Freescale Strategy - library.corporate-ir.netand Seamless Mob ility Bil $ 0.1 1 10 100 1000 ... •...
Transcript of Freescale Strategy - library.corporate-ir.netand Seamless Mob ility Bil $ 0.1 1 10 100 1000 ... •...
Sumit SadanaSenior Vice President, Strategy, Business Development and Acting CTO
Freescale Strategy25 July 2006
The forward-looking statements in this presentation include statements regarding market growth and our potential capacity, financial position, expanded addressable market, business strategy and other plans and objectives for future operations, as well as any other statements which are not historical facts.
Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties are listed in our Form 10K for the year ended December 31, 2005 and other SEC filings.
Source: Gartner
Worldwide Semiconductor Revenues
050
100150200250
300350
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Total Semiconductor Market
Excl Memory & Disc
Projected CAGR: 9%vs.
40-Year CAGR: 14%$B
Semiconductor Industry:Outlook for Steady Growth Through Strategy Horizon
Growth Drivers
• Global economic environment, Asia
• Converged, mobile, consumer multimedia devices
• 3G and mobile connectivity
• IP/packet-switched networking
• Active auto safety electronics in automobiles
Semiconductor Industry Trends
Long-Term Growth Slowing
Consumer Apps Driving Growth• Platform solutions required for aggressive
TTM; Ecosystem, software• Mixed-Signal capability a key differentiator
IC Development Complexity Rising• Spend-per-product rising at double-digit
CAGR• Low-power scaling ‘hitting the wall’ at
sub-65nm; Requires a combination of process and design technology innovations
Focus of Differentiation Changing• Functional differentiation versus raw
performance• Throughput and power vs. MHz
Source: Freescale Strategy
PersonalComputing
Wired and WirelessCommunications
Personal Infotainment and Seamless Mobility
Bil $
0.1
1
10
100
1000
1990 2000 2010
Embedded Processing and Connectivity
Initiatives underwayto drive
benchmark performance
Financial Performance
12%
25%29%
37%42%
2001 2002 2003 2004 2005 2Q 2006
46.0%
-20%
-7%-5%
7%11%
2001 2002 2003 2004 2005
15.7%
2Q 2006
Gross Margin %*
Operating Earnings %*
$5.1 $5.0 $4.9$5.7 $5.8
2001 2002 2003 2004 2005
Sales $B
1H’06 revenue up 7.2% over year ago
* OE and GM excludes unusuals
Freescale Business Groups
Wireless & Mobile Systems Group
Networking & Computing Systems Group
Transportation & Standard Products GroupW
MSG
NC
SG
TSPG
# 1 in Comms Processors
# 1 in RF for Wireless Inf.
# 2 in DSP
# 1 in Total Auto ICs
# 2 in Microcontrollers
# 3 in Sensors
# 2 in DSP
# 2 in GSM/GPRS Cellular Handset Baseband
# 3 in Wireless Handset RF
9%$27B
CAGR (’05-’08)SAM (’08)
14%$28B
CAGR (’05-’08)SAM (’08)
12%$18B
CAGR (’05-’08)SAM (’08)
Revenue: $1.4B (LTM) Revenue: $2.0B (LTM) Revenue: $2.6B (LTM)
Source: Gartner, iSuppli, F orward Concepts, Strategy Analytics
Freescale Strategy
Drive benchmark operational performance:• Continued focus on margin expansion• Asset-lite model; Manufacturing, supply chain excellence
Vision: Global leadership in embedded processing and connectivity solutions
Accelerate revenue growth:• Shift investment to high-priority growth initiatives: Consumer,
Merchant Wireless, Analog Power Management• Reinvigorate technology / innovation focus; NPI excellence
People focus:• Strengthen leadership and management talent• Increase investment in system / software expertise• Winning culture
2003 2004 2005 Q1'06
Waf
er V
olum
es
Manufacturing Strategy
• Asset-lite modelCapex ~10% of revenue
• Flexible manufacturing strategy Maximize internal capacity utilization, ROICAssurance of supply
• Crolles Full Build-out: 2006-7 Capex
• 2005-2007: C90 qualified in 4 fabs, 65nm in 3 fabs
2003 2004 2005 2006 2007 2008
# of
Qua
lifie
d Te
chno
logy
Sou
rces
Advanced Technologies(<=130nm)
InternalExternal
Faster Learning Rates
Manufacturing Excellence
Innovative methods; Holistic approach
Zero Defect Culture
+Time
Def
/cm
2
180nm130nm90nm
Crolles2 Alliance:Partnering on Advanced Manufacturing
• 130nm production 2003• 90nm production 2005• 65nm qual/ramp 2006/7• 45nm qual/ramp 2008
• Freescale, STMicroelectronics and Philips
• TSMC alignment for security of supply
• Shared 300mm capacity• Alliance Technologies
• CMOS: 90nm to 32nm• SOI• Analog• RF• Embedded memories
Alliance Facts
Status
Manufacturing Capital Programs• 90nm Capacity
300mm CMOS, RF200mm SOI, NVM
• Power Management SMARTMOS7, 8, 10 – 200mm
• 65nm Ramp• 45nm Capability/Sampling• Assembly and test capacity• Yield enhancement• Lead-free initiative
