st microelectronics investor day 2012
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Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of
Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions,
and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such
statements due to, among other factors:
• the possible impact of an impairment charge on the carrying value of the ST-Ericsson investment in our books of approximately $1.7 billion as well as on our consolidated results of
the successful execution of ST-Ericsson's new strategic direction plan and its related savings announced on April 23rd 2012;
• changes in demand in the key application markets and/or from key customers served by our products, including demand for products where we have achieved design wins and/or
demand for applications where we are targeting growth, all of which make it extremely difficult to accurately forecast and plan our future business activities;
• our ability in periods of reduced demand or visibility on orders to reduce our expenses as required, as well as our ability to operate our manufacturing facilities at sufficient levels
with existing process technologies to cover our fixed operating costs;
• our ability, in an intensively competitive environment, to identify and allocate necessary design resources to successfully develop and secure customer acceptance for new
products meeting their expectations as well as our ability to achieve our pricing expectations for high-volume supplies of new products in whose development we have been, or are
currently, investing;
• the financial impact of obsolete or excess inventories if actual demand differs from our expectations as well as the ability of our customers to successfully compete in the markets
they serve using our products;
• our ability to maintain or improve our competiveness when a high percentage of our costs are fixed and are incurred in Euros and currencies other than U.S. dollars, especially in
light of the increasing volatility in the foreign exchange markets and, more particularly, in the U.S. dollar exchange rate as compared to the Euro and the other major currencies we
use for our operations;
• the outcome of ongoing litigation as well as any new litigation to which we may become a defendant;
• changes in our overall tax position as a result of changes in tax laws, expected income or the outcome of tax audits, changes in international tax treaties which may impact our
results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
• the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
• product warranty or liability claims based on epidemic or delivery failures or recalls by our customers for a product containing one of our parts;
• availability and costs of raw materials, utilities, third-party manufacturing services, or other supplies required by our operations; and
• current economic uncertainties involving the possibility during 2012 of limited growth or recession in global or important regions of the world economy, sovereign default, changes in
the political, social, economic or infrastructure environment, including as a result of military conflict, social unrest and/or terrorist activities, economic turmoil, as well as natural
events such as severe weather, health risks, epidemics, earthquakes, tsunami, volcano eruptions or other acts of nature in, or affecting, the countries in which we, our key
customers or our suppliers, operate and causing unplanned disruptions in our supply chain and reduced or delayed demand from our customers.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from
the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “are expected to,”
“should,” “would be,” “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or
intentions.
Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended
December 31, 2011, as filed with the SEC on March 5, 2012. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry
information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Forward Looking Statements
1
1
Agenda 2
Speaker
Time Presentation
9:00 Introduction T. Sorensen
9:05 Company Strategy & Vision C. Bozotti
9:25 ST Business & Financial Roadmap P. Lambinet
9:55 ST-Ericsson D. Lamouche
10:20 Manufacturing & Technology R&D J.M. Chery
10:50 Break
11:05 PANEL: Digital & Multimedia Convergence G.L. Bertino, M. Cetto, R. Krysiak, P. Lambinet,
11:35 PANEL: Power P. Grimme , F. Guibert, M. Monti, C. Papa
12:05 PANEL: Sense E. Aussedat, M. Cassis, C. Dardanne, B. Vigna
12:35 Q & A Panel C. Bozotti, J.M. Chery, C. Ferro, P. Lambinet, D.
Lamouche, C. Papa
1:30 Lunch
2:30 Breakout Sessions
5:00 to 6:30 Reception
• Automotive Marco Monti, Paul Grimme
• Analog, MEMS & Sensors Benedetto Vigna, Marco Cassis
• Digital Convergence Gian Luca Bertino, Robert Krysiak
• Imaging, BiCMOS ASIC & Silicon Photonics Eric Aussedat, Flavio Benetti
• Industrial & Power Discretes Carmelo Papa, Matteo Lo Presti
• Microcontrollers Claude Dardanne, Francois Guibert
• ST-Ericsson Carlo Ferro, Ronen Ben-Hamou
Agenda – Breakout Sessions 3
Pearl Plymouth Minskoff Nederlander New
Amsterdam Palace
2:30 – 3:00 ST-Ericsson Digital
Convergence
Imaging, BiCMOS
ASIC & Silicon
Photonics
Automotive Analog, MEMS &
Sensors
3:00 – 3:30 Industrial & Power
Discretes Automotive Microcontrollers
Analog, MEMS &
Sensors
3:30 – 4:00 ST-Ericsson Digital
Convergence
Imaging, BiCMOS
ASIC & Silicon
Photonics
Industrial & Power
Discretes
4:00 – 4:30 Digital
Convergence Automotive Microcontrollers
Industrial & Power
Discretes
4:30 – 5:00 ST-Ericsson
Imaging, BiCMOS
ASIC & Silicon
Photonics
Microcontrollers Analog, MEMS &
Sensors
5:00 – 6:30 Reception – MAJESTIC Ballroom Foyer (5th Floor)
Philippe Lambinet
Executive Vice President Corporate Strategy Officer General Manager, Digital Sector
ST Business & Financial Roadmap
• A global semiconductor leader
• The largest European semiconductor company
• 2011 revenues of $9.73B(1)
• Approx. 50,000 employees worldwide(1)
• 12,000 people working in R&D
• 12 manufacturing sites
• Listed on New York Stock Exchange, Euronext Paris
and Borsa Italiana, Milano
About ST
(1) Including ST-Ericsson, a 50:50 joint venture with Ericsson
2
Partners of our Customers Worldwide with 78 sales offices in 36 countries
3
50/50 JV with Ericsson
Focused Product Segments
4
Digital
Convergence
Group
(DCG)
Imaging, BiCMOS ASIC
& Silicon Photonics
Group
(IBP)
Automotive
Products
Group
(APG)
Analog,
MEMS &
Sensors
(AMS)
Micro,
Memory &
Security
(MMS)
Industrial &
Power
Discrete
(IPD)
Digital Automotive Analog &
Microcontrollers
Power
Discrete Wireless
4
FY11 Revenues by Product Segments
17%
35%
13%
19%
16%
Automotive (APG)
• #1 in China • #1 ASIC • #1 Smart Power
• #3 Worldwide
Analog, MEMS &
Microcontrollers (AMM) • #1 in MEMS
Sensors and Microactuators
Power Discrete (PDP)
• #1 in Thyristor • #1 HV>400V PowerMOS
Digital
• #1 in Set-top Box outside US
• #2 in Set-top
Box Worldwide
Wireless
ST-Ericsson
*See appendix
Source: IHS iSuppli 2011 rankings
ST’s exposure to the Wireless
segment* at the earnings level
is 9%
5
Our Vision 6
7
1987 One Device = One Function
8
2012 Connecting Users to Content and Services
9
Technology Adoption Rates Acceleration
Source: Charlie Catlett, Argonne Nat'l Laboratory
10
Convergence of Functionalities
Camcorder
Camera
GPS
Web browsing
Content sharing
MP3 player SMS
Social Networks
Picture stabilization
Battery life
Parental control
Home sharing
Content personalization
Data security
Gaming Apps stores
11
Application Drivers towards 2015
Infotainment Automotive Body
Ebooks
STB
Appliances
Game Consoles
TV
Flat Panel Monitor
Printer
HDD
SSD
Computer Systems
Medical
Energy Generation & Distribution
Fab Automation
Building & Home Automation
Fiber Broadband WLAN Acess/Routers
Mobile Phone 1G/2G
Tablets
Smartphones (4G CAGR > 100%)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
100 1,000 10,000 100,000
2011 -
2015 C
AG
R
Market Size in 2015 ($M)
Automotive Electronics Categories Consumer Electronics Categories Data Processing Categories
Industrial Electronics Categories Wired Communications Categories Wireless Communications Categories
Source : IHS iSuppli (SAM, excl. DRAM, Flash, MPUs, Opto)
12
Key Attributes
Connect Interact Display
Power
13
Key Requirements
Multimedia Convergence + Sense & Power
Smart World Security
Interface Performance
Power
14
Leading Sense & Power
MCUs
MEMS/Sensors Power Management
Analog
Key Enablers
● Leading position in key products ● Rich portfolio of technologies ● Broad system know-how
Automotive Communications Computer
& Peripherals
Consumer Industrial
& Other
Supporting our target markets
15
• Increasing threats
Growth
Energy
Healthcare
&
Wellness
Security
Automotive
Growth Drivers for Sense & Power
• Rising global car
production and silicon
content drive market
• New opportunities
(HEV/EV)
• Aging/growing population
• Finite natural resources
16
New Sense & Power Products in 2012
• Automotive
• Power Amplifier • ABS, Air Bag, Powertrain, Smart Power • PowerTM MCU
• Analog & MEMS
• Motion MEMS Combo • Altimeter • Microphone
• Touch screen controllers • Operational amplifiers
• Smart Sensors (RF, MCU, Sensor)
• Memory, Microcontrollers & Security
• MCU Cortex - M0/M4 families • 32-bit F0 series
• 32-bit F3/F4 Series
• Secure MCU (ST31 on ARM SC000 core)
• NFC for mobile handsets • Android, Windows 8 and other
• EEprom dual interface
• Industrial & Power Discrete
• IGBT for motor control, solar and UPS • Amoled power management • Power MOSFET MDmesh V
• Smart Grid: • Power Line Modem
• Photovoltaic ICs
17
Driving Multimedia Convergence
Key Enablers
● Low-power and high performance CMOS process roadmap
● Leading position in all converging markets
● Broad system know-how
Imaging
Digital TV
& Monitor
Digital
Set-Top Box
Automotive
Infotainment
Smartphones
& Tablets
Network
Infrastructure
(ASIC)
18
Growth Drivers for Multimedia Convergence
Growth
Explosion of digital
content
Secure, ubiquitous,
personalized services
Emerging markets
19
New Multimedia Convergence Products in 2012
• Digital Convergence Platform
• Digital TV: Newman
• Set-top Box: Orly • DisplayPort
• Premium monitors: Athena • DisplayPort based Smart Connectivity:
Pegasus
• Networking ASICs
• Imaging
• Imaging diversification
• Consumer, computer,
automotive, medical
• Expanding customer base
20
Next Step in Multimedia Convergence
• We will offer a unified processing platform to serve all markets
• We will leverage our broad system knowledge and customer relationships
Unified
Processing
Platform
Specific
IPs
by
Market
HW/SW
Source: IHS iSuppli
0
500
1,000
1,500
2,000
2,500
3,000
2010 2016
Mobile PCs
E-book Readers
Handheld Video Game Players
Video Game Consoles
Digital Picture Frames
Digital Still Cameras
Camcorders
Portable navigation
Residential Gateways
Tablets
Smart Phones
Car Infotainment
Smart TVs
Digital Set Top Boxes
ST
Mu
21
Our Strengths
• CPU and graphics
• Power consumption
• Video quality
• Security
• Reliability
• Expertise in leading edge
platform
• Ecosystems • Google, Windows, Adobe, …
• Customer relationships
22
ST Unique Offer
32 nm
28 nm
28 nm
FDSOI
55/40 nm
80/55 nm
160/110 nm
22 um/AR 1:25
0.4 mm
CMOS Logic
CMOS Analog
Mixed Signal/RF
CMOS Embedded
Non Volatile Memory
Bipolar CMOS /
DMOS
MEMS
Power & Discrete
Process Key IPs
CPU cores
A/V decode
Transport
GPU
Security
DDR i/f
USB
SATA
HDMI
PCIe
Video
composition
& display
MCU
Analog
Gyroscope
Accelerometer
Functions
Display
User
Interface
Position
Motion
Audio
Video
Networking
Products Packages
More
Moore
M
ore
Than M
oore
QFP
BGA
LOC
LGA
Sensors
SOP
SiP
WLCSP
DIP
TO2xxx
SMDP
TSSOP
Multimedia Convergence
Platforms
Discrete &
Integrated
Power
Devices
Analog ICs &
MEMS
Microcontrollers
(MCUs)
ASICs
Markets
Automotive
Communications
Computer
& Peripherals
Consumer
Industrial & Others
Sense &
power
Multimedia
convergence
23
FY11 total revenues = $9.73B Wholly-Owned Businesses +1% year-over-year
Wireless down 30%
24
US$M
0
2000
4000
6000
8000
10000
12000
FY05 FY06 FY07 FY08 FY09 FY10 FY11
ST ex Flash Wholly-Owned Wireless
ST Total Revenues 24
Billings Bottomed in Q112
0
500
1000
1500
2000
2500
3000
Wholly-Owned Wireless Guidance
ST Q112 Revenues = $2.02B
Sequentially, Separate Revenue Dynamics Again Wholly-Owned Businesses down 3% Wireless down 29%
Q212 Revenue Guidance: +7.5%; +/- 3 percentage points
US$M
25
...expanding its market share to
5.8% from 5.7% ST’s Wholly-Owned Businesses outgrew
its SAM by +220bps during 2011...
