Bowne bow102885a1 Proof 2
2009
Annual
Report
bow102885a.indd 1
C M Y K Intel Blue
2/13/10 11:37 AM

---

Financial Results
Net Revenue
Diluted Earnings Per Share
Geographic Breakdown of Revenue
Dollars in billions
Dollars
Percent
40
38.8
1.60
100
38.3 37.6
7%
35.4
9%
10%
Japan
35.1
1.40
33.7
34.2
80
30
15%
Europe
p
30.1
1.20
27%
23%
1.18
26.5 26.8
60
20%
Americas
0.92
0.86
20
23%
0.80
0.77
43%
40
10
0.40
55%
AsiaPaciÀc
20
45%
23%
00 01 02 03 04 05 06 07 08 09
2005
2006
2007
2008
2009
1999
2004
2009
Capital Additions to Property,
Dividends Per Share Paid
Plant and Equipment
Research and Development
Dollars
Dollars in billions
Dollars in billions
0.60
6.0
5.9
5.9
6.0
5.9
5.8
5.7
5.7
0.55
0.56
5.2
5.0
5.1
0.45
0.45
4.5
4.5
4.5
0.40
0.32
0.30
3.0
3.0
0.15
1.5
1.5
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
“ Intel’s strong 2009 results reÁ ect our investment in industry-leading manufacturing
and product innovation. This strategy has enabled us to generate unprecedented
operating efÀ ciencies while growing our traditional business and creating exciting
new market opportunities, even in difÀ cult economic times.”

Paul S. Otellini, President and Chief Executive OfÀ cer
Past performance does not guarantee future results. This Annual Report to Stockholders 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 2009 Form 10-K, which is included in this Annual Report.
bow102885a.indd 1
2/25/10 5:14 AM

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Letter From Your CEO
2009 Highlights
Letter From Your Chairman
Investor Information
We entered 2009 in one of the deepest recessions
the fi rst products based on our leading-edge 32nm process technology.
After 17 years on the Intel Board of Directors, it
in our history, and ended it with broad-based
We have also already demonstrated the world’s fi rst 22nm process
has been an honor and a privilege to assume the
demand for our products across all regions and
technology, on track for production in 2011.
role of Intel Chairman. As an independent chairman,
market segments. We reported 2009 revenue of
Legal matters
I look forward to supporting Paul Otellini and the
$35.1 billion, operating income of $5.7 billion, net
Our 2009 results refl ect the impact of a $1.45 billion fi ne that we
other members of Intel’s executive team, and
income of $4.4 billion, and earnings per share of
incurred in May as a result of the European Commission conclusion
ensuring that the Board continues to be a role
77 cents. We generated more than $11 billion in cash from operations,
that Intel had violated competition laws in Europe. We strongly believe
model for excellence in corporate governance.
and ended the year with $13.9 billion in cash, short-term investments,
that the decision was wrong and are appealing it. Our results were also

Intel remains strongly committed to operating with the highest level
and trading assets. Our cash dividend payout for 2009 totaled $3.1 billion,
affected by a $1.25 billion payment that we made in November to
of integrity; open and direct communication is a hallmark of the Intel
and we announced a 12.5% increase in our cash dividend beginning in
Advanced Micro Devices (AMD) as part of a settlement to end all out-
culture, including listening to and responding to stakeholders’ concerns.
the fi rst quarter of 2010.
standing legal issues between the companies, including antitrust litigation
In 2009, for example, in response to a stockholder proposal, the Board
Indispensable products
and cross-license patent disputes. The settlement is a compromise of
adopted a “say on pay” advisory vote on executive compensation,
Despite the worldwide economic recession, microprocessor unit ship-
disputed legal matters, with both companies denying any wrongdoing. It
increasing stockholders’ opportunity to provide feedback on Intel’s
Intel Sponsors of Tomorrow.™
ments for the PC industry were up 6% in 2009, according to Mercury
avoided a lengthy and complex jury trial in Delaware, where AMD would
compensation practices.
A major marketing campaign launched in 2009 celebrates Intel employees—
Research—illustrating how essential computing has become in our lives.
have sought multiples of the amount paid to settle these claims. In the
and the passion for innovation, quest for perfection, respect for geekiness,

