Microcontroller Solutions - corporate-ir.net · Microcontroller Solutions TM ... and Multimedia $ 4 1,121 5 ... development • Continued relationship for North America and global

17 June 2008

Paul Grimme

Microcontroller Solutions

TM

Freescale™ and the Freescale logo are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Paul GrimmeSenior Vice President and General Manager

Financial Overview

2007 Market Share RankingsFreescale 2007 Revenue: $5.7 Billion

Total MCU Auto ICsOther$458

Microcontroller$1,878

RF, Analog, and Sensor$1,048

1

2

3

Cellular$1,217

Networkingand Multimedia

$

4

5$1,217$1,121 5

Sources: iSuppli, Strategy Analytics

TMFreescale™ and the Freescale logo are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Microcontroller Business Mix

Industrial and Multiple Market

Legacy/Exits

nue

ROW AutoRev

en

Big 3 Auto

2004 2005 2006 2007 2008(e) 2009(e) 2010(e)


Microcontroller Growth Strategies

Goal: Create value by building on solid profitability andgrowing revenues above our average market growth rates

► Aggregate system value with strong integration capability • Multiple component integration: analog power management,

sensors, discretes • Memory configurations: flash, MRAM, SRAM• Low power consumption and system management

► Provide complete design-in support “package”• Controller Continuum leadership• The development environment: tools reference• The development environment: tools, reference

designs, software, simulation• Best-in-class quality and availability

► Aggressively build our customer “network”S i t t t• Semi-custom strategy

• Asia: automotive, industrial/multiple market headquarters• Global network of customer/market labs• Field resource increases


Market Overview: AutomotiveAutomotive Microcontrollers

2008 SAM* $4 9B

► Vehicle production growth 3-5% per year (Source: Global Insight)

► Emerging markets leading production growth

(CAGR 2006 – 2011: 8.3%*)

Growth Drivers:• Safety

2008 SAM*: $4.9B

► Average of semiconductor content per vehicle increasing 4-5% per year (Source: Strategy Analytics)

► Average MCU content, $64 per vehicle in 2007► Freescale No.1 global supplier of automotive MCUs

• Safety• Environmental• Connectivity & Infotainment

Automotive Microcontroller Demand ($M)*

7000

8000 Driver Info &Entertainment

B d

3000

4000

5000

6000 Body

Safety

Security

0

1000

2000

3000 y

Chassis

Powertrain


*Sources: Strategy Analytics, Freescale Strategy

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Automotive Electronic System TrendsGoing

Infotainment Vehicle Stability

System

Telematics/eCall

GoingGreen

• Stringent emissions regulation• Hybrids, gasoline direct injection• Electronics replacing hydraulics

Radar

FlexRay™

Hybrid Engine Control

Safety

Electronics replacing hydraulics

Radar

Connectivity/

• Active safety systems proliferating• Intelligence driving performance • Higher standards of reliability required

Night VisionIntelligent Distributed

Control

Connectivity/Infotainment

• “Standard” convenience features• Wireless inside and out• Regulations: Telematics/eCall systems may

Camera-based Collision Avoidance

Night VisionRegulations: Telematics/eCall systems may become mandatory

The AffordableVehicle


• 30M cars in emerging markets by 2009• Ultra-low-cost vehicles

Automotive Strategy Alignment to Regional Markets$M

MarketDynamics Strategy and Key Actions

• Rapidly growing vehicle production

• Low electronic content,

Invest for Growth:• Targeted products and design

capacity in Asia 8000

9000 AUTO MCU TAM(by design-in region)

Rest ofbut significant growth

• Faster cycle time to market

p y• Automotive pricing for mass mkt • Shanghai-led ROW resources• Strategic partnerships

• OEMs gaining market Invest in Local Infrastructure:6000

7000

Rest of World

share• Globally expanding

tier 1s

• Automotive marketing and systems teams

• H/W and S/W local engagement

• Industry technology powerhouse

Technology Driver:• AUTOSAR software4000

5000 Japan

• Globally growing tier 1s but flat vehicle production

• Safety standards compliance• Architecture/Product leadership

(STM Joint Activity)

• Declining vehicle production

Maintain Share:• Penetration of hybrid vehicles 2000

3000Europe

p• Weakening tier 1 base• Limited technology

development

y• Continued relationship for North

America and global reach

0

1000N. America


N. AMERICA EUROPE JAPAN S. KOREA CHINA INDIA R.O.W.2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources: Strategy Analytics, Global Insights and MSG Automotive Strategy

The Most Complete Automotive MCU Portfolio

Power Architecture™

TriCore™SH

TriCore™High-end

V850

TMS470/570

TriCoreg32-bit

JointDevelopment

Program

(X)C167/XC2200

M32R

M16C

Low-end 32-bit

S12X

78KH8

H8S

XC2200

MSP43016-bit

S08

S12X

H8

TMS370740C(X)C800

8-bit

S08


Auto Growth MetricsFreescale Auto MCU Design Win GrowthAutomotive MCU Market* ($M)

9.6% CAGR

Freescale Auto MCU Design Win GrowthAutomotive MCU Market ($M)

Awar

ds $

M

7.4% CAGR5000

6000

7000

8000

New

Bus

ines

s A

1000

2000

3000

4000$M

FSL Auto 32-Bit Design Win Growth 32-Bit New Product Samples

2006 2007 2008 Goal02005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MCU 32-BIT MCU 16-BIT MCU 8-BIT

30% CAGR

Busi

ness

Aw

ards

175% increase

2006 2007 2008 Goal

New

32-

Bit

B

2006 2007 2008 Target


2006 2007 2008 Goal 2006 2007 2008 Target

*Source: Strategy Analytics

Industrial Microcontrollers

Key Market Overview: Industrial

2008 SAM* $3 5B

► Sophisticated user interfaces, power management, connectivity and protection requirements are increasing