Wholly-Owned Business Performance
4.0%
5.0%
6.0%
0.0
5.0
10.0
2010 2011
Mar
ket
Shar
e
Re
ven
ue
s (U
SD b
n)
Revenues Market Share
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
SAM excl. WLS ST-WO
Gro
wth
(%
)
• SAM = Serviceable Available Market • SAM Wholly-Owned Businesses = SAM excluding Wireless SAM • ST Wholly-Owned Businesses are comprised of Automotive, Digital, Analog, MEMS & Microcontrollers and Power Discrete
Source: WSTS, STMicroelectronics
26
* ST Wholly-Owned Businesses are comprised of Automotive, Digital, Analog, MEMS & Microcontrollers, Power Discrete and Others
** 100% of ST-Ericsson’s results (out of which 50% from the competence of ST) as consolidated by ST plus other margins of ST rel ated to ST-
Ericsson’s business
*** Q411 Wireless Minority Interests exclude the impact of $92M related to ST-Ericsson valuation allowance
Wholly-Owned Business vs. Wireless
In US$M FY10 FY11 Q112 FY10 FY11 Q112
Revenues 8,127 8,183 1,727 2,219 1,552 290
Operating Income (Loss) before impairment,
restructuring & one-time items 1,063 933 13 (483) (812) (293)
Operating Margin 13.1% 11.4% 0.8% na na na
Minority Interests na na na 297 413*** 168
Wholly-Owned* Wireless **
27
ST Gross Margin & Opex Evolution
20%
25%
30%
35%
40%
Q111 Q211 Q311 Q411 Q112 Q212
Gross Margin - Reported Unused Capacity
Arbitration Award Guidance
Opex expected to be:
Stable in $ in Q212 Down in $ in H212
Recovering from low
volumes recorded from mid-2011 and one-time arbitration
award
Operating Expenses Evolution
Key program:
ST-Ericsson restructuring
Gross Margin Evolution
Progressive
disappearance of unused capacity
charges and
improvement in manufacturing
efficiencies
0
200
400
600
800
1,000
Q111 Q211 Q311 Q411 Q112 Q212
R&D SG&A
US$M
28
-600
-200
200
600
1,000
1,400
12/31/08 12/31/09 12/31/10 12/31/11 3/31/2012 12/31/12e
Reported Attributable to ST
Net Financial Position*
*See appendix
**Includes ST-Ericsson short-term debt to Ericsson of $489M as of Mar. 31, 2012, $400M as Dec. 31, 2011, and $75M as of Dec. 31, 2010.
Expect net financial
position attributable to ST
to be stable to
slightly up at the end of
December 2012
Maintained strong net cash position throughout FY11 and Q112
despite weak market conditions from mid-2011 as well as a specific situation at a major customer
While funding $1.38B of capex… …and absorbing our portion of ST-Ericsson investment…
…redeemed $764M in debt and paid $415M in dividends
US$M
29
$1.27B
30
Dividend Evolution
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
Dividend Yield
*Source: Bloomberg (May 21, 2012)
**2011 annualized dividend as submitted to the Annual General Meeting
• STM dividend yield of >8%
among the highest in the semiconductor industry
• ST cumulative dividends over the past 6 years (including the
$0.40 per share submitted to the 2011 AGM for approval) have been > $1.5B
• Quarterly dividend offers a
steady income to shareholders and also potential stock price
revaluation
30
Wireless
2011 Revenues: $1.55B; -30% Y/Y
• 50% Minority Interest
ST-Ericsson to lower breakeven point
Revised, more flexible business model
ST expects a significant reduction in
losses at ST-Ericsson in 2012
16%
ST-Ericsson
Operating Profitability Improvement
-70%
-35%
0%
35%
-1,000
-500
0
500
2009 2010 2011 Mid term
Operating Profit Operating Profit Margin
31
-15%
-10%
-5%
0%
5%
10%
Q111 FY11 Q112
Digital
2011 Revenues: $1.84B; -15% Y/Y
Operating Margin Expansion: Mid-term Target: Mid-Single Digit %
Operating Margin Mid-Term Drivers
Realize synergies related to unified processing platform
Capitalize on recovery in STB market
Ramp new products
TV, monitors, Smart Connectivity products
Communication infrastructure ASICs
Market/product diversification in Imaging
New applications – proximity sensing, user detection, etc.
New markets – auto, gaming, medical, security, sports 19%
32
-5%
0%
5%
10%
15%
20%
Q111 FY11 Q112
Power Discrete Products (PDP)
2011 Revenues: $1.24B; -6% Y/Y Operating Margin Mid-Term Drivers
Operating Margin Expansion: Mid-term Target: Mid-Teens %
13%
Capitalize on market megatrends
Energy saving, automations green & renewable energy
Improve product mix
IGBT & Power Modules drive motor control applications
Breakthrough low voltage Power MOSFET technology (OFT)
Manufacturing flexibility
Efficient front/back-end capabilities
Singapore conversion to 200mm
33
Capitalize on solid growth in Auto market
Increasing pervasion of electronics in the car
Volume opportunities in emerging markets
New and innovative products
32-bit Power MCU in eFlash, RF for Active Safety
Leader in BCD technologies; introducing new generation
Complete system offer in emerging markets
34
Automotive Product Group (APG)
2011 Revenues: $1.68B; +18% Y/Y
0%
5%
10%
15%
Q111 FY11 Q112
Operating Margin Expansion: Mid-Term Target: Mid-Teens %
Operating Margin Mid-Term Drivers
17%
34
0%
5%
10%
15%
20%
25%
Q111 FY11 Q112
Analog, MEMS & MCUs (AMM)*
2011 Revenues: $3.38B; +7% Y/Y Operating Margin Mid-Term Drivers
35%
Rapid growth in Motion MEMS / expanding product portfolio
Microphone, pressure sensor, compass, etc.
Enlargement of 32-bit MCU portfolio (GP & Secure)
Ramping new BCD technologies for motor control
New products for SmartGrid and OLED display drivers
New wave of advanced analog products
Expansion of customer base and targeted applications
Operating Margin Expansion: Mid-Term Target: Low-Twenties %
*New AMM perimeter starting January 1, 2012
35
ST Financial Model
ST remains committed to delivering on a fully consolidated basis:
9% to 12% operating margin
12% to 18% return on net assets (RONA) target
16% to 22% RONA attributable to ST
36
Key Programs to Increase Value
Increase Shareholder Value
Boost Innovation
Expand Customer
Base
Cost Reduction
ST-Ericsson
Turnaround
37
Appendix
2011
Trends
2012
38
Financial Performance
In US$M, except EPS
FY10
Q111
Q211
Q311
Q411
FY11
Q112
Net Revenues 10,346 2,535 2,567 2,442 2,191 9,735 2,017
Gross Margin 38.8% 39.1% 38.1% 35.8% 33.4% 36.7% 29.6%
Operating Income (Loss) before impairment,
restructuring & one-time items*
Operating Margin before impairment, restructuring & one-
time items attributable to ST*
580
9.2%
142
9.9%
114
9.1%
(13)
4.3%
(123)
(0.2%)
121
6.0%
(280)
(6.5%)
Net Income – Reported 830 170 420 71 (11) 650 (176)
EPS Diluted
Adjusted EPS Diluted*
0.92
0.75
0.19
0.20
0.46
0.14
0.08
0.09
(0.01)
(0.01)
0.72
0.41
(0.20)
(0.14)
Free Cash Flow*
Net Financial Position, adjusted for 50% investment in ST-Ericsson*
961
1,227
51
1,255
(250)
1,293
(136)
1,134
47
1,167
(288)
1,167
98
1,267
Effective Exchange Rate €/$ 1.36 1.33 1.37 1.40 1.36 1.37 1.33
39
Glossary • Free cash flow is defined as net cash from operating activities minus net cash from (used in) investing activities, excluding payment for purchases of and proceeds from the sale of
marketable securities (both current and non-current), short-term deposits and restricted cash. We believe free cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Free cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of free cash flow may differ from definitions used by other companies.
• Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash
equivalents, net of bank overdrafts, if any, current and non-current marketable securities excluding Micron shares received in connection with the sales of Numonyx, short-term deposits and non-current restricted cash, and our total financial debt includes short term borrowings, current portion of long-term debt and long-term debt, all as reported in our consolidated balance sheet. We believe our net financial position provides useful information for investors because it gives evidence of our global position either in terms of net
indebtedness or net cash position by measuring our capital resources based on cash, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.
• Return on Net Assets (RONA) is the ratio of operating income before impairment and restructuring charges divided by average net assets used during the period. ST defines average net assets as average total assets net of total liabilities as reported in our consolidated balance sheet excluding all items related to our financial position such as cash and cash equivalents, marketable securities, short term deposits, restricted cash, bank overdrafts, current portion of long term debt and long term debt.
• Operating income before impairment, restructuring and one time item excludes impairment, restructuring charges and other related closure costs and NXP Arbitration award.
• Operating income before impairment, restructuring and one-time item attributable to ST is calculated as operating income before impairment, restructuring and one time item
excluding 50% of ST-Ericsson operating loss before impairment and restructuring as consolidated by ST. Operating margin before impairment, restructuring and one time item attributable to ST is calculated as operating income before impairment, restructuring and one time item attributable to ST divided by reported revenues excluding 50% of ST-Ericsson revenues as consolidated by ST. Return on Net Assets (RONA) attributable to ST is calculated as annualized operating income before impairment, restructuring and one time item
attributable to ST divided by reported net assets excluding 50% of ST-Ericsson net assets as consolidated by ST.
• Adjusted net earnings and earnings per share (EPS) are used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted earnings excludes impairment, restructuring charges and other related closure costs attributable to ST, the impact of equity investment divestiture and subsequent sale of Micron shares, other-than-temporary impairment (OTTI) charges and realized gain on financial assets, NXP Arbitration award net of the relevant tax impact.
• Consolidation of ST-Ericsson: ST-Ericsson, a joint venture owned 50% by ST, began operations on February 3, 2009 and is consolidated into ST’s operating results as of that date. ST-
Ericsson is led by a development and marketing company consolidated by ST. A separate platform design company providing platform designs mostly to the development and marketing company is accounted for by ST using the equity method.
• Wireless Segment: As of February 3, 2009, “Wireless” includes the portion of sales and operating results of the 50/50 ST-Ericsson joint venture as consolidated in the Company’s revenues and operating results, as well as other items affecting operating results related to the wireless business.