In an effort to further increase transparency, Intel has added several
and strong sense of humor that pervade our company culture.
As the year progressed, we saw increasingly strong consumer market
fall of 2009, both the New York Attorney General and the U.S. Federal
“virtual” components to the company’s annual stockholders’ meeting.
sales—fueled in large part by the popularity of mobile computers,
Trade Commission also fi led antitrust lawsuits against Intel—actions that
Stockholders who cannot attend the annual meeting in person have had
including easy-to-use, affordable Intel® Atom™ processor-based netbooks.
we believe are misguided, wrong on the facts, and based on incomplete
the opportunity to attend via the Internet for many years. Intel has
Our revenue for Intel Atom processors and associated chipsets totaled
investigations. We fi rmly believe that Intel has competed fairly and lawfully,
expanded this functionality to allow stockholders to submit questions
$1.4 billion in 2009.
and we will continue to litigate these cases.
online prior to the meeting, and ask questions and cast votes online

We are also pleased with the rapid acceptance of our newer
during the meeting. We believe that enabling stockholders from around
Corporate responsibility leadership
processors in the server market segment, where enterprises are
the world to attend the annual meeting virtually allows for their
We are a recognized leader in corporate responsibility. Intel was named
increasingly replacing many older servers with a single system based
increased participation and access to management.
one of the World’s Most Ethical Companies by Ethisphere Institute, and
on our latest generation, energy-effi cient Intel® Core™ microarchitecture

In 2009, Intel extended its unwavering commitment to corporate
was also included in the Dow Jones Sustainability Index for the 11th
to achieve better performance, save space, and reduce energy costs.
responsibility. Intel joined the United Nations Global Compact, and
year in a row. Newsweek ranked Intel among the top fi ve on its Green
published a set of Human Rights Principles that express the company’s
Growth areas
Rankings 2009 list of the 500 largest corporations in America, citing
dedication to human rights and responsible labor practices—not only at
Driven by the Intel Atom processor, the spectrum of products based on
our focus on building energy-effi cient products and our standing as the
Intel, but throughout its supply chain. The company continued its focus
Intel® architecture is expanding beyond PCs and servers to include hand-
largest corporate purchaser of renewable energy in the U.S. We believe
on improving the quality of education around the world, reaching the
helds, consumer electronics devices, and hundreds of embedded applica-
that technology is key to addressing the world’s environmental challenges,
Growth Opportunities
Commitment to Education
milestone of providing technology training to 7 million teachers through
tions. In 2009, we signed agreements with LG Electronics and Nokia to
and continue to design our products with energy effi ciency in mind. We
The range of computing products
Intel is actively involved in education,
the Intel® Teach Program. Building on Intel’s strong culture of volunteerism,
collaborate on development of Intel Atom processor-based mobile devices.
estimate, in fact, that the conversion to the energy-effi cient Intel Core
based on Intel® architecture is
advocacy, and technology access
the company formed the Intel Education Service Corps, which trains

Our goal is to deliver a great “personal” computing experience across
microarchitecture saved up to 26 terawatt-hours of electricity between
expanding beyond PCs and servers
programs to help give students around
groups of employee volunteers and sends them to developing countries
all types of devices, and to enable consumers to move seamlessly from
2006 and 2009, compared to the technology it replaced.
to netbooks, handhelds, consumer
the world the opportunity to become
to facilitate installation of Intel-powered classmate PCs in schools,
electronics devices, and more.
the next generation of innovators.
one type of device to another. Recognizing that software is key to
Operational excellence
orphanages, and other locations. They also provide technology training
making this happen, in 2009 we acquired Wind River Systems, a leading
Throughout 2009, we maintained a focus on effi ciency and tight spending
for local students, teachers, and parents. Their work has the potential
developer of embedded device software, to grow our software capa-
controls across all of our operations. In particular, our factories executed
to change the lives of thousands of people.
bilities. Wind River will operate as a wholly owned subsidiary, bringing
well, with improvements in throughput times and yields, and lower unit

