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1、UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2022.orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 19

2、34For the transition period from to .Commission File Number 000-06217INTEL CORPORATION(Exact name of registrant as specified in its charter)Delaware94-1672743(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)2200 Mission College Boulevard,Santa Clara,Ca

3、lifornia95054-1549(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code:(408)765-8080Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading symbolName of each exchange on which registeredCommon stock,$0.001 par valueINTCNasda

4、q Global Select MarketSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Sectio

5、n 13 or Section 15(d)of the Act.Yes 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 suchshorter period that the registrant was required to file such report

6、s),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every interactive data file required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)duringthe preceding 12 mont

7、hs(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitionsof large ac

8、celerated filer,accelerated filer,smaller reporting company,and emerging growth company in Rule 12b-2 of the Exchange Act.Large Accelerated FilerAccelerated Filer Non-Accelerated Filer Smaller Reporting Company Emerging Growth Company If an emerging growth company,indicate by check mark if the regis

9、trant has elected not to use the extended transition period for complying with any new or revised financial accounting standardsprovided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of t

10、he effectiveness of its internal control over financial reporting under Section404(b)of the Sarbanes-Oxley Act(15 U.S.C 7262(b)by the registered public accounting firm that prepared or issued its audit report.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 o

11、f the Exchange Act).Yes No Aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant as of July 1,2022,based upon the closing price of the common stock as reported by the NasdaqGlobal Select Market on such date,was$149.2 billion.4,137 million shares of co

12、mmon stock were outstanding as of January 20,2023.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants proxy statement related to its 2023 Annual Stockholders Meeting to be filed subsequently are incorporated by reference into Part III of this Form 10-K.Except as expresslyincorporated by r

13、eference,the registrants proxy statement shall not be deemed to be part of this report.Table of ContentsOrganization of Our Form 10-KThe order and presentation of content in our Form 10-K differs from the traditional SEC Form 10-K format.Our format is designed to improve readability and better prese

14、nt howwe organize and manage our business.See Form 10-K Cross-Reference Index within the Financial Statements and Supplemental Details for a cross-reference index to thetraditional SEC Form 10-K format.We have defined certain terms and abbreviations used throughout our Form 10-K in Key Terms within

15、the Financial Statements and Supplemental Details.The preparation of our Consolidated Financial Statements is in conformity with US GAAP.Our Form 10-K includes key metrics that we use to measure our business,some ofwhich are non-GAAP measures.See Non-GAAP Financial Measures within MD&A for an explan

16、ation of these measures and why management uses them and believes theyprovide investors with useful supplemental information.Fundamentals of Our BusinessPageAvailability of Company Information2Introduction to Our Business3A Year in Review5Our Strategy7Our Capital10Managements Discussion and Analysis

17、Our Products19Segment Trends and Results20Consolidated Results of Operations39Liquidity and Capital Resources44Critical Accounting Estimates47Non-GAAP Financial Measures47Other Key InformationSales and Marketing51Quantitative and Qualitative Disclosures About Market Risk52Risk Factors53Properties67M

18、arket for Our Common Stock68Information About Our Executive Officers70Disclosure Pursuant to Section 13(r)of the Securities Exchange Act of 193471Financial Statements and Supplemental DetailsAuditors Reports73Consolidated Financial Statements76Notes to Consolidated Financial Statements81Key Terms115

19、Controls and Procedures118Exhibits119Form 10-K Cross-Reference Index124Table of ContentsForward-Looking StatementsThis Form 10-K contains forward-looking statements that involve a number of risks and uncertainties.Words such as accelerate,achieve,aim,ambitions,anticipate,believe,committed,continue,c

20、ould,designed,estimated,expect,forecast,future,goals,grow,intend,likely,may,might,milestones,next generation,objective,on track,opportunity,outlook,pending,plans,positioned,possible,predict,progress,roadmap,potentially,seek,should,strive,targets,tobe,upcoming,will,would,and variations of such words

21、and similar expressions are intended to identify such forward-looking statements.In addition,any statements thatrefer to our strategy and its anticipated benefits,including our IDM 2.0 strategy,February 2022 Investor Meeting financial model,Smart Capital strategy,SCIP,our partnershipwith Brookfield

22、Asset Management(Brookfield),the transition to an internal foundry model,and updates to our reporting structure;manufacturing expansion and financing plans;investment plans and impacts of investment plans,including in the US and abroad;future economic conditions,including regional or global downturn

23、s or recessions;businessplans;internal and external manufacturing plans,including future internal manufacturing volumes and external foundry usage;future responses to and effects of COVID-19,including manufacturing,transportation,and operational restrictions or disruptions;projections of our future

24、financial performance,including future revenue,gross margins,capital expenditures,and cash flows;future business,social,and environmental performance,goals,measures,and strategies;our anticipated growth,future market share,andtrends in our businesses and operations;projected growth and trends in mar

25、kets relevant to our businesses;future technology trends;plans and goals related to Intels foundrybusiness,including with respect to future manufacturing capacity and foundry service offerings,including technology and IP offerings;future products,services,and technology,and the expected regulation,a

26、vailability,and benefits of such products,services,and technology,including future process nodes and packaging technology,product roadmaps,schedules,future product architectures,expectations regarding process performance,per-watt parity,and leadership,and other metrics,and expectations regarding pro

27、ductleadership;projected cost and yield trends;product and manufacturing plans,goals,timelines,ramps,and progress;geopolitical conditions,including the impacts of Russias waron Ukraine;expected timing and impact of acquisitions,divestitures,and other significant transactions,including statements rel

28、ating to the completion of our acquisition of TowerSemiconductor Ltd.(Tower),the sale of our NAND memory business,and the wind-down of our Intel Optane memory business;expected completion and impacts ofrestructuring activities and cost-saving or efficiency initiatives,including those related to the

29、2022 Restructuring Program;future cash requirements;availability,uses,sufficiency,and cost of capital resources and sources of funding,including future capital and R&D investments,credit rating expectations,and expected returns to stockholders such asstock repurchases and dividends;our valuation;sup

30、ply expectations,including regarding constraints,limitations,pricing,and industry shortages;expectations regardinggovernment incentives;future production capacity and product supply;anticipated trends and impacts related to industry component,substrate,and foundry capacity utilization,shortages and

31、constraints;the future purchase,use,and availability of products,components,and services supplied by third parties,including third-party IP and foundry services;tax-and accounting-related expectations;LIBOR-related expectations;expectations regarding our relationships with certain sanctioned parties

32、;uncertain events or assumptions,including statements relating to TAM,market opportunity,or projections of future demand;and other characterizations of future events or circumstances are forward-lookingstatements.Such statements are based on managements expectations as of the date of this filing,unl

33、ess an earlier date is specified,and involve many risks and uncertaintiesthat could cause our actual results to differ materially from those expressed or implied in our forward-looking statements.Such risks and uncertainties include those describedthroughout this report and particularly in Risk Fact

34、ors within Other Key Information,including changes in demand for our products;changes in product mix;the complexity ofour manufacturing operations;competition;investments in R&D and our business,products,and technologies;vulnerability to product and manufacturing-related risks;the effectsof the COVI

35、D-19 pandemic;supply chain risks,including from disruptions,delays,trade tensions,or shortages;cybersecurity and privacy risks;investment and transition risk;evolving regulatory and legal requirements;our debt obligations;stock volatility;and the risks of our global operations;among others.Given the

36、se risks and uncertainties,readers are cautioned not to place undue reliance on such forward-looking statements.Readers are urged to carefully review and consider the various disclosures made in thisForm 10-K and in other documents we file from time to time with the SEC that disclose risks and uncer

37、tainties that may affect our business.Unless specifically indicatedotherwise,the forward-looking statements in this Form 10-K do not reflect the potential impact of any divestitures,mergers,acquisitions,or other business combinations thathave not been completed as of the date of this filing.In addit

38、ion,the forward-looking statements in this Form 10-K are made as of the date of this filing,unless an earlier date isspecified,including expectations based on third-party information and projections that management believes to be reputable,and Intel does not undertake,and expresslydisclaims any duty

39、,to update such statements,whether as a result of new information,new developments,or otherwise,except to the extent that disclosure may be required bylaw.Note Regarding Third-Party InformationThis Form 10-K includes market data and certain other statistical information and estimates that are based

40、on reports and other publications from industry analysts,marketresearch firms,and other independent sources,as well as managements own good faith estimates and analyses.Intel believes these third-party reports to be reputable,but hasnot independently verified the underlying data sources,methodologie

41、s,or assumptions.The reports and other publications referenced are generally available to the public andwere not commissioned by Intel.Information that is based on estimates,forecasts,projections,market research,or similar methodologies is inherently subject to uncertainties,and actual events or cir

42、cumstances may differ materially from events and circumstances reflected in this information.Intel,Arc,Arria,Blockscale,Celeron,Cyclone,Intel Agilex,Intel Atom,Intel Core,eASIC,Intel Evo,Intel Geti,Intel Inside,the Intel logo,the Intel Inside logo,Intel Optane,Iris,Killer,MAX,Movidius,OpenVINO,OpenV

43、INO logo,Pentium,Quark,Quartus,Stratix,Tofino,Thunderbolt and the Thunderbolt logo,Intel vPro,and Xeon are trademarks of Intel Corporation or its subsidiaries.The Bluetooth word mark and logos are registered trademarks owned by Bluetooth SIG,Inc.and any use of such marks by Intel Corporation is unde

44、r license.*Other names and brands may be claimed as the property of others.1Availability of Company InformationOur Internet address is .We publish voluntary reports on our website that outline our performance and expectations with respect to corporate responsibility,including environmental,health,an

45、d safety compliance.We use our Investor Relations website,as well as public webcasts,analyst presentations,and investor days,as routine channels for distribution of importantinformation about us,including our business,financial condition,and operations,among other developments.Such information may b

46、e material,and you are encouraged tofollow these sources in addition to our filings with the SEC.We publish news releases,announcements,information about upcoming webcasts,analyst presentations,andinvestor days,archives of these events,financial information,corporate governance practices,and corpora

47、te responsibility information on .We post our filings the same day they are electronically filed with,or furnished to,the SEC,including our annual and quarterly reports on Forms 10-K and 10-Q and current reports onForm 8-K,our proxy statements,and any amendments to those reports or statements.We pos

