September 25, 2007

>> Agenda

Purpose of Study

Methodology

Results >  Respondent Characteristics >  Work Attitudes >  Risk Management >  Personal Values >  Leisure Activities

Overall Findings/Implications

>> Purpose of Study

To better understand the engineers who are fueling the growth of one of the most rapidly evolving technology

epicenters in the world: China

>> Methodology

>  “Insight 2007: A Study of Chinese Technology Innovators” > Online survey of Chinese electronic engineers > Fieldwork dates: June 28th through July 28th, 2007 > Email addresses provided by 21ic.com > A total of 2,071 useable responses received (margin of error +/- 2.2%)

from China > Objectives

>  Social preferences >  Work attitudes >  Psychographic and lifestyle profile

> China results analyzed by gender, age, job function and end market; statistically significant differences noted throughout

> Data compared to “Insight 2005: A Study of US Technology Innovators” as appropriate and applicable (4,083 responses)

>> End market

Which of the following best describes your company’s end products?

Other5%

Controls, Test, Medical

Equipment 28%

Auto/Consumer

21%

Computers17%

Communications10%

Components8%

Military/Aero5%

Sub-assemblies/Power supplies

6%

NOTE: End market sub-categories available in appendix

>> Company size

81%

15%

4%

41%

25%

34%

Fewer than 1000employees

1000 to fewerthan 10000

10000 or moreemployees

China (n=2009)US 2005 (n=4080)

Mean = 1757 employees Mean = 2950 employees

How many people are employed by your company at all its sites and locations?

>> Job function

88%

8%

4%

71%

25%

4%

Engineering staff

Engineeringmgmt

Corporate mgmt

China (n=2036)US 2005 (n=4082)

Which of the following best describes your job function?

>> Higher education

2%

13%

1%

1%

1%

37%

4%

22%

6%

7%

8%

25%

7%

5%

6%

12%

45%

6%

7%

5%

1%

PhD

MSEE

MA/MS

MSCS

MBA

Engineering Post Grad (no degree)

BSEE

BSCS

Associates

College (no degree)

No college

China (n=2036)US 2005 (n=3986)

Which of the following describes your higher-education background? (Multiple response)

>> Locale of higher education

China99%

*Other1%

*Includes US, Canada, Australia, UK, Other Europe, Hong Kong

Where did you obtain higher education?

>> Gender

94%

6%

94%

6%

Male

Female

China (n=2034)US 2005 (n=4072)

>> Age

68%

25%

6%

1%

0%

10%

24%

37%

23%

6%

Younger than 30years

30 to 39 years

40 to 49 years

50 to 59 years

60 years or older

China (n=2065)US 2005 (n=4078)

Mean = 29.1 years Mean = 43.7 years

What is your age?

>> Tenure with present employer

4.8 years

8.9 years

0123456789

10

China (n=2032) US 2005 (n=4078)

How long have you worked in your present job with your current employer?

>> Chinese EEs less apt to work in teams

57%

43%

76%

24%

0102030405060708090

100

China (n=1942) US 2005 (n=4077)

I work mostly on my ownI work as part of a team

In your job, do you normally work as part of a team or do you mostly work on your own?

>> Much is required of EEs – keeping up, juggling tasks, learning new skills and assuming new responsibilities…

% Agree Strongly

Please indicate how strongly you agree or disagree that each statement applies to the company for which you currently work, or applies to your career.

>> …but they suffer from myriad hurdles, resource constraints and insufficient regard for challenges

41%

36%

29%

27%

22%

21%

19%

18%

17%

17%

16%

26%

16%

41%

39%

7%

23%

19%

5%

29%

8%

31%

Within my job, I know exactly what isexpected of me

Job security is good

At the place where I work, I am treatedwith respect

I have a lot of freedom to decide how todo my work

My main satisfaction in life comes fromwork

I have adequate information to get thejob done

I trust the management at the placewhere I work

I am free from the conflicting demandsthat other people might make for me

I have a lot to say about what happens onmy job

I have enough time to get the job done

I am proud to be working for my employer

ChinaUS 2005

% Agree Strongly

Please indicate how strongly you agree or disagree that each statement applies to the company for which you currently work, or applies to your career.

