Vol. 22, No. 1◆◆ www.hansenreport.com February 2009 Aftermarket OEMs Gear Up for Connectivity U.S. Market Disconnect Next Generation Telematics and for Toyota models, beginning in late summer 2009. Every year it gets harder and harder for Protocol Makes Headway Rather than contract with a service mobile electronics companies serving the For the last ten years or so, General provider, Hyundai will use the Microsoft aftermarket with replacement parts and Motors, Mercedes and BMW have had Auto software platform, as Ford does, to accessories to do what they do. “It’s gotten the U.S. telematics market to themselves. deliver infotainment solutions including almost impossible to replace some radios,” Now every other major carmaker in the telematics. Hyundai’s product debuts in said Joe Gross, OEM sales and design U.S. wants in on telematics, and everyone 2010. manager for Kicker Audio. As electrical/ except for Ford and Hyundai has been electronics complexity grows, the after- out shopping for a telematics service pro- OnStar Is Looking Beyond GM market finds itself increasingly locked out vider. All major carmakers selling vehicles In the past, OnStar provided tele- of the vehicle. in the U.S. are expected to be up and run- matics services to other carmakers includ- “Coming from aftermarket roots and ning with telematics services by 2012 or ing , , Suzuki, and having worked in the installation bay, I sooner. . But with OnStar’s transition from understand their frustrations,” noted Mr. First launched on 1997 model year analog to digital technology in 2008 and Gross. “You’ve got heating and air condi- , OnStar is today installed in its decision three years ago to make tioning controls all part of the radio con- 95% of GM models. With more than four OnStar exclusively a differentiator for trols. If you take this radio out you now million subscribers, it is by far the world’s GM vehicles, those business relationships lose multiple other features. Aftermarket largest telematics operation. Mercedes went away. Since carmakers are demon- head-unit sales are way down.” and BMW introduced OnStar-like ser- strating a new interest in offering Data from the Consumer Electronics vices with automatic collision notification telematics services, GM decided some Association backs up Mr. Gross’ observa- in the U.S. in 2000. months ago to again market OnStar to tions. Unit demand for aftermarket head In November 2009, Ford began offer- other carmakers. “We don’t have to make units in the U.S. declined by 23% in 2008 ing telematics services as part of its Ford a big investment to provide services to alone. Sync offering. Chrysler has a long-term other carmakers; our capabilities already agreement with Hughes Telematics to exist,” noted Nick Pudar, OnStar vice U.S. Factory Sales of bring telematics services to 100% of president for planning and business devel- Aftermarket Head Units Chrysler models. Last month, Toyota an- opment. “We have been going back to nounced a deal with ATX, a division of folks and saying ‘we have the know-how Units in millions $ millions Cross Country Automotive Services, to and the experience; if you are interested 2007 8.8 840 provide services through Lexus Enform Turn to Telematics, page 3 2008 6.8 630 Telematics Service Provider Status in the U.S. 2012 4.5 350 2007 to 2012 CAGR: -12.6% -16.1% OnStar, a GM subsidiary operating since 1995 Toyota Motor USA ATX will be the provider to Lexus and Toyota Data: Consumer Electronics Association Ford Motor Provides telematics services based on the Microsoft Auto software “If you are an aftermarket performance platform () Chrysler Hughes Telematics is scheduled to start in June 2009 supplier and you don’t have access to the American Honda Will soon make a sourcing decision requirements, the specifications, the bus Nissan North America Will soon issue a request for proposals to telematics service providers systems, it could be extremely intimidat- Hyundai Kia Automotive Will provide Ford Sync-like services based on the Microsoft Auto ing if not impossible for you to manufac- platform starting in 2010 ture a performance upgrade product to Volkswagen Group In the market for a telematics service provider sell,” he cautioned. BMW Currently served by ATX; is considering proposals from ATX, Connexis Mr. Gross has been participating in the and WirelessCar for an NGTP compatible system Automotive Electronics Connectivity Mercedes Currently served by ATX; Hughes Telematics begins service in November 2009 Turn to Aftermarket, page 2 Aftermarket... Continued from page 1 Committee (AECC), sponsored by SEMA we had 15 suppliers with accessories ready “As an aftermarket supplier, if you don’t (Specialty Equipment Market Associa- to go.” get cooperation from a car company you tion) and the Consumer Electronics Asso- Many of those accessories, which can must reverse engineer the vehicle, a task ciation. The AECC so far has 60 members be installed by Scion dealers, are listed at that is monumental because you have to trying to address these integration and www.optomizescion.com, which SEMA handle all of the variations from vehicle installation concerns. They hope to some- set up with Toyota. When it comes to to vehicle. I know that from when we had how get carmakers interested in open ar- infotainment system options, though, to