• Manufacturing Methods
Freescale’s 2006 Capital Priorities
Manufacturing• Capacity Increase• Mix Renewal• Yield Enhancement &
Automation
Innovation• Process• Design
Infrastructure• IT• India
Freescale Evolution
2006 Focus
• Growth Initiatives
• Margin Improvement
• Revitalize NPI
• Marketing / Sales: Solutions, Portfolio Focus
• Winning CultureRESTRUCTURE
STRENGTHEN
ACCELERATE
GROWTH
Gain share, g
row OE
Freescale Growth Framework
Growth Focus
Investin Growth
Initiatives, IP
Market Insight
Systems Expertise
ProductEnablement
Software Investments, Ecosystem
Differentiated, Efficient R&D
Product Excellence; Focus on Differentiation,
Innovation
AcceleratedRevenue Growth
Execution Excellence, Winning Culture
Margin Expansion
Key Growth Initiatives
Strengthen Base
• Wireless Merchant Market
• Revitalize Distribution
• A-P, Japan Growth
GROWTH STRATEGY
Expand AddressableMarket
• Analog
• Mass Market / ConsumerFixed Consumer
Mobile Consumer
Customer or Partner Applications Framework(Browser, Java, GUI, PIM, DRM, etc.)
Cellular Platform Access (CPA)
OperatingSystem 3G Protocol Stack
FEM
Cameras
CMOS 90 SC140 + AR M11
BasebandProcessor
Po wer/AudioManagement
WiFiBluetooth
GPS
i.MX31ApplicationProcessor
GSM/EDGEXCVR & PA
WCMDAXCVR & PA
Leveraging Cellular Platform in Merchant Market
Freescale 3G Handset Platform
>100 different software partnerships!
Operating Systems &ToolsEsmertec, Wipro, Symbian, Microsoft, Palm
3
Reference DesignsElcoteq, Techfaith, Elektrobit
4Connectivity
CSR, SiRF, Global Locate,
Freescale
5
PartnershipsApplicationsOpenwave, eSIM, nVIDIA, Trinity/ Radvision
6
Service PrimitivesCommunications
SoftwareFreescale
2
35
147 8
26
*9
0 #
CellularChipsetsFreescale
1
Revitalizing Distribution
+
• New Freescale Resources in the Field
• Easy to Access, Buy & UseeCommerce / SamplingEnhanced Catalog ProgramsLow Cost Dev ToolsOn-line Virtual Labs
• Mass Market Products
• New Distribution Friendly ProgramsPay for Performance Workshops on DemandReduced Inventory CostsNew FAE Training Programs
• Low Touch Marketing
• New Partners in Emerging Regions
• Increased Resources Dedicated to Freescale
• Expanded Telemarketing Presence
• Accountability to Freescale Results
Global Network
FSL 1H’06 distribution resales grew 2X faster than the industry* * Source: WSTS, June ‘06 – FSL Estimate
Asia-Pacific & Japan Thrust
► Total employees: ~9,600► Sales offices: 13► Design centers: 9► Manufacturing centers: 3
Freescale in Asia Pacific/Japan
Focused activity in region• Tier1 automotive & networking
customers
• Leverage 3G Platform at Tier1 cellular customers
• Expand direct / distribution sales presence in region
• Develop ecosystem, regional partnerships & alliances
• Ramping design capability in India & China
* Source: WSTS AP & Japan Region (Excludes Memory and Discretes), June ’06 – FSL Estmate
• ‘09 Goal: 2X ‘06 revenue • 1H’05 - 1H’06 revenue growth faster than industry*
Analog / Mixed-Signal Focus
Leveraging Strengths
Investing for the Future
•*Source: iSuppli May 2006•**Awarded January 2006
EDGE Radio Subsystem, shipping with five different industry standard basebands
Portable Design’s Editor’s Choice Award** for Power Management ICs won with SMARTMOS technology
Over $1B in revenue; Fastest ASSP growth among top 10*
• Broad IP Portfolio• SMARTMOS™ / LDMOS• Large Customer Base• Integration Expertise
• Power Management• Motor Control• RF Power Transistors• RF Cellular
• New Management in Place• SMARTMOS10W, 10T• High Performance Focus
• 2X Cellular/Portable PM
• Talent• Technology • Portfolio Expansion
MPC18730
i.MX Processors, Sensors,Power Management
Freescale Consumer Focus Home Appliances
Home Networking & Peripherals Mobile Consumer Electronics
PowerQUICC Processors, MCU,DSPs, Power Management
MCUs, Sensors,Power Management
2009 Goal: >20% of Freescale revenue from consumer segments*
FreescaleConsumer
Focus
MCUs, Audio DSPs,Class D Amps, i.MX Processors,
Power Management
Home Consumer Electronics
* Does not include cellular handsets
Refocusing R&D
Silicon Sales Solution Sales
“Solution-Driven”Customers
“Silicon-Driven”Customers
Silicon
SoftwareHardware-BoardSystems ExpertiseFull IntegrationPersonalization
Freescale increasing investment beyond silicon into systems & software
Historical R&D focus
30+% of product R&D directed to Systems &
Software
Internal
External
Freescale ZigBee™ PlatformComplete IEEE 802.15.4 & ZigBee™
HW & SW Development System
Strong Development Partners Network
Over 700 design wins to date!