>> How engineers perceive their responsibility to take on risk

28%

36%

36%

38%

41%

21%

Risk taker

On the fence

Risk averse

China (n=1914)US 2005 (n=4072)

Much of engineering work these days is about managing risk in its many forms. How much of a risk taker do you consider yourself – from a professional standpoint? Use the following 10-point scale, where “10” means you think of yourself as a risk taker, and “1” means you think of yourself as highly risk averse.

>> What is highly risky to an engineer? 42%

36%

32%

26%

26%

23%

22%

22%

21%

21%

20%

20%

15%

15%

12%

11%

41%

79%

34%

14%

8%

37%

37%

23%

25%

24%

49%

17%

25%

16%

11%

10%

Choosing "single source" component

Starting your own companyChoosing component which offers little/no

tech supportChoosing vendors not in immediate region

Relying on colleague

Selecting MPU no one in company has used

Outsourcing ASIC design to 3rd party

Choosing component not on AVL

Using 3rd party IP

Changing MPU

Taking job at start up

Arguing with boss

Project team located other parts of world

Relying on vendor's reference design

Choosing Linux

Changing standard analog component

ChinaUS 2005

1

% High Risk (Top-3 box - 10-point risk scale)

For each of the following statements, please tell us how risky you would find each situation. Assume that the statements give you all you currently know about the situation. Use a 10-point scale, where “1” would be a situation that you think is “not at all risky”, “5” for a situation which is “moderately risky” and “10” a situation which you feel is “very risky.

>> How willing are engineers to change?

54%

43%

39%

32%

31%

31%

30%

29%

28%

27%

44%

42%

43%

44%

44%

43%

17%

21%

22%

25%

25%

27%

27%

27%

28%

30%

43%

39%

36%

29%Choosing "single sourced" component

Choosing component which offers little/notech support

Choosing vendors not based in immediateregion

Select MPU that no one in company hasused

Choosing component not on AVL

Using 3rd party IP

Outsourcing ASIC to 3rd party

Changing standard analog component

Changing MPU

Choosing Linux for RTOS

Change

MaybeDon't change

Based on your assessment of the level of risk in each of these situations, what would probably be your response?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Above averageintelligence

Introverted Modern Wide range ofinterests

Plain Socially active

>> Personality continuum

US engineers’ perceptions of OTHER ENGINEERS

China engineers’ perceptions of OTHER ENGINEERS

US engineers’ perceptions of NON-ENGINEERS

China engineers’ perceptions of NON-ENGINEERS

Which best describes the engineering colleagues you work with? (For each pair of terms, choose the term or phrase which best represents your views.)

Which best describes the non-engineering colleagues you work with? (For each pair of terms, choose the term or phrase which best represents your views.)

>> Percent of friends who are engineers

100%1%76% to 99%

14%

51% to 75%26%

26% to 50%32%

Zero (0%)1%

1% to 25%26%

Mean = 45%

What percentage of your friends are engineers?

>> Personal values

How important are the following things to you personally?

% One of the most important/Very important

*Not asked in US

83%

82%

77%

74%

58%

55%

50%

49%

48%

41%

32%

28%

24%

12%

79%

74%

69%

31%

59%

58%

13%

Being self-sufficient and not having todepend on others

Being financially secure

Having a fulfilling job

Being cultured

Being married

*Having an apartment

Having a child

*Having more sleep

*Having vacations

*Having beliefs

Having nice things

*Having my own business

*Having a car

*Traveling abroad

ChinaUS 2005

>> Social outlook

Liberal, 56%Moderate, 31%

Conservative, 13%

How would you classify your social outlook?

>> Prefer to have conversation with 48%

38%

36%

21%

14%

14%

12%

10%

8%

8%

7%

6%

6%

3%

2%

Bill Gates

Richard Lee

Hu Jintao

Stephen Hawking

Chen-Ning Yang

Jackie Chan

Tsung-Dao Lee

George W. Bush

Vladimir Putin

Yao Ming

Henry Fok

Zhang Ziyi

Liu Xiang

Jay Chou

Ding Junhui

China (n=1702)

Who would you prefer to have a conversation with? (Select up to three.)

>> Leisure time activities

How do you like to spend your leisure time? (Select up to three.)