Since I assumed the role of Intel Chairman in May 2009, I have
software expertise that we believe will accelerate our development into
costs across most lines of business. The comprehensive restructuring
enjoyed the opportunity to interact more closely with Intel employees
new areas of business. In September, we also launched the Intel® Atom™
effort that we began in 2006 had resulted in cumulative savings of more
at all levels. Several of them have remarked how inspired they are by
Developer Program, which provides tools and infrastructure to help
than $4.9 billion by the end of the year.
my role as one of the few female independent chairmen of an S&P 500
independent software vendors develop and market applications for

The Intel Sponsors of Tomorrow™ marketing campaign turns the
company. I, in turn, am inspired by the energy, enthusiasm, and talent
netbooks initially, and then expanding to a broader range of devices.
spotlight on the people responsible for our ongoing record of operational
displayed by the women and men who work at Intel. There isn’t a
New generations of technology
excellence—Intel’s employees. I would like to thank them for their outstand-
problem they won’t tackle, and I witness examples of their fl awless
Innovation throughout the computing spectrum is possible because of
ing performance through the challenges and triumphs of 2009. They are
planning and execution day after day. I look forward to the future they
Intel’s ability to develop successive generations of manufacturing process
innovators in the truest sense of the word—the rock stars of our industry.
are creating for all of us.
technology that enable us—year after year—to build microprocessors
that can cost less to manufacture, have improved performance and
Technology Leadership
energy effi ciency, and offer more capabilities. We now produce a
We have launched the fi rst products based on our leading-edge 32nm
substantial majority of our microprocessors using 45-nanometer (nm)
manufacturing process technology, and have already demonstrated the
process technology, and we have achieved high-volume production of
Paul S. Otellini, President and Chief Executive Offi cer
world’s fi rst 22nm process technology, on track for production in 2011.
Jane E. Shaw, Chairman of the Board

---

Letter From Your CEO
2009 Highlights
Letter From Your Chairman
Investor Information
We entered 2009 in one of the deepest recessions
the fi rst products based on our leading-edge 32nm process technology.
After 17 years on the Intel Board of Directors, it
in our history, and ended it with broad-based
We have also already demonstrated the world’s fi rst 22nm process
has been an honor and a privilege to assume the
demand for our products across all regions and
technology, on track for production in 2011.
role of Intel Chairman. As an independent chairman,
market segments. We reported 2009 revenue of
Legal matters
I look forward to supporting Paul Otellini and the
$35.1 billion, operating income of $5.7 billion, net
Our 2009 results refl ect the impact of a $1.45 billion fi ne that we
other members of Intel’s executive team, and
income of $4.4 billion, and earnings per share of
incurred in May as a result of the European Commission conclusion
ensuring that the Board continues to be a role
77 cents. We generated more than $11 billion in cash from operations,
that Intel had violated competition laws in Europe. We strongly believe
model for excellence in corporate governance.
and ended the year with $13.9 billion in cash, short-term investments,
that the decision was wrong and are appealing it. Our results were also

Intel remains strongly committed to operating with the highest level
and trading assets. Our cash dividend payout for 2009 totaled $3.1 billion,
affected by a $1.25 billion payment that we made in November to
of integrity; open and direct communication is a hallmark of the Intel
and we announced a 12.5% increase in our cash dividend beginning in
Advanced Micro Devices (AMD) as part of a settlement to end all out-
culture, including listening to and responding to stakeholders’ concerns.
the fi rst quarter of 2010.
standing legal issues between the companies, including antitrust litigation
In 2009, for example, in response to a stockholder proposal, the Board
Indispensable products
and cross-license patent disputes. The settlement is a compromise of
adopted a “say on pay” advisory vote on executive compensation,
Despite the worldwide economic recession, microprocessor unit ship-
disputed legal matters, with both companies denying any wrongdoing. It
increasing stockholders’ opportunity to provide feedback on Intel’s
Intel Sponsors of Tomorrow.™
ments for the PC industry were up 6% in 2009, according to Mercury
avoided a lengthy and complex jury trial in Delaware, where AMD would
compensation practices.
A major marketing campaign launched in 2009 celebrates Intel employees—
Research—illustrating how essential computing has become in our lives.
have sought multiples of the amount paid to settle these claims. In the
and the passion for innovation, quest for perfection, respect for geekiness,