• Sales recorded by ST-Ericsson and consolidated by ST are included in Telecom and Distribution
40
40
Didier Lamouche
President and Chief Executive Officer
ST-Ericsson
The new strategic direction
3
Our roadmap to success
2012
Stabilization
2013
Growth
2014
Success
4
What it takes to transform our company
Products
• Clear market
strategy
• Focused portfolio
approach
• Differentiation
Customers
• Engage with market
shapers
• Diversification
Company Organization
• Execution
• Simplicity
• Speed
• Focus
Culture
• From technology focus
to customer focus
• Sustainable
profitability
• From brilliant ideas to
products delivered on
time
Repositioning our business model
5
Become a sustainable and profitable
technology leader in the wireless
industry, by repositioning our whole
business model and by leveraging our
strength in system integration
Our strategic objective and direction
6
SW Complexity
System
RF, Power
AMS
System + service
integration
System Solution
The value is in system integration Integration
Time
Modem Processor
Connectivity RF, Power
AMS
Chipset
Connectivity ModAp+
System integration
Connectivity RF, Power
AMS
ModAP
Platform
Modem
SW System integration
Apps
Processor
Modem Processor
Connectivity RF, Power
AMS
7
ModAp systems as a key strategic
differentiating offering through partnerships
∙ Focusing the R&D portfolio to deliver highly competitive complete system solutions in
the form of integrated ModAp platforms
∙ Repositioning whole business model to develop key building blocks either directly or
through partnerships
∙ Full continuity of ST-Ericsson committed roadmap and current customer engagements
• Partnership with ST
• Transfer of R&D
activities and
headcount
• Jointly promote
standalone APEs and
thin modems
• Build on current
capabilities
• Continue to develop
modem IP for ModAp
integration and to
offer thin modems to
customers
• Possibly license
modem IP to 3rd
parties
• Build on current
capabilities
•Develop either directly
or through
partnerships and
alliances
ModAp system integration
Modem Application
Processor Connectivity
RF
Power
Analog mixed signal
8
Application processor partnership with ST
Combining ST and ST-Ericsson
competencies in one Team
Market-specific
Complete platforms
Development of
common core APE
Common
Core APE
Application
Specific IPs
Common
IPs
Common
Core APE
CPU Graphics
Video Imaging
Display Security
Common
Core APE
Development
organization
9
Partnership value for ST-Ericsson
Value for ST-Ericsson ST 3rd Party Standalone
Roadmap continuity
= - =
Addressable market
+ + =
R&D cost reduction &
synergies
++ + =
Fixed cost to variable
++ ++ =
Royalties
- (long term) -- =
Cash savings
++ + =
ST Partnership has the highest value for ST-Ericsson
10
Roadmap continuity a key decision factor
U8520 U8500 To be
Announced
L8540 Next Gen
Partner A
Next Gen
Partner B
2013/2014 2015
With a 3rd
party
∙ Timing for our next generation ModAp platform significantly delayed
IMG
2xA9
1.2G
100
42
ARM
2xA9
1.2G
14
ARM
2xA9
1G
14
In Production/Sampling 2012
IMG
2xA9
1.85G
100
42
11
Roadmap continuity a key decision factor
U8520 U8500 To be
Announced
L8540 Next Gen
ST
To be
Announced
2013/2014 2015
With ST
∙ Roadmap and revenue continuity
∙ Full continuity for customers investment in our platforms today
∙ Timing for next generation shorter
IMG
Rogue
2xA15
2+G
150
84
IMG
2xA9
2+G
100
42
IMG
2xA9
1.2G
100
42
ARM
2xA9
1.2G
14
ARM
2xA9
1G
14
In Production/Sampling 2012
IMG
2xA9
1.85G
100
42
12
Execution efficiency as a revenue lever
∙ Improve R&D execution & accelerate time-to-market, while reducing operating
expenses
∙ Consolidation into a significantly smaller number of sites, specialized by technology
∙ Develop integrated excellence centers delivering larger portion of system value chain
∙ Increase revenues through faster R&D execution
For Illustrative purposes only
Product definition
SW Development
IC Development
System Development
Customer Engineering
Manufacturing
13
Lower the breakeven point
∙ Global workforce reduction of about 1,700
employees worldwide*, including the headcount that
would be transferred to ST
∙ Reducing R&D costs through partnership and site
consolidation
∙ Reduction of SG&A expenses by about 25 % versus 2011,
streamlining the general and administrative activities
∙ Discussions with employee representatives ongoing and on
track
∙ Partnership for application processors with ST
∙ Transfer fixed cost to variable
∙ Achieve scale to support sustainable execution
∙ On track for closing July 1st
∙ Target annualized net savings of $320M from new
and on-going restructuring plans on completion end
of 2013
∙ Restructuring charges $130-150M (including
remaining charges related to ongoing restructuring
plan to be completed at 2012-end) through
completion
∙ Bring breakeven point just below $600M per quarter
Operating Profitability
Improvement
-70%
-35%
0%
35%
-1,000
-500
0
500
2009 2010 2011 Mid term
Operating Profit Operating Profit Margin
Addressing the right market
15
Wireless industry (r)evolution
• From component to platforms
Source: Strategy Analytics, May 2012, ABI, March 2012
2Q 2009 Volume
Share
Nokia 41%
RIM 19%
Apple 13%
HTC 6%
Samsung 3%
4Q 2011 Volume
Share
Apple 24%
Samsung 23%
Nokia 13%
RIM 9%
HTC 6%
Source: Strategy Analytics, May 2012
0%
20%
40%
60%
80%
100%
2009 2010 2011 Q1
2012
Other
Blackberry OS
Symbian
Windows Phone
iOS
Android
• Rapid disruption in mobile OS
∙ Open source (Android + Linux) taking
over 50% market share in 3 years
∙ In the PC industry open source (Linux)
has only gone from 2% to 5% in the
last 10 years
• Drastically altered smartphone
device maker landscape
16
Highest smartphone volumes in mainstream
Will be addressed
by integrated
application
processor and
modem solutions
ModAp
Source: Strategy Analytics, Dec 2011
0
100
200
300
400
500
600
700
800
900
1'000
2012 2013 2014 2015
Un
its M
n
Premium
High
Mid
Entry
Targeting above 10% market share in volume by 2014
17
Samsung
46%
HTC
7%
Sony
7%
LG
6%
Motorola
6%
Japanese
4%
Chinese
22%
Others
2%
ST-Ericsson executing on Android
Android volume market share
Q1 2012
Android volume market share
Q3 2011
Samsung
38%
HTC
17%
Sony
9%
LG
6%
Motorola
7%
Japanese
5%
Chinese
16%
Others
2%
NovaThor ModAp platforms now in 10 devices already launched with
four top tier Android OEMs and multiple regional players
Source: Strategy Analytics, May 2012
18
CPU
DMIPS
2012 2013
Q1 Q2 Q3 Q4 Q1 Q2
ST-Ericsson
well
positioned in
the LTE ModAp
platforms
landscape NovaThor
NovaThor
L8540
NovaThor
(NovaThor
L9540)
Premium
High
Mid
Entry Competitor
products
Product Roadmap
20
Integrated ModAp solutions for
industry-leading bill of material and size
Leading thin modems for any device
Our approach
Full complement of connectivity
and enhancements
21
Roadmap
HSPA LTE
M5730/80
A9500 A9540
U9500 L9540
Connectivity
ARM
2xA9
1.2G
21
ARM
2xA9
1.85G
100
42
U8520
ARM
2xA9
1.2G
14
M7400/
M7300
In Production/Sampling 2012 2013/2014
U8500
ARM
2xA9
1G
14
To be
Announced
IMG
2xA9
1.2G
100
42
L8540
IMG
2xA9
1.85G
100
42
150
84 M74XX
To be
Announced
FD-SOI
IMG
Rogue
2xA15
2+G
150
84
To be
Announced
FD-SOI
IMG
2xA9
2+G
100
42
CG2900
GBF
To be
announced
CW1100
WLAN
CW1250
WLAN
CG2905
GBF
Partnership with ST for future
application processors
ModAps
GPU IP & speed (MHz)
ARM Processor & Speed (GHz)
Modem DL Speed (Mbps)
22
A disruptive innovation in modem technology
Modem PCB area:
~1400 mm2
Chipset area:
530 mm2
>60%
size
reduction
compared
to solutions
on the
market
today
Source: UBM TechInsigths & ST-Ericsson. Memory excluded/C2C.
Same board as to the left with picture edited to show Thor M7400 size
Thor™ M7400
• Groundbreaking architecture
• SW Modem
• Mass market LTE
• Mid to premium devices
Future architecture investment
– scalability and stability
1st generation
LTE 100+50Mbps
Power consumption
2nd
generation
23
Need to master the whole chain
ST-
Ericsson
Competitor
A
Competitor
B
Competitor
C
Competitor
D
Application
Processor
LTE Modem
Integration
capabilities (ModAp)
Multiple OS support
Advanced silicon
technology
Mastering the supply
chain
Strong
Good
Developing
24
Differentiation with FD-SOI Technology
∙ NovaThor L8540 in FD-SOI would have
∙ Operation up to 2.5Ghz
∙ 2x the performance possible at 0.6V
∙ 35% less power operating at max
performance of NovaThor L8540
∙ For a typical smartphone this
translates to:
∙ 4 hours more high-speed browsing
∙ 2.5 hours more HD video playback
∙ 2 hours more HD video recording
∙ Or an additional full waking day of use
∙ FD-SOI technology offers:
∙ More GHz and less power
∙ Reuse of existing design
∙ At comparable cost
∙ Working with ST
Customer traction continues
26
Latest NovaThor™ phones
Samsung
Galaxy Beam
Dual core 1GHz
HD camcorder
5 Mpixel camera
Integrated projector
Samsung Galaxy
Ace 2
Dual core 800MHz
HD camcorder
5 Mpixel camera
Xperia™ sola
by Sony
Dual core 1GHz
HD camcorder
5 Mpixel camera
Motorola
XT760
Dual core 1GHz
HD camcorder
8 Mpixel camera
27
Continuing to build momentum
Atrix 2
Motorola
Sony
Tablet P/S
Sharp
Aquos
Samsung
Exhibit 4G
Panasonic
Toughbook
Nokia
T7
Nokia
702T
Samsung
Infuse 4G
Samsung
Galaxy S 4G
Lenovo
ThinkPad
Panasonic
Eluga
Samsung
Galaxy S Advanced
Sony
Xperia P
Ont im
WP8500 Tablet
Sony
Xperia U
HTC Sensation
Z710t
Via
U8500
Sony
Xperia sola
Samsung
Galaxy Beam
Samsung
Galaxy Ace2
Motorola
XT760
Samsung
Sidekick 4G
28
Conclusion
2012
Stabilization
2013
Growth
2014
Success
∙ The wireless industry has gone through dramatic changes
∙ adapted our strategy to cope with new landscape
∙ Clear path to success defined
∙ execution of product delivery is priority one focus
∙ major re-positioning and actions in 5 months
∙ major organization re-alignment toward accountability and
execution focus
∙ strategy re-definition and main steps taken
∙ cost reduction roadmap defined
∙ Early signs of recovery visible
∙ successful bring-up of 6 smartphones from market leaders in
last 3 months
∙ Q2 sequential growth over 10%
∙ Confident on future success despite challenges
Thank you
Manufacturing
and Technology R&D
Jean-Marc Chery
Executive Vice President
Chief Manufacturing and Technology Officer
1. Introduction
2
Complete Products, IPs,
& Technologies Portfolio 3
Power
management
MEMS
sensors Analog MCUs / ASICS Imaging Automotive
Smartphones
and tablets
TV & digital
set-top box
Advanced CMOS Power &
Discrete
Analog Mixed
Signal/RF eNVM BCD MEMS
Leadframe package
leaded / leadless MEMS
Leadframe package
leaded / leadless
Laminated substrate
package wired
Laminated substrate
package flipchip
WLSP & 3D
Integration
Technology R&D Model 4
Technology R&D Model 5
Manufacturing Model 6
Flexible and
independent
manufacturing
2. Technology R&D
7
Multimedia Convergence:
The Ideal Technology 8
Multimedia convergence is about…
Performance
Power
leakage
Area scaling Cost of
ownership
Design
simplicity
Multimedia Convergence:
28nm Bulk Weaknesses 9
0%
20%
40%
60%
80%
100%
180 nm 130 nm 90 nm 65 nm 45 nm 32 nm
Gain by traditional scaling Gain by innovation
Re
lati
ve
% Im
pro
ve
me
nt
Transistor performance improvement
E
nerg
y E
ffic
ien
cy
(DM
IPS
/mW
)
P
eak P
erf
orm
an
ce
(DM
IPS
)
Vdd
7%
4.7x
100%
200%
300%
400%
500%
0% 0%
20%
40%
60%
80%
100%
0.3 0.5 0.7 0.4 0.6 0.8 0.9 1.0 1.1 1.2
Peak performance vs. energy efficiency
Multimedia Convergence: Fully Depleted
Devices Enabling sub-20nm Technologies 10
• Main candidates after bulk are fully depleted devices
• For improved electrostatic control and device scalability
FDSOI = 2D FinFET = 3D
gate
Thin Silicon film
gate
drain
source
heig
ht
Thin Silicon f ilm
Multimedia Convergence:
28nm FDSOI Better Energy Efficiency 11
En
erg
y E
ffic
ien
cy
(DM
IPS
/mW
)
Pe
ak
Pe
rfo
rma
nc
e
(DM
IPS
)
Vdd
7%
20%
3x
4.7x 1.3
X
100%
200%
300%
400%
500%
0% 0%
20%
40%
60%
80%
100%
0.3 0.5 0.7 0.4 0.6 0.8 0.9 1.0 1.1 1.2
6x
Multimedia Convergence:
Value Proposition 12
14nm
Bulk-Trigate
28nm LP
High-K/Metal
gate
20nm LPM
Strained-Silicon
28nm Boost
FDSOI/UTBOX
+30%
+20%
Planar Technology – 2D 3D Technology
• High Logic/Memory Integration
• More complexity added to the process
• Available for Design: Q4 2012
• Enable New High Performance Product
2012 2013 2014 2015 2016
20nm Boost
FDSOI/UTBOX
• Available for Design: Now!
