Who said that you can't build a car from a chipset tray? At the Children's Welfare Center in Shanghai, Intel volunteers and students from 25 schools assembled recycled materials from the factory floor to come up with robots and energy saving devices which they presented to a set of judges.

Students from the Shanghai Deaf-Mute Youth Technology School warmed everyone's hearts as they explained through sign language what their recycled design was modeled after.

 This recycling contest was just one of a 7-week series of events celebrating Earth Day that drew hundreds of people in Shanghai and Chengdu to express their commitment to the environment.

During the opening ceremony an energy-conservation robot created from recycled material marched down the stage to welcome the audience. Intel Pudong General Manager Robin Martin encouraged students to help Shanghai be a better place by taking care of the environment. 15-year old Naijia talked about the many ways to protect the earth: from classifying trash to saving water and electricity and protecting animals.

The rain poured heavily that afternoon but it didn't dampen anyone's spirit. One volunteer from PDAT, Bao Min, upon discovering that the digital camera of one of the teachers in the audience ran out of batteries, darted out into the rain and came back, drenched, with new batteries for her. The teacher from Nanyang Primary School thanked him profusely, obviously overwhelmed by the generous spirit of the Intel volunteer.

In Chengdu's Huangzhong District, residents broughtTheir slightly used appliances, books, and toys to the Flea Market set up by Intel volunteers to exchange them with other people's stuff. One grandmother walked around with an old radio, determined to find something she'd find more useful. The afternoon was made even more fun when some kids danced to a song about planting trees, recited poems and modeled outfits using used bottles and plastic bags.

"Trading stuff in a flea market like this is a very creative way to reduce our trash," shared a volunteer of the community, "It's fun, bings people together, and makes them aware that we have to control the volume of the world's waste."

Through the years, Intel has always expressed its commitment to the environment by doing exactly this: bringing people together in different creative ways to share the spirit of Earth Day. So whether it's designing recycled model cars in Shanghai or trading goods at Chengdu, Intel volunteers continue to demonstrate how they'd want the world to be a better place to live in.

On March 22, a sunny Thursday afternoon, 60 volunteers from Intel Pudong trekked to a bare field in Jiangdong Road, Lingqiao Community. With beaming smiles and high spirits, these volunteers came to sow the first spring and to fill this land with new trees.

Under the local workers' guidanc, the volunteers fromed teams, rolled up their sleeves, and got ready to sweat it out by digging into the ground. Together, they planted about 100 trees in one and a half hours.

Xu Jinli of Flash MFG shared how tree planting is a meaningful activity. "It helps build a harmonious environment and it is a good chance to relax ourselves and enjoy nature as well."

As dusk set in, the volunteers felt worn out by they also felt a sense of fulfillment having given something to the community. In one popular song, the children ask 春天在哪里? or Where is the spring? That afternoon in Lingqiao, the answer was clear. It is in the eyes of every Intel volunteer who planted trees and celebrated the arrival of spring!

Intel Corporation today announced plans to build a 300-millimeter (mm) wafer fabrication facility (fab) in the coastal Northeast China city of Dalian in Liaoning Province in Beijing on march 26, 2007. The $2.5 billion investment for the factory designated Fab 68 will become Intel's first wafer fab in Asia and adds significant investment to Intel's existing operations in China.

"China is our fastest-growing major market and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers," said Intel President and CEO Paul Otellini. "Fab 68 will be our first new wafer fab at a new site in 15 years. Intel has been involved in China for more than 22 years and over that time we've invested in excess of $1.3 billion in assembly test facilities and research and development. This new investment will bring our total to just under $4 billion, making Intel one of the largest foreign investors in China."

Not since 1992 with the construction of Fab 10 in Ireland has Intel built a fab from the ground up at a brand new site. Construction on Fab 68 is scheduled to begin later this year with production projected to begin in the first half of 2010. Initial production will be dedicated to chipsets to support Intel's core microprocessor business.

"This is one of the major cooperative projects between China and the United States in the area of integrated circuits manufacturing in recent years. The project will further strengthen Intel's leadership position in semiconductor manufacturing in the world. At the same time, the investment in Dalian will have a positive impact to the regional economic development and the development of integrated circuits industry in the old inustrial base of Northeast China," said Zhang Xiaoqiang, vice chairman of the National Development and Reform Comission. "We welcome Intel and other multinational companies to invest and cooperate with China. We support Intel's initiative to expand and strengthen cooperation with relevant parties in a number of areas, such as talent training, technology standards, improved information technology for rural areas and digital health, to promote the mutual benefit and win-win of Intel and the information industry of China, and to achieve the goal of growing together."

Dalian Mayor Xia Deren said, "As an open city on China's coastline, Dalian provides many geographic advantages as well as existing infrastructure and services for foreign investment. We are very excited Intel has chosen Dalian to build a wafer fabrication facility. This investment will not just impact Dalian's social and economic development, but will generate a significant and positive impact on the economic and industrial structure in Northeast China."