In an effort to further increase transparency, Intel has added several
and strong sense of humor that pervade our company culture.
As the year progressed, we saw increasingly strong consumer market
fall of 2009, both the New York Attorney General and the U.S. Federal
“virtual” components to the company’s annual stockholders’ meeting.
sales—fueled in large part by the popularity of mobile computers,
Trade Commission also fi led antitrust lawsuits against Intel—actions that
Stockholders who cannot attend the annual meeting in person have had
including easy-to-use, affordable Intel® Atom™ processor-based netbooks.
we believe are misguided, wrong on the facts, and based on incomplete
the opportunity to attend via the Internet for many years. Intel has
Our revenue for Intel Atom processors and associated chipsets totaled
investigations. We fi rmly believe that Intel has competed fairly and lawfully,
expanded this functionality to allow stockholders to submit questions
$1.4 billion in 2009.
and we will continue to litigate these cases.
online prior to the meeting, and ask questions and cast votes online

We are also pleased with the rapid acceptance of our newer
during the meeting. We believe that enabling stockholders from around
Corporate responsibility leadership
processors in the server market segment, where enterprises are
the world to attend the annual meeting virtually allows for their
We are a recognized leader in corporate responsibility. Intel was named
increasingly replacing many older servers with a single system based
increased participation and access to management.
one of the World’s Most Ethical Companies by Ethisphere Institute, and
on our latest generation, energy-effi cient Intel® Core™ microarchitecture

In 2009, Intel extended its unwavering commitment to corporate
was also included in the Dow Jones Sustainability Index for the 11th
to achieve better performance, save space, and reduce energy costs.
responsibility. Intel joined the United Nations Global Compact, and
year in a row. Newsweek ranked Intel among the top fi ve on its Green
published a set of Human Rights Principles that express the company’s
Growth areas
Rankings 2009 list of the 500 largest corporations in America, citing
dedication to human rights and responsible labor practices—not only at
Driven by the Intel Atom processor, the spectrum of products based on
our focus on building energy-effi cient products and our standing as the
Intel, but throughout its supply chain. The company continued its focus
Intel® architecture is expanding beyond PCs and servers to include hand-
largest corporate purchaser of renewable energy in the U.S. We believe
on improving the quality of education around the world, reaching the
helds, consumer electronics devices, and hundreds of embedded applica-
that technology is key to addressing the world’s environmental challenges,
Growth Opportunities
Commitment to Education
milestone of providing technology training to 7 million teachers through
tions. In 2009, we signed agreements with LG Electronics and Nokia to
and continue to design our products with energy effi ciency in mind. We
The range of computing products
Intel is actively involved in education,
the Intel® Teach Program. Building on Intel’s strong culture of volunteerism,
collaborate on development of Intel Atom processor-based mobile devices.
estimate, in fact, that the conversion to the energy-effi cient Intel Core
based on Intel® architecture is
advocacy, and technology access
the company formed the Intel Education Service Corps, which trains

Our goal is to deliver a great “personal” computing experience across
microarchitecture saved up to 26 terawatt-hours of electricity between
expanding beyond PCs and servers
programs to help give students around
groups of employee volunteers and sends them to developing countries
all types of devices, and to enable consumers to move seamlessly from
2006 and 2009, compared to the technology it replaced.
to netbooks, handhelds, consumer
the world the opportunity to become
to facilitate installation of Intel-powered classmate PCs in schools,
electronics devices, and more.
the next generation of innovators.
one type of device to another. Recognizing that software is key to
Operational excellence
orphanages, and other locations. They also provide technology training
making this happen, in 2009 we acquired Wind River Systems, a leading
Throughout 2009, we maintained a focus on effi ciency and tight spending
for local students, teachers, and parents. Their work has the potential
developer of embedded device software, to grow our software capa-
controls across all of our operations. In particular, our factories executed
to change the lives of thousands of people.
bilities. Wind River will operate as a wholly owned subsidiary, bringing
well, with improvements in throughput times and yields, and lower unit