• Superior Power Performance
• Faster Design
• Enable Product Cost / Power Reduction
Other VLSI Key Differentiation Initiatives
• Embedded Flash PCM for future
shrink nodes
• Ultra Fast and Low Power
Microcontrollers
• Imaging sensor with BSI on bulk
13
Smart Power: The Ideal Technology 14
• Figures of merit: • Rsp = RonxA
• Gate charge (Qg) – Fsw up
to 5 Mhz
• Safe operating area
• Trends: • Integration density saturating
with LITHO scaling
• Device architecture and drain
engineering
• Thick copper metallization for high current
POWER DEVICES
• Thick Cu metallization & bonding over active areas
• Junction isolation • DTI (Deep Trench Isolation)
• SOI
ISOLATION
• LOGIC: from 100 K gates up to 500 K gates • e-Memories
• BCD8sP best in class for Power devices integration capabilities • Customized solutions by application Low Maks Count
• BCD9s (110 nm) ready for prototype in Q113 and BCD10 (90 nm) process architectures in definition
phase
ST ROADMAP
Smart Power: BCD9S 15
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
BCD6s-DCu BCD8sAuto BCD9s
1.0
0.7
0.5
1.25
0.84
0.59
Power areas comparison vs. BCD6s-DCu
Power Areas from Rdson (BCD6s-Dcu=1)
Power Areas from energy pulsing
Full Copper Metallization
POWER: Top Priority Technology Platforms 16
IGBT
MD6
OFT GaN
SiC
SENSE: Technology Coverage 17
SENSORS
• Accelerometers
• Gyroscopes
• Compasses
• iNEMOTM
• Pressure
• MicroPhone
ACTUATORS
• Thermal
• Piezoelectric
• Electrostatic
Packaging Technology R&D 18
Sense
MEMS and microphones (LGAs), Optical modules and Imagers towards BSI
Power & BCD
High dissipation, miniaturized packages (PSSO, QFNs)
Multimedia Convergence with advanced CMOS
Integration and miniaturization based on BGAs. Towards Flip Chip & WLP
3. Manufacturing
19
Front-End Manufacturing:
Flexibility/Efficiency
• Minimize unused capacity in the downturns and lean
investment to support upsides:
• Model deployment by technology cluster better balancing
internal vs. external with new major initiatives:
• Start new generation of BCD (Smart Power) outsourcing
• Start CMOS 28/20 nm FDSOI outsourcing
• Start advanced CMOS Imaging Sensor with BSI
• Guarantee in-out flexible sourcing at product level
• Make fixed cost variable wherever possible
20
Manufacturing flexibility across market cycle
200mm ? 300mm ?
Front–End Manufacturing:
Outsourcing Map 21
Technology / Source First:
Time to Market Second Alternative
CMOS 45LP Crolles 300 Foundry* No
CMOS 40LP Crolles 300 Foundry* Foundry**
CMOS 32LP Foundry* Crolles 300 No
CMOS 28LP Foundry* Crolles 300 Foundry**
CMOS 28 FDSOI Crolles 300 Foundry* No
Technology / Source First :
Time to Market Second Alternative
HCMOS9A Crolles 200 / 300 Rousset 8 Foundry*
CMOS65 / 55RF Crolles 300 Foundry* No
CMOS Imaging Sensor Crolles 300 Foundry* No
CMOS55
eFlash Crolles 300 Foundry* No
CMOS M10 / F10
eFlash / eEEPROM Rousset 8 Foundry* No
BCD8 Agrate 8 Catania 8 Foundry*
Adv PMOS / VIP /
MDMESH Catania 8 Singapore 8 Foundry*
MEMS Agrate 8 Catania 8 No
* One out of multi-foundry sources ** Another one of multi-foundry sources
• Fast Time to Volume, to catch new business opportunities:
• i.e. MEMS Gyroscope ramp-up within our 8” Fab
• Timely internal ramp-up of Crolles 12” ramp-up for Digital, Analog
CMOS and Microcontroller (embedded Flash).
• Low cost & timely 8” conversion of the Singapore fab for discretes and
mature BCD
Front-End Manufacturing-Internal Fabs Value:
Responsiveness, Differentiation, Efficiency 22
Packaging & Test Manufacturing:
Flexibility/Efficiency • Re-profile and balance some internal capacity
• Outsource proprietary packages growing volumes
• Complete Dual Source qualifications Internal vs. OSAT
(subcontractors)
• Accelerate gold to copper wire conversion toward World Wide
leadership
• Speed-up conversion to high density lead-frames
• Packaging & Test Manufacturing Hub for economy of scale, to call for
alliance is a possible option we are working on to accelerate
23
Packaging & Test Manufacturing:
Outsourcing Map 24
Technology (Adv Logic) /
Source
First:
Time to Market Second Alternative
BGA - FC POP OSAT* Muar Shenzhen
BGA - FC singulated OSAT* Malta No
WLCSP OSAT* OSAT** No
Technology (Others) /
Source
First : Time to
Market Second Alternative
BGA/ BGA-FC Muar Shenzhen OSAT
MEMS Malta Calamba No
Power Automotive Muar
Shenzhen/
Bouskoura Calamba
Power Discrete Longgang
Shenzhen/
Bouskoura OSAT**
QFN Calamba OSAT* OSAT**
Imaging Shenzhen No No
QFP small/Large Muar/Malta OSAT* OSAT**
SOIC Bouskoura Shenzhen OSAT*
Leadframe misc OSAT* OSAT** No
* One out of multi-OSAT sources ** Another one of multi-OSAT sources
Manufacturing and Technology R&D:
2012 Capital Spending
• Front-end manufacturing / R&D
• 20 nm FDSOI capability
• Crolles 300 mm 40 nm mix capacity increase
• Imaging sensor BSI capability
• Manufacturing and Engineering System
• Back-end manufacturing
• Capacity increase and mix evolution at
Asian plants
• MEMS capacity increase
• Manufacturing & Engineering System
• Copper wire conversion
• Others • Testing, IT, quality & safety
25
Investments focused on:
• Strategic growth businesses and key product ramps
• Proprietary manufacturing
Plan: $0.7B to $0.8B
5. Conclusion
26
Automotive Product Group
Marco Monti
Executive Vice President General Manager, Automotive Product Group
Paul Grimme Executive Vice President
General Manager, Sales & Marketing, Europe, Middle East and Africa
© STMicroelectronics, 2012
50/50 JV with Ericsson
Focused Product Segments 2 2
Digital
Convergence
Group
(DCG)
Imaging, BiCMOS ASIC
& Silicon Photonics
Group
(IBP)
Automotive
Products
Group
(APG)
Analog,
MEMS &
Sensors
(AMS)
Micro,
Memory &
Security
(MMS)
Industrial &
Power
Discrete
(IPD)
Digital Automotive Analog &
Microcontrollers
Power
Discrete Wireless
Smart Power
1 ST
VI Power
1 ST
Total ST
3 ST
APG SAM
2 ST
ST: A Winning Player in the Automotive Market
615
717
855
1065
1153
1269
1331
1386
1004
1420
1674
5.0%
12.6%
0
200
400
600
800
1000
1200
1400
1600
1800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
APG revenue
APG Market Share2011 market position
3
#1 China
Geographical position
#3 Japan #2 Europe
#2 USA
Partnership with the market leaders
Source: IHS iSuppli, STMicroelectronics
% of 2011 Production shipped to German
Customers ($)
% of 2011 Production
shipped in Germany($)
Source: Strategy Analytics, January 2012
IPs Market Technology & Manufacturing
Strong position with market
leaders
•Leadership position in :
•ASIC
•Intelligent power
•Market leader in:
• Infotainment
•Advanced Safety
Focused on emerging markets
•Market leader in China
•Two design centers in China to serve the local players
•A major design center in India
Partnership
•Long history of partnership with
customers (including COT), 3rd parties and competitors
Technology
•Market leader in Smart Power
technologies confirmed with the
110nm node
•40nm embedded Flash for
microcontroller
•Leader in Power Technologies
•Extending product offer thanks to RF,
Camera, IGBT, MEMS…
Products
•30 years of history in Smart Power
product design
•Power architecture for 32-bit microcontrollers with strong market
success with market leaders
•40 years of experience in Audio and
Infotainment
•Full product offer in Power •Complete system offer for most of
the Automotive systems
Leader in innovation
•Full product offer in high margin
Active Safety •Radio Frequency for safety and
Infotainment
•Prepare to serve the need of the car
electrif ication
Automotive-Committed
Internal Manufacturing
•In-house manufacturing driven by
Automotive
•Multiple internal sources to offer a market unique supply chain
protection
•Second source availabilities in
foundries to guaranty flexibility during
market cycles
Main ST Enablers 4
Automotive Semiconductor Growth Drivers 5
Semiconductor contents per car ($) Production car forecast (Units)
274
340 350
432
168
238
100
200
300
400
2011 2012 2013 2014 2015 2016 2017
Average Eur/USA/Jap China
Ignition
Door locking
Electronic gearbox
Air conditioning
Seat heating
Automatic mirror
Cruise Ctrl
Airbags
ABS
Gearbox
Night vision
Start Stop
Hybrids
LED lighting
Pedestrian detection
Driver assist maps
Car 2 car
Brake by wire
Electric vehicles
2. Volumes 1. Pervasion
Source: Strategy Analytics, January 2012, JD Powers, March 2012
1980 1990 2000 2010 2020 Year
30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%
Electronics
(% Car
Cost)
30
40
50
60
2011 2012 2013 2014 2015 2016 2017
Europe-US-Japan Emerging
Pervasion Driving Growth in Automotive 6
Semiconductor contents per car ($)
274
340 350
432
168
238
100
200
300
400
2011 2012 2013 2014 2015 2016 2017
Average Eur/USA/Jap China
Ignition
Door locking
Electronic gearbox
Air conditioning
Seat heating
Automatic mirror
Cruise Ctrl
Airbags
ABS
Gearbox
Night vision
Start Stop
Hybrids
LED lighting
Pedestrian detection
Driver assist maps
Car 2 car
Brake by wire
Electric vehicles
1. Pervasion
Source: Strategy Analytics, January 2012, JD Powers, March 2012
1980 1990 2000 2010 2020 Year
30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%
Electronics
(% Car
Cost)
Pervasion Driven by Innovation 7
The concept of transportation system is changing
• Driven by performance
• Driven by engine • Dangerous • High consumption
• High pollution • For experts
• High maintenance
• Engine almost invisible
• Mechanics almost invisible • Safe • Green
• Family oriented/Easy-to-use • Zero maintenance/Reliable
• Comfortable • Entertaining
Cars represent 8% of total
petrol consumption
Car emissions represent
10% of the total CO2
generated by humans
Source: IHS iSuppli, STMicroelectronics
Electronics & Semiconductors Makes the Difference 8
TCS
ABS
ESP
• Power Train
• Safety
• Infotainment, connectivity,
active safety
The mechanics is evolving
but the speed is slow and mostly driven by the weight reduction
It is the evolution of the
electronics that makes the interaction with the mechanic more efficient
The Hybrid Car
Only the availability of a reliable, low cost,
high voltage power Integrated technology makes high volume production of hybrid cars possible
First electric car R. Anderson
First hybrid car F. Porsche
First Prius In the market
1839 1869 1997
9
Why ST in Innovation
More than 25 year presence
and commitment in Automotive
Partnership attitude with the
market leaders in Europe, Japan, Korea, USA and
China
Proprietary technology
portfolio able to cover all the Automotive applications
Broad range offer (leader in ASIC,
power & intelligent power, radar,
investing in 32-bit MCUs to support system solutions)
Internal manufacturing strategy: better cost & flexibility with a unique supply chain
security
$1.7B billing (FY11) with
strong cash flow and profitability financing R&D
Dedicated Automotive organization
10
A Sample of ST’s Innovative Products 11
110nm Smart Power
for Engine, Dual clutch gearbox,
Safety and Body
40nm eFlash 32-bit
multicore micro based on Power architecture for Power Train and
Safety
RF modules and
dedicated processor for active safety
X by wire systems
(Micro + Smart Power) with safety on board
Li-ion battery
management for electrification
Full system offer in
Infotainment (from car & satellite radio to Navigation to car to
car solutions)
Intelligent power for
Xenon and LED lamp controllers
More than $2B
design-wins
already achieved
ST Gate driver
ST-A1 Power Module
Aux power supply Current sensor
HEV Main Inverter
Battery Management
Inverter, DC/DC, Power module …
Ready for new urban mobility concept in
partnership with key customers
“Low voltage” electric car
ST Presence in Car Electrification 12
Evolution Towards Active Safety
Video
0 to 80m
Long range
radar
1 to 150m
Video
0 to 80m
Short range
radar
0.2 to 20m
Ultrasonic
0.2 to 3m
2010
2011
+42%
ST Sales Growth
77 GHz
24 GHz
48 GHz
Through sensors (RF, Camera, Gyro) the car recognizes a possible dangerous event and
autonomously takes action. The car is more and more becoming a node of an intelligent
distributed network
13
Car Volumes Driving Growth 14
Production car forecast (Units)
Ignition
Door locking
Electronic gearbox
Air conditioning
Seat heating
Automatic mirror
Cruise Ctrl
Airbags
ABS
Gearbox
Night vision
Start Stop
Hybrids
LED lighting
Pedestrian detection
Driver assist maps
Car 2 car
Brake by wire
Electric vehicles
2. Volumes
Source: Strategy Analytics, January 2012, JD Powers, March 2012
1980 1990 2000 2010 2020 Year
30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%
Electronics
(% Car
Cost)
30
40
50
60
2011 2012 2013 2014 2015 2016 2017
Europe-US-Japan Emerging
Volumes Driven by Emerging Countries 15
2002 2020
Vehicles per 1000
inhabitants
• No time for a standard development cycle time
• Fast, accurate, reliable, low cost
• Full system approach
• No local IC makers are available
Semiconductor demand by Region ($B)
Source: Strategy Analytics, January 2012
The Chinese market
Source: Bosch, April 2012
5.3
3.4
7.3
3.2
4.3
7.9
4.9
10.3
8
8.6
USA
Japan
Eur.