update OnStar systems from analog to chitectures and in making their vehicles there isn’t a great deal of choice. Scion’s digital. That’s one side of the question. more accessory-friendly. The committee OEM supplier, Pioneer, lists a couple of “On the other side is the car company has no permanent members from the tuners, a navigation unit and an audio asking, ‘what’s in it for me if I help you?’ carmakers at this time. amplifier on the site. And Alpine has a The only thing in it for them is protecting The AECC was organized by John single mobile navigation unit. the vehicle. From a cost benefit stand- Waraniak, SEMA’s vice president for ve- Ted Lopez is an interface product man- point, they can’t make a business case out hicle technology, who brought SEMA’s ager for Scosche Industries, a company of providing access.” efforts together with the Consumer Elec- that makes installation hardware for after- Mr. Acton, who recently left Connexis tronics Association’s connectivity com- market retailers and distributors. Mr. to start his own company, still wants to mittee. With 7,500 members, SEMA Lopez described how the aftermarket has help. “I am going to do my part to get companies do a total of $42 billion worth been dealing with car lines that aren’t ac- people like SAE and IEEE or whoever it of business annually, about one-third of cessory friendly: “We invest hundreds of takes to step up and facilitate this merger which is electronics. hours reverse engineering for each vehicle of consumer electronics and automotive line, sometimes spending $100,000 to do requirements.” He sees some scope for de- What’s in It for the Carmakers? it,” he told us. “Several years ago to build veloping OBD II further to make that an Mr. Waraniak would love to see the an installation kit for a navigation radio interface point or for an automotive USB- automotive industry adopt standards, in- we would simply have to locate the speed type spec. cluding the equivalent of a USB connec- sensor wire, the reverse/park wire and the “Eventually consumers will demand tor. “Then you could put in any audio e-brake wire and tap into those. But now access to the vehicle, and some carmaker system you want,” he said. “If you really you have to simulate all these different will decide that it wants to be the game want to innovate and develop new prod- actions in the car to make sure you iden- changer by offering that access. Then all ucts fast, you have to have open stan- tify each piece of code coming through the carmakers will do it,” he predicted. dards. We did a study with the Center for the data bus.” Mr. Acton can be contacted by email at Automotive Research. In one of the inter- When factory radios out of warranty [email protected]. ◆ views with the OEMs, a chief electronics fail, consumers can buy an OE replace- architecture engineer posed the question, ment radio at the dealer for anywhere ‘Why would I want to open up our vehicle from $600 to $1,300. Or they can by a to the aftermarket?’ We didn’t answer that radio in the aftermarket for $149, plus © 2009 Paul Hansen Associates, 150 one, because one of the members of his $140 to $200 for a Scosche interface box Pinehurst Rd., Portsmouth, NH 03801, staff answered it for us: ‘Because we may and another $49 for a Scosche trim kit to USA. Telephone: 603-431-5859. : 603- not be able sell our vehicles.’ fit the replacement radio into the dash. 431-5791. Email: [email protected]. “The point is the consumer wants the Dave Acton is also on the AECC. Un- All rights reserved. Materials may not be innovation, and that is a differentiator to til 2004, Mr. Acton was a top electrical reproduced in any form without written help sell your vehicle. If you become what engineer at GM, where he last served as permission. we call accessory-friendly, you will sell director of global telematics. While at The Hansen Report on Automotive Electron- more vehicles,” declared Mr. Waraniak. GM he was one of the founders of the Au- ics is published 10 times a year, monthly; Perhaps the best example of an acces- tomotive Multimedia Interface Collabora- July/August and December/January are sory-friendly vehicle, according to Mr. tion, AMI-C, which at its peak involved combined issues. The annual print subscrip- Waraniak, is the Scion from Toyota. “Five almost all of the world’s major carmakers. tion rate is $787. Back issues are available years ago, before the Scion first came to One key AMI-C objective was to develop for $50 each. Index and multi-user electronic the States, SEMA worked with Toyota to specifications for a standard gateway subscription information is available at get five Scions so we could develop acces- through which suppliers could plug and www.hansenreport.com. Paul Hansen Asso- sories for those vehicles. It’s what I call play their products. But carmakers pulled ciates is a strategy and market research firm designing for customization—you try and out of the collaboration without reaching consulting to the electronics industry. move upstream [in the design process] as agreement, and AMI-C standards were Publisher/Editor Paul Hansen far as you can. We worked with Scion’s never implemented. Managing Editor/ Brianne Wolfe chief engineer to help make the mechani- Since Mr. Acton was also responsible Circulation Manager cal and electronic architecture more ro- for getting GM vehicles ready for OnStar, Director of Marketing Michelle Long bust. When that vehicle was introduced he can relate to both sides of the problem. ISSN 1040-1105