When completed, Fab 68 will become part of Intel's manufacturing network that includes eight 300mm factories in 2010 with other fabs located in the United States, Ireland and Israel. Manufacturing with 300mm wafers dramatically increases the ability to produce semiconductors at a lower cost compared with more commonly used 200mm (eight-inch) wafers. The bigger wafers lower production cost per chip while diminishing overall use of resources. Using 300mm manufacturing technology consumes 40 percent less energy and water per chip than a 200mm wafer factory.

March 12 is Tree Planting Day in China, and Intel Chengdu celebrated it by bringing in their largest number of volunteers ever to plant not just one tall tree but 1000 young Maidenhair trees and to donate a laptop to the Pugou Village.

"These trees planted by Intel does not just extend the green in our land, but also extends the love of volunteers in our hearts" said President Lindadong of Chengdu City Red Cross.

With shirts drenched in sweat after two hours of toiling under the sun, volunteers gained strength from the spectacle that surrounded them thousands of peach, rape seed and wild flowers filled the fields.

"Spring has arrived, and I feel blessed to be surrounded by all this beauty," shared one volunteer, "To plant more trees on this hill is to share and be part of this beauty. Doing so has made this day even more meaningful."

It has become doubly meaningful to local villager Li Hong who has been entrusted by the village committee to manage Intel Chengdu's 4th Orchard. He estimates that after 5 years, each tree will fetch around 200 RMB. "In the long run, together with the profit from fuit these trees will bear, this orchard can benefit the underprivileged families of the village by around 150,000 RMB each year."

"We are planting not just trees here today," said shift manager Zhangjian, "but also hope. Hope for the farmers who, in turn, provide us with so much."

Indeed, as Intel Chengdu continues to strive to be a source of pride to the community, what allows this hope to be shared is the generosity of volunteers who believe that they play a role in the delicate balance of nature, of beauty, and of the world.

On February 9th, Intel Zizhu hosted its first-ever volunteer New Year party. During the program, Intel Zizhu's community taskforce leaders highlighted the site's achievements in 2006 and elaborated on the 2007 plan. They were very proud to note that even as a young site (just about 1 year old), Zizhuy employees' volunteer spirit was very strong in 2006-and even more so now when over 150 employees signed up for 2007 activities.

This year, Intel Zizhu will continuously improve the quality and infrastructure of the community's education system, and further expand after-school education resources. More activities will also be organized for the migrant workers' kids in the neighborhood. The Intel Community PC room will be utilized to enhance attendees' PC skills through the involvement of Intel volunteers. The Volunteer Matching Grant Program (VMGP) will be formally extended to Zizhu community. Eight schools, from kindergarten to university level in the Zizhu neighborhood, have been added to the VMGP list so they can begin receiving Intel volunteer support and matching grant from the Intel Foundation.

To cap the afternoon's celebrations, recognitions and presents were given out to the top 7 Intel Zizhu Volunteers (see sidebar). Attendees were also able to receive special gifts during several lucky draws.

The Renaissance Brasserie of the Renaissance Shanghai Pudong Hotel was the site of the Intel Involved Volunteer Recognition Party held on the evening of February 9th. As many as 150 Intel Involved volunteers were invited to attend.

Public Affairs Department Manager Chen Yan praised the superb performance of volunteers in 2006 by virtue of a 6% year-on-year increase of volunteer enrollment. Pudong Site Co-General  Managers Robin Martin and Chen Wei were present at the party to extend their whole-hearted appreciation to the volunteers for their great contribution in the past year.

"It is easy for Intel to help others on the financial support, but we care more about what people really need. I'm glad to see more and more employees enroll in our volunteer activities and thanks for IIC team's good job," Martin said. "It'll be greatif we can enlarge the volunteers from 48% to 96% in next year."

The culmination of the party came when the 2006 Top 10 Volunteer Stars were announced (see sidebar). Other events included several lucky draws and games which added more excitement to the festivities.

Summary

A total of 238 clippings have been generated since December 20. There are 170 clipings from Beijing media alone, with 68 from other cities.

The core message of Intel China becoming "One Geo" was well delivered. 100% of the media covering the news picked up the key messages and emphasized a bight future for Intel's new SMG geography.

Key messages delivered by media

Commitment & Competitiveness

Interl has made great achievements in China in the past 21 years and the rapidly-growing China marker is playing a more and more important role in Intel's larger operation. However, Intel today is gacing even more challenges because of the changes in market environment, which have required Intel to take a much more pragmatic strategy in China. Creating a PRC independent region will provide more space for Intel China to grow. Besides, it will help Intel to have more flexibility in terms of R&D and marketing to better meet local needs and improve Intel China's responsiveness to local customers and market. Intel will increase its competitive advantage in China with this announcement.

Localization

The change will help Intel grow deeper roots in China and advance homegrown technology innovation. Intel China can strengthen its localization strategy to demonstrate Intel's continued commitment to local customers and the market.