China
ROW
2018
2011
A completely different market
Why ST in the Emerging Markets 16
Full system offer in all
car applications
Strong support function
including SW / HW specific automotive validation
Broad offer to support all
product line up (from small motorcycle to premium
vehicles)
Strong local presence with
two dedicated local design teams in China (SH, SZ) and one in India (Noida)
Internal manufacturing to
drive cost reduction
More than 30 years of IPs
ready for Automotive
Deep connections with
market leaders in China, India on top of European
and Japanese
ST Product Offer for Emerging Markets 17
1 / 2 / 4 Cyl Engine
control for Gasoline &
Diesel Direct Injection
Traditional and Low cost
Dual Clutch transmission
Air Bag modules
Single chip Body modules
(door, Junction box, ligh,
air conditioning ,,,) Car Connectivity and
Protocol
Low cost Navigation including
multi constellation GPS
(Glonass, Compass, Galileo)
OEM and After Market
car entertainment
ST Full Kit for GDI Engine Control* 18
2010
2011
+53%
Engine control in China
U-chip
32-bit micro
* GDI: Gasoline Direct Injection
ST Leadership in Car Infotainment 19
Positioning
(GPS-Glonass-Galileo-Compass)
Navigation & Audio
Controllers
Terrestrial & Satellite Tuners
Digital Audio Amplifier
Phone + Position + User Interface + Sound
Leveraging the new role of
Multimedia phones to enhance Infotainment experience
Leading the Terrestrial Radio
digitalization (DAB-DRM-HD)
Maintaining leadership in
Satellite Tuners
Bringing to market the First
Multi-Constellation Positioning IC
Reinforcing leadership in
Audio Power
APG Business Priorities
• Grow faster than the market
• Keep Smart Power / intelligent power leadership
• Gain share in 32-bit MCUs (Power Architecture) on top of $2B already design won
• Extend the penetration of Power devices driven by Electrification
• Maintain leadership in Body and Infotainment while expanding penetration in
Emerging markets
• Focus on innovation to increase profitability
• New 110nm BCD generation
• 40nm eFlash to support microcontroller growth
• Complete system offer in emerging markets
• Lead high margin Advanced Safety with strong innovation contents
20
Analog, MEMS & Sensors
Benedetto Vigna Executive Vice President, General Manager, Analog, MEMS & Sensors Group
Marco Cassis Executive Vice President, President, Japan-Korea Region
0
100
200
300
400
500
600
700
800
900
US
$M
Merchant
Captive
Foundry
2011 MEMS Top Players Ranking
Source: IHS iSuppli
2
Thermal Inkjet Printhead
Accelerometer and Gyroscope
Leading the MEMS world of Micro-Actuators and Sensors
Source: IHS iSuppli, January 2012; Yole Developpement
•ST #1: MEMS Motion Sensors for consumer
electronics & mobile handset market •ST #1: Accelerometers, Market Share ~50%
2006 2011
•ST #1: Gyroscope
•Market Share ~60% •Achieved in only two years
60%
$650M
$30M
Strong and large IP portfolio
ST MEMS Revenue Gyroscope Market Share
3 Growing Faster Than the Market
•China
•Japan
•Korea
•USA
Source: Samsung Website
Rapid Disruption in Mobile OS
Leading Fast Growing Android Ecosystem 4
Source: Strategy Analytics, May 2012, ABI, March 2012
∙ Open source (Android + Linux) taking over 50%
market share in 3 years
∙ In the PC industry open source (Linux)
has only gone from 2% to 5% in the last 10 years
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 Q1 2012
Other
Blackberry OS
Symbian
Windows Phone
iOS
Android
5 Billion MEMS in the Market
Accelerometers, Gyroscopes, Compasses
Microphone and Pressure Sensors
2006 2011
2 Billion units of Motion
MEMS
3 Billion units of Thermal
Inkjet Printheads
+
Outstanding Global Manufacturing Capability with Dual Sourcing
5
A Modular & Complete Platform for iNEMO™ 6
Standalone Gyroscope Accelerometer + Gyroscope
Accelerometer + Gyroscope + Compass
2012: Year of the Environmental Sensors 7
High Performance Microphone
Altimeter for Indoor
Navigation
8 ST Masters Extreme Analog & MCUs
SENSORS + MICROCONTROLLER + RADIO
ST Leading the Motion Sense Revolution 9
3-Axis Digital
Gyroscope
6-Axis
Geomagnetic Module
iNEMO-M1 System-on-Board
9-Axis plus 32-Bit MCU
13x13 mm in a Board
iNEMO® System-in-Package
9-Axis plus 32-Bit MCU in
small footprint
32-bit Microcontroller
3-Axis
Accelerometer
3-Axis
Gyroscope
32-bit Microcontroller
System-on-Board System-in-Package
3-Axis
Magnetometer
Dawn of MEMS Consumerization Wave 10
Intuitive Interface
Accelerometers
Gyroscopes
Compasses
Nintendo 3DS Accelerometer
Smart Phone Gyroscope
Intuitive Touch Screen Interface 11
Multi-Touch + Hovering for
Enhanced User Interface in Tablets and Smartphones
New Applications Enabled by MEMS 12
Navigation
& LBS
Remote
Monitoring
Image
Stabilization
3-Dim Tagging
Fitness/Wellness and
In-House Tele-health
Augmented Reality
Location Based Services (LBS)
Indoor Navigation
and Dead Reckoning
Image Stabilization
Dual-Core 3x Digital Gyroscope 13
GAMING OPTICAL IMAGE
STABILIZATION
NO OIS YES OIS
+
MEMS for Indoor Navigation 14
ST is the only supplier able to supply all of the MEMS sensors
necessary for geo-localization
MEMS + GPS + WI-FI enable Indoor Navigation
Accelerometer, Gyroscope, Magnetometer, Pressure Sensors
Paving the Way to a New Acoustic Era
Acoustic
Overload Point
Signal to Noise
performances
Source Localization
Unidirectional
Beam Forming
Sensitivity Matching
Beam Forming
Voice Capturing
Increased Intelligibility
Conferencing
Smart Accessories
Microphones
Headphone
15
Entering Automotive with Innovative Products 16
World First Automotive Grade 3-Axis Gyroscope
Analog and MEMS Around the Body 17
ECG
(Analog)
Glaucoma Lens
(MEMS)
Insuline Nano pumps
(MEMS)
3D Ultrasound
(Analog)
Remote Monitoring 18
ST Analog Front-End Ultra low power Small form factor
Blue NRG Radio
• BLE Controller
• BLE Stack for external Host Processor
• BLE profiles offer (proximity, watches, Health & Fitness)
Analog & MEMS for an Intelligent World 19
Sensors
(MEMS)
Analog
(ASSP) MCU
Wireless
(RF)
RF MEMS
ASSP
Sensors
(MEMS)
Analog
(ASSP)
Wireless
(RF)
Smart Sensors + On-Board Radio
Sensors & Radio in Smart System
Sport & Wellness
Healthcare Building Logistics Factory
Automation
Conclusions 20
• # 1 in MEMS Market and growing fast:
• Wide product portfolio and extended customer base
• Nimble product development
• Timely investment in fully-owned state-of-the-art manufacturing
• Expanding our presence in Automotive
• Enlarging our customer base entering in small and medium size customers with
new applications
• Well positioned to become undisputed leader in Smart Sensors for emerging
applications in Consumer, Automotive, Industrial and Healthcare Markets
• Leverage leading MEMS position, our nimbleness and investments to increase
presence in analog world of General Purpose Analog and ASSP
Digital Convergence
Gian Luca Bertino Executive Vice President,
General Manager, Digital Convergence Group
Robert Krysiak Executive Vice President,
President, Americas Region
© STMicroelectronics, 2012
50/50 JV with Ericsson
Focused Product Segments 2 2
Digital
Convergence
Group
(DCG)
Imaging, BiCMOS ASIC
& Silicon Photonics
Group
(IBP)
Automotive
Products
Group
(APG)
Analog,
MEMS &
Sensors
(AMS)
Micro,
Memory &
Security
(MMS)
Industrial &
Power
Discrete
(IPD)
Digital Automotive Analog &
Microcontrollers
Power
Discrete Wireless
Digital Convergence Group:
A Complete and Flexible Offer 3
Smartphones
& Tablets
Digital TV
& Monitor
Digital
Set-Top Box
Automotive
Infotainment
Network
Infrastructure
(ASIC)
● ASIC for network infrastructure & legacy markets (i.e. printers)
● ASSP for Digital TV, Monitor, STB, car infotainment
Q1 2012 Highlights 4
• Earned seven major design wins in China, Europe and the US for the new 40nm-IC mainstream STB family.
• Continued strong momentum in India cable and satellite markets leading to a doubling of sales volume by earning multiple design wins.
• Collected several design wins in Europe and Asia for the ARM Cortex A9-based, “Orly” high-performance Home Application processor manufactured in 32nm process technology.
• Earned design-in of Freeman family of products with a Tier1 OEM customer serving the European market.
• Won multiple design-ins at Tier1 OEMs with the “Athena” multimedia monitor system-on-
a-chip family into a diverse range of products, including high-performance monitors, TVs, and digital signage.
• Earned two ASIC designs in 32nm process technology for networking applications from a leading player in the market.
