Resources & Opportunities When Considering the U.S. Market

1. Resources & Opportunities When Considering the U.S. Market Joanne Vliet Director Silicon Valley U.S. Export Assistance Center U.S. Commercial Service – San Jose

2. Resources & Opportunities When Considering the U.S. Market • Overview of foreign direct investment in the U.S. • Clean tech opportunities/resources in the U.S. • Overview of Silicon Valley ecosystem and leading industries • Resources available to companies considering investment in the U.S.

3. FDI in the U.S. Economy U.S. Affiliates of Foreign Firms Generate 19% of U.S. Exports ($204 billion in 2007) 5.5 million $40 billion $55 billion $404 billion Source: Department of Commerce, Bureau of Economic Analysis

4. FDI in the U.S. – Industry Perspective Industry Breakdown of FDI Position in the United States, 2009 Top 10 FDI Growth Sectors in the United States (CAGR in FDI position between 2005 and 2009) 94% • Miscellaneous Store Retailers • Educational Services • Copper, nickel, lead, and zinc ores • Computers and Peripheral Equipment • Beverage and Tobacco Products • Petroleum refining • Communications Equipment • Steel products from purchased steel • Oil and gas extraction • Travel arrangement and reservations services 89% 73% 73% 66% 56% 52% 42% 39% 37% Source: BEA

5. U.S. FDI Trends Top 10 FDI Positions in the United States, 2009 20%| $453.9b 9% | $218.1b 6% | $127.8b 10% | $225.8b 11% | $264.2b 10% | $238b 8% | $189.4b 8% | $189.3b 2% | $43.9b 2%|$45.7b Note: Numbers denote percentage of the global investment position in the United States

6. European FDI in Perspective Average Annual Growth Rate of European FDI Positions in the United States 2005 - 2009 2009 European Investment Positions in the United States Source: BEA

7. Swedish FDI in the United States Recent Greenfield Investment Announcements: Sept/Oct 2010: Hennes & Mauritz (H&M) announced plans to invest an estimated $4.4 million in a project in California, creating about 30jobs in the retail sector. Glo AB announces $25 million investment round and establishment of engineering center in California. August 2010: SvenskaCellulosaAktiebolaget (SCA) announced plans to invest $50 million to expand an existing production facility in Kentucky, creating an estimated 65 jobs in the paper sanitary products manufacturing sector. July 2010: Volvo announced plans to invest about $30 million in a project in Pennsylvania, creating an estimated 135 jobs in the industrial equipment manufacturing sector. June 2010: Camfil Farr announced plans to invest $5.5 million in projects in California, Nebraska, North Carolina, Ohio and Texas creating 23 jobs in the industrial equipment sector. May 2010: Saab AB announced plans to invest almost $20 million in a project in Michigan, creating 100 jobs in the aerospace sector. Source: fDi Markets 7

8. Western European Greenfield FDI Announcements in U.S. Green Energy Sector FDI Projects in U.S. Alternative/Renewable Energy Sector, 2003-2009 Source: fDi Markets

9. FDI in U.S. Green Energy Sector Western European FDI in U.S. Renewable Energy Sector Asian-Pacific FDI in U.S. Renewable Energy Sector Source: fDi Markets

10. President Obama Tours a Foreign Company’s Renewable Energy Manufacturing Facility in Iowa “. . [J]ust a few short years ago, this facility was dark, it was quiet, nothing was going on. And today, it’s alive and humming with more than 600 employees . . .So in the midst of the economic turmoil, the Recovery Act helped make it possible for America to install nearly 10 gigawatts of new wind-generating capacity last year alone -– and that's enough to power more than 2.4 million American homes.  So when people ask you what was the Recovery Act about, what was the stimulus about, it was about this -- this plant.” -President Barack Obama Siemens Wind Turbine Blade Manufacturing PlantFort Madison, Iowa., April 27, 2010 Source: Official White House Photo by Lawrence Jackson

11. Companies Benefiting from Clean-Energy Manufacturing Tax Incentives Novozymes Blair, Inc. (biomass) will receive $28 million in credits for a new facility in Nebraska. AAF-McQuay, Inc. (air conditioning manufacturer), owned by Daikin Industries, to receive $2.7 million in credits in Missouri, Minnesota, Virginia. Alstom (energy & infrastructure) to receive $65 million in credits in Tennessee and Texas for nuclear and wind turbine component production. Hemlock Semiconductor Corp., a joint-venture with Dow Corning and two Japanese companies, will receive $141.8 million in credits in Michigan. Siemens Energy Inc. (wind blades) will receive $7.7 million in tax credits for operations in Iowa and Texas. Yingli Green Energy Americas will receive $4.5 million in credits to open a manufacturing facility to produce solar energy modules in Arizona. Source: White House (January 8, 2010)