48、t our quarterly and annual earnings results at ,and do not distributeour financial results via a news wire service.All such postings and filings are available on our Investor Relations website free of charge.In addition,our Investor Relationswebsite allows interested persons to sign up to automatica

49、lly receive e-mail alerts when we post financial information and issue press releases,and to receive information aboutupcoming events.The content on any website referred to in this Form 10-K is not incorporated by reference in this Form 10-K unless expressly noted.2Table of ContentsA Year in Review2

50、022 revenue was$63.1 billion,down$16.0 billion,or 20%,from 2021 as CCG revenue decreased 23%,DCAI revenue decreased 15%,and NEX revenue increased 11%.2022 results were impacted by an uncertain macroeconomic environmentwith slowing consumerdemand,persistent inflation,and higher interest ratesthat we

51、believe impacts our target markets and creates a high level of uncertaintywith our customers.CCG revenue was down on lower notebook and desktop volume in the consumer and education market segments,while notebook and desktop ASPs were higher due to a resulting change in product mix.DCAI server volume

52、 decreased,led byenterprise customers,and due to customers tempering purchases to reduce existing inventories in a softening data center market.ServerASPs decreased due to customer and product mix.NEX revenue increased primarily due to Ethernet ASPs and increased demand for5G products,partially offs

53、et by lower demand for Network Xeon.We invested$17.5 billion in R&D,made capital investments of$24.8 billion,and generated$15.4 billion in cash from operations and$(4.1)billion of adjusted free cash flow.RevenueGross MarginDiluted EPS Attributable to IntelCash Flows GAAP$B Non-GAAP$B GAAP Non-GAAP G

54、AAP Non-GAAP Operating Cash Flow$B Adjusted Free Cash Flow$B$63.1B42.6%47.3%$1.94$1.84$15.4B$(4.1)BGAAPGAAPnon-GAAPGAAPnon-GAAPGAAPnon-GAAPRevenue down 16%from2021 non-GAAP revenueGross margindown 12.8 pptsfrom 2021Gross margindown 10.8 pptsfrom 2021Diluted EPSdown$2.92 or60%from2021Diluted EPSdown$

55、3.46 or65%from2021Operating cashflow down$14Bor 48%Adjusted freecash flow down$15B or 137%Lower revenue in CCG andDCAI,higher revenue inNEX,and lack of NANDrevenue compared to 2021due to the divestiture in Q12022.Lower gross margin from lowerrevenue,higher unit cost,lack ofNAND gross margin,higherpe

56、riod charges from the ramp ofIntel 4,and higher inventoryreserves.Lower EPS from lower grossmargin,higher operatingexpenses from additionalinvestment in R&D,partiallyoffset by higher gains on equityinvestments and a tax benefit.Lower operating cash flow drivenby lower operating income;partially offs

57、et by favorableworking capitalchanges.Managing to our long-term financial modelOur 2022 results were impacted by an uncertain macroeconomic environment arising from inflation,the war in Ukraine,and COVID-19 shutdowns in our supply chain in China,and though we expect this uncertainty and a challengin

58、g market environment to extend well into 2023,we remain committed to the strategy and long-term financial modelcommunicated at our Investor Meeting 2022 as included in our Form 8-K dated February 17,2022.To achieve our long-term financial model,we believe it is imperative that wedrive to world-class

59、 product cost and operational efficiency.In the short term,we intend to continue to implement certain cost-cutting measures and improve our productexecution.We further expect to manage to the investment phase operating expenses and net capital intensity guardrails established at our Investor Meeting

60、 2022 and to driveback to a gross margin range of 51%to 53%,once economic conditions improve and revenue growth returns.Longer term,we plan to execute multiple initiatives designed tooptimize the business,thus creating efficiencies and continued structural cost savings.This includes implementing an

61、internal foundry model,making portfolio cuts,right sizingour support organizations,creating more stringent cost controls across our spending,and improving sales and marketing efficiency.Though we aggressively adjusted capitalinvestments in 2022 to respond to changing business conditions,we still mad

62、e significant investments in support of our IDM 2.0 strategy during the year.We expect our capitalexpenditures will continue to be higher than historical levels for the next several years as we execute towards our goal of delivering five technology nodes in four years.We alsointroduced our IDM 2.0 A

63、cceleration Office to transition our operations to an internal foundry model that is designed to deliver consistent processes,systems,and guardrailsamong our business units,and design and manufacturing teams,which we expect will allow us to improve structural efficiencies by driving accountability a

64、nd costs back todecision makers within the company.See Non-GAAP Financial Measures within MD&A.11111 Fundamentals of Our Business5Table of ContentsDelivering leadership productsWe seek to develop and offer leading products that will help enable a future in which every human can have more computing p

65、ower and quicker access to data.We remaincommitted to our goal of delivering five technology nodes in four years.This year,we achieved several key milestones on our product roadmap,including:We launched the 12th Gen Intel Core HX processorsthe final products in our Alder Lake family,which utilize de

66、sktop-caliber silicon in a mobile package to deliverhigh levels of performance for professional workflows.We introduced the Intel Data Center GPU Flex Series for the intelligent visual cloud and revealed the 13th Gen Intel Core processor family with six new unlockeddesktop processors for leading gam

67、ing,streaming,and recording experiences.We launched the newest Intel Xeon D processors and Intel Arc A-series GPUs(also known as Alchemist),and began shipping Mount Evans,a 200G ASIC IPU,aswell as the first Intel Blockscale ASIC.We began high-volume manufacturing of Sapphire Rapids,Raptor Lake,and P

68、onte Vecchio in 2022,with shipments beginning in Q4 2022.Investing in at-scale manufacturingTo help accelerate our IDM 2.0 strategy,we are investing in manufacturing capacity around the world.We broke ground on two new leading-edge chip factories in Ohio,initiallyannouncing plans to invest more than

69、$20.0 billion to establish the first advanced semiconductor campus in the“Silicon Heartland”.We also announced our plans to invest up to80.0 billion in the European Union over the next decade across the semiconductor value chainfrom R&D to manufacturing to state-of-the-art packaging technologies.The

70、seinclude a plan to invest up to an initial 17.0 billion to build a leading-edge semiconductor fab mega-site in Germany;to create a new R&D and design hub in France;and toinvest in R&D,manufacturing,and foundry services in Ireland,Italy,Poland,and Spain.To create further financial flexibility while

71、we accelerate our strategy,we announced SCIP,a program that introduces a new funding model to the capital-intensive semiconductorindustry.As part of this program,we closed a definitive agreement with Brookfield Asset Management(Brookfield),creating an equity partnership whereby we and Brookfield own

72、51%and 49%,respectively,of the newly formed entity,Arizona Fab LLC(Arizona Fab).We expect Arizona Fab will invest up to$30.0 billion in expanded manufacturinginfrastructure at our Ocotillo campus in Chandler,Arizona.We also look to acquisitions to supplement and strengthen our capital.In Q1 2022,we

73、entered into a definitive agreement to acquire Tower Semiconductor Ltd.(Tower)in acash-for-stock transaction.Tower is a leading foundry for analog semiconductor solutions.The acquisition is expected to advance our IDM 2.0 strategy by accelerating our globalend-to-end foundry business.While we contin

74、ue to work to close within the first quarter of 2023,the transaction may close in the first half of 2023,subject to certain regulatoryapprovals and customary closing conditions.Strengthening focus on the core businessWe reorganized our business units in a way that is designed to accelerate the execu

75、tion and innovation of our company by allowing us to capture long-term growth in both largetraditional markets and high-growth emerging markets,while providing increased transparency,focus,and accountability.We announced the implementation of cost-cutting measures,including a slower pace of hiring a

76、nd restructuring actions,designed to reduce operating expenditures and managethe business toward our long-term financial strategy.We completed the IPO of Mobileye,building on Mobileyes revenue growth and record of innovation and unlocking value for Intel stockholders.Committing to positive global im

77、pactIn April 2022,we announced our commitment to achieve net-zero greenhouse gas emissions across our global operations(Scope 1 and 2)by 2040 and to increase the energyefficiency and lower the carbon footprint of our products and platforms.Fundamentals of Our Business6Table of ContentsOur StrategyTh

78、e entire world is becoming digital as technology is increasingly central to every aspect of human existence.As we look ahead to the next decade,we expect to see continuedmovement to digital for everythingthe way we work,learn,connect,develop,and operate.Semiconductors are the underlying technology p

79、owering the digitization ofeverything,and this is being accelerated by five superpowers:ubiquitous compute,pervasive connectivity,cloud-to-edge infrastructure,AI,and sensing.Together thesesuperpowers combine to amplify,and reinforce each other,and will exponentially increase the worlds need for comp

80、uting by packing even more processing capability onto ever-smaller microchips.We intend to lead the industry by harnessing these superpowers for our customers growth and our own.We are uniquely positioned with the depth and breadth of our software,silicon and platforms,and packaging and process tech

81、nology with at-scale manufacturing.With thesestrengths and the tailwinds of the superpowers driving digital disruption,our strategy to win is focused on four key themes:product leadership,open platforms,manufacturing atscale,and our people.Our PrioritiesProduct LeadershipLead and democratize compute

82、 with Intel x86 and xPU.Our product offerings provide end-to-end solutions,scaling from edge computing to 5G networks,the cloud,and theemerging fields of AI and autonomous driving,to serve an increasingly smart and connected world.At our core is the x86 computing ecosystem,which supports an extensiv

83、e and deep universe of software applications,with billions of lines of code written and optimized for x86CPUs.We continue to advance this ecosystem with x86 microarchitectures focused on performance,which push the limits of low latency and single-threaded applicationperformance,and microarchitecture

84、s focused on efficiency,which are designed for computing throughput efficiency to enable scalable multithreaded performance.Our innovativenew 13th Gen client processors(Raptor Lake)combine both performance cores and efficient cores in a performance hybrid architecture that can direct workloads to th

85、e rightcore depending on whether they require higher performance or power efficiency.We can also combine these architectural advances with our innovations in process andpackaging technology,as in our next-generation Intel Xeon data center CPU(Sapphire Rapids),which utilizes performance cores on mult

