted in driving our transformation forward. Our ambitions have never been greater, but with an expanded market comes new competition. In particular, we have missed important milestones in process technology, which weighed on our customers and created opportunity for our competitors. To win, we must execute with excellence and at the same time approach every day with a growth mindset and a customer obsession. We must deeply internalize the essential role we play in our customers’ businesses and relentlessly anticipate their need for the scalable and highly-relevant innovation that only Intel can offer. Our data-centric strategy will continuously evolve, and we rigorously evaluate opportunities to accelerate our transformation, while optimizing return on our investments. Our ace in the hole is our culture, and our ability to evolve it. This company is unbelievable in its ability to solve problems. Challenges can tear teams apart—or bring them together. Our leadership team and our employees responded to the challenges and opportunities of 2018 by coming together to engineer solutions, improve our execution and increase our output. I am confident that they will do so in 2019 and beyond. That’s why I am so proud, humbled and grateful to find myself writing to you for the first time as the current steward of this special company to thank you for your continued support and trust. I truly believe our second half-century promises to be even more remarkable than our first. Bob Swan, Chief Executive Officer 1 Source: Intel calculated 2022 TAM derived from industry analyst reports. 2 Full representation means that Intel’s workforce now reflects the percent of women and underrepresented minorities available in the U.S. skilled labor market. Past performance does not guarantee future results. This Annual Report contains forward-looking statements, and actual results could differ materially. Risk factors that could cause actual results to differ are set forth in the “Risk Factors” section and throughout our 2018 Form 10-K, which is included in this Annual Report. These risk factors are subject to update by our future filings and submissions with the U.S. Securities and Exchange Commission and earnings releases. LETTERFROMYOURCHAIRMAN Intel’s 50th year was the most profitable in its history. The company enters its sixth decade with strong momentum, dynamic markets, and enormous opportunities. In 2018 Intel’s return on equity was 29.3%, the highest since the year 2000. The operations generated $29.4 billion in cash, an Intel record. For the past five years, Intel’s return on equity averaged approximately 20% and the operations generated a total of $112.8 billion in cash.