12. U.S. Renewable Energy Sources Source: U.S. Department of Energy Annual Energy Review 2009

13. U.S. Solar Photovoltaic Resource Map Source: U.S. Department of Energy National Renewable Energy Laboratory

14. U.S. Biomass Resource Map Source: U.S. Department of Energy National Renewable Energy Laboratory

15. U.S. Wind Resource Map Source: U.S. Department of Energy National Renewable Energy Laboratory

16. 2009 U.S. Wind Power Projects Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

17. U.S. Geothermal Resource Map Source: U.S. Department of Energy National Renewable Energy Laboratory

18. The Silicon Valley Region: Total area—1,854 square miles Total population—2.52 million (greater than 18 US states) Total jobs—1,412,372 million Ethnic composition—40% White, 25% Hispanic, 28% Asian/Pacific Islander, 3% African American Foreign born—36% of residents were born in a foreign country Origin: 57% Asia, 32% Americas, 9% Europe, 1% Oceana, 1% Africa Age distribution—0–9 years old:15%; 10–19: 13%; 20–44: 38%; 45–64: 22%; 65+: 11% Adult educational attainment—86% at least high school graduate; 44% at least bachelor’s degree *Data do not include Monterey Bay region Silicon Valley U.S. Export Assistance Center Service Area

19. Silicon Valley Major Areas of Economic Activity & Employment • Information Technology Products & Services • Life Sciences • Community Infrastructure (health services, education, retail, transportation, government administration and other local serving industries) • Innovation & Specialized Services (technical R&D, financial services, legal services, design) • Other Manufacturing (metal manufacturing, food/ag, machinery, petrochemical, textiles, paper, mining, etc) • Business Infrastructure (facilities, administrative svcs)

20. Industry Overview • Computer Software (consumer, enterprise, security, digital media) • Semiconductors/semiconductor equipment • Telecommunications • Bioscience/Medical/Pharmaceutical • Cleantech (energy efficiency, power generation, smart grid, related software) • Defense/aerospace • Professional services (testing, marketing, finance, legal, etc.) Together, these clusters represent 41% of all jobs in Silicon Valley.

21. Local Fortune 500 Companies Adobe Systems Advanced Micro Devices Agilent Technologies Apple Applied Materials Atmel Calpine Cisco Systems eBay Electronic Arts Gilead Sciences Google Hewlett-Packard Intel Intuit Juniper Networks Kla-Tencor Lam Research LSI National Semiconductor NetAppNvidia Oracle SanDisk Sanmina-SCI Spansion Sun Microsystems Symantec Varian Medical Systems Xilinx Yahoo

22. Waves of Innovation &“The Next Big Thing” • In its lifetime, the Valley has experienced several waves of technology innovation: defense, integrated circuit, personal computer, Internet.. • Each wave was interrupted by competitive or external shocks (defense cutbacks, national economic cycles) that caused short-term employment contractions. • But each wave built innovation networks of talent, suppliers and financial service providers that helped make the next technology wave possible.

23. Silicon Valley’s Start Up Machine START UPS Source: Silicon Valley 2010 (modified by SVUSEAC 4/04)

24. R&D Resources • Electric Power Research Institute conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. • NASA Ames Research Center is a leader in nanotechnology, biotechnology, aerospace and thermal protection systems, and human factors research. • Bio-Info-Nano R&D Institute (BIN-RDI) With University of California-Santa Cruz, NASA is partner in BIN-RDI, which includes the BIN Energy Initiative, a consortium of organizations using novel processes and technologies to build realistic, sustainable alternatives to hydrocarbon fossil fuels. • Department of Energy Renewable Energy Labs including Lawrence Livermore National Lab, and Sandia National Lab. San Jose is partnered with Sandia as part of DOE’s “SolarCity” initiative. • Universities in San Jose or nearby include Stanford University, University of California, Carnegie Mellon University-West, San Jose State University, Santa Clara University, 5 Community College Districts • Corporate R&D capability in organizations like SRI International, IBM, Applied Materials, Hewlett Packard, Cypress Semiconductor, Cisco, and Google (clean energy, energy efficiency, smart grid) Source: City of San Jose (CA)