40%

37%

29%

22%

22%22%

16%

14%

14%

13%

12%

12%

9%

8%

5%

4%

3%

1%

Gathering with friends

Family activities

Reading

Surfing the web

Watching TV

Do-it-yourself projects

Dining out

Recreational sports

Exercising

Playing computer games

Watching movies

Educating yourself

Listening to music

Karaoke barsSocial networking websites

Computer programming

Cooking

Volunteer activities

China (n=1743)

Other = 2%

>> Preferred types of books

51%

35%

34%

34%

29%

27%

12%

12%

7%

6%

6%

3%

History

Classics

Science Fiction

Humor

Biography

Current Events

Action / Adventure

Mystery

Romance

Drama

Self-Help

Horror

China (n=1714)

What is your preferred type of book to read? (Select up to three.)

>> E-books

81%Yes, I read e-

books

China (n=1604)

Do you read e-books?

>> Regularly participate in physical activities 41%

31%

28%

28%

25%

22%

13%

12%

5%

3%

3%

2%

2%

1%

1%

0%

Running

Badminton

Bicycling

Table Tennis

Basketball

Swimming

Billiards

Soccer

Yoga / Tai Chi

Martial Arts

Tennis

Extreme Sports

Volleyball

Boxing

Weightlifting

Baseball

China (n=1614)

What type of physical activity do you regularly participate in? (Select up to three.)

>> Sports watched on TV 46%

45%

29%

20%17%

13%

13%

13%

11%

8%

8%

7%

6%

4%

2%

1%1%

1%

Soccer

Basketball

Table Tennis

Auto Racing

Badminton

Martial Arts

Extreme Sports

Billiards

GymnasticsVolleyball

Boxing

Skating

Tennis

Skiing

Professional Wrestling

Golf

American Football

Baseball

China (n=1646)

What sports do you like to watch on television? (Select up to three.)

>> Favorite TV show category

68%

45%

39%

31%

30%

23%

14%

9%

5%

Nature / Discovery

Education /Documentary

News

Comedy

Science Fiction

Sports

Movies

Mystery

Drama

China (n=1673)

What is your favorite TV show category? (Select up to three.)

>> Top-10 TV shows

42%

30%

26%

25%

25%

20%

16%

14%

10%

8%

Seminars by a hundred pundits. Often abouthistory

Animal world

CCTV news

Spotlight interviews. A China CentralTelevision (CCTV) program in prime time

The same old song. CCTV's live shows

Military watchroom. By Phoenix TV, a HongKong-based pro-China news station

Worldwide soccer

Win in China. Young entrepreneurs'competition for investment

Meeting Lu Yu. A Phoenix TV interviewprogram similar to Larry King live

Celebrities' life stories. A CCTV program

China (n=1678)

What TV show are you most likely to watch on a free evening? (Select up to three.)

>> Favorite movie categories

57%

55%

47%

24%

15%

14%

14%

8%

Comedy

Action

Science Fiction

Documentary

Drama

Mystery

Romance / LoveStory

Thriller

China (n=1705)

What is your favorite movie category? (Select up to three.)

>> Favorite electronic game platform

57%

55%

47%

24%

15%

Personal computer

PlayStation/PS2

Nintendo

XBox

Other

China (n=1523)

Do you play electronic games? What is your favorite electronic game platform? (Select up to three.)

64% play electronic games

>> Preferred music genre

65%

41%

31%

26%

18%

16%

16%

8%

6%

4%

Pop

Classical

Chinese music

Country / Folk

Movie music

Rock

Internet songs

Concert

DJ

Jazz

China (n=1689)

What is your preferred type of music? (Select up to three.)

77%

54%

22%

18%

13%

3%

2%

1%

Computer

MP3 player

CD player

Radio

DVD player

Audio cassette

Mini CD player

Turntable

China (n=1690)

>> Devices used to play music

When you are listening to music, what do you use to play your music on? (Select up to three.)