Page 2, February 2009 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com Telematics... Continued from page 1 in moving in the telematics space, come Late in 2008, Ford added 911 emer- sages or the driver’s calendar might be dis- talk to us.’ So far, a lot have.” gency calling and vehicle diagnostics fea- played, as well as various Wi-Fi and tures to the original Sync platform, which WiMAX applications. Embedded vs. Portable Phones lets Ford drivers use voice commands to The standard Hughes telematics con- OnStar delivers its Automatic Crash control their portable media players as trol unit (TCU) going into future Response by means of a cell phone em- well as make calls or text, hands free, us- Chrysler and Mercedes vehicles can’t yet bedded in the vehicle. Ford delivers its ing their own connected mo- receive WiMAX, but it is equipped for connected services, including 911 Assist, bile phones. Once the activation fee is (CDMA and GSM) cellular, Wi-Fi and using the driver’s own portable phone that paid, these feature are free for life, no sub- Bluetooth communications. The TCU has is wirelessly connected to the vehicle via scription fee is required. an ARM processor running Linux—be- Bluetooth. According to the carmaker, Sync- cause it is less expensive than Microsoft In an OnStar television spot called equipped Ford, Lincoln and Mercury ve- Auto—and sits on the vehicle’s CAN bus “Flying Phone,” OnStar questions that hicles sell off the lot nearly twice as fast as so it can drive the vehicle’s displays and approach by asking, “Are you counting on those without Sync. Ford expects to have speakers, and pick up signals from the your cell phone to be your lifeline in a one million Sync-activated vehicles on vehicle’s microphone and sensors. crash?” It then shows a vehicle in a slow- the road by the third quarter of 2009. “The platform allows us to quickly de- motion simulated crash during which the Using Microsoft software, Ford can velop applications and download them cell phone goes flying. The ad closes with seamlessly deliver services to its customers over the air, or even allow customers to the graphic, “OnStar Automatic Crash from a network of partners such as pick an application through a Web portal Response.” Tellme, a Microsoft company that pro- and essentially drag and drop it onto their Before introducing 911 Assist, Ford vides off-board voice services; Inrix, car,” noted Hughes Telematics CEO, Erik seriously considered the probability of the which provides traffic, directions and Goldman, who spoke to us at the Las Ve- driver’s phone not being available during maps; TeleNav, a navigation ser- gas demonstrations. “We see tremendous a crash and concluded that its liability in vices provider; and Airbiquity, which de- opportunities from the companies we are that event was no worse than OnStar’s. veloped data over voice technology. in discussion with for interesting apps that Given the number of owners who never can be downloaded to the vehicle.” activate their OnStar service, or who fail Hughes Telematics Under the terms of its agreements with to keep their subscriptions current, insid- Hughes Telematics invested nearly Chrysler and Mercedes, Hughes will subsi- ers estimate that perhaps 50% to 60% of $100 million to establish itself as a dize the cost of each onboard telematics OnStar-equipped vehicles could actually telematics service provider and has long- control unit. Starting in June 2009, make the emergency call in the event of a term agreements with Chrysler and Chrysler will install the units in new ve- serious accident. Theoretically, GM might Mercedes. Also in Las Vegas during CES, hicles, reaching 100% of its models in be liable for not installing software that but at an offsite facility, Hughes demon- three years. Similarly, starting in Novem- automatically calls 911 through its strated to several visiting carmakers an ber 2009, Mercedes has agreed to install Bluetooth connection to the driver’s mo- impressive array of features implemented the unit in its new U.S. vehicles, reaching bile phone. In this model year, GM is ex- on real vehicles, as well as what a working 100% in two years. pected to have nearly one million vehicles call center might look like and what the on the road with Bluetooth connectivity. operators see when an automatic crash Business Models Vary notification comes in. Hughes’ business model is a little dif- Ford Sync According to Tom Taylor, a Hughes ferent from the OnStar business model. Telematics was a hot topic at the 2009 engineering vice president who ran the OnStar, a GM subsidiary operating since Consumer Electronics Show. Ford made a car demos, carmakers were most impressed 1995, provides free service to new car buy- big splash with a multimedia-assisted key- with the fluidity of the speech recognition ers for the first year. If at the end of the note address by president and CEO Alan function and the ability of the device to period the customer chooses not to con- Mulally. Mr. Mulally, along with several read text messages aloud and let the driver tinue the minimum safety and security top Ford officials, used the big stage