Good morning. I'm Omar Ishrak, the Chairman of the Board of Directors at Intel. And on behalf of the Board and our management team, I'd like to welcome our stockholders and others who have joined us for our 2021 Annual Stockholders Meeting. It is my great pleasure as your Chairman that I now call this meeting to order. You'll find today's meeting agenda on the portal.
Before we launch into the agenda items, I'd like to take a few moments to say a few things. 2020 marked my 1st year serving as your independent Board Chairman. And it's been my honor to work with the Board, senior management and the broader Intel community in this role. As your Chairman, I'm especially pleased to welcome our new CEO, Pat Gelsinger, to his first annual meeting as CEO. Pat became Intel's 8th CEO in February.
In a short time, Pat has moved rapidly to set the future direction of technology for Intel, for the industry and for the country. As an Intel veteran of 30 years, he has a deep understanding of Silicon Technology and is steeped in Intel's historical values. The Board believes Pat will be a strong steward of Intel's culture. And during his business update today, Pat will discuss the new IDM 2.0 strategy of the company. Over the past year, our strategic evolution has continued unabated despite economic and social headwinds.
Our sense of purpose, our core values and the fundamental principles of our operations that have guided Intel since its founding have remained constant. Key among those are our commitment to our employees and stockholders as well as our understanding that we have a crucial role to play as a leader on environmental, social and governance issues. Also, we greatly value year round communication and collaboration with our stockholders to discuss how our company's strategic transformation is enabling us to play a larger role in our customer success and to apply technology to society's greatest challenges. On behalf of the Board, I thank you for choosing to invest in Intel and for continuing to entrust us to help lead the company into this new and exciting phase of our evolution. As stated earlier, you'll find the meeting agenda on the portal.
I'm joined by Pat Gelsinger, our CEO and Susie Giordano, our Corporate Secretary. Susie and I will conduct a formal portion of this meeting and Susie will record the minutes. Pat will provide an Intel business update and then we will address stockholder questions. As you all know, this is a virtual meeting where we invite all stockholders to participate and also welcome non stockholders to hear the meeting. In order to provide our stockholders the broadest opportunity to ask questions.
We've had the stockholder question portal open since March 30. We'll also take live questions today during this meeting. Any stockholder who would like to ask a question can do so by typing the question in the Ask a Question box and clicking submit. During the Q and A session, We will be answering both questions submitted to us prior to and during the meeting. Please do limit yourself to one question.
Please know that we're committed to answering your questions and any questions that we are not able to address during the meeting due to time constraints will be answered on our website. I will now turn it over to Susie to begin the formal part of the meeting.
Good morning. We have an affidavit from Broadridge certifying that the stockholders of record as of March 19, 2021 were mailed notice of meeting and proxy materials on March 30, 2021. The affidavit of mailing a materials on March 30, 2021. The affidavit of mailing a notice will be filed with the minutes of this meeting. Mr.
Jim Alden of American Election Services, Who has already taken his oath of office will be serving as Inspector of Elections for today's meeting. Mr. Alden has called in today that are available to vote. Mr. Alden has confirmed that we have 3,300,000,000 of those shares by proxy, which constitutes a quorum.
Therefore, the meeting is duly constituted and we may proceed with business. Please be reminded that some of today's content, including Pat's business update, contain forward looking statements. All statements made during the annual meeting that are not historical facts are subject to a number of risks and uncertainties and actual results may differ materially. Please refer to our recent Q1 earnings release, our Form 10 ks and most recent Form 10 Q for more information on the risk factors that could cause actual results to differ. If we use any non GAAP financial measures during the presentations, you will find on our website intc.com the required reconciliation to the most The polls are now open for voting for those who have not voted.
The polls will remain open until the end of the Q and A session. If you previously voted via the Internet, phone or mail, you do not need to take any additional action. If you previously voted and wish to change your vote, Please do so before the closing of the polls by using the voting buttons on the portal. After the polls close, we will announce the preliminary results of the votes. Now I will turn it back over to Omar to introduce our directors and present the first two proposals.