Industrial
Medical
Communication Gateways
Consumer,Cellular
Automotive
Appliances
Freescale Symphony SolutionHigh-quality Comprehensive Audio Solutions
for Consumer and Automotive Markets and Customers
Hardware Software System
Aggressive Roadmap• 24-bit DSPs for digital
audio and radio
• Leading-edge technology for Class D Digital Amplification with advanced feedback
Reference Designs
• Symphony™ Surround Module
• DH1 (Dolby Headphone)
• DVS (Dolby Virtual Speaker)
• Symphony™ Class D Amplifier
Extensive S/W Library• Vast multi-channel decoder
libraries embedded on chip
• Plug ‘n Play software architecture for post-processing support
• Strong 3rd party algorithm developer network
The Controller ContinuumFreescale Controller Continuum Industry’s First 8/32-bit Compatible Architectures
Wide range of performance and peripherals – from low (S08) to high (68K/ColdFire)
Seamless transition between performance ranges, independent of bit-width
Automatic code generation with CodeWarriorTM development tool ensures compatibility across continuum
7000+ evaluation boards shipped within two months of 8-bit KA2 launch
Consistent user experience around a range of performance
Video 3D Graphics Security Audio Connectivity Low Power
Enterprise
i.MX Application Processors
Addressing multimedia-intensive applications with industry-leading low power solutions
Performance*• 35-61% better performance per MHz
• 2x faster MPEG4 Decode
Power*• 50% lower power consumption
Size*• High level of integration: 45% smaller die
Cellular
Entertainment
* Benchmarked to leading competition by independent 3rd party - Synchromesh
Building on a 50+ Year Heritage of Innovation
(1) The “PowerP C” name is a tradem ark of IBM Corp. and is used under license.
19523 Amp power Transistor
197916-Bit Processor MC68000
198432-Bit Processor MC68020
1989MC68302 Communications Processor
1991PowerPC® (1) Alliance
1994First PowerPC®(1) MPC601
1995MPC860 PowerQUICC™
2001MPC7455 SOI Volume Production
2003Low-K Volume Produ ction
2003First single core modem: MXC. “Smartphone-on –a-postag e stamp”
2005First PowerQUICC communications processor with QUICC Engine (MPC8360E)
2003Tire pressure monitor sen sorwith cap acitive technology Introduced
Late 1980sDevelopment of the first surface micromachined inertial sensors for the automotive airbag
1975MC6800 is first microprocessor used in automotive application
2005i.MX31 processor for mobile multimedia entertainment
1998First PowerQUICC II communications processor (MPC8260)
2006MC9RS08KA2Ultra-low end MCUwith RS08 core
2006MSC8144 multicore DSP targeting wireless and wirelin e infrastructure
2006Industry’s First Commercial MRAMProduct
1996500-700Mhz 65W RF Plastic Package
2004First 130 nm MCU with 2MB eNVM
1993First RF-LDMOS device for1GHz Cellular handset and infrastru cture markets
1960Si-Base Tran sistor
Technology
Production Today Sampling Development
• Competitive process technology nodes • 65nm products sampled Q1’06• 45nm samples in Q4’07
Auto
Wire
less
Netw
orki
ng
Business DriversC
onsu
mer
n/a 0.13um 90nm 65nmSMARTMOS >0.18um
0.18um n/a 90nm 65nm 45nmRF/SiGe >0.18um
0.18um 0.13um 90nm 65nm 45nm 32nmCMOS/SOI/LP >0.18um
LDMOS/III-V
0.18umSGF 0.13umNVM 65nm>0.18um 90nm
Sensors
HV 7LDMOS GaNHV 8
LDMOSInGaPHBT
12V PHEMT
LinearHFET
26V PHEMT
Pressure; Safety/Alarm ICs; Capacitive; X,Y,Z axis accelerometers
Freescale Wafer Technology Development
~ 40% Size reduction in analog and power blocks vs. competitive processes
SMARTMOS TechnologyEnables Industry Leading Power System Integration
TM
Power + Analog + Digital + MemoryPower + Analog + Digital + Memory