to text replies by speaking. The conversa- package for $18.95 per month or $189 per introduce the newest Ford Sync features. tional voice search platform is from year, the service is turned off. Starting with select 2010 model year VoiceBox Technologies and the speech The Hughes product is also built on a vehicles due later this year, Ford will make recognition engine is from Nuance. “In package of safety and security services, but traffic information, turn-by-turn direc- other systems, speech recognition is usu- if at the end of 12 months a customer tions and personal news updates available ally one of the biggest complaints— doesn’t subscribe, the system is not turned to Sync users for three years, for no more people get stuck in the menu and can’t get off, unless the customer specifically re- than the $395 one-time activation fee out,” noted Mr. Taylor, whose engineers quests that it be disabled. that most Sync users pay. On some up- helped customize the way the speech sys- continued on page 8 scale Ford vehicles where Sync is stan- tem handles text messaging. Mr. Taylor dard, there is no activation fee. demonstrated concepts of how email mes-

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2009, Page 3 The Company Profile... Xilinx

Thumbnail Sketch Xilinx Sales and Net Margin Xilinx Sales by Region Headquarters: 2100 Logic Drive, San Jose, 2004 to 2008 CAGR of Sales: 7.1% FY 2008 Sales Total: $1,841 million California 95124, USA; www.xilinx.com in $ millions Other Asia-Pacific, North America, FY 2008 Sales: $1,841 million 17.4% 39.0% R&D: 19% of sales Japan, Net Margin: 20.3% 10.3% Net Cash Provided by Operating Activities: $581 million 1,397.8 1,573.2 1,726.3 1,842.7 1,841.4 , 11.1% , 22.1% Employees: 3,500 Sales per Employee: $526,000 Xilinx Sales by End Market Working Capital: $1.475 billion as of FY 2004 2005 2006 2007 2008 December 27, 2008 FY 2008 Sales Total: $1,841 million Stockholders’ Equity: $1.668 billion as of Net Margin by Fiscal Year Data Processing, 8% December 27, 2008 2004 21.7% Communications, Consumer, 14% Market Capitalization: $5.12 billion as of 2005 19.9% 43% February 6, 2009 2006 20.5% Automotive, 2007 19.0% 3%* 2008 20.3% Automotive Industrial and FY 2008 Sales Estimate: $60 million Fiscal year ends March 31. Other, 32% (Hansen Report estimate) *Hansen Report estimate Main Product: Field programmable gate Xilinx Automotive Sales by Fiscal Year arrays (Estimated) Global Programmable Logic Device Leading Applications: Infotainment, driver Hansen Report estimates Market by Supplier information, driver assistance 2004 to 2008 CAGR: 26% Total 2009 Calendar Year Market: $3.8 billion Leading Solutions: Image processing and in $ millions Lattice, 6% recognition, video and graphics, vehicle Others, 2% networking and connectivity Actel, 6% The 2008 fiscal year ended March 29, 2008 24 30 38 45 60 57-60 Background Altera, 36% Xilinx, 50% Xilinx was founded and incorporated FY 2004 2005 2006 2007 2008 2009 in 1984 as a fabless manufacturer, Fiscal year ends March 31 outsourcing all aspects of chip production March 31, 2009, will be flat or down just strategy and directs marketing, product including wafer fabrication, sorting, as- 5%. The company expects sales to re- planning and the development of targeted sembly and test. Xilinx is a world leader in bound in fiscal 2010, aided by a number of design platforms. Mr. Steele has been in- the design and development of program- new 2010 model year programs scheduled volved in the auto industry for more than mable logic devices (PLDs). Also included to launch this summer. Xilinx’s top auto- 25 years. Before coming to Xilinx he in Xilinx’s portfolio are software design motive applications are infotainment, worked for On , Analog tools to program the PLDs, predefined navigation and rear seat entertainment Devices, ST Microelectronics and Ford system functions (IP cores), design ser- systems. Electronics. vices, customer training, field engineering Xilinx’s automotive team is made up of Kevin Tanaka, senior manager of and tech support. automotive industry veterans, each with worldwide automotive marketing and The largest end market for Xilinx PLDs many years of OEM, tier-one or automo- product planning, is responsible for lead- is the communications industry. Automo- tive semiconductor supplier experience. ing the development of Xilinx’s automo- tive accounts for just 3% of total sales to- These applications experts work directly tive product line of FPGAs and CPLDs. day, according to our estimate, but the with customers in North America, Europe Mr. Tanaka joined Xilinx in 2004 from business has been growing by more than and Japan, supported by teams of field ap- NEC Electronics America. 20% per year since 2004, when Xilinx cre- plication engineers, quality specialists, ated a team to focus on the automotive sales engineers and manufacturer’s reps. Global Market for FPGAs market. Even with the drastic downturn Harvey Steele is vice president of The automotive market for FPGAs de- automotive production has taken in the Xilinx’s Automotive, Consumer and ISM veloped fastest in Europe; about 70% of last several quarters, Xilinx expects auto- (Industrial Scientific and Medical) busi- what Xilinx sells to automotive customers motive sales for its fiscal year ending ness. He is responsible for automotive ends up there. That percentage will