Thank you, Susie. I now would like to introduce our Board members who are joining us via the telephone. Jim Getz, Partner of Sequoia Capital Alyssa Henry, Seller Lead of Square Doctor. Risa Lavizio More, Retired Professor of the University of Pennsylvania Doctor. Sujay King Liu, Dean and Professor in the College of Engineering at the University of California, Berkeley Greg Smith, CFO and EVP of Enterprise Operations at Boeing Dion Wessler, former President and CEO of HP Andrew Wilson, CEO of Electronic Arts and Frank Gehry, Managing Member, Darwin Capital Advisors.
As mentioned earlier, Pat Gelsinger, our CEO is present here at the Intel studio. And now turning to our first proposal, which is to elect 9 directors to the Intel Board. The nominees to the Board are Pat Gelsinger, Jim Getz, Alyssa Hendry, Doctor. Risa Lavisio Murray, Doctor. Tsu Jae King Liu, Greg Smith, Dion Weisler, Frank Yiery and me, your Chairman.
The second matter today is the ratification of the selection of Ernst and Young as Intel's independent auditors for 2021. Amy King, a senior partner of our audit team from has called in today and is available to answer questions during the Q and A session. Now I will turn it back over to Susie to present the remaining proposals.
The 3rd item on the agenda is an advisory vote to approve executive compensation also known as say on pay. We are asking stock Holders to approve on an advisory basis the compensation of Intel's listed officers as described in detail in the proxy statement. We believe that our compensation programs operate in the best While this is an advisory vote to approve executive compensation, the Board and the Compensation Committee will carefully assess the voting results And we'll consult directly with stockholders to better understand any issues or concerns raised through the stockholder vote. The final agenda items today are votes on 3 stockholder proposals. The first stockholder proposal on whether to allow stockholders to act by written consent Was submitted by Mr.
John Chevedden. Mr. Chevedden or his representative will be presenting the proposal. Mr. Chevedden, we would like to offer you 5 minutes to present your
Hello, this is Antjevedden. Can you hear me okay?
Yes, we can. Thank you.
Proposal 4, shareholders are right to act by written consent. Cheryl's request that our Board of Directors take such debts as may be necessary to permit written consent by shareholders entitled to cast the minimum number of votes that would be necessary to authorize an action at a meeting at which all The vote thereon were present and voting. This proposal topic won more than 41% support at our 2020 shareholder meeting. This 41% support may have represented a near majority from the shares that have access to Objective proxy voting advice. Intel management even put their hands on the scale by publishing flashy graphics against the 20 20 proposals that still won 41% support.
And management is sort of cheating again today at this annual meeting with a repetition of the Flashy graphics against this proposal. Unfortunately, most small shareholders do not have access to objective proxy voting advice. Management is thus getting a free ride on the backs of the shareholders who do not have access to objective proxy voting advice, who are then forced to rely on the self serving management recommendations. Management claims to have it both ways. Management first brags about robust shareholder engagement that purportedly empowers shareholders to raise their concerns.
And once the shareholder raises concerns in a shareholder proposal, management then slams the shareholder with opposition advertisements that shareholders pay for without their consent. The management opposition to this proposal is apparently based on a lack of understanding of the shareholder right to act By written consent. Apparently, the Chair of the Intel Governance Committee is totally ignorant of the fact that written consent can be structured so that all shareholders receive notice. And management now suspiciously claims it is more in favor of shareholder meetings at a time When shareholders are losing their impact with the onslaught of online shareholder meetings. For instance, the Kohl's annual meeting on Wednesday was 9 minutes.
Now more than ever, shareholders need to have the option to take action outside of the shareholder meeting since tightly controlled online shareholder meetings are
Thank you, Mr. Shevedden. We recognize the importance of stockholder rights And based on a careful review of the proposal and the company's current governance practices, we believe the implementation of the proposal is actually contrary to the best interest of stock Please refer to the 2021 Intel proxy statement for the board's views on this proposal. We appreciate you joining us today. The second stockholder proposal requesting a report on median pay gaps across race and gender was submitted by Arjuna Capital.
Their representative, Natasha Lam, has submitted a prerecorded message and will be presenting the proposal.
Good morning. My name is Natasha Lam, Managing Partner at Arjuna Capital. And I move proposal number 5 asking for a report On racial and gender pay gap reporting as a means to address structural pay inequity. On its face, Intel has taken an important first Step by publishing statistically adjusted pay parity numbers, assessing whether minorities and non minorities And women and men are paid similarly for the same jobs. But that data does not address whether people of color and women Are holding higher paying jobs within the company.
