Automotive Products Group Paul Grimme General Manager, Automotive Products Group (APG) Automotive Inside ST ST Q1 2010 sales 100% = US$2.325B 19% 14% 12% 35% 8% 12% Automotive Consumer Communications* Computer Industrial & Other Distribution* * Sales recorded by ST-Ericsson and consolidated by ST are included in Communications and Distribution 2
ST: #3 in Global Automotive IC s Products ASIC-ASSP, MCU, MPU, VIPower, RF, Vision Sensors, DSP Segments Power Train Chassis-Safety Body Electronics Infotainment Applications Engine Transmission Braking Steering Airbag Door Modules, Anti-theft Lighting, Wipers HVAC, Cluster Telematics GPS Car Infotainment PND Customers 3 Automotive Competitive Environment Ranking Rank Company Rank Company 1 Infineon 2 Inside its specific perimeter, APG Freescale became WW leader in 2009 3 ST 4 NEC 5 Renesas Restricting to power + analog + digital 1 ST 2 Freescale 3 Infineon 4 Renesas 5 NEC Competition Common enablers for leadership Broad range offer Quality and relationships ST is recognized as having a strong, wide range network of Tier-1 customers Source: Strategy Analytics General Technology + Products Strategy Stability BCD, VIPower ASIC portfolio MCU roadmap Infotainment Innovation Partnerships Vs. 4
Car Market: After the Crisis 2009 consumption was strongly incentivized by the world s governments Production fluctuation was much bigger than that of sales 85 80 75 Production Sales production change WW Data 10% 9% 7% 5.7% 4.3% 4.7% Positive signals now seen Very positive Q1 pace in NAFTA and Asia Platform developments restarted Developing countries are growing faster than EU and developed Asia 70 65 60 55 50-4.2% Excluding China, -13.0% production dropped 20% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Global Insight 5 arket (M$) Silicon Ma Automotive Market Growth Factors More Cars, More Electronics 35000 30000 25000 20000 15000 10000 250 270 283 298 311 319 325 333 ASIC-ASSP MCU Power Sensors Standard Others Silicon/Car ($) CAGR 2009-2016: Cars: 6.2% Electronics: 8.5% Silicon: 10.2% 5000 0 Electronic ignition Central locking Car radio 2009 2010 2011 2012 2013 2014 2015 2016 Electronic gearbox Air conditioning Antilock brakes Seat heating Automatic mirror Navigation Adaptive cruise ctrl Airbags Stability control Xenon light Night vision Telematics Bluetooth Start/stop Hybrids LED lighting Pedestrian detection Lane change Driver assist maps Car 2 car Internet Brake-by-wire Steer-by-wire Electric vehicles 1975 1985 1995 2005 2015 25M cars 32M cars 36M cars 64M cars 86M cars Source: Strategy Analytics 6
2010-2015 Macro-trends in Automotive Innovation fueled by social responsibility Saving energy, saving lives A Global, Cost- Driven Market New automotive concept, fast moving markets for cars & electronics Innovate Car electrification The safe and connected car Simplify, Speed up The Small Car The Low Cost Car A Global Supply Chain Future winners shall be leaders of both processes Join innovation eco-systems, Manage new market dynamics and standards 7 2010-2015 Macro-trends in Automotive Innovation fueled by social responsibility Saving energy, saving lives Innovate Car electrification The safe and connected car Leveraging partnerships with the industry leaders Co-development as a model matching technology with know how 8
High Side NLDMOS D G S G D N+ P+ P-body HV-N-well N+ Buried layer N+ Low Side NLDMOS D G S G D N+ P-body HV-N-well P-substrate P++ substrate P- epi 3.3V D G CMOS S D G S N+ N-well P-well Triple-N-well Innovation Fueled by Social Responsibility ST Response: Technologies Strategy Build on our strong positions via partnerships Complete a full range of system components Technology portfolio as first enabler Market position: ASIC, vision processing, GPS Tech portfolio: MCU, power, camera, RF, sensors Partnerships: global leaders (Tier 1 and OEM) Key Actions Partnership with key IP companies Electrification / safety joint programs Government funded projects Green Car Electric oil, water, fuel pumps Safe Car Connected Car Electric Power Steering Smart battery charging Pedestrian Detection Electric Parking Brake Engine start-stop 9 Innovation Fueled by Social Responsibility ST Response: A Test Case Application: stability control for Japan Target is to allow an optimized ESC for all car segments Super-integrated IC with power (>5W) + logic (>100Kgates) Tough requirements on performance, price, timing ST strategy: win with innovation Silicon technology: BCD8, 0.18um, copper metalization Package: HiQuad110, copper wires, life guaranteed @175 C Re-use of consolidated, successful architectures Result: a first silicon success Joint development team with customer First silicon fully functional, able to run winter test in Q110 Over $100M lifetime value Battery Wheel Speed Sensors Warning Lamp Voltage Regulators Flexible Wheel Speed Sensor Interfaces Lamp Driver Motor Relay Driver Fail Safe Relay Driver Vbatt Pump Motor P+ N+ Buried layer version P+ P+ N+ Data Bus Bus Transceiver Master Control Unit PWM Valve Drivers Data Bus Bus Transceiver Current-controlled Valve Drivers Monitoring Unit High precision CC Valve Drivers 10
2010-2015 Macro-trends in Automotive A Global, costdriven market New automotive concept, p, fast moving markets for cars and electronics Simplify, speed up The small car The low-cost car A global supply chain Adapting to the new world of Automotive Different support needs, cost positions, geographies 11 A Global, Cost-Driven Market ST Response: Ease Of Use For Cost, Time to Market Strategy Engineer the portfolio to decrease system cost/complexity ST advantages and actions Strong partnership with market leaders Unique and strong ASIC history Action: local development in geographies where growth is occurring Integration sense + power MCU Systems-inpackage Systems-on-chip Target to grow WW leadership in airbag and small engine control Strategy Support market newcomers with standard solutions to allow fast and low-risk time-to-tmarket ST advantages and actions Unique ASSP portfolio covering all segments System understanding of basic applications Action: engineering and starter kits Full Solutions analog functions power peripherals MCU Full IC kit HW + SW support Target to grow leadership in BRIC engine control 12
A Global, Cost-Driven Market ST Response: A Test Case Year 2005: start of new partnership Target: engine control for China 4-cylinder car Fully Chinese system development team Requests to ST: support, speed, value Year 2007: new system ready Production begins ST provided all semiconductors, plus SW / HW support Joint technical team coworked for two years Year 2009: reached 60% of internal market share ECU is present on successful Chinese vehicles Solution proved to be competitive in other regions Revenues (M$) 58 65 31 2 14 2007 2008 2009 2010 2011 13 APG Main Growth Drivers & Expectations Above market growth Smart Power technologies will continue to be a main driver Digital products add growth MCU MPU (ADAS, Infotainment) BCD VIPower MPU 32BIT MCU Growth by Technology Family New market enablers are now being added to APG traditional portfolio In the future, further leverage in new technologies is planned PMOS, IGBT Sensors 2009 2010 2011 2012 2013 2014 2015 14
Closing Comments Automotive electronics will be a continuing growth market, driven by vehicle demand and content per vehicle The market crisis in 2009 did not change the fundamentals, however it accelerated existing trends Innovation and ease of use solutions will be critical components of growth for automotive electronics The global supply chain is being re-shaped by shifting tastes and geographic locations of consumers ST is among the few companies having all assets in place to turn this changing period into one of decisive growth 15