Rick Clemmer Media briefing in China
Rick Clemmer, President & CEO NXP Semiconductors March 19, 2012 Shanghai
Today’s agenda
NXP update
Share our vision
Zoom in China
2 NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise.
A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.2 billion in 2011.
Our innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications.
3 NXP in China 4 sales offices -Shanghai, Beijing, Shenzhen, Hong Kong China Manufacturing Sites WOFE: Guangdong (Assembly Operations) (1), Hong Kong (Assembly & Testing). (2) NXP Jilin - 5" Wafer Fab JV JV with majority share: Jilin (3) with Jilin Semiconductor Company (3) China R&D Center & Business Headquarter : Shanghai (4) JV with minority share: ASMC, ASEN Jilin
ASEN - JV with ASE in 2007 4863 employees in China as of Feb 2012 (excluding JV with minority share)
NXP China WOFE & Majority # of ASMC - Founding partner in NXP Shanghai - JV Employee 1987. Successful HK IPO in R&D centers & 2006. NXP is the largest country support (4) (1) NXP Semi. Guangdong 3384 shareholder Suzhou Ltd.
(2) NXP Semi. Hong Kong 844 Shanghai Ltd. NXP HK - Founding JV partner in 1969. B/E Innovation & (3) Jilin NXP Semi. Ltd. 285 Competence centre + GSM sales agent (2) (4) NXP Semi. (Shanghai) Hong Kong 350 Ltd Dongguan
Total Staff 4863 NXP Guangdong - a large discrete assembly & test site About 1600 and 1400 employees in in China (1) ASMC and ASEN respectively
4 Continuous growth in China Revenue by geography
2011 Revenue by geographic view
25% 36% China USD 1,514 M Germany 2% Singapore 3% United States 5% South Korea 8% Netherlands 12% 9% Taiwan Other countries
Increase of China revenue at NXP from 31% in 2009 to 34% in 2010, and 36% in 2011.
5 Today’s agenda
NXP update
Share our vision
Zoom in China
6 Semiconductor industry is driven by societal trends
Energy Health
• Efficient power conversion & management • Smart and small hearing aids and • CFL and LED lighting and back-lighting headsets solutions • Personal health devices and portable • Energy conservation: e-metering, smart medical imaging appliances • Biosensors
Mobility Security
• Intelligent traffic management • Secure mobile transactions and secure • Car safety, security and remote identity diagnostics features • Goods tagging, authentication and • Green cars: electrical vehicles, car tracking networks • Security and privacy protection
7 Semiconductors are the key enablers of China’s 12th Five-Year Plan
o Protect the environment & improve energy efficiency; o Continue transitioning to an economy driven by domestic consumption i.s.o. exports o Develop 7 priority industries to increase their GDP contributions 1) New energy -> Nuclear, wind & solar power 2) Energy conservation & environmental protection -> Energy reduction targets 3) Biotechnology -> medicine & medical devices 4) New materials -> Rare earths & high-end Semiconductors 5) New IT -> Broadband networks, Internet of Things, network convergence 6) High-end equipment manufacturing -> Aerospace & telecom equipment, Smart Grid 7) Clean energy vehicles
8 12th Five Year Plan and NXP Some examples
Improve energy efficiency – NXP’s GreenChip
New IT: Internet of Things – Home and Building Automation (Lighting) – Secure Mobile Transactions
Connected Mobility for Clean Energy Vehicles
9 NXP IC innovations for energy efficiency with additional benefits
GreenChip solutions for power and lighting (CFL/ LED) – Improving energy efficiency & reducing carbon emissions – For any device that draws AC power and offer many additional benefits
Smart Lighting Control in the Smart Home
10 NXP NFC enables Internet of Things & secure mobile transaction
Location Based Shopping NFC brings presence to location
Transparent pricing More Smartphones than PCs in 2012?
Flash Sales Fast, easy, fun
Group Buying Power Refined social media in action
Real time alerts Bridge between physical and virtual worlds
Peer ratings 78% consumers trust peer recommendations
11 In the era of NFC…
NFC integration in Android and Windows 8 48 phones available, 90 design in projects for NXP Expansion of NFC app categories into gaming, health care, social local Launches or major progress with Wallets such as Google Wallet and ISIS (mid-2012 launch in 2 cities)
12 12th Five Year Plan and NXP Some examples
Improve energy efficiency – NXP’s GreenChip
New IT: Internet of Things – Home and Building Automation (Lighting) – Secure Mobile Transactions
Connected Mobility for Clean Energy Vehicles
13 NXP IC solutions for Clean Energy Vehicles
14 NXP IC solutions for Connected Mobility
Telematics Intelligent, GPS based traffic management secure payment of mobility services location-based services automatic emergency calling, eCall
Car-to-car and car-to- infrastructure communication (802.11 P)
Car Access From single-function devices (immobilizers) to complex communication systems
15 Today’s agenda
NXP update
Share our vision
Zoom in China
16 China plays an important role for NXP
Enabling the vision of “Made in China” to “Design in China” and “Design for China” – 5 manufacturing sites in China (including JVs) – Established design centers in China leveraging local design talents and to meet China domestic needs 1. Micro Controllers Unit Lab (MCU) in Shanghai 2. Lighting and Radio Frequency (RF) Lab in Shanghai 3. Automotive Technical Center newly established in Shanghai to fulfill China customers’ needs
17 Today’s announcement:
Design win with Ningbo Baishi, a large CFL and LED lighting provider in China. These energy-efficient CFL bulbs with NXP’s ICs are the world’s first to pass EU Stage 5 qualification, which goes into effective on Sept.1, 2013 The light bulbs use NXP’s UBA2211 CFL driver ICs that are designed in NXP China’s Lighting Lab Cooperating with China customers to enable energy efficiency products worldwide From lighting to power supplies to set-top-boxes, NXP is enabling leading Chinese manufacturers to qualify for stricter EU Ecodesign requirements Not only for export, NXP is ready to support China’s domestic needs of energy-efficient green products.
18 In summary
NXP continues to grow its activities and revenue in China NXP’s IC solutions supports China’s 12th Five year plan. Examples: – GreenChip to improve energy efficiency and reduce power consumption – HPMS, ID and NFC solutions to enable New IT and Internet of Things – Connected Mobility for clean energy vehicles Enabling the vision of Made in China, Design in China and Design for China – For example: Today’s announcement (CFL Dragon IC) design win with Ninbo Baishi
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