It does not address how much minorities and women make on average or more specifically on the median For full time work versus their white majority and male peers. Black workers in the U. S. Earn $0.75 on the dollar versus white workers For full time work. Women in the U.
S. Earn $0.82 on the dollar versus men. These statistics are troubling and the data is raw. The data is not statistically massaged to make it look like there is pay equity by breaking employees into their respective job buckets. It is straight up what they are paid for full time work versus white men.
As investors, we have worked with many companies, including Intel, Pressing them to be more transparent on pay equity and many, including Intel, are now comfortable publishing their statistically adjusted numbers. But far fewer are addressing the structural racism and sexism that relegates people of color and women into low paying job categories, Perpetuates inequity and stands in the way of more diverse innovative organizations. The ones that are comfortable publishing unadjusted data, Citigroup, Starbucks, Adobe, Pfizer, Mastercard and others Are showing leadership. They're not hiding behind massage data because they know that by being transparent and by publishing data that Can be measured year over year and across peers, they are creating a new standard for accountability and performance. They are creating more diverse equitable organizations.
I am frustrated to say that Intel is not one of those companies. And I'm surprised that given where we are as a country, the pay divides that have been exacerbated by the pandemic and the protests to uphold Black lives, That the company continues to fight this simple and reasonable request. It is laughable that Intel's board Views the companies that have shown leadership as earlier in the journey because they are not. It is also odd that they view reporting on raw data as complicated because it is not. Not only is median pay gap Data uncomplicated, it is a widely used metric that the company already complies with in the UK Where pay gap disclosure is mandated and where Intel reports a 36% base pay gap and a 61% Bonus pay gap for women.
I don't think those gaps make the company farther along in the journey. It is also important to note that median pay gaps are considered the valid way of measuring pay inequity by the U. S. Census Bureau, The Department of Labor, the Organization For Economic Co operation and Development, the OECD, and the International Labor Organization. To choose to ignore median pay gaps and for the Board to label the measures as unnecessary is misleading and a disservice to the groups these pay gaps affect.
Thank you for your time as we firmly believe our company is best served by a transparent, fulsome and honest Accounting of Pay Equity.
Thank you, Ms. Lam. Do you have any additional comments beyond your recorded message today? Okay. Thank you.
We'll move on. We do recognize the importance of gender and racial pay equity and are committed to Fairly and equitably compensating all of our employees as discussed in our annual corporate responsibility report. Since 2019, Intel has achieved global Gender pay equity and we continue to maintain race, ethnicity pay equity in the United States. We have publicly released our EEO-one survey pay data And transparently report on our representation data. We also have set goals to double the number of women and underrepresented minorities in senior leadership by 2,030.
Please refer to the 2021 Intel proxy statement for the board's views on this proposal. We appreciate you joining us today. Our 3rd stockholder proposal requesting a report on whether written policies or unwritten norms at the company Reinforced Racism in Company Culture was submitted by Northstar Asset Management. Their representative, Olive Hay, will be presenting the proposal.
Thank you, and good morning. My name is Ola Tey of Northstar Asset Management, an investment firm based in Boston. We represent clients that own over 65,000 shares of Intel common stock. And today, I am presenting Global 6, assessing inclusion in the workplace. Intel states that diversity and inclusion are top priorities.
As investors, we appreciate that Intel is committed to improving its diversity Because research has shown that diversity, especially in top management, is linked to higher profitability. However, we know that actions do speak louder than words. Intel's reaction to the racial upheaval following the murder of George Floyd Included the following statement. While racism can look very different around the world, one thing that does not What's different is that racism of any kind will not be tolerated here at Intel or in our communities. When any Heart of our 1 Intel team is hurting, we all hurt.
We strive to build a culture of belonging. Yet, Our firm's analysis has shown that Intel has likely added fewer than 5 black or Hispanic people To general management in the last 20 years. According to Intel's own data, 2% of executive employees are black And up to 6% are Hispanic. As investors concerned about long term profitability and the need to have a diversity of voices, Strategies and background and the company ranks. We want Intel to know why the company is losing or not promoting employees From underrepresented groups.