86、iple compute tiles connected throughour EMIB packaging technology in a scalable design,rather than being built on a monolithic silicon die.Beyond the CPU,we are delivering a growing family of xPU products,which encompass client and data center GPUs,IPUs,FPGAs,and other accelerators.The xPU approachr

87、ecognizes that different workloads benefit from different computing architectures,and our broad portfolio helps meet our customers increasingly diverse computing needs.Aspart of our strategy,we seek to develop and offer leading products across each of these architectural categories.Our vision is tha

88、t our products will help enable a future in whichevery human can have one petaflop of computing power and one petabyte of data less than one millisecond away.Fundamentals of Our Business7Table of ContentsOpen PlatformsWe aim to deliver open software and hardware platforms with industry-defining stan

89、dards.Around the globe,companies are building their networks,systems,and solutions onopen standards-based platforms.Intel has helped set the stage for this movement,with our historic contributions in developing standards such as CXL,Thunderbolt,and PCIExpress*(PCIe*).We also contributed to the desig

90、n,build,and validation of open-source products in the industry such as Linux*,Android*,and others.The worlds developersconstantly innovate and expand the capabilities of these open platforms while increasing their stability,reliability,and security.In addition,microservices have enabled thedevelopme

91、nt of flexible,loosely coupled services that are connected via application programming interfaces to create end-to-end processes.We use industry collaboration,co-engineering,and open-source contributions to accelerate software innovation.Through our oneAPI initiative,developers use a unified languag

92、e across CPUs,GPUs,and FPGAsto cut down on development time and to enhance productivity.We also deliver a steady stream of open-source code and optimizations for projects across virtually every platformand usage model.We are committed to co-engineering and jointly designing,building,and validating n

93、ew products with software industry leaders to accelerate mutualtechnology advancements and help new software and hardware work better together.Our commitment extends to developers through our developer-first approach based onopenness,choice,and trust.Ultimately,we believe our pivot to a software-def

94、ined,silicon-enhanced strategy will enable us to realize value at all layers of the stack.This should allow us to continue tomonetize foundational and ecosystem enabling software through hardware sales,limited licensing,and customer-enabling service offerings.Additionally,we intend to expand oursoft

95、ware portfolio by developing and monetizing software solutions,services,and platforms with SaaS,software subscriptions,and other business models.We expect to focus onapplied AI,trust and security,and cloud performance for our SaaS and subscription-based software and we plan to launch our first secur

96、ity SaaS product,Project Amber(anindependent attestation service),in 2023.Manufacturing at ScaleIDM 2.0,the next evolution and expansion of our IDM model,is a differentiated strategy that combines three capabilities:Internal factory network.Our global,internal factory network has been foundational t

97、o our success,enabling product optimization,improved economics,and supply resilience.We intend to remain a leading developer of process technology and a major manufacturer of semiconductors and will continue to build the majority of our products in ourfactories.Strategic use of foundry capacity.We e

98、xpect to expand our use of third-party foundry manufacturing capacity,which will provide us with increased flexibility and scale to optimizeour product roadmaps for cost,performance,schedule,and supply.Our use of foundry capacity will include manufacturing for a range of modular tiles on advanced pr

99、ocesstechnologies.System foundry.We are building a world-class foundry business to meet the growing long-term global demand for semiconductors.We plan to differentiate our foundry offeringsfrom those of others through a combination of leading-edge packaging and process technology,committed capacity

100、in the US and Europe available for customers globally,and aworld-class IP portfolio that will include x86 cores,as well as other ecosystem IP.The current foundry model enabled explosion of ecosystem innovation at the wafer level.Webelieve this established model has historically served the industry w

101、ell,but a new mindset is needed in our new era of chipmaking.As innovation evolves,we see the rack hascollapsed into a system and the system has collapsed into an advanced package.We are building out a system foundry that has four components:wafer fabrication,packaging,chiplet standard,and software.

102、The system foundry involves engaging with customers at multiple levels,from basic wafer manufacturing to helping define and implement their desired system architecture.Weintend to build our customers silicon designs and deliver full end-to-end customizable products built with our advanced packaging

103、technology.We believe our IDM 2.0 strategy enables us to deliver leading process technology and products to meet growing long-term demand using internal and external capacity,whileleveraging our core strengths to provide foundry services to others and providing superior capacity,supply resilience,an

104、d an advantageous cost structure.Our PeopleOur world-class talent is at the heart of everything we do.Together we strive to have a positive effect on business,society,and the planet.Delivering on our strategy and growthambitions requires attracting,developing,and retaining top talent from across the

105、 world.Our people build our technology,unlock new business opportunities,and work with ourpartners and customers to create global impact.Fostering a culture of empowerment,inclusion,and accountability is also core to our strategy.We are committed to creating an inclusive workplace where the worlds b

106、estengineers and technologists can fulfill their dreams and create technology that improves the life of every person on the planet.Growth ImperativeWe are investing to position the company for accelerated long-term growth,focusing on both our core businesses and our growth businesses.In our client a

107、nd serverbusinesses,our strategy is to invest to strengthen the competitiveness of our product roadmap and to explore new opportunities.We believe we have significant opportunities togrow and gain share in graphics;mobility,including autonomous driving;networking and edge;and foundry services.Fundam

108、entals of Our Business8Table of ContentsFocus on Innovation and ExecutionWe are focused on executing our product and process roadmap and accelerating our cadence of innovation.We have set a detailed process and packaging technology roadmapand announced key architectural innovations to further our go

109、al of delivering leadership products in every area in which we compete.We are returning our culture to its roots ininnovation and execution,drawing on principles established by our former CEO Andy Grove that emphasize discipline and accountability.This includes re-establishing OKRsthroughout the org

110、anization to drive a common purpose.To help us execute toward our IDM 2.0 strategy,we are leveraging our Smart Capital approach.This approach is designed to enable us to adjust quickly to opportunities in themarket,while managing our margin structure and capital spending.The key elements of Smart Ca

111、pital include:Smart capacity investments.We are aggressively building out manufacturing shell space,which gives us flexibility in how and when we bring additional capacity onlinebased on milestone triggers such as product readiness,market conditions,and customer commitments.Government incentives.We

112、are continuing to work with governments in the US and Europe to advance incentives for domestic manufacturing capacity for leading-edgesemiconductors.SCIP.We are accessing strategically aligned capital to increase our flexibility and help efficiently accelerate and scale manufacturing build-outs.Thi

113、s type of co-investment also demonstrates how private capital is unlocked and becomes a force multiplier for government incentives for semiconductor manufacturing expansion.Customer commitments.IFS is working closely with potential customers and exploring their willingness to make advance payments t

114、o secure capacity.This provides uswith the advantage of committed volume,de-risking investments while providing capacity corridors for our foundry customers.External foundries.We intend to continue our use of external foundries where their unique capabilities support our leadership products.Fundamen

115、tals of Our Business9Table of ContentsOur CapitalWe deploy various forms of capital to execute our strategy in a way that seeks to reflect our corporate values,help our customers succeed,and create value for our stakeholders.CapitalStrategyValueFinancialLeverage financial capital to invest in oursel

116、ves and drive our strategy,provide returns to stockholders and supplement and strengthen ourcapabilities through acquisitions.We strategically invest financial capital to create long-term value and providereturns to our stockholders.IntellectualInvest significantly in R&D and IP to enable us to deli

117、veron our accelerated process technology roadmap,introduce leading x86 andxPU products,and develop new businesses and capabilities.We develop IP to enable next-generation products,create synergies acrossour businesses,expand into new markets,and establish and support ourbrands.ManufacturingBuild man

118、ufacturing capacity efficiently tomeet the growing long-term global demand for semiconductors,aligned withour IDM 2.0 strategy.Our geographically balanced manufacturing scope and scale enable us toprovide our customers with a broad range of leading-edge products.HumanBuild a diverse,inclusive,and sa

119、fe work environment to attract,develop,andretain top talent needed to build transformative products.Our talented employees enable the development of solutions and enhancethe intellectual and manufacturing capital critical to helping our customerswin the technology inflections of the future.Social an

120、d RelationshipBuild trusted relationships for both Intel and our stakeholders,includingemployees,suppliers,customers,local communities,and governments.We collaborate with stakeholders on programs to empower underservedcommunities through education and technology,and on initiatives to advanceaccounta

121、bility and capabilities across our global supply chain,includingaccountability for the respect of human rights.NaturalStrive to reduce our environmental footprint through efficient and responsibleuse of natural resources and materials used to create our products.With our proactive efforts,we seek to

122、 mitigate climate and water impacts,achieve efficiencies,and lower costs,and position ourselves to respond tothe expectations of our stakeholders.Comprehensive ESG and Corporate Responsibility Strategy:RISEOur commitment to corporate responsibility and sustainability leadership is deeply integrated

123、throughout our business.We strive to create an inclusive and positive workenvironment where every employee has a voice and a sense of belonging,and we are proactive in our efforts to reduce our environmental footprint through efficient andresponsible use of natural resources and materials.We continu

124、e to raise the bar for ourselves and leverage our leadership position in the global technology ecosystem to make greater strides in corporate responsibility and applytechnology to address social and environmental challenges.Through our RISE strategy,we aim to create a more responsible,inclusive,and

125、sustainable world,enabled byour technology and the expertise and passion of our employees.In addition to our 2030 RISE goals established in 2020,in April 2022 we announced our commitment to achievenet-zero greenhouse gas emissions across our global operations(Scope 1 and 2)by 2040 and to increase th

126、e energy efficiency and lower the carbon footprint of our productsand platforms.These are ambitious goals that strengthen our commitment to sustainable business practices under our RISE strategy.Our corporate responsibility strategy isdesigned to increase the scale of our work through collaboration

127、with our stakeholders and other organizations;we know that we cannot achieve the broad social impact to whichwe aspire by acting alone.More information about our RISE goals,including progress we have made toward achieving them,is included in our Corporate Responsibility Report.The contents of our Co

128、rporate Responsibility Report are referenced for general information only and are not incorporated by reference in this Form 10-K.11 Fundamentals of Our BusinessOur Capital10Table of ContentsFinancial CapitalWe take a disciplined approach to our financial capital allocation strategy,which continues

