In 1985, Intel became one of the first American semiconductor companies to establish a presence in the People's Republic of China, with the opening of an office in Beijing. In 1991, Intel began its operation in Moscow, Russia and in February 2006, Intel announced a $300 million investment to build a semiconductor assembly and test facility in Ho Chi Minh City, Vietnam.

Every decision involving Intel's expansion overseas has a multitude of legal and security requirements that have to be met. Failure to comply can result in loss of export licenses or loss of Intel's IP. For years Intel has been so successful in complying with legal and security requirements that on March 26, 2007 Intel announced plans to build a 300-millimeter (mm) wafer fabrication facility (Fab) in the coastal Northeast China city of Dalian in Liaoning Province. The $2.5 billion investment for the factory will become Intel's first wafer Fab in Asia and yet another major milestone for Intel.

The challenges for Intel have not only been to understand the technology restrictions imposed by the US government, but also to push the envelope by introducing advanced technologies in several foreign countries. Then Intel has the additional challenge of implementing the best possible comprehensive program for protecting our IP.

Prior to introducing a new facility in a foreign country Intel uses a pre-production model (Figure 1) to address potential technology restrictions and potential risks.

Figure 1: Pre-production model
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A sustaining model (Figure 2) is used once Intel has established a facility in a foreign country and this model addresses any expansion or new businesses at that facility.

Figure 2: Sustaining model
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The two models feed directly and independently into Intel's security requirements that drive Intel's overall risk and compliance program involving multiple efforts and organizations.

The consistency between these two models has contributed to the evolution of Intel's risk management and compliance program and both have played a significant part in expanding our growth in foreign countries. Intel has successfully introduced and expanded sales marketing, research and design, software development, assembly and test facilities, and Fabs in various countries around the world.

The technology restrictions and security requirements continue to be complicated, but Intel's risk management efforts continue to support business growth as Intel expands overseas.