► Energy management in motor control and lighting systems is

Industrial Microcontrollers(CAGR 2005 – 2011*: 8.8%)

Growth Drivers:• Energy management

2008 SAM*: $3.5B

gy g g g yvery active

► Cost pressures and technology are driving 32-bit solutions down to 8- and 16-bit space

► MCU year-to-date unit growth per year offset by ASP pressure (Source: WSTS)

• Energy management• Connectivity• Building automation

( )

Industrial Processor Demand ($M)*

4000

4500

5000

Oth (T t & M t I d T

2000

2500

3000

3500

4000

M$

Others (Test & Measurement, Ind Transp,Power & Energy)

Appliance

Bldg Ctrl, Lighting, HVAC, Metering

Medical

500

1000

1500

2000 Medical

EPOS, EFT, ID

Factory Automation/Drives


02005 2006 2007 2008 2009 2010 2011

*Sources: Semicast and IMS Research

Industrial Systems TrendsGoinggGreen

• Energy management at the factory, in buildings, at home• Ultra-low-power devices: increased power efficiency and

reduced standby currents

Health &Safety

reduced standby currents• Huge power savings by switching to microcontroller-driven

motors and drives

Safety

• Medical is the fastest-growing segment in Industrial • Remote monitoring and portable medical devices

enable outpatient services

Connectivity

p• Increased microcontroller content due to EU

regulation on household electronic devices

• Internet everywhere on the factory floor• Wireless sensor networks• More focus on IP protection as

networking expands


networking expands

Industrial Strategy Alignment to Market DriversMarket Dynamics Strategy and ActionsMarket Dynamics Strategy and Actions• Market accelerating• Designs simplifying• Increasing demand for security,

IP protection and safety

• Aligning roadmaps with strategic partners, with reuse• Providing low-level drivers and robust enablement • Enhancing Controller Continuum roadmap around platforms• Adding security features to MCU and MPU portfolioOverall IP protection and safety

• Power efficiency key• Adding security features to MCU and MPU portfolio• Cycle time aligning to market needs – 4 week commitment• Semi-custom strategy for optimized designs

O e aIndustrial

• Ethernet connectivity proliferating

• Variable-speed AC drives growing

• Launched ColdFire MCF5223 family with Ethernet MAC/PHY

• Continuing investment in digital signal controller portfolio for high-efficiency motor control

• Increasing energy efficiency

Factory Automation

& Drives

g gy y• Increasing need for noise

reduction• Improving user interfaces• 5V continuation• Safety improvements

• Launched new Flexis™ AC series that supports 5V• Inclusion of CRC and IEC60730 EU safety standard

compliance

F GUI i li it ddi i it i d

Appliances

Safety improvements • Focus on GUI simplicity, adding proximity sensing and segment/graphical LCD products• Portable devices proliferating

• “Baby boomer” generation driving demand for home medical devices

• Launched Flexis QE series focusing on low-voltage, low-power; reusing low-power techniques in new products

• Proliferation of Flexis families for range of medical designs Medical


• Platform design key due to FDA restrictions

with single platform for 8-bit and 32-bit performance

Competitive LandscapeFreescale Transition Points:

MPU

ARM9™ IP

Freescale Transition Points:• 8-bit to 32-bit CPU, peripherals• 32-bit ColdFire to 32-bit Power Architecture CPU• Converged Linux and CodeWarrior support

Power ®ColdFire®

ARM7™ IP

SH and M32

ARM7™ IP

AVR32

ARM966™

32-bit MCU:

Performance

V850

Power ®ColdFire®

ARM7™ IP

ARM7™ IP

ARM

C t M3

ARM7 IP

16/32-bit:

Mid-Range

MIPS PIC32™

IP, tools IP, tools and S/W and S/W

compatibilitycompatibility

V850

V1 ColdFire®

IP, tools IP, tools and pin and pin

R8C/R16CCortex-M3g

PIC24-DSPIC

8-bit:

Entry Point

ppcompatibilitycompatibility PIC12-16-18

8051H8 AVRST778K

S08


Industrial/Other Growth MetricsIndustrial/Other MCU Design WinsIndustrial/Other MCU Market* (M$) Industrial/Other MCU Design WinsIndustrial/Other MCU Market (M$)

12,00014,00016,00018,000 32-bit MCU

16-bit MCU

8-bit MCU 25% CAGR

2,0004,0006,0008,000

10,000 4-bit MCU

M$

New Products Development Tool Sales

0

2006 2007 2008 Target

20072008ew

Pro

duct

s

29% increase

SW Sales / MCU HW Sales / MCU SW Sales /C ldFi

HW Sales /C ldFi

2008

2006 2007 2008 Pl

# of

Ne


ColdFire ColdFire2006 2007 2008 Plan

*Source: iSuppli

Freescale Microcontroller Summary

• We are well-positioned to address the growing embedded control markets

• Freescale has a history of microcontroller leadership, and MCUs are key to our future growth

• Priority to accelerate independence from N. American auto and shift quickly to fast-growing new product families

• We are committed to growing our microcontroller businessC ti i t i t d i d t l di d t• Continuing to introduce industry-leading products (benchmark low-power, Flexis™ compatibility)

• Investing in technology, ecosystem and market coverage

Our forward looking growth metrics are positive• Our forward-looking growth metrics are positive• We are expanding our global footprint and increasing our

customer engagement



Documents

Microcontroller Solutions - corporate-ir.net · Microcontroller Solutions TM ... and Multimedia $ 4 1,121 5 ... development • Continued relationship for North America and global