129、to focus on building stockholder value and is driven by our priority to invest in thebusiness and capacity and our capital needs.We also seek to pay competitive dividends and,from time-to-time,engage in mergers and acquisitions with a focus on adjacenciesand complementary technology.As we invest in

130、our IDM 2.0 strategy and implement our next phase of capacity expansions and the acceleration of our process technologyroadmap,our allocation priorities have shifted more heavily toward investing in the business and away from stock repurchases.In the long term,we will continue to look foropportuniti

131、es to further our strategy through acquisitions while remaining disciplined on capital allocation.Cash from Operating Activities$B Cash from Operating Activities Adjusted Free Cash FlowOur Financial Capital Allocation StrategyInvest in the BusinessOur first allocation priority is to invest in R&D an

132、d capital spending to capitalize on the opportunity presented by the worlds demand for semiconductors.We also respond tochanging business and economic conditions.We adjusted and refocused our capital investment for 2022 and in the short term,while accelerating the deployment of our SmartCapital stra

133、tegy.Return Excess Cash to StockholdersOur capital allocation strategy includes returning excess cash to stockholders.We achieve this through our dividend policy and when permissible,stock repurchases.We expectour future stock repurchases to continue to be significantly below our levels from 2021 an

134、d recent preceding years due to our current curtailment of this program.R&D and Capital Investments$BCash to Stockholders$B R&D Logic Memory Repurchases DividendAcquire and IntegrateOur capital allocation strategy also includes opportunistic investment in and acquisition of companies that complement

135、 our strategic objectives.We look for acquisitions thatsupplement and strengthen our capital and R&D investments.Our key acquisitions over the last three years include the pending acquisition of Tower and our 2020 acquisition ofMoovit to accelerate Mobileyes MaaS offering.We take action when investm

136、ents do not strategically align to our key priorities,and in 2022 we completed the first closing of the divestiture of our NAND memory business andbegan winding down our Intel Optane memory business.Additionally,in 2020 we completed the divestiture of the majority of our Home Gateway Platform,a divi

137、sion of CCG.See Non-GAAP Financial Measures within MD&A.2021 and 2022 capital investments in Memory are not presented due to the divestiture of the NAND memory business announced in October 2020.2018-2020 capital investments presented includeMemory.1212 Fundamentals of Our BusinessOur Capital11Table

138、 of ContentsIntellectual CapitalResearch and DevelopmentR&D investment is critical to enable us to deliver on our accelerated process technology roadmap,introduce leading products,and develop new businesses and capabilities inthe future.We seek to protect our R&D efforts through our IP rights and ma

139、y augment R&D initiatives by acquiring or investing in companies,entering into R&D agreements,anddirectly purchasing or licensing technology.Areas Key to Product LeadershipWe have intensified our focus on areas key to product leadership.Our objective with each new generation of products is to improv

140、e user experiences and value throughadvances in performance,power,cost,connectivity,security,form factor,and other features.We also focus on reducing our design complexity,re-using IP,and increasingecosystem collaboration to improve our efficiency.Process and packaging.Our leading-edge process and p

141、ackaging technology and world-class IP portfolio are key to the success of our strategy.This year,we have reaffirmedour commitment to achieving process technology leadership in 2025 by planning to deliver five technology nodes in four years.In addition,we have solidified our process andpackaging off

142、erings to external customers through IFS.We introduced further optimizations to our Intel 7 process node,which is now in production for our 13thGen Intel Core processors(Raptor Lake).Intel 4,taking advantage of EUV,is a node that is designed to deliver significant density scaling and approximately 2

143、0%performance-per-watt improvement over Intel 7.Meteor Lake is scheduled to be our first high-volume client product on Intel 4.We expect Intel 3 to deliver further logic scaling and up to 18%performance-per-watt improvement over Intel 4.Intel 3 is our first advanced node offered to IFScustomers and

144、is optimized for the needs of Data Center products.Intel 20A will follow Intel 3 and will introduce two breakthrough technologies that we expect will deliver up to 15%performance-per-watt improvement over Intel 3:RibbonFET and PowerVia.RibbonFET,our implementation of a gate-all-around transistor,is

145、designed to deliver faster transistor switching speeds while achieving thesame drive current as multiple fins,but in a smaller footprint.PowerVia is our unique industry-first implementation of backside power delivery that is designed tooptimize signal transmission by eliminating the need for power r

146、outing on the front side of the wafer.Intel 18A,our second IFS advanced node offering,improves on Intel 20A by delivering ribbon innovation for design optimization and line width reduction.Intel 18A is onschedule and expected to deliver an additional 10%improvement in performance per watt over Intel

147、 20A.Beyond Intel 18A,we have already initiated definition and development of our next two process nodes and continue to define,build,and develop the next-generationHigh Numerical Aperture EUV lithography into our process technology roadmap.Our family of 3D advanced packaging technology will usher i

148、n the next generation of Foveros technology,enabling us to mix multiple top die tiles with multiple base tilesacross mixed fab nodes,giving Intel and our customers greater flexibility for disaggregated chip designs.Our future Foveros Direct technology should scaleinterconnect pitch below 10m,enable

149、direct copper-to-copper bonding for low-resistance interconnects,and blur the boundary between wafer and package.xPU architecture.We believe the future is a diverse mix of scalar,vector,matrix,and spatial architectures deployed in CPU,GPU,accelerator,and FPGA sockets,enabled bya scalable software st

150、ack and integrated into systems by advanced packaging technology.We are building processors that span several major computing architectures,movingtoward an era of heterogeneous computing:CPU.We started shipping our 4th Gen Intel Xeon Scalable processors(Sapphire Rapids)based on Intel 7 with the new

151、Golden Cove core,built-in AI acceleration,cryptographic acceleration,and advanced security capabilities.We also launched our 13th Gen Intel Core processors(Raptor Lake),which will scale from thin and lightlaptops to enthusiast desktop and notebook platforms.These are based on a hybrid architecture u

152、tilizing Raptor Cove performance cores and Gracemont power-efficient cores and are socket-compatible with Alder Lake systems.GPU and HPC.Following the Q1 2022 launch of the first Intel Arc-branded laptop GPUs(A3 series),in Q4 2022 we launched the high-performance desktop GPUs(A7 series).Intel Arc GP

153、Us offer dedicated graphics capability to power premium laptop and desktop experiences.Intel Arc A-Series GPUs come with advancedtechnologies to enable immersive gaming and powerful content creation in modern,portable designs.In Q4 2022,we also introduced the Intel Max Series productfamily with two

154、leading-edge products for high-performance computing and AI:Intel Xeon CPU Max Series(also known as Sapphire Rapids HBM)and Intel DataCenter GPU Max Series(also known as Ponte Vecchio).These new products will power the upcoming Aurora supercomputer at Argonne National Laboratory and willhelp progres

155、s our vision of increasing the computing power of every human.Interconnect.Mount Evans,Intels first ASIC IPU,is designed to address the complexity of diverse and dispersed data centers.An IPU is designed to enable cloud andcommunication service providers to reduce overhead and free up performance fo

156、r CPUs.Matrix Accelerator.In Q2 2022,we launched our second-generation deep learning processors for training and inference:Habana Gaudi2*and Habana Greco*.Thesenew processors address an industry gap by providing customers with high-performance,high-efficiency,deep-learning compute choices for both t

157、raining workloads andinference deployments in the data center,while lowering the AI barrier to entry for companies of all sizes.Fundamentals of Our BusinessOur Capital12Table of ContentsSoftware.Software unleashes the potential of our hardware platforms across all workloads,domains,and architectures

158、.In 2022,oneAPI adoption continued to expand across the industry.oneAPI enables developers to build cross-architecture applications using a single code base acrossCPUs,GPUs,and FPGAs to reduce development time and enhance productivity.Our oneAPI-based tools take advantage of unique hardware features

159、 and lowersoftware development and maintenance costs.Developers can choose the best architecture for the problem at hand without rewriting their entire code base,accelerating their time to value.We seek to accelerate adoption of oneAPI and Intel software developer tools through diverse ecosystem act

160、ivities,including developer training,summits,centers ofexcellence,and access to Intel hardware and software through a developer cloud.The Intel DevCloud,currently in public beta release,will host global users spanningAI,data science,high-performance computing,media and graphics,and other accelerated

161、 computing workloads.We believe AI will be ubiquitous,and with our tools and the broad open software ecosystem,we are well-positioned to scale AI.We optimize for the most widely used AIframeworks and libraries,including TensorFlow,Pytorch,Scikit-learn,NumPy,XGBoost,and Spark,with certain optimizatio

162、ns delivering up to 100 times performanceimprovements to support end-to-end AI.We also develop innovative Intel software to accelerate developer productivity,such as OpenVINO,Intel NeuralCompressor,BigDL,and AI software reference kits.We seek to continually improve our system and foundational-level

163、software in support of our client,data center,networking,and graphics products,delivering AI-optimized software across the stack,including BIOS,firmware,simulation,operating systems,and virtualization.IP RightsWe own and develop significant IP and related IP rights around the world that support our

164、products,services,R&D,and other activities and assets.Our IP portfolio includespatents,copyrights,trade secrets,trademarks,mask works,and other rights.We actively seek to protect our global IP rights and to deter unauthorized use of our IP and otherassets.We have obtained patents in the US and other

165、 countries.Because of the fast pace of innovation and product development,our products are often obsolete before the patentsrelated to them expire,and in some cases our products may be obsolete before the patents are granted.As we expand our product offerings into new areas,we also seek toextend our

166、 patent development efforts.In addition to developing patents based on our own R&D efforts,we may purchase or license patents from third parties.The software that we distribute,including software embedded in our products,is entitled to copyright and other IP protection.To distinguish our products fr

167、om our competitorsproducts,we have obtained trademarks and trade names for our products,and we maintain cooperative advertising programs with customers to promote our brands and toidentify products containing genuine Intel components.We also protect details about our processes,products,and strategie

168、s as trade secrets,keeping confidential theinformation that we believe provides us with a competitive advantage.Efforts to protect our IP can be difficult,particularly in countries that provide less protection to IP rights and in the absence of harmonized international IP standards.Competitorsand ot

169、hers may already have IP rights covering similar products.There is no assurance that we will be able to obtain IP rights covering our own products or that we will be able toobtain IP licenses from other companies on favorable terms or at all.For a discussion of IP-related risks,see Risk Factors with