If you are indeed striving for a culture of belonging, why has Intel failed? At every quarterly call, We hear about Intel's financial results and why the company met, exceeded or missed its goals. Investors need the same level of explanation as to why diverse talent fill so Few of the roles that have greater responsibility and recognition, increased pay and benefits and more rewarding challenges. According to Intel's data, 45.8% of all company employees are white and 61 Percent of executive positions filled by white staff. If diverse companies are more likely to outperform non diverse peers, We need to know what facets of Intel's company culture are causing attrition or promotional stagnation of its black and Hispanic staff.
We appreciate Intel's willingness to prioritize diversity issues in the company. However, it's time for Intel to examine its I pledge culture and determine the root causes of racial disparity. We urge shareholders to vote for proposal number 6, As Intel to examine the company's culture. Thank you very much.
Thank you, Ms. Hay. We do recognize the importance of fostering the culture of Diversity and inclusion and we are committed to providing a work environment where employees from diverse backgrounds are valued, respected, challenged, acknowledged and rewarded So they can achieve their potential and fulfill their career aspirations. We believe our current disclosure provides sufficient information regarding our company's programs, policies and practices to integrate non discrimination measures across our performance management systems, compensation programs and hiring processes, Publish ambitious long term goals and lead industry wide inclusion and social equity initiatives and transparently report our progress and data to drive accountability And encourage actions by others. Please refer to the 2021 Intel proxy statement for the Board's views on this proposal.
We appreciate you joining us today. Next, Pat will present a business update.
Thank you, Susie. I'm honored to be here with you today. And I remember well my first shareholders meeting that I Attended as a young engineer and today the opportunity to do so as Intel's CEO is a tremendous And I'm thrilled to be home. This is my dream job to be leading this great company. And our first 100 Have been exhilarating.
As I say, we're going to set a torrid pace. And we've been deep diving in the team, some of the challenge areas, deep dive The projects and what it takes to get them back on track, engaging with customers and rebuilding Execution and delivering the best products to our customers in every category that we serve and we're getting The team fired up and I'm confident that as a result of these steps that Intel's best days are ahead of us. Tech is increasingly central to every aspect of human existence. And as the world becomes more digital, everything is relying Semiconductors is the foundation that all of these digital capabilities are built upon. I call these the 4 superpowers today, cloud, The scale and capacity, connectivity as we're approaching 90% of humanity by 2,030 to be connected, artificial intelligence And the Intelligent Edge.
And not only are these 4 superpowers, but they reinforce each other. The more cloud we have, the more AI that we can run. The more AI we have, we can create more use cases for the intelligent edge, which further powers more connectivity, which Needs more cloud. Together, they are expanding the impact of each other and together, they are reshaping Every aspect of our lives and our work. This is creating an explosive cycle of growth in semiconductors and I believe that we're In a decade of sustained growth and COVID caused acceleration in the move to a more digital world but it Also created disruptions in the supply chain.
It has created this environment that is seeing innovations and new models of how we work, how We learn how we worship, how we interact with each other, and how we care for each other. These are world changing technologies. Intel has this unique position on the planet to help customers harness these super powers through these world changing technologies and we have this opportunity to literally improve the life of Every human on the planet. Against that, our priorities are powerful, succinct and Critical for us to execute on. First, we said, we will be the leader in every category we compete in.
We're going to be the best. To do that, we To execute flawlessly on our commitments to our customers, they are depending on us to deliver the best capabilities For them to then innovate upon, we're going to be this passionate innovator, continuously and boldly We exploring new domains and doing it with speed. And most importantly is culture. The Intel culture has It's been revered, modeled and expressed for decades and that culture is critical to be reignited So that we are constantly bringing the best talent, the best technologists, the best engineers into this company. Intel has always been in the business of defying the laws of physics and finding ways To build a better future.
This period of time where we have unprecedented demand for semiconductors reinforces the Intel advantage, That we are the company that can bring together software, that we can combine that with silicon and platform innovations, deliver that With our packaging and process technologies and at scale manufacturing, literally to deliver it To every place on the planet, this is unique to Intel and something that we're able then to have our Device manufacturer or IDM as it's called. And we are a process technology leader, a manufacturing leader and a Global provider of silicon and that idea of IDM is being enhanced refined and expanded as we Move to IBM 2.0. This is a bold strategy that will enable us to deliver a new era of innovation, Building on our manufacturing heritage, our robust product leadership, but also step into this global Exploding demand for semiconductors. IDM 2.0 says we're going to build on our internal factory network And we're going to use that factory network to reliably deliver leadership products, but we're also going to swing open wide the doors of our Fabs and our manufacturing capability to deliver to our customers new services, new capabilities in this era Semiconductor shortages, we're going to deliver a major new capability, Intel Foundry Services.