25. San Jose/Silicon Valley’s Integrated Model for CleanTech Research Incubation Prototyping/ Demonstration Testing/Certification Production MarketAdoption University of California Stanford University San JoseState University NASA Dept of Energy Labs, Livermore, Sandia California Energy Commission National Science Foundation Environmental Business Cluster San Jose BioCenter US Market Access Center Venture Capital CleanTech Open Electronic Transportation Development Center City of SJ Demonstration Program Las Plumas EcoPark “Solar City” Showcase Underwriters Laboratory Solar Testing/Certification Center SolarTech Center of Excellence Real Estate facilitation CleanTech Incentives Fund Workforce Development Grants California Enterprise Zone Green Vision Goals City Procurement One-Stop Permitting Innovative Finance Federal, State Policy Advocacy Workforce development Source: City of San Jose (CA)

26. Silicon Valley’s CleanTech Sector • Thriving, diverse CleanTech Cluster • San Jose is home to > 3,200 core Clean tech jobs, 60 companies; employment doubled last 18 months • Silicon Valley region has > 10,000 jobs, 150 Green Establishments • 30% of US CleanTech VC is invested in areas companies – $1.8 billion in 2008, double 2007 level • City CleanTech Strategy: achieve 25,000 Clean Tech jobs by 2022 San Jose City Hall Source: City of San Jose (CA)

27. Examples of Silicon Valley’s CleanTech Companies • SunPoweris the global leader for developing high-efficiency solar solutions for homes, businesses, commercial buildings and utilities. • Philips Lumileds Lighting Company is the world's leading manufacturer of high-power LEDs and a pioneer in the use of solid-state lighting solutions for everyday purposes including automotive lighting, computer displays, LCD televisions, signage and signaling and general lighting • Echelon is a global leader whose technology enables “smart” energy solutions across a wide range of markets, including commercial buildings, industrial plants, schools, streetlights, warehouses, electric vehicle charging stations, and smart metering infrastructure. • Nanosolar is a global leader in solar power innovation, leveraging recent science in nonstructured materials to profoundly change the cost efficiency and production scalability of solar electricity cells and panels. • ViridisEarth Technologies, winner of the Clean Tech Open ”EnergyEfficiencyAward” for innovation thatreducesenergyconsumption of air conditioners. • Electra Drive, winner of the “Transportation Award” at the Clean Tech Open, is commercializing an invention to enable the mass conversion of existing cars and light trucks to electric drive • Stion Corporation is a solar photovoltaics company developing high-efficiency thin-film modules. Source: City of San Jose (CA)

28. Resources for Local Industry Support Anita Borg Institute for Women and Technology Asia America MultiTechnology Association (AAMA) Asia Silicon Valley Connection (ASVC) BayBio CEONetworking Clean Tech Institute EPPIC FountainBlue Forum for Women Entrepreneurs Inventors' Alliance German American Business Association of California, Inc. (GABA) International BioMed Society (IBMS) Nano SIG MIT/Stanford Venture Lab (VLAB) Software Development Forum NewCEO Club San Jose Bio-Center (SJBC) Plug and Play Tech Center Silicon Valley Chinese Wireless Professional Association of Exporters & Importers (PAEI) Silicon Vikings San Jose State Univ - Ctr for Entrepreneurship (SVCE) Semiconductor Industry Assn Santa Clara Univ. MBA Entrepreneur Connections Women 2.0 Silicon Valley Indian Professionals Organization (SIPA) SEMI SVAM - American Marketing Association TiE U.S. – China Green Energy Council Venture Capital Private Equity Roundtable Women in International Trade – Northern California Women in Technology International (WITI) Business Association of Stanford Entrepreneurial Students Entrepreneurs’ Organization Women Initiatives eWomen Network IEEE Silicon Valley Women in Telecom MonteJade Silicon Valley Engineering Council Bay Area Start Up Network US Angel Investors Silicon Valley Band of Angels Keiretsu Forum ….any many more!

29. Where to Start • Created in 2007 • Primary U.S. Government Mechanism to Manage Foreign Investment Promotion • Tools IIA provides: • Facilitate Investment Inquiries • Act as Ombudsman • Connect Investors with U.S. States • Provide Policy Guidance • Educate Investors

30. Catharina Kronstrom Senior Commercial Advisor U.S. Commercial Service - Stockholm Phone: +46 8 783 53 52 Email: Catharina.Kronstrom@mail.doc.gov Invest in AmericaEmail: christopher.clement@trade.gov http://www.investamerica.gov Joanne Vliet, Director Silicon Valley U.S. Export Assistance Center U.S. Commercial Service- San Jose Email: joanne.vliet@trade.gov Contact Information