Urban Mobility driving global megacities out of the jam. Lars Reger VP Strategy, New Business, R&D - NXP Semiconductors Hamburg, Feb.

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1 Urban Mobility driving global megacities out of the jam Lars Reger VP Strategy, New Business, R&D - NXP Semiconductors Hamburg, Feb. 2012

2 Global Trends - Challenges for Society Connected Mobility Growing demand for information & communication Desire for individualization (lifestyle) Increased Safety & Convenience Growing demand for safety and security Increasing Mobility Shift of demographic balance among regions Shortening of natural resources Growing need for environmental care Shift of economic balance among regions CO 2 reduction COMPANY CONFIDENTIAL 2

3 Modern (Urban) Transportation Secure Connectivity is THE KEY ENABLER Ticketing Payments ecall Car Access Entertainment (content management) Smart Navigation Environmental Zone 90% of all automotive innovations are enabled by electronics, making semiconductors a critical success factor Some examples of connected mobility... Road Pricing Car Sharing Remote Car Management Personalization Rental Car Own Car ecar charging COMPANY CONFIDENTIAL 3

4 NXP connects the car! Cars... People... Infrastructure p p LF, UHF 4

5 Secure Telematics The core of connected Mobility

6 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility location-based services Location-based services... to find and reserve your closest battery charging spot or car sharing opportunity... for ecall... and many more use cases Telematics NFC Authentication 6

7 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility secure payment Smooth and secure payment, no matter which type of transport Telematics NFC Authentication 7

8 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility road pricing / traffic management Flexible road pricing concepts and traffic management based on GPS Telematics NFC Authentication The Netherlands: IBM &NXP conduct joint field trial testing GPS-based kilometer pricing Singapore: Strong involvement in Next Gen. Roadpricing Trials 8

9 Roadpricing - Expected Benefits Study of Roadpricing in The Netherlands 58% reduction in delays caused by traffic jams 15% reduction in total number of kilometers driven 6% increase in passenger kilometers via public transportation 60% percent of Dutch households would pay less than today for motor vehicle tax & vehicle purchase tax 2 out of 3 car drivers fully supported the principle BUT: No country wide implementation due to a change of government just before the final approval

10 First Trial Road Pricing in The Netherlands 50 NXP and IBM employees Tariff depending on distance, time and place (road type) Tariff in Eurocent per km 8 9 am 5 6 pm Outside of rush hours City, local roads Circular roads 10 5 Highways 5 3 Outside region 2 2 Phases: 1. Zero measurement 2. Improvement competition: rewards 3. No rewards, check impact

11 Conclusions after > km & >2Mio GPS positions Road Pricing Trial in The Netherlands Showcase on Public Private Cooperation: 11 partners, 8 countries ~70% of drivers improved behavior when rewarded These users showed >16% improvement in average cost / km When reward was removed, of all drivers 2 out of 3 increased average cost/km again The Core Technology for Kilometerbeprijzing is Available and can also be used for Value Added Services

12 European Countries with Roadpricing Schemes

13 Singapore Recognized the issue of congestion and pollution in the early 70s! Implemented toll gates in 1975 Switched to electronic tolling in : Trails to evaluate GPS based road pricing per kilometer instead of only at the toll gates USA today: Aug. 2011

14 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility remote car management Remote car management: car finder, vehicle status & maintenance, battery health, remote route planning, fleet management... Two-way RF Telematics Authentication 14

15 Smart and connected car keys NFC mhz immobilizer 2-way RF Immobilizer 434 mhz 125 mhz Keys have evolved from single-function devices (immobilizer) to complex communication systems with various communication interfaces. 15

16 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility - personalization Personalizing your car settings NFC Authentication 16

17 Automotive Semiconductor solutions to fulfill the rising demand for connected mobility car-to-x communication C2X for hazard warnings and smooth traffic flow p via Software-defined Radio Telematics Authentication 17

18 Car-to-X Communication: Use Cases Lars Reger, NXP

19 Key challenges in car-to-x communication Ability to see through objects First automotive-ready C2X platform Reliable reception quality around highrise buildings & fast-moving objects Cost-efficiency to enable mass deployment Low power-consumption Test at 90 km/h highway: conventional WiFi fails with fast-moving vehicles Conventional WiFi radios don t meet requirements of harsh traffic environments and can t achieve automotive-level reliability: Dedicated IEEE802.11p implementation required start turn stop Conventional WiFi First automotive-ready platform NXP/Cohda NXP technology selected for simtd field trial starting spring 2012

20 But Connected Mobility requires secure protection against manipulation, hacking, fraud, and counterfeiting 20

21 Automotive integrity & security issues Connected Car (H) EV Manipulation Counterfeiting Increasingly connected and open car Brings with it one of the banes of the Regular connection to the Grid at many charging facilities. Easy access to IVN (via OBD). Immobilizer reflashing Counterfeiting is not a cottage Industry! Counterfeiters don't have to cover R&D, marketing, and Secure billing and Car key replication Internet: hacking battery swapping... resulting Engine tuning advertising costs. IVN security is a Safe charging in safety risks, environmental pollution, precondition to financial Protection damage of to car Unpaid owners (optional) and car makers Parts are looking Car2X (ITS) expensive batteries, feature activation, good but performing communications against theft etc bad. 21

22 Are now a reality Researchers Show How a Car s Electronics Can Be Taken Over Remotely By John Markoff, published on March 9, 2011 Vehicle odometer fraud jeopardizes safety and pocketbooks published on April 19, 2011 Counterfeit auto parts flood China s aftermarket Namrita Chow, Shanghai on February 10,

23 NXP s security solutions for vehicles secure access to in-vehicle networks Secure microcontrollers Contactless readers Contactless Tags & Labels secure financial transations (e.g. evehicles) privacy protection in tracking applications vehicle identification in traffic and fleet management applications (electronic chassis number, license plate) remote software upgrades theft protection for vehicle parts prevention of tuning and manipulation device protection (authentication) against cloning or counterfeiting secure data container (black box, e.g. DER) secure feature activation 23

24 Conclusion Future mobility concepts are enabled by semiconductors Industry focus is on CO 2 reduction and Connected Mobility 90% of automotive innovations are based on electronics Semiconductors are critical for making Connected Mobility a reality examples: semiconductors enabling car-to-x communication smart and connected car keys But: Connecting the car to the outside world also means: powerful security systems need to be in place! What it takes to securely connect the car... Strong technology base and deep application insights from various disciplines telematics, identification, broadcast reception, in-vehicle networking Strong support link with eco-system (government, legislation, universities) 24

25 Thank you! 25