The early response to Intel Foundry Services has been incredible. We're already engaged with well over 50 customers who are Exploring how they can use this to benefit their business from tech giants, from cloud service providers, automotive, high performance computing, all All of them are saying, how can I use these new capabilities that are now becoming available to me? Intel and the industry see the need that More capacity is required to meet the strong future demand. Against that, we've been leaning in and Happily expanding our fab and foundry capabilities. We've announced a $20,000,000,000 investment in Arizona fabs, Expanding the capabilities of our foundry and our standard products to meet those customer requirements.
We've also expanded our presence in New Mexico with our Sako with our leadership packaging technologies with a $3,500,000,000 investment. We've also announced that we will be opening our next Major U. S. And European sites before the end of this year. We're committed to ensure a sustainable, secure Semiconductor supply chain for the world that's balanced across the geographies of Asia, US and Europe.
The world needs more Semiconductors and we're stepping in to make that possible. We're also working to solve many of the supply chain Where today's substrates are short and we're opening our factories to say, boy, can we do some of that And partner with our suppliers to come up with creative ways to increase the overall capacity for substrates and These industry wide constraints, we're doing our part to help address global supply chain shortages, but we can't do it alone. We've also said that These capabilities are so critical that government and industry partnership needs to enable us to scale Because these demands are immense and we're working with governments around the world as they recognize the critical nature of semiconductors, advanced Ship manufacturing and capacity as they prepare for their futures as well. We're confident that The IDM 2.0 strategy will drive innovation and continued technology leadership for Intel. We are on a path To restore our process performance leadership, we're building on strong leadership areas such as packaging even as we rapidly resume our Our process technology leadership, we have superior capacity and supply resilience by leveraging our Internal capabilities but also external capacity as well, all done with superior cost structure and All of this is critical to deliver that steady cadence of leadership products that our customers can depend upon.
But we realize that leadership products, a leadership position in the industry also means that we have to have Leadership purpose and it is broader just in our role in our products and our business. I am proud Of Intel's leadership and corporate responsibility, inclusion and sustainability. And we're positioned to create long term value and respond to Mental, social and governance requirements. Our RISE strategy is one that we've laid out Aggressive goals for the next decade that we're going to be responsible, inclusive, sustainable and enabling. And these innovative approaches That we're not just doing ourselves, but also working to enable them in our partners ecosystem and supply chain.
We see that These areas and the release of our corporate sustainability report That just came out. It transparently details our progress in the last year and the work and the goals that we've laid. It Lines the areas that we are working with audacious and large goals and how we can apply technology to help Solve some of the world's greatest challenge and I encourage each one of you to take a read of the report, thumb through it. It's very, very impressive. Thank you for your time today.
As I said, it is an honor to be your CEO and I thank you for this And with that, I'll turn it back over to Omar.
Thank you, Pat. And we will now proceed with the Q and A session, where we answer previously submitted questions as well as questions submitted on the web during today's meeting. Tony Belo, Director of Investor Relations will be reading the previously submitted questions as well as the live ones. Tony, please go ahead.
Thank you, Omar. Pat, the first question is for you. We received quite a few questions in regards our manufacturing strategy and here's one we received ahead of the meeting. How quickly will Intel catch up and move back out into leadership and utilization of the most advanced chip production Will Intel skip one level to accelerate to catch up in time to match or exceed TSMC's move to 4 nanometer? If not, How will this continued lag by Intel affect its market share in all categories?
Does longer term chip pricing power ultimately rest On utilizing the most advanced manufacturing consistently over time.
Hey, Tony, thank you. That's a great question. And At the highest level, we are going to deliver leadership products in every category that we participate in using internal and external capabilities. This is critical for us to win in the marketplace. And leadership products are created through not just leadership Process Technologies, but the right combination of process packaging, silicon and platform software and at scale manufacturing.