Page 4, February 2009 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

Xilinx Automotive Sales Xilinx’s Top Five Automotive Customers Xilinx Three-Year Stock Price History FY 2008 Total: $60 Million USD Listed Alphabetically: 30 All are Hansen Report estimates 28 Autoliv By Region Based on Ship-to Address 26 Bosch 24 Asia-Pacific, 5% Continental 22 Delphi 20 U.S., 25% 18 Harman International 16 Europe, 70% 03/06 01/07 01/08 02/09 Distinctions Claimed by Xilinx Source: BigCharts.com ◆ Invented the field programmable gate systems. “We are seeing the demands of By Product array in 1984 the industry changing very quickly. The FPGAs, 90% ◆ Xilinx has generated positive cash flows cycle times are shortening, and FPGA is every year since it became a publicly really a technology that allows our cus- tomers to be able to keep up with those CPLDs, traded company in 1990. ◆ demands,” noted Mr. Tanaka. 10% The first semiconductor company to establish a fabless manufacturing In some typical automotive infotain- business ment and driver assistance applications, By Application ◆ The first programmable logic company to FPGAs can speed up time to market by six employ 180-, 150-, 130-, 90-, 65- and to 12 months compared with similar sys- Driver informa- Infotainment, 45-nanometer process technologies tems that use ASICs. Infotainment appli- tion, in-vehicle 50% ◆ Xilinx delivers 98% of all high-end 65nm cations using FPGAs typically take 18 to networking, FPGAs made, worldwide. 24 months to develop; driver assistance other, 20% ◆ Greater than 50% share of the automo- applications take two and a half to three Driver tive market for programmable logic years. assistance, 30% devices ◆ Reduced System Costs change soon, as design activity has picked which are programmable logic devices FPGA chips are larger compared to up elsewhere, especially in the U.S. and (PLDs) programmed in the field by the ASIC or ASSP chips, so at a pure silicon Japan. In Japan alone, the company is customer. level, in high volumes, FPGAs are always working on more than 50 projects involv- Based on a matrix of configurable logic more expensive per unit. But when devel- ing FPGAs and CPLDs. Xilinx expects blocks connected via programmable inter- opment costs are taken into account, well over half of those projects will come connects, each device is essentially a FPGAs are often a less expensive solution, to market in the coming years. Five years blank slate. The program bitstream, or particularly when unit volumes are in the from now, Xilinx expects that European code, is stored somewhere in the system, hundreds of thousands to low millions. customers will account for half its auto- often in flash memory, and each time the And since FPGAs can take on various motive business, with U.S. and Asian cus- power is turned on the bitstream is down- logic, processor and DSP functions, a tomers accounting for the rest. loaded to the FPGA, making it a func- single device can substitute for a number The Japanese automotive industry tioning hardware part. of components, further reducing system rarely makes significant purchases of tech- cost. nology from Western suppliers unless the ◆ Shorter Development Cycle The case for FPGAs improves as chip technology is not available from Japanese The most appealing thing about geometries shrink with each new genera- suppliers. “We are in a unique position in FPGAs is they can be brought to market tion. “Over the last 8 to ten years, process that this is probably the only semiconduc- much more quickly and less expensively capability has yielded a 10-times reduc- tor technology of any significance that than ASICs (application specific inte- tion in cost,” said Mr. Steele. can’t be supplied by the Japanese,” noted grated circuits) or ASSPs (application “We have been moving faster than Mr. Steele. Xilinx, which often calls on specific standard products), whose designs Moore’s Law,” pointed out Mr. Tanaka, engineers at Honda, Toyota and Nissan, are fixed at the foundry and can’t be “because of the process nodes and because has been working closely with Denso, changed without redoing the chip. No we can use the same silicon, since it’s Panasonic Automotive Systems and layout, mask or other manufacturing steps blank silicon, across so many different ap- Honda Elesys, among others. are needed in FPGA production. plications and different markets. We get Automotive OEMs struggling to close terrific economies of scale.” Automotive A Case for FPGAs the gap with consumer electronics cycle FPGAs from Xilinx range in cost from Xilinx designs, develops and markets times can appreciate the benefits of de- about $2 at 90nm up to $30 each. field programmable gate arrays (FPGAs), signing FPGAs into their infotainment continued on following page The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2009, Page 5 Xilinx

