18 intel.com/responsibility 2021-22 Corporate Responsibility Report Intellectual Capital. R&D investment is critical to enable us to deliver on our accelerated process technology roadmap, introduce leading products, and develop new businesses and capabilities. Our objective with each new generation of products is to improve user experiences and value through advances in perfor - mance, power, cost, connectivity, security, form factor, and other features. We also focus on reducing our design complexity, reusing IP, and increasing ecosystem collaboration to improve our efficiency. We seek to protect our R&D efforts through our IP rights and may augment R&D initiatives by acquiring or investing in companies, entering into R&D agreements, and directly purchasing or licensing technology. We own and develop significant IP and related IP rights around the world that support our products, services, R&D, and other activities and assets. Our IP portfolio includes patents, copyrights, trade secrets, trademarks, mask works, and other rights. Intel ranked #6 in patents granted for 2021 by the US Patents and Trademark Office, our seventh straight year in the top 10. 3 For additional information regarding our IP rights, see the 2021 Intel Annual Report on Form 10-K . Manufacturing Capital. Our IDM 2.0 strategy allows us to deliver leadership products through the use of internal and external capacity while leveraging our core strengths for growth via providing foundry services to others. IDM 2.0 combines three factors. First, we will continue to build the majority of our products in Intel fabs. Second, we expect our use of third-party foundry capacity to grow and to include manufacturing for a range of modular tiles on advanced process tech - nologies. Third, we intend to build a world-class foundry business with Intel Foundry Services (IFS), which will combine leading-edge process and packaging technology, committed capacity in the US and Europe, and a world-class IP portfolio for customers, including x86 cores. Our work to advance the design and manufacturing of semiconductors enables new products with higher performance while balancing power efficiency, cost, and size. We continue to work across our supply chain to minimize disruptions, improve productivity, and increase overall capacity and output to meet customer expectations. In 2021, our factories performed well in a highly dynamic environment, where we adapted to rapid demand shifts and industry component shortages affecting us and our customers. 3 Source: IFI CLAIMS Patent Services , as of January 5, 2022. As of our fiscal 2021 year-end, we had 10 manufacturing sites—six wafer fabrication and four assembly/test facilities. The map above shows these factory sites and the countries where we had a significant R&D and/or sales presence. The Dalian factory was sold subsequent to year-end as part of the first closing of the divestiture of our NAND Memory business. The majority of our logic wafer manufacturing is conducted in the US. To accelerate our IDM 2.0 strategy, in March 2021 we announced plans to invest $20 billion to build two additional fabs in Arizona , which we broke ground on in September 2021. In 2021, we also announced an approximately $10.5 billion investment to equip our Rio Rancho, New Mexico and Malaysia sites for advanced packaging manufacturing. In 2022, we announced plans to invest more than $20 billion in the construction of two leading-edge fabs at a new Intel site in Ohio , and up to 80 billion euros to advance a world-class semiconductor ecosystem in the European Union . The European investment will include a new fab mega-site in Germany; an R&D hub in France; and R&D, manufacturing, and foundry services in Ireland, Italy, Poland, and Spain. Oregon Arizona New Mexico Costa Rica Ireland Israel Malaysia Chengdu Vietnam Dalian Wafer Fabs Assembly and Test Intel Presence Intel Worldwide Headquarters Santa Clara, California “Intel has been a leader in sustainability results for decades. With leadership comes responsibility. We’re now raising the bar and entering an exciting era to achieve net-zero greenhouse gas emissions across our operations by 2040. This will require significant innovation and investment, but we are committed to do what it takes and will work with the industry to achieve this critical mission.” — Keyvan Esfarjan i, Executive Vice President and Chief Global Operations Officer at Intel Introduction Responsible Inclusive Sustainable Enabling Appendix Our Business
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