170、in Other Key Information.While our IP rights areimportant to our success,our business as a whole is not significantly dependent on any single patent,copyright,or other IP right.Fundamentals of Our BusinessOur Capital13Table of ContentsManufacturing CapitalAs the guardians of Moores Law,we continuous

171、ly innovate to advance the design and manufacturing of semiconductors to help address our customers greatest challenges.This makes possible new leadership products with higher performance while balancing power efficiency,cost,and size.Our IDM 2.0 strategy allows us to deliver leadership products usi

172、ng internal and external capacity while leveraging our core strengths to provide foundry services to others.IDM2.0 combines three capabilities.First,we will continue to build most of our products in Intel fabs.Second,we expect to expand our use of third-party foundry capacity tomanufacture a range o

173、f modular tiles on advanced process technologies.Third,we are building a world-class foundry business with IFS,which we expect will combine leading-edge packaging and process technology,committed capacity in the US and Europe,and a world-class IP portfolio that will include x86 cores,as well as othe

174、r ecosystem IP.Network and Supply ChainIn 2022,our factories performed well in a highly dynamic environment,where we adapted to rapid demand shifts and industry component shortages affecting us and ourcustomers.We continue to work across our supply chain to minimize disruptions,improve productivity,

175、and increase overall capacity and output to meet customer expectations.Our global supply chain supports internal partners across architecture,product design,technology development,manufacturing and operations,sales and marketing,andbusiness units,and our supply ecosystem comprises thousands of suppl

176、iers globally.Our mission is to enable product and process leadership,industry-leading total cost ofownership,and on-time and uninterrupted supply for our customers.We supplement our own manufacturing capacity through our use of third-party foundries.As of the end of 2022,we had nine manufacturing s

177、ites in production five wafer fabrication facilities and four assembly and test facilities.The following map shows thesefactory sites and the countries where we have a significant R&D and/or sales presence.In our continued response to COVID-19,we maintained the operational measures put inplace in 20

178、20 and 2021 to enable a continued safe environment for our employees and the operation of our manufacturing sites.Our manufacturing facilities are primarily used for silicon wafer manufacturing,assembling,and testing of our platform products.We operate in a network of manufacturingfacilities integra

179、ted as though they were one factory to provide the most flexible supply capacity,allowing us to better analyze our production costs and adapt to changes incapacity needs.Our new process technologies are transferred from a central development fab to each manufacturing facility.After transfer,the netw

180、ork of factories and thedevelopment fab collaborate to continue driving operational improvements.This enables fast ramp of the operation,quick learning,and quality control.We are expanding manufacturing capacity across multiple sites,including Arizona,Ireland,Israel,and Oregon as well as New Mexico

181、and Malaysia for advanced packaging.Thisyear,we broke ground on our new site in Ohio and officially added Germany to our roadmap.Fundamentals of Our BusinessOur Capital14Table of ContentsHuman CapitalOur human capital strategy is grounded in our belief that our people are fundamental to our success.

182、Delivering on our strategy and growth ambitions requires attracting,developing,and retaining top talent across the world.We are committed to creating an inclusive workplace where the worlds best engineers and technologists can fulfill theirdreams and create technology that improves the life of every

183、 person on the planet.We invest in our highly skilled workforce of 131,900 people by creating practices,programs,and benefits that support the evolving world of work and our employees needs.Fostering a culture of empowerment,inclusion,and accountability is also core to our strategy.We are focused on

184、 reinvigorating our culture to strengthen our execution andaccelerate our cadence of innovation.Our valuescustomer first,fearless innovation,results driven,one Intel,inclusion,quality,and integrityinspire us and are key todelivering on our purpose.All employees are responsible for upholding these va

185、lues,the Intel Code of Conduct,and Intels Global Human Rights Principles,which form thefoundation of our policies and practices and ethical business culture.Talent ManagementWe continue to see significant competition for talent throughout the semiconductor industry.Though we slowed the pace of hirin

186、g in the second half of 2022 in line withmacroeconomic forecasts,financial performance,and cost-cutting measures,and took actions to rebalance our workforce,the investments we are making to accelerate ourprocess technology require continued and focused efforts to attract and retain talentespecially

187、technical talent.Our undesired turnover rate was 5.6%in both 2022 and 2021.We invest significant resources to develop the talent needed to remain at the forefront of innovation and make Intel an employer of choice.We offer extensive training programsand provide rotational assignment opportunities an

188、d are working to update our job architecture to help employees create custom learning curricula for building skills and owningtheir careers.To further support the growth and development of our people,we continue to increase mentoring in our technical community,drive engagement through employeeresour

189、ce groups,and promote health and wellness resources to all our people.Through our annual Employee Experience Survey and Manager Development Feedback Survey,employees can voice their perceptions of the company,their managers,their work experience,and their learning and development opportunities.Our e

190、mployees voices areimportant to enable our culture of continuous improvement,and as a result,we link a portion of our executive and employee performance bonus to participation in our EmployeeExperience Survey.Our performance management system is designed to support our cultural evolution and to incr

191、ease our focus on disciplined OKRs.InclusionDiversity and inclusion are core elements of Intels values and instrumental to driving innovation and positioning us for growth.Over thepast decade,we have taken actions to integrate diversity and inclusion expectations into our culture,performance and man

192、agementsystems,leadership expectations,and annual bonus metrics.We are proud of what we have accomplished to advance diversity andinclusion,but we recognize we can achieve more,including beyond the walls of Intel.Our RISE strategy and 2030 goals set our globalambitions for the rest of the decade,inc

193、luding doubling the number of women in senior leadership;doubling the number ofunderrepresented minorities in US senior leadership;increasing the percentage of employees who self-identify as having a disability to10%;and exceeding 40%representation of women in technical roles,including engineering p

194、ositions and other roles with technical jobrequirements.To drive accountability,we continue to link a portion of our executive and employee compensation to diversity and inclusionmetrics.We have committed our scale,expertise,and reach through our comprehensive RISE strategy to work with customers an

195、d otherstakeholders to accelerate the adoption of inclusive business practices across industries.As part of the Alliance for Global Inclusion,weworked with a coalition of technology companies to create a Global Inclusion Index Survey,which serves as a benchmark for companiesto track diversity and in

196、clusion improvements,provide information on current best practices,and highlight opportunities to improveoutcomes across industries.The results of the second Global Inclusion Index Survey were published in 2022 and shared with businessleaders across industries.The number of companies that completed

197、the inclusion index in 2022 nearly doubled compared to in 2021.Thiscollective effort will allow the industry to more clearly identify actions needed to advance progress on closing persistent gaps andadvancing more inclusive practices in workplaces,industry,and society.The survey results for 2022 sho

198、wed participants making progressin many of these areas.We will also continue to collaborate on initiatives that expand the diverse pipeline of talent for our industry,advance social equity,make technology fully inclusive,and expand digital readiness for millions of people around the world.Undesired

199、turnover includes all regular Intel employees who voluntarily left Intel,but does not include Intel contract employees,interns,or employees who separated from Intel due to divestiture,retirement,voluntary separation packages,death,job elimination,or redeployment.Senior leadership refers to salary gr

200、ades 10+and equivalent grades.While we present male and female,we acknowledge this is not fully encompassing of all gender identities.The term underrepresented minority(URM)is used to describe diverse populations,including Black/African American,Hispanic,and Native American employees in the US.11 2

201、3 Fundamentals of Our BusinessOur Capital15Table of ContentsCompensation and BenefitsWe structure pay,benefits,and services to meet the varying needs of our employees.Our total rewards package includes market-competitive pay,broad-based stock grants andbonuses,an employee stock purchase plan,healthc

202、are and retirement benefits,paid time off and family leave,parent reintegration,fertility assistance,flexible work schedules,sabbaticals,and on-site services.Since 2019,we have achieved gender pay equity globally and we continue to maintain race/ethnicity pay equity in the US.We achieve payequity by

203、 closing the gap in average pay between employees of different genders or race/ethnicity in the same or similar roles after accounting for legitimate business factors thatcan explain differences,such as location,time at grade level,and tenure.We have also advanced transparency in our pay and represe

204、ntation data by publicly releasing ourEEO-1 survey pay data since 2019.We believe that our holistic approach toward pay equity,representation,and creating an inclusive culture enables us to cultivate a workplacethat helps employees develop and progress in their careers at all levels.Our“hybrid-first

205、”approach to working was informed by employees surveyed around the globe andinvolves the majority of our employees splitting their time between working remotely and in the office.Hybrid-first and remote work options cast a wider recruitment net andsupport our ambition to hire the best global talent.

206、Currently,there is no company-wide mandate on the number of days per week employees should be on site or how theyshould collaborate.Our goal is to enable remote and on-site work where it drives the best output,while ensuring our employees have equitable access to systems,resources,and opportunities

207、that allow them to succeed.Health,Safety,and WellnessOur commitment to Intels Environmental,Health,and Safety Policy is to provide a safe and injury-free workplace.We regularly invest in programs designed to improve physical,mental,and social well-being.We provide access to a variety of innovative,f

208、lexible,and convenient health and wellness programs,including on-site health centers,and we aimto increase awareness of and support for mental and behavioral health.In support of our RISE goals,we will continue to build our strong safety culture and drive the globalexpansion of our corporate wellnes

209、s program through employee education and engagement activities.Social and Relationship CapitalWe are committed to engaging in initiatives that support our communities and help us develop trusted relationships with our stakeholders.Proactive engagement with ourstakeholders and investments in social i

210、mpact initiatives,including those aligned with the United Nations Sustainable Development Goals,advance our position as a leadingcorporate citizen and create shared value for Intel,our global supply chain,and our communities.Economic and social.The health of our business and local economies depends

211、in part on continued investments in innovation.We provide high-skill,high-paying jobs around theworld,many of which are manufacturing and R&D jobs located in our own domestic and international factories.As we expand operations in Arizona,Oregon,Ohio,and Europe,we are building a pipeline of qualified

212、 workers through our talent strategy and the many investments we are making in education.We also benefit economies through our R&Decosystem spending,sourcing activities,employee spending,and tax payments.We make sizable capital investments and provide leadership in public-private partnerships tospur