Most of the Xilinx FPGAs used today Global Automotive Market for Accelerating Growth of Automotive in automotive applications are made using PLDs/FPGAs by Sector FPGA Usage 90nm processes, but in February 2009 2008 Total: $168 million Xilinx introduced its next generation $ millions flagship, high-performance Virtex product Aftermarket, 4% Body and Chassis, 2008 2015 CAGR family and low-cost Spartan FPGAs. 10% ASIC (Gate arrays 1,618 2,033 3.32% OE Entertain- and standard cell These devices are built on 45nm process ment Sys- technology, which will further improve tems, 24.6% logic ICs) the economic case for FPGAs. Built for Safety (includ- ASSP (32-/64-bit 2,392 4,155 8.21% connectivity and low power, the Spartan- ing Driver uC and DSP) 6 family will let automotive developers Assistance), PLD/FPGA 168 414 13.75% Powertrain, 0% meet demand for new features while re- 61.4% OE Security, 0% Data: Semicast, May 2008 ducing system costs by up to half for lower Data: Semicast, May 2008 power products. Another promising application of a 500K device and only apply the func- FPGAs is in hybrid instrument clusters, ◆ Reprogrammability tions you need,” explained Mr. Tanaka. which combine analog instruments with Another advantage of FPGAs is their multifunction displays. Also promising are reprogrammability. “Because the program Applications driver assistance applications such as lane is stored in flash memory or in the Infotainment systems including head departure warning, and sign and pedes- memory on a micro, if a carmaker finds a units and rear-seat entertainment account trian recognition that benefit from the bug or wants to add a feature after the ve- for half of Xilinx’s automotive applica- parallel processing power available from hicle is built, a new bitstream can be tions. Not only is the infotainment mar- Xilinx’s DSP48a MACs. Xilinx low-end downloaded, perhaps at the dealership,” ket fragmented, which limits production Spartan-3A DSP FPGAs can achieve explained Mr. Tanaka. “With new con- volumes, but because it is subject to some of the highest DSP performance, sumer electronics features coming out so quickly changing consumer tastes, product calculating more than 350 billion multi- quickly, some tier ones are actually leav- lifecycles are relatively short. And that ply-accumulate operations per second. ing 10% to 25% of the FPGA density un- makes FPGAs, which are relatively inex- used so more functions can be added pensive to develop, a good fit. FPGAs are Programming FPGAs during the life of the vehicle.” well suited to high-resolution video. They Despite the many advantages of have also been especially useful in driver FPGAs, one obstacle to their adoption in ◆ Platform Scalability assistance systems which process raw the automotive industry has been the way One feature of Xilinx’s product line video images in real time. they are programmed. Most of the engi- that makes it especially suitable to auto- motive applications and further distin- A Tipping Point guishes FPGAs from ASICs, is the way With each generational step in semicon- lower volumes definitely favor FPGAs.” FPGA solutions can be scaled to meet ductor densities, the case for FPGAs replac- “We already have DSP capability in the different vehicle platform requirements ing ASICs and ASSPs improves. Not only FPGA and we have 32-bit soft microproces- for an OEM or tier one. Mr. Steele noted, does the cost of each FPGA chip decline, but sors,” added Mr. Steele. “And in our high-end “There are issues with changing standards because the fixed costs to develop ASICs FPGAs we have hard microprocessors. There and interfaces, and there is a drive to plat- and ASSPs dramatically goes up with each are many automotive applications where form-based designs. A tier one needs to be new generation, larger and larger markets are FPGAs can be the central chip.” able to do one hardware implementation needed to make the investments in ASIC and that they could scale to, for example, a ASSP development pay off. Each year there High Development Costs Driving low-line, mid-line and high-line vehicle are fewer and fewer ASIC starts. ASSPs to Ultra High Volume Markets platform within an OEM, or one they “We are getting close to a tipping point in could differentiate for several OEMs.” some automotive applications, and past it in Development Costs ($M) Minimum Market Size ($M) For example, the Xilinx Spartan-3E others, where it makes sense to use FPGAs $160 $800 FPGA comes in five different logic densi- in place of ASICs and ASSPs,” declared Mr. $140 Development Costs Min Market Size $120 $600 ties. Three of the variants—250K, 500K Tanaka. “ASICs and ASSPs will always have $100 and 1.2 million system gates—use the some segments of the market, especially $80 $400 same package. “That lets the customer where volumes are high (such as in $60 $40 $200 develop one board and if it is for a high- powertrain controllers and basic radios). But $20 end car, you put in a 1.2 million system in the infotainment and driver assistance ap- $0 $0 500 350 250 180 130 90 65 45 32 22 10 gate device because you need all the fea- plications we have targeted, we are seeing Process Nodes (nm) tures. If it is a mid-tier car, you can put in more and more market fragmentation. Those Source: Semicast, May 2008

Page 6, February 2009 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