Growth Drivers:
Cloud Infrastructure & Multi-Screen Clients 5
Smartphones
Tablets, E-Readers
Set top boxes
Smart TVs
Mobile PCs Car Infotainment
Residential Gateways
Tremendous Business Opportunity 6
Source: ABI Research, HIS iSuppli, IMS Research Display Search, Strategy Analytics, Cisco, STMicroelectronics 2012-2015 Units
90M155M
245M285M
4M13M
80M100M
225M300M
645M1010M
120M200M
> 2 Billion Smart Consumer Devices by 2015 Global internet traffic to quadruple by 2015
Up
to
10
0 M
gate
s
20
0-4
00
mm
2
Up
to
50
Mga
tes
50
-20
0 m
m2
Up
to
20
Mga
tes
Up
to
50
mm
2
2008 2009 2010 2011
65nm 55nm 40nm 32nm
First Tape Out (Full Product)
First 28nm ASIC Award in Q1 2011
ASIC
2012
28nm
First ARM based Networking ASIC Award
in Q2 2012
> 10 new ASIC ramping up in 2012/2013
Best In Class • Technology • Methodology • IP Blocks
7
Athena
DisplayPort-based Product 8
HS Dual/ Quad LVDS
Audio L/R, SPDIF, I2S
DDR 2
Flash
VGA Component
3D Monitor/WQXGA
MFM
AIO PC / Net Monitor
Public Display
DP, iDP, eDP
Daisy Chaining
DAC
TTL
Audio L/R, SPDIF, I2S
9 Set-Top Box and TV
DCTS
All these and much more, already implemented & certified
Full range of Codec
Supporting All Connectivity
•Sata, PCIe, USB3, MultiPHY
•65/55nm shipping, 40nm ramping, 32/28nm sampling MiPhy
•1 GB/sec: 40nm available, 32/28nm sampling
•10 Gb/sec: 32/28nm in development (silicon in 2013) Ethernet
•65nm shipping,10 Gb/sec
•32/28nm in silicon, 14 Gbit/sec
•25 Gb/sec for 20nm in development
SerDes
•DP 1.2, 55nm shipping
•HDMI 1.4, 55/40nm shipping, 32/28nm in development
•MoCA, Docsis Consumer
Advanced Security and DRM
Best in Class Video IP
World Class IP Portfolio
Input
Video
Captu
re
D
R
A
M
DSP
Processor
RGB444 Graphics
Inp
ut
3x
3
Input
Scalin
g
TNR/SNR
CCS
AFM
DNR
MADi/MCDi
VPI
Output
Scaling
LTI/CTI
Sharpnes
s
SuperRe
s
ACC
ACM
Color
Controls
2D->3D
Composito
r
(picture
blender)
Pre
Gamma
LUT
Gamma
Map
3x3
LED
BKLT
DRV
Over
Driv
e
Post
Gamm
a
LUT
Dither
MVE
Frame Buffer
Controller
(DMA Control)
Input
Sourc
e
MUX
10
Leading Convergence: Next Step
• Creation of a dedicated unified processing platform team
• Combining strengths between ST and ST-Ericsson
• Skills, IP, Ecosystems, IP, R&D Critical Mass
• ST will develop a unified processing platform for a wide range of applications
• ST-Ericsson will license ST Application Processor
• ST will sell
• Stand alone application processor for smartphones and tablets applications through
ST-Ericsson’s sale channel (when existing sales coverage is in place)
• Directly stand alone application processor for all cases and/or applications not
covered above
11
To offer a unified processing platform to serve all markets
Unified Processing Platform 12
Converging on ARM Cores
M/P 2012 ->
Next Step Converging on
Unified Processing Platform
Software Framework
Service Operators
New Markets
Manufacturers
The Benefits of a Unified Platform
Unified Platform
• Multi device • Multi screen • Multi market
13
Secure services provider
Benefits for ST • Development synergies • Take the best in each domain • Unique position on multi segment
Benefits for the industry • Better TTM for multi segment services • Less effort for 3rd parties / manufacturers • Multi-device & services vision
Summary & Key Opportunities for DCG 14
ST Assets
• STB Market Leader
• Performance Leader
• Environment Commitment
Market Trends
• Entertainment
• Cloud Services
• Multi Interface and Screen
ST Growth in 2012
• Ramp of new ASICs
• Ramp of Athena and other DisplayPort products
• Ramp of Orly and other STB products
Imaging,
BiCMOS ASIC & Silicon Photonics
Eric Aussedat Corporate Vice President
General Manager, Imaging, BiCMOS ASIC & Silicon Photonics Group
Flavio Benetti
Group Vice President
General Manager, Mixed Processes Division
© STMicroelectronics, 2012
50/50 JV with Ericsson
Focused Product Segments 2 2
Digital
Convergence
Group
(DCG)
Imaging, BiCMOS ASIC
& Silicon Photonics
Group
(IBP)
Automotive
Products
Group
(APG)
Analog,
MEMS &
Sensors
(AMS)
Micro,
Memory &
Security
(MMS)
Industrial &
Power
Discrete
(IPD)
Digital Automotive Analog &
Microcontrollers
Power
Discrete Wireless
BiCMOS ASIC &
Silicon Photonics
© STMicroelectronics, 2012
ICs for
Optical Interconnect
BiCMOS in Communication Infrastructure 4
BiCMOS process family
RF ICs for
Base Stations
Market Trends 5
US$M 2011 2016 CAGR
Y16/11
Optical Modules ICs
(include Photonics) 325 570 11%
Infrastructure RF 160 360 16%
Mixed Processes Div
TAM 485 930 13%
Internet traffic Mobile network SI-photonics
• Internet traffic growth drives fiber optics
pervasiveness
• Mobile data traffic push Wireless Network
evolution from Macro Base Station to
Heterogeneous Network based on Small Cells
(Micro/Pico / Femto BS) driving RF market
demand increase
• BiCMOS demand is driven by higher
frequency and integration
• Miniaturization, growth in speed and strong
demand for reduced power consumption will
be driving factors for Silicon Photonics
Parallel optics
© STMicroelectronics, 2012
Our Pillars 6
2016 2012
R
F
ICs for Wireless Base Station Infrastructure
Technology : BiCMOS7RF Packages QFP etc.
Products : Synthesizer, Mixers. Down-Converter
Op
tica
l M
od
ule
ICs for Telecom & Datacom Optical Transceivers
Technology : BiCMOS9/MW Packages QFP etc.
Products : Trans-Impedance Amplifiers, Clock Data Recovery, Photo Detector
S
ilico
n P
ho
ton
ics
Components for Optical Connections (Transceivers etc.)
Technologies : PIC25 Photonic, Advanced Copper Pillar, Optical Packaging
Products : Integrated Transceivers, HS Data Link
ASSP/COT
Coming
Silicon Photonics and Luxtera Licensing
• ST and Luxtera, a world leader in Silicon Photonics, signed a
partnership contract in December 2011
• ST has acquired Luxtera technology license, and is setting up the
process in ST CMOS 65nm 12” Crolles line (PIC25G)
• Solutions will be based on Hybrid integration with CMOS die through
copper pillar technology
• ST will design, manufacture and sell products based on PIC25G.
• PIC25G process will be available in Q1 2014.
7
TIA
TIA
Drivers
CMOS
Circuitry
Photodetector
Passive
Alignment
Modulator ECL
Filter Multiple
Channels Silicon Photonics is a technology that allows to process
and manipulate light signals on silicon and that can be
produced using existing semiconductor fabrication
techniques.
Silicon Photonics allows dramatic increase in processing
speed and outstanding power consumption reduction.
© STMicroelectronics, 2012
LAN
Data Center
Routers
Switches
HPC
Silicon Photonics Application Areas 8
Transport
Metro
Access
Active optical cable
Transceivers
Photonics ICs
ASICs
Parallel processing
Multicore
interconnection
WAN
Enterprise
Rack to Rack
Board to Board
Chip to chip
On Chip
PRODUCTS MARKET SEGMENTS
© STMicroelectronics, 2012
BiCMOS Strategy 9
Optical ICs
RF
Silicon Photonics
• RF
• Develop RF ASSP Roadmap
• Address HetNet topology evolution
• Optical Modules ICs
• Consolidate leadership with key customers
• Develop Optical ICs for open market
• Silicon Photonics
• Set up process in Crolles 12”
• Address key customers
• Master full supply chain
Imaging
Imaging Division at a Glance
Core technologies
• FSI & BSI CMOS imaging process
• Pixel & sensor design & integration
• Camera module design & automation
• Image improvement algorithms & integration
• Innovative system development & industrialization
Imaging teams
• R&D in UK, France, Singapore & India
• Operations & manufacturing in France,
Singapore & China
• VLSI Vision, a pioneer of CMOS imaging, acquired by ST in 1999
• 1st imaging products started in ST in 1995
• Internal sensor manufacturing since 2000
• >700M sensors & camera modules delivered to mobile phone makers
• >900M sensors delivered to industry players
• >700M ISP delivered to the industry
A long standing commitment
11
More than 20 years experience in
CMOS image sensor technology,
camera system expertise & mass
volume manufacturing.
A Unique Value Chain: From internal
manufactured sensors to Cameras and
System Processing.
Imaging Market Trends 12
0
5000
10000
15000
20000
25000
2011E 2012E 2013E 2014E 2015E 2016E
CMOS sensors Other sensors Modules ISPs
TAM (M$)
39%
3% 2%
42%
2% 4% 4%
38%
6% 2%
34%
3%
3% 2%
4% 6% Phone cameras
Tablet cameras
PC cameras
TV cameras
DSC/DSLR
Camcorders
Gaming
Security
Automotive
Medical
Others
2012
$8.4B 2016
$13.3B
Source: IHS iSuppli, TSR, STMicroelectronics
• Continuous & important TAM growth,
and a rising everyday use of image
capture & sharing
• Increasing camera attach rate in mobile
handsets and tablets • Primary & secondary camera (avg. 4.7Mp in 2016)
• Growing ASP due to resolution evolution & camera
module
• CMOS eliminating CCD in Digital Still
Camera, migrating from high-end to whole
range
• New applications fueling growth: • Proximity sensing, user detection, optical HMI
• New market segments growing: • Automotive, gaming, medical, security, sports
Imaging Strategy: Diversification… 13
• Deploy products diversification and innovation across various segments and
lead new applications
• Proximity sensors
• Man machine interface, gesture recognition
• Automotive, gaming, medical, security
• Partnership with leaders in defined segments
• Support diversified business models
• Image sensors, sensors, modules, ISPs, wafers
• Expand on higher value segments in mobile imaging products
• New Products expansion: new moving optics camera / BSI image sensors & modules / Prime
camera & video modules / Generic, Customer Driven ISP’s
• Extending Customer Base
Mobile
Imaging Digital
camera
New
applications New
Markets
© STMicroelectronics, 2012
…keeping the 4 Pillars of ST Imaging 14
Im
ag
ing
Se
mi-co
nd
ucto
r Image Sensor
• Production from 1.4um to 5.6um pixel
• 1.1um development
• From VGA to 24Mpix
S
em
i-co
nd
ucto
r Sensor
• User detection
• Proximity module
• Optical navigation
• Man machine interface
• Automotive
• Medical
Pa
cka
ged
Le
ns &
Se
nso
r Module
• Fixed focus camera
• Wafer Level reflowable camera
• EDOF camera
• Auto-focus camera
• Innovative optics, assembly & test technologies
• ST manufacturing
• Key optics & supply chain partners
Ima
ge
Sig
na
l P
roce
ssin
g
Coprocessor
• Stand alone ISP
• Full ST video pipe IP
• Integration of third party IP on demand
• CMOS40nm ST & foundries in production
• Developing IC’s in12” CMOS28nm
• ST internal BGA assembly line
12’’ manufacturing capabilities both In-House and at Foundries
Recent Achievements 15
Mobile Phone
Design win and production volumes of a new improved low light sensor in some Windows smart-
phones. Phones shipping on the market now.
Design win and production volumes of a new ISP for an Android smart-phone market leader,
several phone models shipping on the market now.
3rd generation of fully integrated (ISP + image sensor), camera module in customer ramp-up.
Smart phones available now.