213、 economic growth and innovation.We stand at the forefront of new technologies that are increasingly being used to empower individuals,companies,and governments around the world to solve global challenges.We aim to empower people through education and advance social initiatives to create career pathw

214、ays into the technology industry.This includes our global Intel DigitalReadiness Programs,such as AI for Youth and AI for Workforce,scaled in partnership with governments and institutions to empower individuals with digital readiness and AIskills.Additionally,we invest in multi-year partnerships wit

215、h historically Black colleges and universities in the US to increase the number of Black/African Americans who pursueelectrical engineering,computer engineering,and computer science fields.Our employees and retirees share their expertise through volunteer initiatives in the communitieswhere we opera

216、te,volunteering approximately 2.8 million hours over the past three years.These efforts contribute to our RISE goal to volunteer 10 million hours over a decade.COVID-19 presented challenges over the last few years for in-person volunteering,but we continued to see an outpouring of support from emplo

217、yees for virtual volunteering,donations,and innovative technology projects to support our communities,and in 2022,a return to more in-person volunteering.Since 2020,we announced and furtherexpanded upon the Intel RISE Technology Initiative,which provides an expanded channel to build deeper relations

218、hips with our customers and partners aligned with ourcorporate purpose and work to create shared value through our RISE strategy.Specifically,we are funding projects in areas such as using technology to improve health andsafety,making technology more inclusive while expanding digital readiness,and c

219、arbon-neutral computing to help address climate change.Human rights commitment.We are committed to maintaining and improving processes to avoid complicity in human rights violations related to our operations,supply chain,andproducts.We have established an integrated approach to managing human rights

220、 across our business,including senior-level management involvement,with board-leveloversight.We also meet throughout the year with external stakeholders and experts on human rights to continue to inform and evolve our human rights policies and oversightprocesses.While we do not always know,nor can w

221、e control,what products our customers create or the applications end users may develop,we do not tolerate our productsbeing used to violate human rights.When we become aware of a concern that our products are being used by a business partner in connection with abuses of human rights,ourpolicies requ

222、ire that we restrict or cease business with the third party until we have high confidence that our products are not being used to violate human rights.This is a preliminary estimate.The final number will be reported in our 2022-23 Corporate Responsibility Report,to be issued later in 2023.11 Fundame

223、ntals of Our BusinessOur Capital16Table of ContentsSupply Chain ResponsibilityWe actively manage our supply chain to help reduce risk,improve product quality,achieve environmental and social goals,and improve overall performance and value creationfor Intel,our customers,and our suppliers.To drive re

224、sponsible and sustainable practices throughout our supply chain,we have robust programs to educate and engagesuppliers that support our global manufacturing operations.We actively collaborate with other companies and lead industry initiatives on key issues such as improvingtransparency around climat

225、e and water impacts in the global electronics supply chain and,as part of our RISE strategy,we are advancing collaboration across our industry onresponsible minerals sourcing.Through these efforts we help set electronics industry-wide standards,develop audit processes,and conduct training.Over the p

226、ast decade,we have directly engaged with our suppliers to verify compliance and build capacity to address risks of forced and bonded labor and other human rightsissues.We perform supplier audits and identify critical direct suppliers to engage through capability-building programs,which help supplier

227、s build sustainability acumen and verifycompliance with the Responsible Business Alliance and our Code of Conduct.We also engage with indirect suppliers through our programs on forced and bonded labor,responsible minerals,and supplier diversity.To achieve our RISE goals,we are significantly expandin

228、g the number of suppliers covered by our engagement activities.The supplychain environmental team is also actively engaging suppliers to measure and reduce their greenhouse gas emissions footprints,and the resulting impact on our footprint,in orderto meet our long-term emissions reductions goals.Our

229、 commitment to diversity and inclusion also extends to our suppliers.We believe a diverse supply chain supports greater innovation and value for our business.We have setadditional spending targets with women-owned suppliers outside the US and with minority-owned suppliers globally to accelerate prog

230、ress toward our goal to increase globalannual spending with diverse suppliers by 100%to reach$2 billion in annual spending by 2030.We continue to only retain or use outside law firms in the US that are aboveaverage on diversity for their equity partners and apply a similar rule to firms used by our

231、tax department,including non-legal firms.Natural CapitalDriving to the lowest possible environmental footprint as we grow helps us create efficiencies,support our communities,and respond to the needs of our stakeholders.We investin environmental projects and set company-wide environmental targets to

232、 drive reductions in greenhouse gas emissions,energy and water use,and waste generation.We buildenergy efficiency into our products to help our customers lower their own emissions,energy usage and costs,and we collaborate with policymakers and other stakeholders touse technology to address environme

233、ntal challenges.In April 2022,we announced our new goal to reach net-zero greenhouse gas emissions in our operations by 2040,creating an important target to strengthen our commitment tosustainable business practices.Our 2030 RISE goals continue to be important milestones to drive to higher levels of

234、 operational efficiency,including a goal of a 10%reduction inour greenhouse gas emissions on an absolute basis by 2030.We continue to take action on emissions reduction strategies focused on emissions abatement,additionalinvestments in renewable electricity,process and equipment optimization,and ene

235、rgy conservation.Our RISE strategy also focuses on addressing climate change impactsupstream and downstream in the value chain.This includes improving product energy efficiency and increasing our handprintthe ways in which Intel technologies can helpothers reduce their footprints,including Internet

236、of Things solutions that enable intelligence in machines,buildings,supply chains,and factories,and make electrical gridssmarter,safer,and more efficient.In Q3 2022,we completed our inaugural green bond issuance of$1.3 billion principal amount of senior notes.We are using the proceeds from the green

237、bond offering to fundprojects that support our investments in sustainable operations,which can include items such as green buildings,energy efficiency,circular economy and waste management,greenhouse gas emissions reductions,water stewardship,and renewable energy.The first annual green bond impact r

238、eport will be published in 2023 to provide an update on theallocation of the net proceeds.EnergyWe focus on reducing our own climate change impact,and over the past two decades have reduced our direct and indirect greenhouse gas emissions associated with energyconsumption.Through our RISE goals,we h

239、ave committed to a goal of conserving 4 billion kWh of energy this decade.We have conserved approximately 973 million kWh ofenergy cumulatively since 2020.We also invest in renewable electricity and on-site alternative energy projects in support of our 2030 goal to achieve 100%renewable electricityu

240、se across our global operations.In 2022,continuing our practice of linking a portion of our executive and employee performance bonus to our corporate sustainability metrics,we linked a portion of the performance bonus to our 2022 target to reach 90%renewable electricity use globally.We reached our t

241、arget and achieved approximately 91%renewable electricity usage globally in 2022.This is a preliminary estimate.The final number will be reported in our 2022-23 Corporate Responsibility Report,to be issued later in 2023.111 Fundamentals of Our BusinessOur Capital17Table of ContentsWater StewardshipW

242、ater is essential to the semiconductor manufacturing process.We use ultrapure water to remove impurities from our silicon wafers,and we use fresh and reclaimed water torun our manufacturing facility systems.Through our RISE goals,we have committed to achieve net positive water globally,and as part o

243、f that effort,conserve 60 billion gallons ofwater in this decade.Water conservation reduces the amount of water needed from fresh water sources;we have conserved approximately 26.2 billion gallons of water andenabled restoration of approximately 6.6 billion gallons of water since 2020.In 2022,we lin

244、ked a portion of our executive and employee performance bonus to our targets toconserve 8.5 billion gallons of water and restore 2.5 billion gallons of water to local watersheds,both of which we achieved.Circular Economy and Waste ManagementWe have long been committed to waste management,recycling,a

245、nd circular economy strategies that enable the recovery and productive re-use of waste streams.Our 2030goals include a target of zero total waste to landfill,as well as implementation of circular economy strategies for 60%of our manufacturing waste streams in partnership with oursuppliers.We continu

246、e to focus on opportunities to upcycle waste by improving waste segregation practices and collaborating with our suppliers to evaluate new technologies forwaste recovery.Governance and DisclosureWe are committed to transparency around our carbon footprint and climate risk,and use the framework devel

247、oped by the TCFD to inform our disclosure on climate governance,strategy,risk management,and metrics and targets.For governance and strategy,we follow an integrated approach to address climate change,with multiple teams responsiblefor managing climate-related activities,initiatives,and policies,with

248、 senior-level management involvement and board-level oversight,including the Corporate Governance andNominating Committee.We describe our overall risk management processes in our Proxy Statement,and describe our climate-related risks and opportunities in our annualCorporate Responsibility Report,the

249、 Intel Climate Change Policy,and Risk Factors within this Form 10-K.In addition to what is included within this Form 10-K,informationabout and progress toward our RISE goals is included in our Corporate Responsibility Report.Our Corporate Responsibility Report also includes a mapping of our disclosu

250、re tothe TCFD and SASB frameworks.The Corporate Responsibility Report and our CDP Climate Change Survey are available on our website and are published annually.This is a preliminary estimate.The final number will be reported in our 2022-23 Corporate Responsibility Report,to be issued later in 2023.I

251、ntel defines zero waste as less than 1%.The contents of our website and our Corporate Responsibility Report,Climate Change Policy,and CDP Climate Change Survey are referenced for general information only and are not incorporatedby reference in this Form 10-K.112 31 23 Fundamentals of Our BusinessOur

252、 Capital18Table of ContentsManagements Discussion and AnalysisOur ProductsWe are a global IDM of CPUs and related solutions that we design,develop,manufacture,market,sell,support and service.Our CPUs and related solutions are incorporated incomputing and related end products and services,and utilize

253、d globally by consumers,enterprises,governments,and educational organizations.Our customers primarily includeOEMs,ODMs,cloud service providers,and other equipment manufacturers that we market and sell to directly through our global sales and marketing organizations andindirectly through channel part

254、ners.We manufacture our products at our fabrication and assembly and test facilities located throughout the world.Our CPU and related product offerings provide end-to-end solutions,scaling from edge computing to 5G networks,the cloud,and the emerging fields of AI and autonomousdriving.Products,such

255、as our gaming CPUs,may be sold directly to end consumers,or they may be further integrated by our customers into end products such as notebooksand storage servers.Combining some of these productsfor example,integrating FPGAs with Intel Xeon processors in a data center solutionenables incremental syn

