Integrated Electronics Corporation

Overview
Intel: Integrated Electronics Corporation Headquarters located in Santa Clara, California. Specialize in semiconductor chip manufacturing. Products: microprocessors (x86),motherboard chipsets, flash memory, embedded processors, and graphics chips. Largest semiconductor chip maker in the world by revenue

International Presence
Early 2011: 90,000 employees (12,000 software engineers) 45% of workforce based abroad 75% of all sales overseas

Ireland

Russia China Vietnam India Malaysia

Israel

Brief History
Founded by Robert Noyce and Gordon Moore (N M Electronics) Assembly plant in Penang, Malaysia IBM choose 8008 for its PC, boosting Intel sales Intel-NEC lawsuit ruled microcode is copyrightable

1968 1971

1972 1974

1980
Strong Japanese competition, focusses on microprocessor

1989 1993

Worlds first microprocessor (4004)

8080 microprocessor introduced, sold $360 computer

Pentium released, flaw discovered in 1994, Intel offers replacements

Stated Policies
Conduct Business with Honesty and Integrity o Acting as responsible corporate citizen, respect rights, managing impact on world o If no local standards exist, "suppliers shall ... apply U.S. standards where appropriate." Follow the Letter and Spirit of the Law o Responsible for knowing and following all applicable [local] laws or regulations upholding the spirit and intent of law o If code or guideline differ from law, follow higher standard o obtain approval from Intel Legal before providing anything of value to a government official. Employees Treat Each Other Fairly o Open Door policy allows you to raise an issue with another manager Employees Act in Best Interests of Intel and Avoid Conflicts of Interest o Customs vary, but have fixed principles that apply worldwide No bribes, no cash, no illegal/embarrassing entertainment Intel Employees Protect the Companys Assets and Reputation

International Antitrust Cases (1)

Japan In 2004, Fair Trade Commission of Japan raids offices, conducts investigation Exclusive contracts with NEC, Fujitsu, Toshiba, Sony, Hitachi In 2005, Intel found guilty, forced to make policy changes New Code of Conduct (as of 2010): o Following actions prohibited: Communication with any competitor relating to price, any term that affects pricing, or production levels, Division or allocation of markets or customers, Agreement with a competitor to boycott another business Putting inappropriate conditions on purchases or sales.

International Antitrust Cases (2)

Korea In 2008, Korean Fair Trade Commission fines Intel $26 million after 3-year probe Intel offered $370 million dollars to Samsung and Trigem Computer between 2001 and 2005 on the condition that neither company buy processors from AMD Rebate program blocked AMD from competing for OEM design wins even if AMD made CPUs available for free

International Antitrust Cases (3)

Europe In 2000, AMD lodges formal complaint, investigation begins Conditional rebates to HP, Dell, Acer, Lenovo, NEC, and Media Saturn retailers In 2009, European Commission orders record $1.45 billion fine (max fine 10% of global sales - $37.6 billion in 2008) 6 billion dollars invested in Europe (Irish factory) 70% of chip sales market from Oct. 2002 to Dec. 2007 Global Perspective As of 2008, Intel had 83,900 staff worldwide and a market value of $85.4bn. AMD employed 11,000, was worth $2.6bn

International Environmentalism
Since 2001, Intel has implemented more than 250 energy conservation projects, saving more than 500 million kWh of electricity in its facilities 2007: recycled/reused 87% chemical waste, 80% solid waste 2010: continued to recycle over 75% of waste but had 27% increase in chemical waste in comparison to 2009 2008: introduced 45 nanometer technology and new hafnium circuitry, leading to faster processing with less power consumption In the last 15 years, Intel has invested $100 million in water conservation programs, saving 40 billion gallons of water

Intl. Environmentalism Examples

Intel Malaysia adopted an Environment, Heath and Safety Act. They pledge to conserve natural resources and reduce the impact that their operations have on the environment. o Intel Malaysia is a representative case study as Intels first international location and most complex offshore site o To maximize their use of epoxy (chemical) for product assembly, Intel used sensors and reduced tube sizing to increase epoxy efficiency from 60 to 95%. o E-base system (which asses chemical and environmental protocols within Intel Malaysia) adopted a completely electronic platform, thus reducing the need to print approximately 18,250 documents per year.

Promoting International Communities

Invested over $1 billion dollars, close to 3 million employee volunteer hours to improve teaching and learning environments in 70+ countries Intel provides technology to undeserved areas, such as Argentina, where Intel is rolling out over 2 million Intel-powered classmate PCs to students
Intel Foundation: advance education and improve communities worldwideto increase interest in math and science education, and to help develop a future workforce that represents the diversity around the world. Intel International Science and Engineering Fair awards $500 to $75,000 to pre-college students worldwide Intel Learn Program teaches about technology to youth in underserved communities. Has reached >1 million learners in 13 countries Intel employees also contribute voluntarily: Employee in India reached out to HIV/AIDS susceptible people, informing more than a thousand educators and 25,000 people

Summary
Overall, Intel has acted unethically as it has shown a consistent disregard for antitrust law internationally
Guilty of offering conditional rebates, exclusive contracts and subsidies to undermine its competitor AMD in South Korea, Japan, Europe, and the US Has taken only legally mandated steps to revise the situation

However, Intel is making progressive steps to curb the negative byproducts of semiconductor fabrication
Trend towards more waste due to release of latest core lineup Past environmental initiatives and future goals indicate recognition of need to reduce byproducts

Intel also strives to maintain a strong public image by funding community projects and increasing education in third-world countries

Conclusions
We believe that it will take more legislation and further policy changes before Intel eliminates all antitrust actions Based on previous policy changes and consistent antitrust actions Intel will continue dominating the semiconductor industry and will work towards reducing environmental impact, but it may prove more difficult, as chips become more complex and byproducts are harder to recycle There is a trend towards relocating fabrication and assembly lines closer together, moving some of Intels international factories back to the US and leading to layoffs abroad