And Unique combination is something that is truly only available to Intel. As it pertains to our process technology, we have set ourselves An aggressive course to have an annual cadence of new process technology capabilities such as the SuperFin work. We're setting that aggressive cadence It's to quickly get to a point of parity and leadership. And with that, we see the IBM 2.0 model that will uniquely Enable us to deliver the best products using the best IP, the best leadership capabilities in process and packaging. And we've seen Our unquestioned leadership and breakthrough areas such as 3 d packaging technology give us some areas that we get to rely As we work to have unquestioned leadership in every category.
I'm also happy to report that 7 nanometers is healthy and Lithography, the core of any process technology effort and this progress is now being well seen inside of our Our own internal work. Our goal is that all of these capabilities bring us together to have process leadership, packaging leadership, system and From leadership, software leadership at scale manufacturing, this is a winning formula and that's the course that we are setting for overall Intel.
All right. Thank you, Pat. The next question is also for you, but switching gears a bit. We've received several questions around Intel's approach for political contributions. One stockholder has asked the following ahead of the meeting.
Does Intel give money to political action committees? If so, how much and to whom?
In general, Intel makes relatively few political contributions ourselves. However, like most companies, we have A political action committee which contributes money that's donated by our Intel employees to the areas of focus for Intel, Our shareholders and our business objectives that we have in the markets worldwide. These would be areas like manufacturing, immigration, reform Things, activities and education, areas and policies that would be critical to support our growth and economic growth overall. All of our contributions through the Intel PAC are publicly disclosed and the PAC generally donates equally in a bi Partisan as well as a bifemoral way, we're very thoughtful about how we engage. In 2020, Intel was again highlighted as one of the trends There are companies in this area by CPA Zickelen and their index that they publish on corporate political disclosures And this is something that we regularly evaluate and making sure that our political spending is effective, but also align With our policies, our priorities and the company values that we would express in the future.
And overall, we see this as a great To continue to make sure that we're aligned with our stakeholders and our shareholders as we look to work in this area.
All right. Thank you, Pat. We'll now take a question live also for you, Pat, regarding Intel's response to the pandemic. What part of Intel had the greatest challenge during the pandemic? And what did Intel do best during the pandemic?
Well, overall, and some of this I'm learning as I'm stepping back into the role, I've been extremely pleased to see how Intel and the Intel team overall responded to the COVID-nineteen pandemic, and it was really resilience and innovating in real Time and keeping everything on track and demonstrating the tremendous value of our worldwide manufacturing network that barely Even as we're dealing with a global pandemic and making sure that we were meeting our customers' needs and our partners' needs around the world. Intel It's a very well established practices in the health and safety areas. And I remember many These from my early days at Intel, wow, this company is really focused on employee safety and health And this includes medical safety experts, and working to make sure that the well-being of all our employees and work closely with local governments as well as the public healthcare organizations. In April, Intel committed $50,000,000 toward Emic Response Technology Initiative and we had almost a 1000000 volunteer hours that were contributing, 170 partners on There's on 230 projects used to accelerate access technology during this period of patient care and scientific research, on I'm learning, so in so many ways we can be very proud of Intel as a company, how they navigated through the pandemic And how we're learning to make ourselves better as we start coming and seeing the other side of the pandemic.
And I'll just say that with empathy, we continue to look at the Areas around the world such as India right now who still is going through their wave and our hearts and our support and our Active engagement is working in these areas as well. Thank you, Tony.
All right. Thank you, Pat. Our next question is for Omar. Before the meeting, we received several questions around CEO compensation. Why would Mr.
Gelsinger's compensation be tied to the stock price of Intel When this encourages manipulation and very short term objectives to the detriment of the company.
Well, let me answer this by first saying that look, our use of the stock price metric is not short term based and does not encourage manipulation. And the Board's comp committees drove to leverage a metric that is simple, stockholder friendly and measures performance across 3 5 year time periods, so clearly long term. Additionally, there were safeguards put in place for these awards. Appreciation must be maintained for 30 consecutive trading days. That's actually 6 weeks.
And the vast majority of Pat's compensation package is at risk and tied to long term shareholder value creation. These aggressive goals directly benefit both Intel stockholders and Intel employees who receive shares as part of our compensation program. Back to you, Tony.
Thank you, Omar. Switching back over to Pat, we've received a few questions around supply chain issues we are seeing in the semiconductor industry, all ahead of the meeting. Specifically, what is the company doing to address the global semiconductor shortage? This seems like a great opportunity for Intel as demand has never been higher.
