Rick Clemmer Media briefing in China Rick Clemmer, President & CEO NXP Semiconductors March 19, 2012 Shanghai
Today s agenda NXP update Share our vision Zoom in China 2
NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.2 billion in 2011. Our innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. 3
NXP in China 4 sales offices -Shanghai, Beijing, Shenzhen, Hong Kong China Manufacturing Sites WOFE: Guangdong (Assembly Operations) (1), Hong Kong (Assembly & Testing). (2) JV with majority share: Jilin (3) China R&D Center & Business Headquarter : Shanghai (4) JV with minority share: ASMC, ASEN NXP Jilin - 5" Wafer Fab JV with Jilin Semiconductor Company (3) Jilin 4863 employees in China as of Feb 2012 (excluding JV with minority share) ASEN - JV with ASE in 2007 NXP China WOFE & Majority JV (1) NXP Semi. Guangdong Ltd. # of Employee 3384 ASMC - Founding partner in 1987. Successful HK IPO in 2006. NXP is the largest shareholder Suzhou NXP Shanghai - R&D centers & country support (4) (2) NXP Semi. Hong Kong Ltd. 844 (3) Jilin NXP Semi. Ltd. 285 (4) NXP Semi. (Shanghai) Ltd 350 Total Staff 4863 About 1600 and 1400 employees in ASMC and ASEN respectively NXP HK - Founding JV partner in 1969. B/E Innovation & Competence centre + GSM sales agent (2) NXP Guangdong - a large discrete assembly & test site in China (1) Dongguan Hong Kong Shanghai 4
Continuous growth in China Revenue by geography 2011 Revenue by geographic view 2% 3% 5% 8% 25% 9% 36% USD 1,514 M 12% China Germany Singapore United States South Korea Netherlands Taiwan Other countries Increase of China revenue at NXP from 31% in 2009 to 34% in 2010, and 36% in 2011. 5
Today s agenda NXP update Share our vision Zoom in China 6
Semiconductor industry is driven by societal trends Energy Health Efficient power conversion & management CFL and LED lighting and back-lighting solutions Energy conservation: e-metering, smart appliances Smart and small hearing aids and headsets Personal health devices and portable medical imaging Biosensors Mobility Security Intelligent traffic management Car safety, security and remote diagnostics features Green cars: electrical vehicles, car networks Secure mobile transactions and secure identity Goods tagging, authentication and tracking Security and privacy protection 7
Semiconductors are the key enablers of China s 12 th Five-Year Plan o Protect the environment & improve energy efficiency; o Continue transitioning to an economy driven by domestic consumption i.s.o. exports o Develop 7 priority industries to increase their GDP contributions 1) New energy -> Nuclear, wind & solar power 2) Energy conservation & environmental protection -> Energy reduction targets 3) Biotechnology -> medicine & medical devices 4) New materials -> Rare earths & high-end Semiconductors 5) New IT -> Broadband networks, Internet of Things, network convergence 6) High-end equipment manufacturing -> Aerospace & telecom equipment, Smart Grid 7) Clean energy vehicles 8
12 th Five Year Plan and NXP Some examples Improve energy efficiency NXP s GreenChip New IT: Internet of Things Home and Building Automation (Lighting) Secure Mobile Transactions Connected Mobility for Clean Energy Vehicles 9
NXP IC innovations for energy efficiency with additional benefits GreenChip solutions for power and lighting (CFL/ LED) Improving energy efficiency & reducing carbon emissions For any device that draws AC power and offer many additional benefits Smart Lighting Control in the Smart Home 10
NXP NFC enables Internet of Things & secure mobile transaction Location Based Shopping NFC brings presence to location Transparent pricing More Smartphones than PCs in 2012? Flash Sales Fast, easy, fun Group Buying Power Refined social media in action Real time alerts Bridge between physical and virtual worlds Peer ratings 78% consumers trust peer recommendations 11
In the era of NFC NFC integration in Android and Windows 8 48 phones available, 90 design in projects for NXP Expansion of NFC app categories into gaming, health care, social local Launches or major progress with Wallets such as Google Wallet and ISIS (mid-2012 launch in 2 cities) 12
12 th Five Year Plan and NXP Some examples Improve energy efficiency NXP s GreenChip New IT: Internet of Things Home and Building Automation (Lighting) Secure Mobile Transactions Connected Mobility for Clean Energy Vehicles 13
NXP IC solutions for Clean Energy Vehicles 14
NXP IC solutions for Connected Mobility Telematics Intelligent, GPS based traffic management secure payment of mobility services location-based services automatic emergency calling, ecall Car-to-car and car-toinfrastructure communication (802.11 P) Car Access From single-function devices (immobilizers) to complex communication systems 15
Today s agenda NXP update Share our vision Zoom in China 16
China plays an important role for NXP Enabling the vision of Made in China to Design in China and Design for China 5 manufacturing sites in China (including JVs) Established design centers in China leveraging local design talents and to meet China domestic needs 1. Micro Controllers Unit Lab (MCU) in Shanghai 2. Lighting and Radio Frequency (RF) Lab in Shanghai 3. Automotive Technical Center newly established in Shanghai to fulfill China customers needs 17
Today s announcement: Design win with Ningbo Baishi, a large CFL and LED lighting provider in China. These energy-efficient CFL bulbs with NXP s ICs are the world s first to pass EU Stage 5 qualification, which goes into effective on Sept.1, 2013 The light bulbs use NXP s UBA2211 CFL driver ICs that are designed in NXP China s Lighting Lab Cooperating with China customers to enable energy efficiency products worldwide From lighting to power supplies to set-top-boxes, NXP is enabling leading Chinese manufacturers to qualify for stricter EU Ecodesign requirements Not only for export, NXP is ready to support China s domestic needs of energy-efficient green products. 18
In summary NXP continues to grow its activities and revenue in China NXP s IC solutions supports China s 12 th Five year plan. Examples: GreenChip to improve energy efficiency and reduce power consumption HPMS, ID and NFC solutions to enable New IT and Internet of Things Connected Mobility for clean energy vehicles Enabling the vision of Made in China, Design in China and Design for China For example: Today s announcement (CFL Dragon IC) design win with Ninbo Baishi 19