4th generation of reflowable camera module, with enhanced image quality in customer ramp-up
New applications
Security: Design win / business award at a leading security camera manufacturer
Medical: Business award of a new generation of CMOS X-Ray sensors for medical applications
with a leader in the industry
Digital still camera: Design win, business award in samples stage of a high performance large
image sensor for a leading brand
Proximity sensor: Technology hitting the market. Excellent customer feed-back based on
proprietary time of flight technology
Automotive: Won major safety system camera and processor for a key European Tier 1 and OEM
Industrial & Power Discrete (IPD)
Carmelo Papa Executive Vice President General Manager, Industrial and Multisegment Sector
Matteo Lo Presti
Group Vice President
General Manager, Industrial and Power Conversion Division
IPD at a Glance
• > 600 new products introduced in the
last two years
• 16% of sales with products less than 2
years old
• 160 new patents and patent applications
(filed or granted) in 2011
2
2009 2010 2011
2011 Key Facts
• TAM = $37.8 B • Billing = $2.1 B
• Market share = 5.5%
Innovation
Revenues
6,200 Available Products
5,900 Supported Customers
Source: WSTS, STMicroelectronics
AMERICAS 11%
EMEA 23%
GC&SA 57%
JAPAN & KOREA
9%
IPD: 2011 Results & TAM 3
AMERICAS 25%
EMEA 32%
GC&SA 33%
JAPAN & KOREA
10%
Distribution 46%
EMS 7%
OEM 47%
39 41 44 45 48 50
2012 2013 2014 2015 2016 2017
US$B
IPD Total Available Market >5%
CAGR
2012-17
Sales by region of shipment Sales by region of origin Sales by customer type
Source: WSTS, STMicroelectronics
New Products: Key Contribution to IPD Sales 4
Complementary to IPD advanced portfolio
Extremely competitive design
and manufacturing process
Power packages enabling
high power applications
and power density
optimization
10.5%
11%
> 14%
> 16%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
20
40
60
80
Q111 Q211 Q311 Q411
New Product Contribution (%) to IPD Sales
16 new key power and smart
power technologies
introduced in the last 2 years
2014 Target: 22%
Large Power, Analog and
Digital IPs portfolio for
developing Advanced Smart
Power products
Source: STMicroelectronics
IPD: Worldwide Leadership 5
High Voltage
Power
MOSFETs
( > 400 V)
#1
Market
Share
19%
Thyristors
& Triacs
( < 55A)
#1
Market
Share
24%
Schottky &
Ultrafast
Diodes
#1
Market
Share
14%
IPAD™
#1
Market
Share
23%
EOS, ESD &
Lighting
Protection
#1
Market
Share
13%
Analog
ASSP
(Industrial)
#2
Market
Share
11%
• A wide range of power and smart power
technologies
• Innovative power packages enhancing power-density
• Competitive manufacturing
• System-on-chip and system-in-package
expertise
• Innovative silicon structures and new composite materials
• Application know-how and experience
Distinctive Capabilities
Source: WSTS, IHS iSuppli, STMicroelectronics
Leading Positions in our Markets 6
Industrial 47%
Computer 19%
Telecom 15%
Automotive
10%
Consumer
9%
Computer
• #1 in Rectifiers for Server and Adapters
• #1 in HV Resonant Converter ICs for Adapters
• Key player in HDD Motor Control ICs
Telecom
• #1 in AMOLED Drivers
• #1 in ESD & EOS Protections for Mobile/Tablets
• #1 in IPADTM & RF IPD for Mobile/Tablets
• #1 in Protection for Phones, xDSL & Ethernet Gateways
• #1 in Rectifiers for Telecom Base Stations
Automotive
• Key player in HV Power Transistors for HEV/EV
• Key player in Rectifiers
• Key player in DC/DC for Car Infotainment
• Key player in Overvoltage & ESD Protection
Consumer
• Key player for HDMI-STB Protection
• Key player in HV Power MOSFETs for LCD TV
• Key player in LNB Supply ICs for STB and DTV
Industrial
• #1 in PLM for Smart Metering
• #1 in Fluorescent Lighting ICs
• #1 in PFC ICs & Diodes for SMPS
• #1 in HV Smart Driver for BLDC Motors
• #1 in Thyristors & Triacs for Heaters, Motor
Control, Load Activation and Light Dimming
Source: WSTS (end 2011), STMicroelectronics
Key Market Trends 7
Portable
Ultra low power & high efficiency
2015 IPD - TAM: $10B
CAGR (2012-15): 7%
Enhancing User Experience
Smart Grid
Green, sustainable, energy management & distribution
2015 IPD - TAM: $6.8B
CAGR (2012-15): 23%
Growing Energy Demand
Automation
Efficient, safe, comfortable, secure & private
2015 IPD - TAM: $7.6B
CAGR (2012-15): 14%
Integration & Connectivity
Source: IHS iSuppli, Semicast
Focus Applications & IPD TAM 8
Energy
Generation,
Conversion &
Storage
2015 TAM: $3.5B
CAGR12-15: 21%
Hybrid &
Electric
Vehicles
2015 TAM: $1.4B
CAGR12-15: 27%
Factory
Automation
2015 TAM: $2.2B
CAGR12-15: 7%
Industrial
Motor Drives
2015 TAM: $2.3B
CAGR12-15: 8%
Mobile,
Tablet &
Handheld
Consumer
2015 TAM: $6.4B
CAGR12-15: 13%
Consumer
Medical
2015 TAM: $1B
CAGR12-15: 9%
System Solution Approach
• Power Management and Smart Power ICs
• Industrial Analog ASSP and ASIC
• Rectifiers, Power Diodes & Protection
• Thyristor & Triac
• IPADTM and RF IPD
• LV Trench and HV Super Junction MOSFET
• IGBTs and Intelligent Power Modules (IPM)
• Microinverter and Power Optimizer for Photovoltaic
• Smart Metering with Power Line Communication
• Plug-in Hybrid and Electric Vehicles Battery Charger
• Power Modules for Industrial Automation
• LED Lighting
• AMOLED Power Supplies
Key Enabling Products
Smart Grid Automation Portable
Source: IHS iSuppli, Semicast, Yole Devéloppement, STMicroelectronics
• MDMeshTM V, the most innovative Super-junction technology
• Rectifier portfolio responding to all Inverter & µ-Inverter
topologies, output voltages and currents
• Intelligent Power Modules, hosting IGBT and Smart Drivers
Power Discrete
Focusing on Growing Markets 9
• Unique System-on-Chip architecture with highest integration for emerging SMART GRID applications
• Modular and flexible platforms allowing full application
coverage
• Narrowband and Broadband complete portfolio
Power Line Modem
80% Market Share in Smart
Metering
150% Sales Growth 2011 vs 2010
76% Sales Growth 2011 vs 2010
Tens of new Design-wins in key
customers on Appliances and Air Conditioning
$6.8B TAM in 2015 CAGR 12-15: 23%
110% Sales Growth 2011 vs 2010
Several Design-wins in Europe and
China now in ramp-up phase
2011 Key Achievements
Smart Grid
Source: IHS iSuppli, ABI Research 2011, STMicroelectronics
• IGBT, reducing power losses and improving power density; 3 new technologies introduced in the last two years
• smartDRIVE, advanced IGBT/MOS driver • Embedding OpAmp, Comparator and bootstrap Diode, smart
Shut-Down
IGBT and Gate Drivers
Focusing on Growing Markets 10
• Advanced Micro-Stepping and Multi-Motor Drivers (new easySPIN, dSPIN, FlexSPIN)
• Accurate and smooth motion with excellent position resolution
• Monolithic Motor Drivers (Power Spin)
• Compact, simple to use, scalable platform including a wide range
of devices to fit different design architecture
Motor Drivers ICs
$7.6B TAM in 2015 CAGR 12-15: 14% Automation
25% Sales Growth 2011 vs 2010
44% Sales Growth 2011 vs 2010
25% Market Share
More than 100 new worldwide
Design-wins
7% Market Share
2011 Key Achievements
Source: IHS iSuppli, WSTS, STMicroelectronics
Focusing on Growing Markets 11
• High Voltage Converters VIPerPlus • Towards zero stand-by consumption and monolithic power up to 40W
• Innovative Architecture for Mobile Phone Chargers
Smart Power: Low Power AC-DC
$10B TAM in 2015 CAGR 12-15: 7% Portable
2011 Key Achievements
• Complete system solution for mid-large size display • Full range portfolio including DC-DC supply, PMICs and Scan Driver ICs
• State-of-the-art BCD SOI technology
• Innovative miniaturized package
AMOLED Display ICs
• Common mode filter + ESD protection
• Deep attenuation ESD + EMI filters
• RF IPD (Couplers, Diplexers, Baluns, Filters) & Antenna Tuner
Integrated Passive and Active Devices (IPAD) & Protection
62% Market Share*
23% Market Share**
23% Sales Growth 2011 vs 2010
64% Sales Growth 2011 vs 2010
Source: IHS iSuppli, Semicast, * Barclays Capital, ** WSTS, STMicroelectronics
A Flavor on New Advanced Products
12
A Flavor on Advanced Power Discrete 13
Source: Yole Développement, STMicroelectronics
2015 SiC and GaN power
device TAM: > $0.5B
Innovative Structure with
respect to MDMeshTM V Power MOSFET MDMeshTM VI
• Improving performance with respect to MDMeshTM V
• 30% Lower Power Losses with respect to Best-In-Class
• Suitable for High End PV, HEV and Auxiliary Power Supply
SiC and GaN Developments
• 600/650V SiC Diode already available
• 1200V SiC Diode available in Q412
• 1200V SiC MOSFET (Planar Technology) available in Q412
• 650V / 200A HEMT GaN Transistor available in Q3 2013
WW
Growing
TAM 2015:
$5.6B
A Flavor on Advanced Power Discrete 14
Source: WSTS, STMicroelectronics
IGBT
• IGBT Trench Field Stop: the most advanced IGBT technology
offering 50% better efficiency than planar technologies
• IGBT 1200V Emitter Implant, 100 um Wafer thinning for better thermal characteristics and Power Module applications
• IGBT Emitter Implant (100A and 200A) for HEV Motor Control Applications
Power Modules
• High Power Modules for Industrial and Automotive
applications
• Proprietary ST packages, compact size and available in Solderable or PressFit Pins
• Now available in Engineering Samples
STA3G40K120P6S
Gap DRIVE platform
A Flavor on Advanced Smart Power 15
Source: IHS iSuppli, Strategy Analytics, STMicroelectronics
Galvanic Isolation: Key Benefits
• Space Saving
• High System Reliability
• Fast Communication Link
• Strong Signal Integrity
• Magnetic Field Immunity
• Easy Diagnostic
• Improved Safety
Galvanic Isolation: Target Applications
New Edge Technology for a wide range of
SoC applications
• Industrial Drives & Motion Control
• Automotive EV & HEV Drive
• Factory Automation
• Industrial Networking
• Solar Inverters
• Isolated Current Sensing
• Energy Metering Smart Sensors
• Anti-Tampering system
• Isolated IPM Module
WW
Growing
TAM 2014:
$2B
ST Patented
Technology
Isolation voltage 6 kV
A Flavor on Advanced Power Line Modem 16
Source: ABI Research, May 2012
COMET: Flexible PLM Solution
• Flexible DSP & Multi Digital Cores to address multiple standards
• Comply with multiple worldwide regulations and frequency bands
• Single chip solution for High End Energy Metering
COMET: Super Integration Advantages
• Smart Meter system cost reduction
• Bill of materials and cost reduction
• Production costs reduction
• Supply chain simplification
• Reliability and quality enhancement
• Less number of parts and connections
PLC
Modem
Metrology
Application
Layer
All Smart Meter functions
in a single chip!
WW installed
Smart Meters
CAGR 2011-17: 34%
from 97 Million
to 561 Million
A Flavor on Advanced Digital Power Conversion 17
Digital Power
• Main Advantages:
• Topology independent solution
• Control, Communication and Monitoring functions
• Thermal management
• Easy to program, easy to use
• Very high efficiency with control law adapted to load conditions
• Improved reliability:
• Black Box Recorder
• Faults Detector & Precursor
Target Applications
• High Power & High Efficiency
Converters: Photovoltaic , Telecom, Cloud Computing and Server
• High End Professional Lighting
• Smartphone and Tablets
• CPU Power Supply
Networking
Sensors
Analog
Front
End
Computing Actuations
Connectivity
Digital Power Management
Smart Power Path Handling Battery Management
Automatic Load Detection Control Algorithm
DSP
A Flavor on Advanced Products 18
Longer
battery life
Fewer dropped /
missed calls
Faster
data-rate
Increased
TRP & TIS (Total Radiated Power &
Total Isotropic Sensitivity)
RF Tuner
HVDAC*
Antenna
Tunability
Available in Module & Discrete
Antenna Tuners
• Mobile Phone antenna is matched by design (GSM or
3G) and/or configuration (“in hand” or “free space”)
• ST tunable solution adapts the antenna impedance to
various modes and preset configurations in order to optimize signal reception and power efficiency
*HVDAC: High Voltage Digital to Analog Converter
WW Smartphone &
Tablets
CAGR 11-17: > 20%
TAM: > 1 Billion units
Summary
• Focusing on High-End Growing Markets: Smart Grid, Automation and
Portable
• Enriching Power Discrete product families by introducing SiC, GaN,
advanced IGBT and Power Modules
• Combining efficient Power Technologies (IGBT, SiC, GaN) with Smart
Power ICs in Advanced Modules (high temperature, high current, …)
for Smart Grid and Automation markets
• Entering Digital Power Conversion in High Performance and High
Efficiency applications supporting new stringent energy regulations.
19
Microcontrollers
Claude Dardanne
Executive Vice President,
General Manager, Microcontrollers, Memory & Secure MCU Group
Francois Guibert
Executive Vice President,
President, Greater China and South Asia Region
Overview
2
Microcontrollers in MMS Group 3
GP Microcontrollers
• Serial EEPROM • RF memories • #1 WW Supplier
Memories Secure Microcontrollers
• General Purpose 8-bit and 32-bit MCUs
• Automotive 8-bit MCUs
• Personal and embedded security
• Secure Hardware platforms and turnkey solutions
Key Enablers • State-of-the-art embedded NVM technology • Advanced 8 & 32-bit CPU platforms
• System & Security expertise • Market leadership in key products
Supporting our target markets
Healthcare SmartGrid / Industrial Consumer Security Appliances
WW TAM Microcontrollers* 2008-14
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2011 2014
$M
From ~$9B in 2008 to ~$10B in 2014
General Purpose MCUs Secure MCUs
* WW TAM Microcontrollers excluding automotive, payphone memories & cards Source WSTS February 2012
4
ST Microcontrollers Revenues 2007-11
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
100
200
300
400
500
600
700
800
900
1000
2007 2008 2009 2010 2011
US$M
GP MCUs Secure MCUs MCU share %
MCUs Total revenues = General Purpose MCUs + Secure MCUs Market share for consolidated MCUs excluding automotive, payphone memories & cards Source WSTS February 2012
5
GP Microcontrollers by Market Segment
19%
63%
2%
10%
6%
Automotive
Consumer
Computer
Distribution
Smartcard, Industrial
and Others
2011 Revenues
6
Secure Microcontrollers Market Segment 7
68% 6%
1%
25%
Automotive,
Industrial
and Others
Consumer
Computer
Smartcard
2011 Revenues
Microcontrollers Global Presence
Americas
20%
32%
EMEA
32%
37%
Greater China
& South Asia
37%
20%
Japan &
Korea
11%
12%
2011 revenue by geography
% by location of order shipment (2011)
% by customer origin
8
Microcontrollers Market Share
• GP + Secure MCUs consolidated
• TAM CAGR 07-11: +1.8% Market share 2007: 4.7%
• $M Revenue CAGR 07-11: +16.8% Market share 2011: 8.1%
• General Purpose MCUs
• TAM CAGR 07-11: +1.8% Market share 2007: 2.9%
• $M Revenue CAGR 07-11: +16.9% Market share 2011: 5.0%
• Secure MCUs
• TAM CAGR 07-11: +1.5% Market share 2007: 10.7%
• $M Revenue CAGR 07-11: +16.7% Market share 2011: 18.8%
9
Source: WSTS, February 2012
2011 WW GP & Secure MCUs Revenues 10
0
500
1,000
1,500
2,000
2,500
US$M
Secure
General Purpose
Source: IHS iSuppli , March 2012
ST
#7 in 2009
#5 in 2011
Microcontrollers Highlights
• General Purpose Microcontrollers
• Very fragmented multi-segments market Tens of thousands customers WW.