Yes, it's a great question. And as I said in my earlier remarks, this digitization of everything that was Accelerated by COVID is driving this explosive growth in semiconductors globally, but it it disrupted the supply chain. And that gap of disruption and acceleration has created a unprecedented gap. Intel Has more than doubled our internal wafer capacity in the last several years. And given some of the announcements that you've seen with our Investments in factory capacity expansions, we plan to continue to grow our overall capabilities and CPU supply and server Hi.
All of these as we continue to race rapidly to meet this large demand environment. The industry is also challenged by the Shortage of foundry capacity, substrates and components and it will take a couple of years for us to entirely work through these gaps as I've suggested But again, we're stepping in as rapidly as possible. And some of the unique capabilities of our IDM 2.0 Ajit will help us to navigate these periods of time as we engage with customers across every industry, finding ways to help them close their gaps and working closely Their suppliers, our own internal assembly and factory network has been working to remove constraints for substrate suppliers, One of the key shortages and this is adding millions of units to our output, but helping them to meet other requirements as well. So overall, We feel very confident that our strategy is on the right track. Clearly, it's a hot semiconductor market.
The opening of Our foundry business will enable us to meet more customers' needs in more areas and overall work to satisfy A market that is increasingly the world becomes digital, they need more semiconductors to run it and this is a great time For Intel and the Semiconductor Industry.
Thank you, Pat. We'll now take a live question from the meeting And it's to you, Pat. Why does the company get involved in partisan political issues like supporting the Equity Act?
Thank you. And these questions are always very thoughtfully considered and need to be Explored quite carefully in terms of where and how we position the company. And our support of the Equality Act is grounded in our view that So we need to provide a consistent protection to prohibit employees, right, and any discrimination on the basis of sexual orientation or gender Talent across a diverse and inclusive market. And against that, we understand that. We're We're going to have everyone agree, but we want to be very thoughtful in the positions that we take.
And we evaluate the merits So for each related bill and access, its impact on our workforce and the communities that we're in. And At the end, we want to create a safe, respectful work environment for all of our employees. We'd also want to highlight that Intel has been recognized for both Our leadership in human rights and our work in promoting a religiously inclusive workplace as well. And we're going to continue to invest in advancing And inclusion across the company and as we gauge in the communities that we're part of.
Thank you, Pat. Also for you, a question on climate change. Given Intel's breadth and scale of manufacturing, we've been getting several questions about how we're addressing the environmental impact of our business. What is the firm's 5 year roadmap for streamlining energy costs, reducing the carbon footprint of both operations and product lines and leveraging the advantages of 21st century technological advances in the energy sector.
Thank you. It's a great question. And again, Intel Has been a long term leader in addressing energy efficiency, environmental impact, addressing climate change, And as part of that reducing our own climate footprint and working with our suppliers and our ecosystem to help them reduce theirs as well. Since 2000, we've reduced our Scope 1 and Scope 2 emissions by about 28% on an absolute basis, even as we expanded our manufacturing capacity. Basis even as we expanded our manufacturing capacity significantly.
I'm very proud of our 2,030 RISE Goals and as I commented in my earlier statements, we're proud of our RISE program because it sets aspirational goals, goals that
we don't know how we're going to
get there yet. It's going to require Goals that we don't know how we're going to get there yet. It's going to require continued innovation and action on our part To meet these aggressive goals and a key part of that is in fact environmental footprint and climate change. It's to conserve 4,000,000,000 kilowatt hours of energy, drive an additional 10% reduction in our absolute emissions, even as we continue to grow Our factory network reach 100 percent renewable energy power globally and increase our energy efficiency by 10x. So we've made a lot of progress since 2020 in this area and we've taken our green power Usage from 71% to 82% in the last year alone.
So overall, this is an exciting area For one, for us, one that we're heavily invested in. And we also encourage you to take a look at the report that We just published, it's available off of our website. And we've tied executive compensation to this as well. One of our goals Clearly calls out our RISE goals and our climate goals as well. So we're all motivated to keep doing exactly what the question suggests, be concerned about Climate and the planet that we're leaving for our children and grandchildren.
