Lars Reger

VP Strategy, New Business, R&D - NXP Semiconductors

Hamburg, Feb. 2012

Urban Mobility – driving global megacities out of the jam

COMPANY CONFIDENTIAL

Global Trends - Challenges for Society

2

Growing need for environmental

care

Shift of economic balance among regions

Increasing Mobility

Shortening of natural resources

Growing demand for safety and security

Growing demand for information & communication

Desire for individualization (lifestyle)

Shift of demo-graphic balance among regions

CO2 reduction

Increased Safety & Convenience

Connected Mobility

COMPANY CONFIDENTIAL

Modern (Urban) Transportation Secure Connectivity is THE KEY ENABLER

3

Remote Car Management

Car Access

Car Sharing

Ticketing

Road Pricing

Environmental Zone

eCall

eCar charging

Smart Navigation

Personalization •Rental Car •Own Car

Payments

Entertainment (content management) 90% of all automotive

innovations are enabled by electronics, making semiconductors a critical success factor

Some examples of connected mobility. . .

NXP connects the car! Cars ... People ... Infrastructure

LF, UHF

802.11p 802.11p

4

Secure Telematics The core of connected Mobility

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility – location-based services

Location-based services

. . . to find and reserve your closest battery charging spot or car sharing opportunity

. . . for eCall

. . . and many more use cases

6

Telematics NFC

Authentication

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility – secure payment

Smooth and secure payment, no matter which type of transport

Telematics NFC

Authentication

7

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility – road pricing / traffic management

Flexible road pricing concepts and traffic management based on GPS

Telematics NFC

Authentication The Netherlands: IBM &NXP conduct joint field trial testing GPS-based kilometer pricing Singapore: Strong involvement in Next Gen. Roadpricing Trials

8

Roadpricing - Expected Benefits Study of Roadpricing in The Netherlands

58% reduction in delays caused by traffic jams

15% reduction in total number of kilometers driven

6% increase in passenger kilometers via public transportation

60% percent of Dutch households would pay less than today for motor vehicle tax & vehicle purchase tax

2 out of 3 car drivers fully supported the principle BUT: No country wide implementation due to a change of government just before the final approval

Tariff in Eurocent per km

8 – 9 am 5 – 6 pm

Outside of rush hours

City, local roads 20 12

Circular roads 10 5 Highways 5 3 Outside region 2 2

Phases:

1. Zero measurement

2. Improvement competition: rewards

3. No rewards, check impact

First Trial Road Pricing in The Netherlands

50 NXP and IBM employees

Tariff depending on distance, time and place (road type)

~70% of drivers improved behavior when rewarded

These users showed >16% improvement in average cost / km

When reward was removed, of all drivers 2 out of 3 increased average cost/km again

Conclusions after >200.000km & >2Mio GPS positions Road Pricing Trial in The Netherlands Showcase on Public Private Cooperation: 11 partners, 8 countries

The Core Technology for ‘Kilometerbeprijzing’ is Available and can also be used for Value Added Services

European Countries with Roadpricing Schemes

Singapore

Recognized the issue of congestion and pollution in the early 70s!

Implemented toll gates in 1975

Switched to electronic tolling in 1998

2012: Trails to evaluate GPS based road pricing per kilometer instead of only at the toll gates

USA today: Aug. 2011

14

Remote car management: car finder, vehicle status & maintenance, battery health, remote route planning, fleet management . . .

Two-way RF Telematics

Authentication

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility – remote car management

Smart and connected car keys

15

NFC

2-way RF

Immo-bilizer

13.56 mhz

434 mhz

125 mhz

Keys have evolved from single-function devices (immobilizer) to complex communication systems with various communication interfaces.

immobilizer

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility - personalization

Personalizing your car settings

NFC Authentication

16

Automotive Semiconductor solutions … to fulfill the rising demand for connected mobility – car-to-x communication

17

C2X for hazard warnings and smooth traffic flow 802.11p via Software-defined Radio

Telematics Authentication

Car-to-X Communication: Use Cases

Lars Reger, NXP

Key challenges in car-to-x communication

Ability to „see“ through objects

Reliable reception quality around high-rise buildings & fast-moving objects

Cost-efficiency to enable mass deployment

Low power-consumption

First automotive-ready C2X platform

Conventional WiFi First automotive-ready platform NXP/Cohda

start turn stop

Test at 90 km/h highway: conventional WiFi fails with fast-moving vehicles

Conventional WiFi radios don‘t meet requirements of harsh traffic environments

and can‘t achieve automotive-level reliability:

Dedicated IEEE802.11p implementation required

NXP technology selected for simTD field trial starting spring 2012

But Connected Mobility . . .

20

. . . requires secure protection against

manipulation, hacking, fraud, and counterfeiting

Automotive integrity & security issues…

21

(H) EV Manipulation Connected Car Counterfeiting

Easy access to IVN (via OBD)….

Immobilizer reflashing

Car key replication

Engine tuning

Unpaid (optional) feature activation, etc

Increasingly connected and open car…

Brings with it one of the banes of the Internet: hacking…

IVN security is a precondition to Car2X (ITS) communications

Counterfeiting is not a cottage Industry!

Counterfeiters don't have to cover R&D, marketing, and advertising costs.

Parts are looking good but performing bad.

Regular connection to the Grid at many charging facilities.

Secure billing and battery swapping Safe charging Protection of expensive batteries, against theft

. . . resulting in safety risks, environmental pollution, financial damage to car owners and car makers

22

“ Researchers Show How a Car’s Electronics Can Be Taken Over Remotely’’ By John Markoff, published on March 9, 2011

… Are now a reality…

“ Vehicle odometer fraud jeopardizes safety…and pocketbooks’’ published on April 19, 2011

“ Counterfeit auto parts flood China’s aftermarket’’ Namrita Chow, Shanghai on February 10, 2011

secure access to in-vehicle networks

secure financial transations (e.g. eVehicles)

privacy protection in tracking applications

vehicle identification in traffic and fleet management applications (electronic chassis number, license plate)

remote software upgrades

theft protection for vehicle parts

prevention of tuning and manipulation

device protection (authentication) against cloning or counterfeiting

secure data container (black box, e.g. DER)

secure feature activation

NXP‘s security solutions for vehicles

23

Contactless readers

Contactless Tags & Labels

Secure microcontrollers

24

Future mobility concepts are enabled by semiconductors Industry focus is on CO2 reduction and Connected Mobility 90% of automotive innovations are based on electronics Semiconductors are critical for making Connected Mobility a reality – examples:

– semiconductors enabling car-to-x communication – smart and connected car keys

But: Connecting the car to the outside world also means: powerful security systems need to be in place! What it takes to securely connect the car . . .

Strong technology base and deep application insights from various disciplines – telematics, identification, broadcast reception, in-vehicle networking Strong support link with eco-system (government, legislation, universities)

Conclusion

25

Thank you!