problems that come up from time to time R&D Facilities Xilinx’s Best-Selling with ASICs. Xilinx R&D Centers Automotive Product Lines San Jose, California Austin, Texas Targeted Design Platforms All are based on 90nm process Longmont, Colorado The fact that FPGAs start out as technology. Dublin, Ireland blanks has made it difficult for some cus- ◆ XA Spartan-3E: Introduced in late Singapore tomers to embrace what is so special about 2006, Xilinx’s lowest cost per cell device Edinburgh, Scotland them: their remarkable flexibility. So the is widely used in high-volume infotainment Hyderabad, India company has picked out three automotive and driver assistance applications. De- Xilinx Alliance Program Member Facilities applications—driver assistance, driver in- vices in this product line are produced Xylon – Croatia Mocean Laboratories – Sweden formation and infotainment—where with between 2.2K and 33.2K logic cells. Si-Gate – Germany FPGAs are especially worthwhile and de- veloped targeted design platforms for each of ◆ XA Spartan-3A: Used in I/O intensive Xilinx collaborates with Alliance Program applications where pin counts are high, the members and others to supply development plat- them. These targeted design platforms put device is typically used to interconnect forms that include Xilinx silicon devices, demo/ on the table much of what is required to development boards, application specific IP, soft- bring the application to market, while between different network protocols and ware libraries and design tools optimized for auto- leaving room for the customer to inno- also in hybrid instrument clusters that motive requirements. Other Alliance Program vate.” require LED backlighting. Introduced in members include Apical and OmniVision Tech- Working together with third parties, January 2008. nologies. who are part of the Xilinx Ecosystem, and Xilinx supplied integrated XA (automotive) Xilinx’s own internal IP groups, each de- ◆ XA Spartan-3A DSP: Introduced in FPGA and connectivity IP for Intel’s Low Power In- January 2008, this product line includes Vehicle Infotainment Reference Design targeting sign platform contains FPGA silicon, automotive head units. blocks of IP, demonstration boards, devel- DSP48a MACs in hardware, allowing for opment platforms, tools and more, so cus- optimized parallel digital signal processing neers who program DSPs and microcon- tomers can spend less time developing the for applications such as camera-based trollers use C language. But FPGAs are infrastructure of an application and more driver assistance and fully reconfigurable programmed using VHDL or Verilog, two time creating their unique value in the clusters. high-definition programming languages. design. ◆ “That has been a barrier, but it’s com- Targeted Design Platform Breakout ing down,” said Mr. Tanaka. “Over the last few years Xilinx has provided training Xilinx has invested in three targeted design platforms covering driver assistance, driver to numerous automotive engineers on information and infotainment system applications. VHDL and Verilog, and we are working on a number of initiatives with partners Customer Design Focuses on differentiation who are developing tools.” So-called “C-to-gates” tools are being developed Market Specific Platform Market specific IP, custom tools, custom boards, reference designs that will convert C programs into FPGA Embedded, DSP, Connectivity; Domain-specific IP and tools, daughter bitstreams. The company is also working Domain Specific Platform with The Mathworks to let engineers gen- cards, reference designs erate bitstreams directly from the Base Platform Spartan FPGAs; Base IP, ISE tool suite, base boards, reference MATLAB environment. designs

CPLDs Key Applications of Xilinx XA Automotive Parts Roughly 10% of Xilinx’s automotive sales comes from CPLDs (complex pro- Driver Assistance Head up displays USB Plug & Play grammable logic devices), which are es- Night vision Hybrid instrument clusters In-Vehicle Networking sentially low cost, less-than-two-dollar Lane departure warning Infotainment Integration of key versions of FPGAs. CPLDs usually have Park assist GPS navigation networks: fewer than 10,000 system gates. A typical Back guide monitor Audio/multimedia systems MOST automotive application uses CPLDs to Adaptive cruise control Rear seat entertainment FlexRay complement microprocessors that don’t Collision warning Head units CAN have enough pins to handle LED back- Active occupancy detection DVD/HDD/MP3 players APIX lighting in instrument clusters. They are Driver Information Game consoles also used for I/O interfacing, bridging Voice recognition Integrated mobile phones various electrical standards for getting sig- Echo cancellation Digital/ radio nals on and off the chips, and to fix logic The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2009, Page 7 Telematics... Continued from page 3 “The car becomes the equivalent of a Hughes can easily accommodate the Telematics Will Squeeze Embedded device that’s a on the with old and new Mercedes telematics prod- Infotainment Suppliers Further access to services. We have in the pipeline ucts, as well as Chrysler’s and other poten- The infotainment market is already more than 70 services that we are devel- tial OE customers’, because it builds its awfully competitive, with embedded navi- oping that can be made available to ve- off-board system based on the Next Gen- gation suppliers, audio system and head hicle owners. Even if you don’t subscribe eration Telematics Protocol. NGTP is a unit suppliers all clamoring for the same to the safety service, we want you to have standard created by BMW, Connexis and turf. Also in the mix now is Microsoft, access