• Well established and profitable business model.
• ST playing a leadership position in the migration to advanced 32-bit platforms.
• With the STM32 family, ST is providing the broadest portfolio based on ARM
Cortex-M CPU (> 300 P/N).
• Secure Microcontrollers
• Growth no longer driven only by the traditional “Smartcard” business.
• Growth also driven by new applications/customers requiring more and more
embedded security functionalities for:
• Near Field Communication
• Trusted Platforms
• Smart Grid
• Healthcare
• Brand Protection …
11
Growth Drivers and Market
Opportunities
12
From Societal Needs to Solutions 13
Energy
efficiency
& saving
Trust
&
Security
Healthcare
Societal trends IP & System Applications Solutions
Integrated Controllers
• Ultra low power
• A/D Converter…
Network and System
• IP protocols
• Harvested sensor nodes
• Power management…
RF Connectivity • NFC, Contactless card
• ZigBee, RF4CE, IPV6
• Bluetooth, BTLE, WiFi…
User interface
• Touch sensing
• Smart Display…
Security
• Trusted processing & SW
• Tamper resistance
• Cryptography…
Mobility
&
Ease of Life Home monitoring
Therapy control
Drug traceability
Pay TV, Touch Control
Brand protection
M2M
Mobile payment
ID, e-Passport
Sport coaching
Smart Metering
Appliance Control
Sensors Network
Appliances
Smart Grid &
Industrial
Consumer
& Audio
Security
General Purpose MCUs Strategy Outlook 14
Consumer
Advanced
Analog
Healthcare Market
focus
Priorities
SmartGrid
Ultra Low Power
& Wireless Technology
SW & Turn-key
platforms
Appliances Industrial
Secure MCUs Strategy Outlook 15
USIM, SE NFC, M2M
TPM Brand
Protection
Embedded Security
Advanced
security
PayTV
Transport Identity
Personal Security Market
focus
Priorities
Banking
Contactless
performance Technology SW & Turn-key
solutions
New Products
16
Very high speed Ultra low power
Advanced analog functions
In-house manufacturing
e-EEPROM 130nm 90nm
e-Flash 90nm 80nm 55nm
2009-10 2011-12 2013-14
e-NVM Technology Portfolio 17
STM32 L1
STM32 L4
STM32 L0
Product Families and Roadmaps
32-bit
Cortex SC300
ST33
Based on ARM Cortex - M family
32-bit
Cortex - M0
STM32 F0
32-bit
Cortex - M3
STM32 F1, F2
32-bit
Cortex - M4
STM32 F3,F4 Entry level
32-bit
Cortex SC000
ST31 Entry level
ST promote the
broadest portfolio
addressing a
very wide range
of applications
Address
8 & 16-bit market
Low cost, low
power focus
High computing
power including
digital signal
processing
capabilities
Address high
security market
requiring high
computing power
Cost & power
optimized to
address the
Contactless
market
High performance
Secure
MCUs
GP
MCUs
18
32-bit
Cortex - Mx
STM32 F5
Leading edge
computing power
and digital signal
processing
High
performance
Ultra Low Power Continuum
GP Microcontrollers – Features Trend
19
Memory
SRAM
FLASH
EEPROM
F/W Libraries
Peripherals
…More integration to connect the world and intuitively interface with people securely
Analog & Data Conversion
ADC, DAC, Comparators…
Sense & Drive
Accurately
Timers Counters
Hi-Resolution
Synchronize
Precisely
Digital Signal Processing
Enhanced instruction set
Magnify
User Experience
Wired Connectivity I²C, SPI, USART,
CAN, USB…
Transfer
Data
Wireless Connectivity
ZigBee, BTLE, ANT, RF4CE, WiFi, NFC…
Connect your
Digital Life
User Interface LCD, TFT,
Switches, Touch
Interact
Easily
Security & Crypto
Up to 256KB Up to 512KB Up to 2MB
Store
Increasingly Powerful
Computing
CPU
System
Power Mgt, Reset, Regulator, RTC,Osc
Secure Microcontrollers - Features Trend 20
Family Concept
ST23/31/32/33
MIFARE Classic & Plus,
DESFire
Flexible Memory
Concept
Wired Connectivity ISO 7816, USB, I²C, SPI, SWP…
Custom
Semi-custom
Wireless Connectivity NFC, ISO 14443
ST Secure OS +
Personalization =
ST Turnkey Solution
Card / OS vendors Secure and
Customized Software
MEMORY FLASH
Up to 1.2MB
EEPROM Up to 160KB
CPU Security
HW & SW Countermeasures
Cryptography
HW crypto engine
Crypto libraries
Key & Secret handling Black Box Secure
personalization
Enhance
Application Security
Pay Mobile
Connect your
Digital Life
Powerful
Computing
Authenticate
Surely
Protect
Secret
Protect against
Counterfeiting
… More security to enable a trusted and connected digital world
Integration
in Secure Ecosystem
Summary
21
Microcontrollers Summary
General Purpose Microcontrollers
Pursue market share gain capitalizing on 32-bit platform leadership.
Re-enforce STM32 family as the broadest WW portfolio based on ARM®
CortexTM-M cores, covering current and future needs for 8 to 32-bit markets
Bring added values around ARM® CortexTM-M cores
Enlarge portfolio with innovative IPs matching segmentation focus: Connectivity, Analog I/Os, specific FW libraries…
Capitalize on ST advanced e-NVM technologies enabling Ultra Low Power portfolio.
Secure Microcontrollers
Deploy security concept to new applications :
Brand Protection, M2M, Healthcare, Trusted Platform, Smart Grid, High end Telecom…
Introduce ST31 based on ARM® highly secure core SC000
Enlarge the contactless product portfolio
Migration to ST advanced e-Flash technology embedding
very advanced security features
22
ST-Ericsson – breakout session
Carlo Ferro
Chief Operating Officer
Ronen Ben-Hamou
Senior Vice President, Thin Modem Solutions, System Silicon
Development
May 23 2012
2
Safe harbor statement
This presentation contains forward-looking statements that involve
inherent risks and uncertainties. We have identified certain
important factors that may cause actual results to differ materially
from those contained in such forward-looking statements.
For a detailed description of risk factors see STMicroelectronics’
(NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US
Securities and Exchange Commission, particularly each company's
latest published Annual Report on Form 20-F.
3
Agenda
∙ Introduction
∙ Product Roadmap
∙ Q&A
4
Strengthening the fundamentals
∙ Strategy
∙ Focus
∙ Flexibility
∙ Customer base
∙ Expand accessible applications through partnership
∙ Grow beyond the traditional customer
∙ Cost structure
∙ Lowering the breakeven point
∙ Distinctive competencies
∙ >5000 patents plus parents IPR umbrella
∙ Know-how of about 4000 skilled R&D resources after restructuring
∙ Products
∙ Compelling roadmap
5
ModAp systems as a key strategic
differentiating offering through partnerships
∙ Focusing the R&D portfolio to deliver highly competitive complete system solutions in
the form of integrated ModAp platforms
∙ Repositioning whole business model to develop key building blocks either directly or
through partnerships
∙ Full continuity of ST-Ericsson committed roadmap and current customer engagements
• Partnership with ST
• Transfer of R&D
activities and
headcount
• Jointly promote
standalone APEs and
thin modems
• Build on current
capabilities
• Continue to develop
modem IP for ModAp
integration and to
offer thin modems to
customers
• Possibly license
modem IP to 3rd
parties
• Build on current
capabilities
• Develop either directly
or through
partnerships and
alliances
ModAp system integration
Modem Application
Processor Connectivity
RF
Power
Analog mixed signal
6
Halving the breakeven point
Opex reduction
Revenue breakeven point
Opex breakdown at completion
R&D focus at completion
ModAp
Modem
Connectivity
& Entry 4Q11 Margin
Improvement
Opex
Reductions
at Completion
Reven
ues (M
$ )
< 600M$
-
200
400
4Q11 4Q13
Op
ex (M
$)
SG&A
R&D
7
Roadmap
HSPA LTE
M5730/80
A9500 A9540
U9500 L9540
Connectivity
ARM
2xA9
1.2G
21
ARM
2xA9
1.85G
100
42
U8520
ARM
2xA9
1.2G
14
M7400/
M7300
In Production/Sampling 2012 2013/2014
U8500
ARM
2xA9
1G
14
To be
Announced
IMG
2xA9
1.2G
100
42
L8540
IMG
2xA9
1.85G
100
42
150
84 M74XX
To be
Announced
FD-SOI
IMG
Rogue
2xA15
2+G
150
84
To be
Announced
FD-SOI
IMG
2xA9
2+G
100
42
CG2900
GBF
To be
announced
CW1100
WLAN
CW1250
WLAN
CG2905
GBF
Partnership with ST for future
application processors
ModAps
GPU IP & speed (MHz)
ARM Processor & Speed (GHz)
Modem DL Speed (Mbps)
8
Thor™ M7400 is the major step
Traditional HW modem
Low synergy between RAT’s
Long time and high complexity to
add new NS features
Inefficient silicon area usage
SW/HW Modem
Flexibility of a soft modem
Power consumption of
a HW modem
Optimized silicon area
Thor M7400 transition
to the new architecture
Thor M5780 Thor next generation
Thor M7400 and next generation will harvest the benefits of the new architecture
9
A revolutionary modem architecture
Thor™ M7400
Groundbreaking architecture
Future architecture investment
Stability, flexibility and scalability
NAS
AS
PHY
HW
Common
& inter-RAT
Scalable common HW
GSM WCDMA LTE TD-
SCDMA
Common framework for data processing
Common framework for inter- RAT
10
Platforms for LTE smartphones and tablets
NovaThor U/L9540
(A9540+M7400)
10% power improvement
15 % size saving
20% less components
Significantly lower cost
NovaThor
3rd
Generation
NovaThor
L8540
Architectural continuity
Dual core ARM Cortex-A15
Imagination Rogue GPU
Next generation Thor modem
FD-SOI technology
NovaThor
L8540
11
NovaThor™ L8540 – Integrated LTE platform
Complete integrated LTE platform
• Dual ARM Cortex™ A9 @ 1.85GHz
• Imagination PowerVR™ SGX544 GPU
• LTE modem and full set of connectivity
Global 4G mobile broadband
• LTE (FDD/TDD) 100/50Mbps, HSPA+
42/11Mbps, TD-SCDMA
• Worldwide coverage with up to 8 bands
Best multimedia experience in an integrated
platform
• 1080p 3D and 1080p up to 60fps video
recording and playback
• State of the art 3D graphics
Extreme power efficiency for real-life usage
• Unique power management and low voltage
operation delivers up to 30% more battery life
12
Differentiation with FD-SOI Technology
∙ NovaThor L8540 in FD-SOI would have
∙ Operation up to 2.5Ghz
∙ 2x the performance possible at 0.6V
∙ 35% less power operating at max
performance of NovaThor L8540
∙ For a typical smartphone this
translates to:
∙ 4 hours more high-speed browsing
∙ 2.5 hours more HD video playback
∙ 2 hours more HD video recording
∙ Or an additional full waking day of use
∙ FD-SOI technology offers:
∙ More GHz and less power
∙ Reuse of existing design
∙ At comparable cost
∙ Working with ST
Q&A
top related