communication infrastructure 5g teach -in

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PUBLIC NXP, THE NXP LOGO AND NXP SECURE CONNECTIONS FOR A SMARTER WORLD ARE TRADEMARKS OF NXP B.V. ALL OTHER PRODUCT OR SERVICE NAMES ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS. © 2020 NXP B.V. DECEMBER 2020 Paul Hart Executive Vice President and General Manager Radio Power, NXP Semiconductors COMMUNICATION INFRASTRUCTURE 5G TEACH-IN

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Page 1: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

PUBLICNXP, THE NXP LOGO AND NXP SECURE CONNECTIONS FOR A SMARTER WORLD ARE TRADEMARKS OF NXP B.V. ALL OTHER PRODUCT OR SERVICE NAMES ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS. © 2020 NXP B.V.

D E C E M B E R 2 0 2 0

Paul HartExecutive Vice President and General ManagerRadio Power, NXP Semiconductors

COMMUNICATION INFRASTRUCTURE 5G TEACH-IN

Page 2: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

FORWARD LOOKING STATEMENTS

This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: the duration and spread of the COVID-19 outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume; market demand and semiconductor industry conditions; the ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP's established supply chains; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; the ability to accurately estimate demand and match manufacturing production capacity accordingly or obtain supplies from third-party producers; the potential impact of the outbreak of COVID-19 on NXP's business, operations, results of operations, financial condition, workforce or the operations or decisions of customers, suppliers or business customers; the access to production capacity from third-party outsourcing partners and any events that might affect their business or NXP’s relationship with them; including the outbreak of COVID-19 or the requirements to suspend activities with customers or suppliers because of changing import and export regulations; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with alliance partners; the ability to win competitive bid selection processes; the ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; and, the ability to maintain good relationships with NXP's suppliers. In addition, this document contains information concerning the semiconductor industry and NXP’s market and business segments generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry and NXP's market and business segments may develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. There can be no assurances that a pandemic, epidemic or outbreak of a contagious diseases, such as COVID-19, will not have a material and adverse impact on our business, operating results and financial condition in the future. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after the date of this event, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

Page 3: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

VERY EARLY STAGE OF 5G SUPER-CYCLE

Precision Virtual Control

Ultra-reliable and low latency communicationsMassive machine type communications

2019+2021+

2023+

Mobile broadbandNew business cases with 5G Stand-AloneExtended deployment cycleCost / power consumption / miniaturization