to other services. If you are lost you WirelessCar that lets carmakers choose which is carving out a significant piece of press a button, go to our service, speak the from a variety of service and content pro- the market with infotainment software destination, and for a few dollars we’ll viders. based on Windows Automotive and download directions to the car. “First and foremost we are a service Microsoft Auto. “We believe there is great opportunity provider,” said Hughes’ Mr. Goldman. Furthermore, there is additional com- for transactional services in the vehicle. “We’ve built the world’s most advanced petition coming from suppliers of inex- So we are building into our technology version of NGTP. The purpose of NGTP pensive portable navigation devices, the ability for you to listen to a song in is to be able to disaggregate the value portable music players and smart phones, the car and simply say, ‘I like that song. I’d chain and allow the customer to swap out all of which can substitute for embedded like to buy it’ and you’ve bought it,” said suppliers. An OE may not want ATX all infotainment features. Mr. Goldman. the time. It may want a different service Now as more telematics service provid- provider, a different call center, a different ers move beyond safety and security ser- Next Generation Telematics Protocol content provider.” The architecture pro- vices to infotainment features such as Not only must Hughes handle the vides standard interfaces between the off-board navigation, off-board speech transactions coming from the newly de- telematics control unit, telematics opera- recognition, music downloads and eventu- signed telematics control units that will tions center, call center, Web portal, data ally Internet radio, some embedded be installed on new Chrysler and providers and other components. infotainment suppliers will likely be Mercedes vehicles, but it also must handle Honda and BMW are both shopping forced to change their product portfolio or transactions originating from older for telematics service providers in the be crowded out of the picture. The situa- Mercedes vehicles. Those transactions who are NGTP-compliant. tion will only worsen as the communica- from U.S. subscribers are presently being For more on the standard please visit tions pipeline to the vehicle widens with handled by ATX, which will lose exclu- www.ngtp.org. Wi-Fi, WiMAX and LTE wireless broad- sive access to those customers once band coming into play. ◆ Hughes is up and running. Bosch Jettisons Blaupunkt A Munich, Germany-based holding company, Eclipse Accident Recorder Aurelius, is acquiring the Bosch Group’s aftermar- In the Eclipse/Fujitsu Ten booth at in the Japanese aftermarket, 40,000 of ket radio, speakers and antenna business along with the 70-year-old Blaupunkt brand name. the 2009 Consumer Electronics Show this which were used in taxi cabs and 20,000 Pending regulatory approvals, the deal is ex- past January in Las Vegas, Suguru Omiya, in private vehicles. Now in its fourth year pected to be finalized in early February. The pur- a project manager from the company’s of production, the Eclipse Drive Recorder chase price was not disclosed. Japanese operation, was showing video has a 15% to 20% share of the Japanese Aurelius’ immediate plans are to run the busi- captured on an Eclipse Drive Recorder of market. Mr. Omiya is testing to see if ness as an independent company from the cur- an actual accident in Japan involving a there is a market for the product in the rent Blaupunkt headquarters in Hildesheim, vehicle collision with a pedestrian. Shot United States. Germany. Blaupunkt operates manufacturing from a CCD camera attached to the rear- The Drive Recorder including camera, facilities in Portugal, Tunisia and Malaysia. Ac- view mirror, the video showed the pedes- microphone, SD memory card and crash cording to Aurelius, Blaupunkt’s 2008 sales were roughly 200 million euros. trian landing sideways atop the hood with sensor retails for $500. Once a crash is Blaupunkt’s blue dot logo has for many years his back against the windshield. In a sec- detected, the unit creates a 20-second vi- stood for progress and quality, but in the last de- ond viewing of the accident, however, the sual and audio record of the event, includ- cade, the brand’s reputation for quality has been pedestrian did not appear to be seriously ing the crucial 12 seconds prior to the fading, along with its profitability. In 2001 software hurt and seemed to have faked the acci- accident and eight seconds after the im- glitches in Blaupunkt navigation hardware delayed dent by leaping onto the vehicle’s front pact. The recording function can also be a Mercedes vehicle launch and led to a loss of hood. Presumably, the video was used to switched on manually. The recorded some major contracts with Mercedes. avoid a fraudulent insurance claim by the event can be played back on the vehicle’s After the sale is completed, all Bosch’s OEM pedestrian. display or on a PC. Fujitsu Ten is partly navigation and infotainment business will operate through the Bosch Car Multimedia division and Last year, according to Mr. Omiya, owned by Toyota. ◆ will be marketed under the Bosch name. ◆ Fujitsu Ten sold 60,000 accident recorders

Page 8, February 2009 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com