Since I assumed the role of Intel Chairman in May 2009, I have
software expertise that we believe will accelerate our development into
costs across most lines of business. The comprehensive restructuring
enjoyed the opportunity to interact more closely with Intel employees
new areas of business. In September, we also launched the Intel® Atom™
effort that we began in 2006 had resulted in cumulative savings of more
at all levels. Several of them have remarked how inspired they are by
Developer Program, which provides tools and infrastructure to help
than $4.9 billion by the end of the year.
my role as one of the few female independent chairmen of an S&P 500
independent software vendors develop and market applications for

The Intel Sponsors of Tomorrow™ marketing campaign turns the
company. I, in turn, am inspired by the energy, enthusiasm, and talent
netbooks initially, and then expanding to a broader range of devices.
spotlight on the people responsible for our ongoing record of operational
displayed by the women and men who work at Intel. There isn’t a
New generations of technology
excellence—Intel’s employees. I would like to thank them for their outstand-
problem they won’t tackle, and I witness examples of their fl awless
Innovation throughout the computing spectrum is possible because of
ing performance through the challenges and triumphs of 2009. They are
planning and execution day after day. I look forward to the future they
Intel’s ability to develop successive generations of manufacturing process
innovators in the truest sense of the word—the rock stars of our industry.
are creating for all of us.
technology that enable us—year after year—to build microprocessors
that can cost less to manufacture, have improved performance and
Technology Leadership
energy effi ciency, and offer more capabilities. We now produce a
We have launched the fi rst products based on our leading-edge 32nm
substantial majority of our microprocessors using 45-nanometer (nm)
manufacturing process technology, and have already demonstrated the
process technology, and we have achieved high-volume production of
Paul S. Otellini, President and Chief Executive Offi cer
world’s fi rst 22nm process technology, on track for production in 2011.
Jane E. Shaw, Chairman of the Board

---

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
≤ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 26, 2009.
or
n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from
to
.
Commission File Number 000-06217
INTEL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
94-1672743
State or other jurisdiction of
(I.R.S. Employer
incorporation or organization
Identification No.)
2200 Mission College Boulevard, Santa Clara, California
95054-1549
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code (408) 765-8080
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange on which registered
Common stock, $0.001 par value
The NASDAQ Global Select Market*
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ≤ No n
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes n No ≤
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes ≤ No n
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ≤ No n
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
n
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.
Large accelerated filer ≤ Accelerated filer n
Non-accelerated filer n
Smaller reporting company n
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes n No ≤
Aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant as of June 26, 2009, based upon
the closing price of the common stock as reported by The NASDAQ Global Select Market* on such date, was
$91.1 billion
5,524 million shares of common stock outstanding as of February 5, 2010
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s Proxy Statement related to its 2010 Annual Stockholders’ Meeting to be filed subsequently—Part III of this
Form 10-K.

---

INTEL CORPORATION
FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 26, 2009
INDEX
Page
PART I
Item 1.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Item 1A. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Item 1B.
Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Item 2.
Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Item 3.
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Item 4.
Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . . . . . . .
22
Item 6.
Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . .
25
Item 7A. Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Item 8.
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure . . . . . . . . . . . . . . . . . . . . . .
114
Item 9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
114
Item 9B.
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115
PART III
Item 10.
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116
Item 11.
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . . . . . . . . . . .
116
Item 13.
Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Item 14.
Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
PART IV
Item 15.
Exhibits, Financial Statement Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
118