>> Respondent Characteristic Findings

> Chinese engineers are significantly younger, therefore less experienced, than U.S. counterparts

>  In addition, education levels are lower even when comparing only under 30 age cohorts

> As in the U.S., engineers in China are predominantly male > Nearly all engineers in China are educated in China

>> Work Attitudes Findings

> Chinese engineers are much less likely to work on teams than U.S. counterparts

> Chinese engineers are under significantly greater pressure than U.S. counterparts to learn new things, while working very quickly

> Nearly half of Chinese engineers (compared to nearly one-fifth of U.S. counterparts) are concerned that volume of work means they cannot be effective

> Chinese engineers feel a lack of respect in the workplace, and have limited freedom to determine how to do their job

>> Risk Profile Findings

> Chinese engineers see themselves as quite a bit more risk averse than U.S. counterparts see themselves…

> …Except when it comes to starting a company or working at a start-up > Chinese engineers are less comfortable using vendors outside their

region than U.S. engineers > Chinese engineers are less comfortable relying on the advice of a

colleague, an activity with which U.S. engineers associate almost no risk

>> Personal Values Findings

> Chinese engineers’ and U.S. engineers’ perceptions of engineers versus non-engineers are strikingly similar: >  Both see engineers as more intelligent than non-engineers (though U.S. engineers hold

a more extreme view of the intelligence gap than their Chinese counterparts) >  Both see engineers as more introverted and plain than non-engineers >  Both see non-engineers as more modern and socially active than engineers

> Chinese engineers value self-sufficiency, financial security and job fulfillment more highly than U.S. engineers

> Being cultured is dramatically more important to Chinese engineers than their U.S. counterparts, as is having nice things

> Chinese engineers see themselves as socially liberal > Chinese engineers hold entrepreneurs and successful businesspeople in

very high regard

>> Leisure Activity Findings

> Chinese engineers enjoy spending leisure time with friends, participating in family activities, reading, watching TV and surfing the Web

> History is the favorite book genre of Chinese engineers >  The classics, science fiction, humor, biography and current events also popular

> Chinese engineers are avid e-book readers, with 8 in 10 reading them > Chinese engineers are physically active, enjoying a wide variety of

activities > Chinese engineers enjoy watching sports on TV, and prefer basketball,

soccer and table tennis above all

>> Leisure Activity Findings

> Chinese engineers’ favorite things to watch on TV are nature/discovery, followed by education/documentary and news

> When it comes to movies, Chinese engineers cite comedy, action and science fiction as favorite types (in that order)

> Chinese engineers enjoy playing electronic games and use a variety of platforms

> Chinese engineers listen to a wide variety of music, with pop and classical topping the list, and are most likely to use their computer or MP3 player

>> Conclusion/Questions >  Chinese engineers are young, active and independent, with a very strong

entrepreneurial drive

>  In contrast, U.S. engineers are older, more collegial, and less optimistic about their profession and their professional prospects

>  Will China take over as leaders of technology innovation?

>  What will the role of the U.S. be as China continues to drive for growth and success?

>  How will China’s strong sense of cultural identity impact the evolution of technology innovation?

>> Contacts

>  For further information or to discuss the findings, please contact:

Kerry McClenahan McClenahan Bruer Communications 503-546-1002 kerry@mcbru.com

Bill Barron Hearst Business Media 516-227-1322 bbarron@hearst.com

>> End-market sub-categories   Controls, Test, Medical Equipment: Industrial controls, systems, equipment and robotics; Electronic instruments, ATE systems, test equipment; Medical electronic equipment

  Auto/Consumer: Consumer electronic devices; Automotive & other ground vehicles; Home automation/security; Appliances

  Computers: Embedded computer systems; PCs, Workstations, Servers; Displays/Copiers/ Printers/Office Machines; Mobile computers/Notebooks/Tablets; Software Development; Mainframes, Minis, Supercomputers; Computer system integrator; Disk/Tape drives & Other mass storage devices

  Communications: TV/Satellite/Radio/Broadcasting equipment; Wireless & Microwave systems; Internetworking equipment/Routers/Packet switches; Cellular/Consumer phones, PCs; Fiber optic/Broadband; Voice/Data (VOIP) systems/Software

  Components: ICs & Semiconductors; Other components, boards, materials, hardware & supplies; Semiconductor equipment/systems; IP/Cores

  Sub-Assemblies/Power Supplies: Power supplies; Sub-Assemblies (boards, modules, hybrids)

  Military/Aero: Avionics, Marine, Space electronics; Gov’t owned/Contracted labs; Gov’t offices/Agencies