All right. Thank you, Pat. Omar, the next question is for you. As you're aware, there's a lot of focus on corporate board diversity. Can you share how Intel board approaches diversity, specifically responding to these pre meeting questions?
Thank you, Tony. Did you want to complete that question?
Yes, let me just complete the question. Why do you not have any Hispanics on your Board? What is your plan and goal to increase the representation of African American on the Board of Directors? And why aren't there more women on your Board? This is a huge issue for most companies and I think it's something you should consider and address.
Thank you, Tony. And look, the first thing that I'll say is that I myself and the Board is very committed to creating a diverse Board because we think that will make a better Board. I'll be a better Board with better decisions and will guide the company in a more holistic way. And so based on that, we're committed to building a Board with diverse And we think that this is critical for all the reasons that I just stated. But in the last 5 years, we've taken some actions.
8 new independent directors have been elected in the last 5 years and or been appointed to the Board and 3 of them are women. So we made some progress there. And if each director nominees elected after today's meeting, the majority of the Board will be diverse based on directors' gender, race, ethnicity and our nationality, and onethree of them will be women. Now we acknowledge that we still have a long way to go. And I think specifically with respect to the representation from the Hispanic community, It is an area that the governance committee is very focused on and one that please see from us action being taken in the future in terms of diversity.
It's very close to Board's governance principles and one that we're committed to. So we made progress, We acknowledge there's a long way to go and this is deep in our commitment to make a better Board. Thank you, Tony.
Thank you, Omar. We have time for one more question today and the last question is for Pat. We've received quite a few questions and comments in regard to Intel's position on voting rights. Specifically, we had one question received ahead of the meeting. Has Intel taken a public position on the new voter suppression laws Now being enacted and considered in a number of state legislatures.
If not, will Intel take a public position on these laws?
Thank you for the question. And overall, we are deep believers that technology can be used to help in this area and that And any legislation that seeks to reduce voting rights is something that we think is inconsistent with that and Opposes any such legislation. We signed a letter to the US Senate from the Business For Voting Rights Coalition calling for the passage of the John Lewis Voting Rights Act. We also signed a letter in support of the confirmation of Kristen Clark to lead the Civil Rights Division. Overall, we just say these things are all consistent with our Objectives for diversity, equity and inclusion, these are core to the Intel values and you'll see us take consistent positions in Domains to help them enable us to have more innovation, a stronger business because we think diversity, equity, inclusion are Paramount to accomplishing our business goals.
Thank you very much, Tony. Back to you.
Thank you. That will be all the time for Thank
you, Tony. And the polls are now closed. And the final results will be available early next week. Actually, Susie, do you want to go through this? I think it's your turn.
I'd be happy to, Omar. Thank you. So the polls are now closed. And as Omar said, the results will be available early next week. The preliminary results are as follows.
Each board nominee received a vote of more than 81% of the shares voted And so each nominee has been reelected. On the ratification of the selection of the company's independent auditors, Approximately 95% of the shares voted were voted in favor of the proposal and so the proposal is approved. On the advisory vote To approve executive compensation approximately 39% of the shares voted were voted in favor of the proposal and so the proposal is not approved. On the stockholder proposal recommending allowing stockholders the right to act by written consent approximately 34% of Shares voted were voted in favor of the proposal. So the proposal is not approved.
On the stockholder proposal requesting a report on the median pay gaps Across race and gender approximately 14% of the shares voted were voted in favor of the proposal. So the proposal is not approved. On the stockholder proposal requesting a report on racism in company culture approximately 11% of the shares voted were voted in favor of Proposal, so the proposal is not approved. Final vote tallies including the ballots submitted today will be posted on our website atintc.com and in an 8 ks filing with the SEC within 4 business days. And now, Omar, I'll turn it back to you.
Okay. Thank you, Susie. And as Susie mentioned, we'd like to direct your attention to Intel's Investor Relations website at intc.com. The website contains stock quotes, webcast events such as the meeting such as this meeting and other investor information. On the website, you can sign up for electronic delivery of stockholder communications such as the proxy statement and our annual report.
Electronic delivery reduces the paper in your mailbox and reduces company's expenses. Our agenda for this meeting has now been completed and the time adopted for adjournment has now arrived. I declare this meeting adjourned. And on behalf of Intel, Thank you for attending this year's Annual Stockholder Meeting. Please stay safe.
Please stay safe and healthy.