---

PART I
ITEM 1.
BUSINESS
Industry
We are the world’s largest semiconductor chip maker, based on revenue. We develop advanced integrated digital technology products,
primarily integrated circuits, for industries such as computing and communications. Integrated circuits are semiconductor chips etched with
interconnected electronic switches. We also develop platforms, which we define as integrated suites of digital computing technologies that
are designed and configured to work together to provide an optimized user computing solution compared to components that are used
separately. Our goal is to be the preeminent provider of semiconductor chips and platforms for the worldwide digital economy.
We were incorporated in California in 1968 and reincorporated in Delaware in 1989. Our Internet address is www.intel.com. On this web
site, we publish voluntary reports, which we update annually, outlining our performance with respect to corporate responsibility, including
environmental, health, and safety (EHS) compliance.
We use our Investor Relations web site, www.intc.com, as a routine channel for distribution of important information, including news
releases, analyst presentations, and financial information. We post filings as soon as reasonably practicable after they are electronically filed
with, or furnished to, the U.S. Securities and Exchange Commission (SEC), including our annual and quarterly reports on Forms 10-K and
10-Q (including related filings in XBRL format) and current reports on Form 8-K; our proxy statements; and any amendments to those
reports or statements. All such postings and filings are available on our Investor Relations web site free of charge. In addition, our web site
allows investors and other interested persons to sign up to automatically receive e-mail alerts when we post news releases and financial
information. The SEC also maintains a web site, www.sec.gov, that contains reports, proxy and information statements, and other
information regarding issuers that file electronically with the SEC. The content on any web site referred to in this Form 10-K is not
incorporated by reference into this Form 10-K unless expressly noted.
Company Organization
At the end of 2009, we reorganized our business to better align our major product groups around the core competencies of Intel»
architecture and our manufacturing operations. After the reorganization, we have nine operating segments:
•
PC Client Group. Delivering a high-quality computing and Internet experience through Intel architecture-based products and
platforms, primarily for notebooks, netbooks, and desktops.
•
Data Center Group. Delivering server, storage, and workstation platforms for small, medium, and large enterprises.
•
Embedded and Communications Group. Delivering Intel architecture-based products as solutions for embedded applications
through long life-cycle support, software and architectural scalability, and platform integration.
•
Digital Home Group. Delivering Intel architecture-based products for next-generation consumer electronics devices with
interactive Internet content and traditional broadcast programming.
•
Ultra-Mobility Group. Building a business in the next-generation handheld market segment with low-power Intel
architecture-based products.
•
NAND Solutions Group. Delivering advanced NAND flash memory products for use in a variety of devices.
•
Wind River Software Group. A wholly owned subsidiary delivering device software optimization products to the embedded and
handheld market segments, serving a variety of hardware architectures.
•
Software and Services Group. Delivering software products and services, in addition to promoting Intel architecture as the
platform of choice for software development.
•
Digital Health Group. Delivering technology-enabled products that are designed to reduce healthcare costs and connect people and
information to improve patient care and safety.
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Products
We design and manufacture computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and
wired connectivity products, as well as platforms that incorporate these components. We strive to optimize the overall performance
improvements of our products by balancing increased performance capabilities with improved energy efficiency. Increased performance can
include faster processing performance and other improved capabilities, such as multithreading and multitasking. Performance can also be
improved through enhanced connectivity, storage, security, manageability, utilization, reliability, ease of use, and interoperability among
devices. Improved energy efficiency is achieved by lowering power consumption in relation to performance capabilities, which may extend
utilization time for battery-powered form factors and reduce system heat output, thereby providing power savings and reducing the total cost
of ownership.
We offer products at various levels of integration, to allow our customers flexibility in creating computing and communications systems.
The substantial majority of our revenue is from the sale of microprocessors and chipsets.
Components
Microprocessors
A microprocessor—the central processing unit (CPU) of a computer system—processes system data and controls other devices in the
system, acting as the “brains” of the computer. We offer microprocessors with one or multiple processor cores designed for notebooks,
netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices,
and handhelds. The following are characteristics of our microprocessors:
•
Multi-core microprocessors contain two or more processor cores, which can enable improved multitasking and energy-efficient
performance by distributing computing tasks across multiple cores.
•
Cache is memory that can be located directly on the microprocessor. Incorporating additional amounts and/or levels of cache can
enable higher performance by permitting quicker access to frequently used data and instructions.
•
Some of our microprocessors also include an integrated memory controller or an integrated memory controller and integrated
graphics functionality. Both an integrated memory controller and integrated graphics functionality can increase the speed at which
data is transferred between system components.
Most of our microprocessors are based on the latest generation Intel» CoreTM microarchitecture and are manufactured using our
45-nanometer (nm) Hi-k metal gate silicon process technology (45nm process technology) or our 32nm second-generation Hi-k metal gate
silicon process technology (32nm process technology). These technologies are the first to use Hi-k metal gate transistors, which increase
performance while simultaneously reducing the leakage of currents. Microarchitecture refers to the layout, density, and logical design of a
microprocessor. The latest generation Intel Core microarchitecture incorporates features designed to increase performance and energy
efficiency, such as:
•
Intel» Turbo Boost Technology, which increases processor frequency when applications demand more performance; and
•
Intel» Hyper-Threading Technology, which allows each processor core to process two software tasks or threads simultaneously.
We also offer, and are continuing to develop, System on Chip (SoC) products that integrate our core processing functionalities with other
system components, such as graphics, audio, and video, onto a single chip to form a purpose-built solution. SoC products are designed to
provide improved performance due to higher integration, lower power consumption, and smaller form factors.
Chipsets
The chipset operates as the “nervous system” in a PC or other computing device, sending data between the microprocessor and input,
display, and storage devices, such as the keyboard, mouse, monitor, hard drive or solid-state drive, and CD, DVD, or Blu-ray* drive. We
offer chipsets designed for notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications
products, consumer electronics devices, and handhelds. Chipsets extend the audio, video, and other capabilities of many systems and
perform essential logic functions, such as balancing the performance of the system and removing bottlenecks. Some chipsets may also
include graphics functionality or graphics functionality and a memory controller, for use with our microprocessors that do not integrate
those system components.
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Motherboards
We offer motherboard products designed for our desktop, server, and workstation platforms. A motherboard is the principal board within a
system, and typically contains the microprocessor, chipset, memory, and other components. The motherboard also has connectors for
attaching devices to the bus, which is the subsystem that transfers data between various components of a computer.
Wireless and Wired Connectivity
We offer wireless and wired connectivity products, including network adapters and embedded wireless cards, based on industry-standard
protocols used to translate and transmit data across networks. Wireless connectivity products based on WiFi technology allow users to
wirelessly connect to high-speed local area networks, typically within a close range. We have also developed wireless connectivity products
for both mobile and fixed networks based on WiMAX, a standards-based wireless technology providing high-speed broadband connectivity
that can link users and networks up to several miles apart.
Platforms
A platform typically includes a microprocessor, chipset, and enabling software, and may include additional hardware, services, and support.
In developing our platforms, we may include components made by other companies. Platforms based on our latest generation Intel Core
microarchitecture using our 32nm process technology integrate a memory controller and graphics functionality into each microprocessor,
and connect the microprocessor and other components with a high-speed interconnect. We refer to certain platform brands within our
product offerings as processor technologies.
Microprocessor and Platform Technologies
We offer features to improve microprocessor and platform capabilities that can enhance system performance and user experience. For
example, we offer technologies that can help information technology managers maintain, manage, and protect enabled systems that are
plugged into a power source and connected to a network, even if a computer is turned off or has a failed hard drive or operating system.
Additional features can enable virtualization, in which a single computer system can function as multiple virtual systems by running
multiple operating systems and applications. Virtualization can consolidate workloads and provide increased security and management
capabilities. To take advantage of these and other features that we offer, a computer system must have a microprocessor that supports a