256、ergisticvalue and performance.We launched new products in 2022,such as the 12th Gen Intel Core HXprocessors,the final products in our Alder Lake family;Raptor Lake,our 13thGen Intel 7 client product;and Sapphire Rapids,the first of our 4th Gen Intel Xeon Scalable processors.We also added to our grap

257、hics offerings with the introduction of PonteVecchio and Alchemist.Our diverse product line includes CPU and chipset,an SoC,or a multichip package based on Intel architecture that processes data and controls other devices in a system.Theprimary CPU products in CCG are our Intel Core processors,which

258、 include designs specifically for notebook and desktop applications.The primary CPU product in DCAI is ourIntel Xeon processor,which includes solutions for data center compute,networking,and the intelligent edge.The primary offerings of NEX include Intel Xeon,Intel Core,andIntel Atom processor produ

259、cts.During 2022,we managed our business through the operating segments that are presented below and have included the 2022,2021 and 2020 financial results for eachsegment.Note 3:Operating Segments”within the Notes to Consolidated Financial Statements of this Form 10-K reconciles our segment revenues

260、 presented below to our totalrevenues,and our segment operating margin(loss)presented below to our total operating margin(loss),for each of the periods presented.We have also included a discussionof our 2022,2021 and 2020 consolidated results of operations and related information subsequent to the o

261、perating segment discussion below.MD&A19Overview%Intel RevenueWe are committed to advancing PC experiences by delivering an annual cadence of leadership productsand deepening our relationships with industry partners to co-engineer and deliver leading platforminnovation.We engage in an intentional ef

262、fort focused on long-term operating system,systemarchitecture,hardware,and application integration that enables industry-leading PC experiences.Wewill embrace these opportunities by simplifying and focusing our roadmap,ramping PC capabilities evenmore aggressively,and designing PC experiences even m

263、ore deliberately.By doing this,we believe wewill continue to fuel innovation across Intel,providing a growing source of IP,scale,and cash flow.Key DevelopmentsOur revenue was$31.7 billion,down 23%in 2022,driven by macroeconomic weakness that negatively impacted PC TAM,particularly in the consumer,ed

264、ucation and small/medium business markets.Operating margin was$6.3 billion,down 60%yearover year primarily due to lower notebook and desktop revenue,higher unit costs,increased investments in leadership products,and higher inventory reserves.COVID-related dynamics like work-and learn-from-home solid

265、ified the PC as an essential tool in the post-pandemic world.Welaunched our 12th Gen Intel Core H,S,U,and P-series processors and introduced our 13th Gen Intel Core processor familystarting with our desktop processors,the second iteration of our performance hybrid architecture built on Intel 7 proce

266、sstechnology.We worked with industry partners to co-engineer and deliver more than 153 verified Intel Evo designs and grew thecommercial market segment with the launch of our Intel vPro platform with the 12th Gen Intel Core processor and commercialofferings.MD&A20Table of ContentsMarket and Business

267、 OverviewMarket Trends and StrategyIn 2022,the PC business experienced one of the most challenging years in recent history,resulting from a softening macroeconomic environment and inflationary pressures.Despite these headwinds in 2022which resulted in a double-digit TAM decline PC usage remains stro

268、ng,demonstrating the increased utility and value of the PC and webelieve ultimately supporting a TAM well above pre-pandemic levels,once this period of adjustment subsides.The significant behavior changes that took shape amid thepandemic solidified the PC as an essential tool in peoples lives.PC den

269、sity,including PCs per household,increased during the pandemic,which irreversibly changed the way we focus,create,connect,and care for each other.In addition,theinstalled base of PCs per student continues to grow compared to pre-pandemic levels.Commercial growth opportunities also remain as corporat

270、ions expand the size of their PCfleets,while also replacing older devices.Currently,approximately 200 million commercial devices are more than four years old.The experience and capabilities delivered onnew PCs are dramatically better today,reinforcing the opportunity to drive a refresh cycle among e

271、nterprise customers.As we continue on our strategy to develop more competitive products and more capabilities for customers,we are designing our product roadmap to drive product leadershipgrounded in a philosophy of openness and choice.We deliver value to our customers by leveraging our engineering

272、capabilities and working with our partners across an open,innovative ecosystem to deliver technology that drives every major vector of the computing experience,including performance,battery life,connectivity,graphics,and formfactors to create the most advanced PC platforms.Products and CompetitionWe

273、 released our 13th Gen Intel Core desktop processors,the second generation of our performance hybrid architecture,which combines efficient-cores and performance-coresto deliver performance and experiences that are scalable across all PC market segments.The 13th Gen processor family is expected to de

274、liver uncompromised computingperformance for every PC segment and out to the edge.In total,we expect to deliver more than 500 designs from partners across major multinational corporations and leadingmanufacturers.We operate in a particularly competitive market.In processors,we compete with AMD and v

275、endors who design applications processors based on ARM architecture,such asQualcomm Inc.(Qualcomm),and,increasingly,Apple Inc.(Apple),with its M1 and M2 products.We expect this competitive environment to continue to intensify in 2023.Our role as a technology leader is more important than ever,and ou

276、r commitment to creating an open ecosystem is critical to delivering on our ambition.This is why we embraceand collaborate with a vibrant ecosystem of OEM partners to identify innovation vectors and deliver leadership technologies together.The breadth of a robust ecosystem likeMicrosoft Windows/x86

277、is a powerful combination,bringing together hundreds of companies around the globe and creative and innovative advancements that are not possible forone company to deliver alone.Unique to Intel,we innovate beyond the CPU to deliver premium PC experiences with Intel Evo and Intel vPro platforms.More

278、than 150 advanced laptop designs have been builton the Intel Evo platform,and we test and verify these to confirm they deliver key experience indicators such as responsiveness,battery life,instant wake,and connectivity.IntelvPro is designed for enterprise needs and delivers increased productivity im

279、provements,connectivity,security features,and remote manageability.Through our efforts to increase internal and external capacity,supply availability for our products has improved,which enables us to service our customers in a more consistentand responsive manner.We have also seen near-term improvem

280、ents in industry-wide constraints,which include improvements in third-party component availability and astabilization of lead times for those components.We remain committed to further remove bottlenecks of third-party components and prepare for longer term demand growth.Source:Intel calculated 2022

281、TAM derived from industry analyst reports.Source.Intel calculated PC density from industry analyst reports.Source:Intel calculated volume of devices over four years old from industry analyst reports and internal data.1231 2 3 MD&A21Table of ContentsFinancial PerformanceCCG Revenue$BCCG Operating Inc

282、ome$B|Notebook|Desktop|OtherRevenue Summary2022 vs.2021 Notebook revenue was$18.8 billion,down$6.7 billion from 2021.Notebook unit sales decreased 36%,driven by lower demand in the consumer and education marketsegments,and notebook ASPs increased 15%due to an increased mix of commercial and consumer

283、 products and a lower mix of education products.Desktop revenue was$10.7 billion,down$1.8 billion from 2021.Desktop unit sales decreased 19%,driven by lower demand in the consumer and education market segments,and desktop ASPs increased 5%,primarily from an increased mix of commercial products.Other

284、 revenue was$2.3 billion,down$923 million from 2021,primarily driven by the continued ramp down from the exit of our 5G smartphone modem business and lowerdemand for our wireless and connectivity products.2021 vs.2020 Notebook revenue increased$546 million.Notebook unit sales increased 8%,driven by

285、consumer and commercial recovery from COVID-19 lows offset by 6%lower ASPs dueto strength in consumer and education market segments.Desktop revenue increased$1.3 billion.Desktop unit sales increased 8%,driven by recovery in desktop demand driven by consumer and commercial recovery from COVID-19lows,

286、and ASP increased 3%,driven by commercial recovery from COVID-19.Other revenue decreased$1.3 billion,primarily driven by the continued ramp down from the exit of our 5G smartphone modem and Home Gateway Platform businesses,partially offset by strength in wireless and connectivity.MD&A22Table of Cont

287、entsOperating Income SummaryOperating income decreased 60%year over year,and operating margin was 20%in 2022 and 38%in 2021.(In Millions)$6,266 2022 Operating Income(3,047)Lower gross margin from notebook revenue(2,183)Higher notebook and desktop unit cost primarily from increased mix of Intel 7 pro

288、ducts(1,306)Lower gross margin from desktop revenue(1,284)Higher operating expenses driven by increased investments in leadership products(969)Higher period charges primarily driven by inventory reserves taken in 2022(320)Lower CCG other product gross margin driven by lower demand for our wireless a

289、nd connectivity products and thecontinued ramp down from the exit of our 5G smartphone modem business(262)Higher period charges primarily associated with the ramp of Intel 4(162)Higher period charges related excess capacity charges192 Lower period charges due to a benefit related to insurance procee

290、ds received for business interruption and propertydamage that occurred in 2020(97)Other$15,704 2021 Operating Income(840)Higher period charges primarily associated with ramp up of Intel 4 and subsequent ramp down of 14nm(675)Higher operating expenses driven by increased investment in leadership prod

291、ucts(290)Lower gross margin from notebook revenue(140)Higher period charges driven by less sell-through of reserves on products in 2021 as compared to in 2020,andadditional reserves taken in 20211,080 Higher gross margin from desktop revenue660 Lower unit cost primarily due to cost improvements in 1

292、0nm SuperFin165 Lower period charges primarily driven by a decrease in engineering samples(56)Other$15,800 2020 Operating IncomeMD&A23Overview%Intel RevenueDCAI delivers industry-leading workload-optimized solutions to cloud service providers and enterprisecustomers,along with silicon devices for co

293、mmunications service providers and high-performancecomputing customers.We are uniquely positioned to deliver solutions to help solve our customersmost complex challenges with the depth and breadth of our hardware and software portfolio combinedwith silicon and platforms,advanced packaging,and at-sca

294、le manufacturing made possible by beingthe worlds only IDM at scale.Our customers and partners include cloud hyperscalers,MNCs,smalland medium-sized businesses,independent software vendors,systems integrators,communicationsservice providers,and governments around the world.Key DevelopmentsOur revenu