High Precision Matching, Low noise,
High Power Efficiency
High Precision Matching, Low noise,
High Power Efficiency
Industry Leading Digital Capability(Completely modular NVM)
Industry Leading Digital Capability(Completely modular NVM)
Low Power,Cell Phone Power Management
ABS/ESP
Automotive
Consumer
NetworkingPower over Ethernet
Leveraged Across the Spectrum
SMARTMOS10
100V, precision converters, 0.13um logic, andNVM memory with automotive level reliability
Data Retention - ≥ 10 yearsHighly Reliable
Symmetrical Read/WriteByte writeable – bit level granularity
35ns for 4Mb at 0.18um technology node
Unlimited Endurance - ≥ 1016Non-destructive read
Data stored by polarization not charge – no leakage, soft error
Nonvolatile
Fast
Unlimited Cycles
Differentiating Process TechnologiesMRAM
Industry’s First Commercial MRAM Product
Leadership & Innovation in PackagingRedistributed Chip Packaging
LTE2 MAPBGA13mm x 13mm x 1mm
LTE2 RCP9mm x 9mm x 0.7mm
Benefits• 30% reduction in size and thickness• Eliminates package substrate,
wirebond / flip chip bumps
• Flexible, Ultra Low-K compatible technology
• Single, Multi Chip, SiP, PoP• Good thermal management
• Green (Halogen and Pb free)
GSM EDGE i.275Radio in Package
Thickness
Footprint
1.4mm
RCP
FoldedPkg.
StackPkg.
PCBEmbed.
Die
POP
DieStack
Cost
MPC8641D
Industry’s highest performance programmable DSP: 4 x 1GHz performance!
MSC8144
Dual PowerPC™ cores >1.5GHz
• Multi-core embedded processor roadmap – Leveraging:
• PowerPC™
• StarCore™ DSP
• QUICC™ Engine
• Extreme Integration – MPC8641D• 225 million transistors
• High Performance SOI Technology
• 9 Levels Copper / Low-K interconnect
Leadership Technology - NCSG
MPC55xx family32bit PowerPC™ MCUUp to 4MB eNVM w/ ECC
Con
sum
er
I
ndus
tria
l
A
utom
otiv
e
S12X family0.25 0.18um SGF16bit MCU
• Leading technology platforms and architectures
• PowerPC, S12X, 68K/ColdFire, HCS08 cores
• 0.25u, 130nm eNVM CMOS process • SMARTMOS mixed-signal integration
platform• MEMS (bulk and surface), with
SMARTMOS, MCU, RF integration
• Product leadership – MPC 55xx family• 34M transistors, 130nm eNVM CMOS• 2–4MB embedded flash (highest in industry)• eTPU – independent, programmable Time
Processor unit
Leadership Technology - TSPG
Leadership Technology - WMSG
i.MX31
MXC91321
• Leadership Technology• Innovative single core modem architecture - MXC • Power / Performance optimized Applications Processors • RFCMOS and SMARTMOS process technology - highly
optimized RF subsystem and Power Management• Platform Solution - Stack, Codecs, Tools, Multi-OS
support, Reference Designs
• Integration & Low Power: MXC91321• ARM1136 (532MHz), StarCore DSP • 101 Million Transistors• Dynamic Voltage and Frequency Switching, Well-Bias
techniques for low power• Low power CMOS process
SVP
• 10 Director level hires are building a bench of next generation leaders• Targeted technical hiring across the enterprise • Talent Pipeline Management
Director and Technical
• Analog - Arman Naghavi• Design Technology - Chekib Akrout• High-Performance Processor Designs - Rick Morris• Back-end Manufacturing - Gulzar Ali• Chief Procurement Officer - Tom Linton• Chief Information Officer - Sam Coursen
SalesBill Bradford
VP• Global Distribution - Rick Bosshardt• Business Operations - Fred Glasgow• Talent - Drew Morton• Corporate Communications - Tim Doke• Treasurer - Greg Heinlein• Tax - David McDonald
WirelessSandeep Chennakeshu
Biz OperationsJan Monney
ManufacturingAlex Pepe
Strategy and Biz DevSumit Sadana
Human ResourcesKurt Twining
Redefining Freescale: New Leadership