Innovate together, prepare for the future. Gerard Beenker Scientific Director NXP Semiconductors SuperTuesday, September

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1 Innovate together, prepare for the future Gerard Beenker Scientific Director NXP Semiconductors SuperTuesday, September

2 Outline NXP Innovation is the life line of our industry NXP and Universities Food for Thought 2

3 NXP Semiconductors President & CEO: Rick Clemmer Headquarters: Eindhoven, The Netherlands Net sales: $5.4 billion in 2008 *) Established in 2006 (formerly a division of Philips) 50+ years of experience in semiconductors Businesses: Automotive Home Identification Multimarket Semiconductors Owner of NXP Software, a fully independent software solutions company *) These figures include the Mobile & Personal business which was largely part of the ST-NXP Wireless JV in

4 An R&D powerhouse NXP employs around 4,500 engineers to ensure optimal product creation Investment of about $1.2 billion in R&D in 2008 *) 5,700+ patent families 20 R&D centers located in 14 countries *) These figures include the Mobile & Personal business which was largely part of the ST-NXP Wireless JV in

5 NXP heavily invests in R&D NXP spends 16-20% of its revenues on R&D In The Netherlands, NXP is one of the largest private R&D investors according to Technisch Weekblad, April 11, 2009 Nr Company City M FTE 1 Philips Eindhoven ASML Veldhoven Schering- Plough Oss Shell Amsterdam NXP Eindhoven/ Nijmegen DSM Geleen / Delft Oce Venlo Unilever Vlaardingen KPN Leidschendam Thales Hengelo

6 Outline NXP Innovation is the life line of our industry NXP and Universities Food for Thought 6

7 Innovation is the life-line of semiconductors industry Massive innovation is needed To cope with a very broad range of applications From living faster to living better: find new IC solutions for societal challenges in environment, healthcare, traffic, security, privacy To combine many different technologies M6 M3 M4 M1 M5 M2 Innovation done together with Universities Institutes Customers Suppliers Competitors Start-up companies 7

8 Example biosensors NXP biosensor principles based on accurate measurement of tiny capacitance changes caused by captured bio-molecules Expertise needed from many areas Electronics & software Micro fluidics Surface chemistry Biochemistry In vitro diagnostics Statistical data analysis Co-operation with partners is essential In this domain we work together with IMEC, Radboud University Nijmegen, University of Wageningen, Royal Tropical Institute 8

9 Outline NXP Innovation is the life line of our industry NXP and Universities Food for Thought 9

10 We partner with many worldwide.. 10

11 NXP - University Relations, Facts & Figures NXP now has 7 part-time professors in The Netherlands NXP spends > 2 M a year on university support worldwide, > 75% in The Netherlands Annually PhD programs supported worldwide in the Netherlands (co-supported by Economic Affairs) Support of PA s gratefully acknowledged Each year several co-publications on leading conferences. Supporting M.Sc education, Student travel, etc 11

12 Co-operation principles Focus and go for a top position in dedicated areas. Create a win-win situation Co-operation is two-way traffic Co-location matters Co-location of researchers is very instrumental as proven by the IMEC co-operation Only the best will do: Innovation is a global game for NXP, we partner with the best Sufficient scientific freedom Universities should keep the freedom to do long term research and to initiate new markets In the end it is about people Mutual respect and trust are key 12

13 Knowledge workers and High Tech Top Projects An excellent mechanism to Safeguard R&D in The Netherlands Improve the interaction between industry and knowledge institutes Boost cross learning Initiate new business initiatives: solar energy, efficient energy management, intelligent traffic management systems, ultra low power base stations This requires effort from all parties involved 13

14 Outline NXP Innovation is the life line of our industry NXP and Universities Food for Thought 14

15 Food for thought Semiconductors industry is transforming in a rapid pace: Seeking niches/ specialties From Moore s law towards technology diversification This also changes the R&D organization of multinationals : More business driven focus on mid and short term Move of R&D to the other regions to have access to talented people and to be close to customers Co-operation in innovation more important Ever-rising complexity and increasing cost New areas are becoming important This will have an impact on the interaction with universities Need for top talented people and top quality education Multi disciplinary way of working for new applications Drive for excellence We have to change to be ready for the future 15

16 Thank you! 16

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