chipset and BIOS (basic input/output system) that use the technology, and software that is optimized for the technology. Performance will
vary depending on the system hardware and software used.
Additional Product Offerings
NAND flash memory is a specialized type of memory component primarily used in portable memory storage devices, digital camera
memory cards, solid-state drives, and other devices. NAND flash memory retains information even when the power is off, and provides
faster access to data than traditional hard drives. Because flash memory does not have any moving parts, it tolerates bumps and shocks
better than devices such as rapidly spinning disk drives.
Network processors are advanced, fully programmable processors used in networking equipment to rapidly manage and direct data moving
across networks and the Internet.
Software products include operating systems, middleware, and tools used to develop, run, and manage a wide variety of enterprise,
consumer, embedded, and handheld devices. In addition, we offer software development tools, designed to complement our latest hardware
technologies, that help enable the creation of applications.
Healthcare products are technology-enabled devices for healthcare providers and personal healthcare that are designed to connect people
and information to improve patient care and safety.
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Revenue by Major Operating Segment
Net revenue for the PC Client Group (PCCG) operating segment, the Data Center Group (DCG) operating segment, and the other Intel
architecture operating segments (Other IA) is presented as a percentage of our consolidated net revenue. Other IA includes the Embedded
and Communications Group, the Digital Home Group, and the Ultra-Mobility Group operating segments.
Percentage of Revenue
(Dollars in Millions)
2009
2008
2007
Total: $35,127
Total: $37,586
Total: $38,334
Revenue from sales of microprocessors within the PCCG operating segment represented 57% of our consolidated net revenue in 2009 (57%
in 2008 and 55% in 2007), and revenue from sales of microprocessors within the DCG operating segment represented 15% of our
consolidated net revenue in 2009 (14% in 2008 and 13% in 2007).
Below, we discuss the key products and processor technologies, including some key introductions, of our operating segments. For a
discussion of our strategy, see “Strategy” in Part II, Item 7 of this Form 10-K.
PC Client Group
The PC Client Group (PCCG) offers microprocessors and related chipsets designed for the notebook, netbook, and desktop market
segments. In addition, PCCG offers motherboards designed for the desktop market segment, and wireless connectivity products.
Notebooks and Netbooks
Our current notebook and netbook microprocessor offerings include the:
•
Intel» CoreTM i7 processor Extreme Edition
•
Intel» CoreTM2 Duo mobile processor
•
Intel» CoreTM i7 mobile processor
•
Intel» CoreTM2 Solo processor
•
Intel» CoreTM i5 mobile processor
•
Intel» Celeron» D processor
•
Intel» CoreTM i3 mobile processor
•
Intel» Celeron» M processor
•
Intel» CoreTM2 Extreme mobile processor
•
Intel» Celeron» processor
•
Intel» CoreTM2 Quad mobile processor
•
Intel» AtomTM processor
We offer microprocessors for notebooks at a variety of price and performance points, from the Intel Core i7 processor Extreme Edition—a
quad-core processor based on our latest generation Intel Core microarchitecture designed for processor-intensive tasks in demanding
multitasking environments—to the Intel Celeron processor, designed to provide value, quality, and reliability for basic computing needs. In
addition, we offer the Intel Atom processor, designed for netbooks. We offer these processors in various packaging options, including
ultra-low-voltage processors designed for ultra-thin laptop computers, giving our customers flexibility for a wide range of system designs
for notebook PCs. The related chipsets for our notebook and netbook microprocessor offerings primarily include Mobile Intel» 5 Series
Express Chipsets, Mobile Intel» 4 Series Express Chipsets, Mobile Intel» 900 Series Express Chipsets, and the Intel» NM10 Express
Chipset. In addition, we offer wireless connectivity products based on WiFi and WiMAX technologies.
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Document Outline

• 2009 Annual Report Cover
• Financial Results
• Letter From Your CEO
• 2009 Highlights
• Letter from Your Chairman
• Intel Form 10-K
  • Index
  • Business
  • Risk Factors
  • Unresolved Staff Comments
  • Properties
  • Legal Proceedings
  • Submission of Matters to a Vote of Security Holders
  • Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  • Selected Financial Data
  • Management's Discussion and Analysis of Financial Condition and Results of Operations
  • Quantitative and Qualitative Disclosures About Market Risk
  • Financial Statements and Supplementary Data
  • Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
  • Controls and Procedures
  • Other Information
  • Directors, Executive Officers and Corporate Governance
  • Executive Compensation
  • Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
  • Certain Relationships and Related Transactions, and Director Independence
  • Principal Accounting Fees and Services
  • Exhibits, Financial Statement Schedules
• Corporate Directory
• Investor Information

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