295、e was$19.2 billion,down 15%in 2022,driven by challenging macroeconomic conditions and industry supplyconstraints,that both negatively impacted TAM,in addition to competitive pressures and product execution delays.Operatingmargin was$2.3 billion,down 73%year over year,primarily due to top-line headwi

296、nds paired with process node acceleration andincreased investments in leadership products.We began high-volume manufacturing of 4th Gen Intel Xeon Scalable processors and started shipping to customers,includingAmazon Web Services and Google Cloud.We launched five new Intel FPGA products,including th

297、e Intel Agilex FPGA,which extends capabilities to cost-optimized,lower-power,and small-form factor applications,including embedded and edge.We also launched Habana Gaudi2 and HabanaGreco,our second-generation deep-learning processors for training and inference.We introduced an innovative service-bas

298、ed security implementation,named Project Amber,which provides customers andpartners with a secure foundation for confidential computing,secure and responsible AI,and quantum-resistant crypto in thequantum era.MD&A24Table of ContentsMarket and Business OverviewMarket Trends and StrategyData is a sign

299、ificant force in society and is generated daily at an unprecedented pace.The desire to harness insights from data to drive better outcomes for businesses andsociety is ever-expanding.AI is nearly pervasive in all applications,creating the potential for intelligence everywhere,and enabling powerful n

300、ew uses of compute resourcesacross all market segments.The installed base of Intel Xeon processors combined with our rich portfolio of heterogeneous compute solutions(FPGAs,GPUs,IPUs,and AIaccelerators)position us to lead in this high-growth area.DCAI is integral to our growth in AI through deep inv

301、estments in the AI ecosystem,developer tools,frameworks,technologies,and open standards to drive a scalable path forward.We take a system-level approach that supplies the necessary hardware and software that are optimized for power and performance.Our technology is differentiated at the system level

302、 and in high-growth workloads based on our integrated hardware acceleration engines and software.For example,architectedinto our Intel Xeon processors are Intel Advanced Matrix Extensions(Intel AMX)for AI acceleration;Intel Software Guard Extensions(Intel SGX),providing enclaves ofprotected memory t

303、o deliver enhanced security for sensitive data;and Intel Crypto Acceleration that delivers breakthrough performance across a host of important cryptographicalgorithms.This is the type of acceleration and differentiated performance that we believe will continue to drive our value and growth across ou

304、r customer base.Products and CompetitionOur products and services include:A portfolio of hardware,including Intel Xeon processors,Intel Agilex and Intel Stratix FPGAs,Intel eASIC devices,Habana Gaudi and Habana Greco AI accelerators.Platform enabling and validation in partnership with ODMs,OEMs,and

305、independent software vendors.Optimized solutions for leading workloads such as AI,cryptography,security,and networking,leveraging differentiated features supporting diverse compute environments.We offer customers a broad portfolio of silicon and software designed to provide workload-optimized perfor

306、mance.Our hardware portfolio comprises CPUs,domain-specificaccelerators,and FPGAs.Each of these is designed to support the performance,agility,and security that our customers demand.This hardware portfolio strategy andinvestment in complementary software enable users to execute their workloads with

307、low latency and on the most appropriate hardware for their needs.Our competitors include AMD,providers of GPU products such as NVIDIA,companies developing their own custom silicon,and new entrants developing ARM-and RISC-V-based products customized for specific data center workloads.We expect this c

308、ompetitive landscape to continue.The Intel Xeon Scalable processor family delivers advanced CPUs for the data center,the network,and edge,driving industry-leading performance,manageability,and securitywith differentiated features and capabilities.All major hyperscale customers have deployed services

309、 using 3rd Gen Intel Xeon processors.The 4th Gen Intel Xeon Scalableprocessors will ramp up throughout 2023.Our 4th generation introduces new accelerators to provide more options for developers to adapt to changes and optimize forworkloads,such as AI,analytics,networking,storage,and high-performance

310、 computing.Our Habana Gaudi AI training accelerator is at the forefront of AI solutions for data centers and in 2022,the second generation of deep learning processors for training andinference were launched with Habana Gaudi2 and Habana Greco.These new processors address an industry gap by providing

311、 customers with high-performance,high-efficiencydeep learning compute choices for both training workloads and inference deployments in the data center while lowering the AI barrier to entry for companies of all sizes.Our FPGA and structured ASIC portfolio enhances Intels ability to meet the needs of

312、 customers in the data center,across the network,and at the edge.We are shipping our IntelAgilex FPGA family,featuring industry-leading FPGA fabric performance,power efficiency,and transceiver performance.We released our Intel eASIC N5X device family(Diamond Mesa)for low-latency 5G network accelerat

313、ion,hyperscale acceleration and storage,AI,and edge applications.We also introduced an FPGA-based IPU(Oak SpringsCanyon)that enables superior security capabilities and allows our hyperscale customers to isolate the infrastructure from the tenant workloads running on Intel Xeon.The ubiquity of Intel

314、Xeon in the installed base,along with our heterogeneous compute solutions combined with software that unlocks the value of our hardware,enable ourcustomers to develop highly differentiated solutions.Our integrated approach has created significant value for Intel,our customers and our partners by hel

315、ping us mitigate risks,reduce costs,build brand value,and identify new market opportunities to apply our technology to address our customers and societys most complex issues.MD&A25Table of ContentsFinancial PerformanceDCAI Revenue$BDCAI Operating Income$B Revenue Summary2022 vs.2021Revenue was$19.2

316、billion,down$3.5 billion from 2021,due to a decrease in server revenue,partially offset by higher other DCAI revenue.Server volume decreased 16%from2021,led by enterprise customers in a competitive environment,and due to customers tempering purchases to reduce existing inventories in a softening dat

317、a center market.Server ASPs decreased 5%from 2021,driven by a higher mix of revenue from hyperscale customers.Other DCAI revenue increased 14%due to growth in our FPGA business.2021 vs.2020Revenue was$22.7 billion,down$722 million,primarily due to lower server revenue,partially offset by increased r

318、evenue from other DCAI products.Server volume decreased4%,driven by an increasingly competitive environment,partially offset by recovery in government and broader market products.Operating Income SummaryOperating income decreased 73%year over year,and operating margin was 12%in 2022 and 37%in 2021.(

319、In Millions)$2,288 2022 Operating Income(3,330)Lower gross margin from server revenue(1,139)Higher period charges primarily associated with the ramp up of Intel 4(1,001)Higher operating expenses driven by increased investments in leadership products(671)Higher server unit cost from increased mix of

320、10nm SuperFin products(441)Higher period charges driven by inventory reserves taken in 2022(305)Higher other period charges primarily related to product development costs(189)Higher period charges related to excess capacity charges702 Higher gross margin from DCAI other product revenue223 Lower peri

321、od charges due to a benefit related to insurance proceeds received for business interruption and propertydamage that occurred in 2020$8,439 2021 Operating Income(1,050)Higher DCAI server unit cost primarily from increased mix of 10nm SuperFin products(820)Higher period charges primarily driven by ra

322、mp up of Intel 4 and subsequent ramp down of 14nm(725)Lower gross margin from server revenue(475)Higher operating expenses driven by investment in leadership products(65)Higher period charges driven by increased engineering samples375 Higher gross margin from other DCAI product revenue130 Lower peri

323、od charges driven by absence of reserves taken in 2020,partially offset by reserves recorded in 2021(7)Other$11,076 2020 Operating IncomeMD&A26Overview%Intel RevenueNEX lifts the worlds networks and edge compute systems from inflexible fixed-function hardware togeneral-purpose compute,acceleration,a

324、nd networking devices running cloud native software onprogrammable hardware.We work with partners and customers to deliver and deploy intelligent edgeplatforms that allow software developers to achieve agility and to drive automation using AI for efficientoperations while securing the integrity of t

325、heir data at the edge.We have a broad portfolio of hardwareand software platforms,tools,and ecosystem partnerships for the rapid digital transformation happeningfrom the cloud to the edge.We are leveraging our core strengths in process,software,and manufacturingat scale to grow traditional markets a

326、nd to accelerate entry into emerging ones.Key DevelopmentsOur revenue was$8.9 billion,up 11%in 2022,driven by the cloud networking and telecommunications market segments.Mostnotably,we saw strength in our Ethernet ASPs and in 5G product demand.Operating margin was$740 million,down$971 millionyear ov

327、er year primarily due to higher investments in product roadmap leadership and process node acceleration,and higherinventory reserves.We announced the Mount Evans IPU,Intels first dedicated ASIC-based IPU,the Intel Xeon D-1700 series,the Intel Xeon D-2700 series,and the 4th Gen Intel Xeon processor w

328、ith Intel vRAN Boost.We continue to update solutions to improve developers digital strategies and to accelerate market adoption of edge and AIapplications.We announced 12thGen Intel Core Processors for Internet of Things Edge and the Intel Geti computer visionplatform with OpenVINO toolkit built in.

329、We continue to work with our ecosystem partners like Ericsson,Nokia,Cisco,Dell Technologies,HPE,Lenovo,Amazon,Google,and Microsoft to drive the software defined transformation of the worlds network and edge infrastructure and accelerate AI drivenautomation of physical operations.MD&A27Market and Bus

330、iness OverviewMarket Trends and StrategyThe Internet is undergoing a shift toward a cloud-to-edge infrastructure,combining unrivaled scale and capacity in the cloud with faster response times at nearby edges.As AIinference is transforming and automating every industryfrom factories to smart cities a

331、nd hospitalsthe demand for high-performance computing at the edge has expandedexponentially.Networks are moving toward software,becoming more programmable and flexible.Our network and edge solutions aim to(1)move the worlds networks to run in software on Intel technologies at the core of cloud data

332、centers,the public Internet,and public andprivate 5G/6G networks;(2)deploy and run software that monitors and controls factories,cities,commerce,energy,and healthcare on Intel technologies;and(3)run everyworkload at the edge,between the cloud and the end user,whether deployed by a CSP,CoSP,or an alt

333、ernative service provider.Products and CompetitionWith a greater emphasis on systems and solutions designed to harness the growth of data processed at the edge to yield insights,our competitive landscape has shifted beyondapplication-specific standard product vendors to include cloud,network,and AI computing platform providers.Today,we speed the deployment of network and edge computing solutions