5G DEPLOYMENT DRIVERS

NXP’S 5G INFRASTRUCTURE FOCUS

#1 Provider of RF Power devices5G Access Edge programmable modems

Sources: Jefferies, NXP

Real-timeData Analytics

Connected Devices

SmartEverything

Fixed WirelessService

AR/VR

Cloud-basedGaming

Autonomous Driving

LatencyCoverage

Capacity

Precision VirtualControl

5G DEPLOYMENT STAGES

Enhanced mobile broadband

Enhanced Wireless Services

Page 4: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

5G IS A D IVERSE AND COMPLEMENTARY NETWORK ECOSYSTEM

MULTIPLE NETWORK ARCHITECTURES

RAPIDLY EVOLVING DEPLOYMENT

FLEXIBILITY TO RF MARKET DEMANDS

NXP SERVES ALL 5G CONFIGURATIONSFrequenciesPower levelsArchitectures

5G Macro

5G mMIMO

5G mmWave

Suburban, rural

Urban, small cells

Dense urban, fixed-wireless access

WiFi6/7

25 km

1 km

100 m

25 m

Source: NXP, 3GPP

Page 5: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

800 MHz

RIS ING RF COMPLEXITY WITH 5G FREQUENCY AND POWER EVOLUTION

600 MHz 12 GHz

100+ GHz

GaN

SiGe

1 MHz 4 GHzLDMOS

1.8 GHz

800 MHz 2.1 GHz

600 MHz 2.7 GHz

>1 GHz Bandwidth Multi-GHz Bandwidth

12 GHz

20-200 MHz Bandwidth

600 MHz 6 GHz 26-28 37-47 GHz

1 GHz Bandwidth

600 MHz

5G4G

6G

3G2G

Source: NXP, 3GPP

Page 6: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

5G Macro 5G mmWave

NXP RF

NXP ADDRESSING ALL SYSTEMS

ACTIVEANTENNA

SYSTEM

5G mMIMO

Coverage Capacity

NXP BEAMFORMING ICBASEBAND

PA ELEMENTS X 256

BASEBANDNXP RECEIVER

MODULE

NXP PA MODULEPOWER AMPLIFIER X 64

NXP DRIVERMODULE

PASSIVEANTENNA

BASEBAND

POWER AMPLIFIER X 4

NXP DRIVER

NXP HIGH-POWER TRANSISTOR

1X Content

4T4 X 40 W

3X Content

32T32 X 10 W

4X Content

64T64 X 5 W

3X Content

mmWave256 X 200 mW (25 W)

2X Content

8T8 X 40 W

4X Content

mmWave256 X 200 mW

Source: NXP

Page 7: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

NXP TECHNOLOGY LEADERSHIP

SiGeSub 6 GHz controllers and receivers

Highly integrated mmWave ICs

Leading RF performance with cost structure of silicon

GaNUnique feature-set for 5G infrastructure

Ramping world-class fab in 2020

Performance, quality and scale for 5G leadership

SystemComprehensive RF to Access Edge solutions

Advanced IP for system optimization

Hybrid technology integration

Scalability to 6G

LDMOSDecades of industry leadership

Extending performance to > 4 GHz

Most cost-effective power technology

LDMOS

GaN

SiGe

Scale, QualitySecure Supply

Page 8: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

DRIV ING DOWN SYSTEMS COSTS THROUGH INTEGRATION

2018 2020 2021ICs and Discrete Transistors Integrated Amplifier Modules Highly Integrated Radio Board

X 4

NXP Focus Expansion

X 64

Smaller Radio Board

25%

X 64

Pre-Amplifier

PAM with control

Switch +

LNA

FilterCirculator

Radio Board

Driver Amplifier

Power Amplifier

Pre-Amplifier

Control

LNA

FilterCirculator

Switch

50%

Smaller Radio Board

Pre-Amplifier

Power AmplifierModule

FilterCirculator

Control

LNA Switch

Source: NXP

Page 9: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

Sources: NXP CMI

More RF Power content per base station

More addressable content value

x

x2020e 2023e

$1.7B

$2.5B

RADIO CONTENT GROWTH DRIVES STRONG SAM EXPANSION

More radios deployed

Page 10: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

COMPREHENSIVE INFRASTRUCTURE FOCUSED PORTFOLIO

GaN

LDMOS

SiGe

SOI

High-Power Plastic Packaging

Advanced Package Platforms

Integrated Module Platforms

Wide-band / Multi-band IP

WiFi 6/7 and mmWave IP

High-Power LDMOS

Discretes

High-Power GaN

Discretes

LDMOS ICs

GaN mMIMO Discretes

LDMOS Modules

Hybrid GaN Modules

Receivers and

Pre-DriversmmWave WLAN

Mobile

WLAN Access Points

Macro mMIMO mmWave WLAN

Bro

ad te

chno

logy

tool

box

Extensive portfolio serving all 5G configurations

Sources: NXP

and WiFi 6/7

Page 11: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

EFFICIENCY CRIT ICAL FOR TOTAL COST OF OWNERSHIP

2018 2019 2020

40%

45%

2021e 2022e

50%

55%

60%

$1 Billionelectricity savings per year

20%

Radio sizereduction

Radio weightreduction

Significant carrier benefits from 5% efficiency increasemMIMO Module Power Efficiency

Sources: NXP

20%

Page 12: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN

NXP POSIT IONED FOR LEADERSHIP IN 5G

TRUE LEADERSHIPSTRONG MARKET GROWTHDifferentiated RF solutions

Technology Leadership

Integration Focus

System Expertise

Cost Focus

Scale

Roadmap to 6G

Market Share(1)

Entering 5G super-cycle

2023e2020e

$1.7B

$2.5B

40%

Sources: Based NXP Revenue, NXP CMI(1): market share based on 2019 revenue

Growth in line with market

Page 13: COMMUNICATION INFRASTRUCTURE 5G TEACH -IN