Automotive Conference Call 11 October 2016 Peter Schiefer Division President Automotive
m.s. trend m.s. trend m.s. trend Infineon's position in the automotive semiconductor universe Automotive semiconductors 2015 total market size: $27.4bn NXP** Infineon Renesas STMicro Texas Instr. 14.2% 10.4% 10.3% 7.7% 7.0% Trend Infineon benefits disproportionately high from the mega-trends clean cars and ADAS * /AD * Sensors 2015 market size: $4.2bn Microcontrollers 2015 market size: $6.5bn Power 2015 market size: $7.1bn Bosch 18.1% Renesas 32.7% Infineon 25.2% Infineon 11.9% NXP 26.6% STMicro 14.5% NXP 8.9% Infineon 8.6% NXP** 9.1% Allegro 7.6% Texas Instr. 8.5% Bosch 8.6% Melexis 7.0% Microchip 5.4% Texas Instr. 7.4% 24 / 77 GHz radar REAL3 TM sensor ADAS * /AD * Powertrain xev * penetration EPS Lighting ; ** Divestment of Standard Products business announced Source: Strategy Analytics, Automotive Semiconductor Vendor Market Shares, April 2016 2
Megatrends shaping the automotive market; significantly increasing semi content per car ADAS * /AD * ADAS * and AD * (automated driving) are critical enabler to reduce the number of fatalities and serious injuries ( Vision Zero ) Clean cars To reach CO 2 emission goals, the automotive industry has to focus on a higher efficiency of the classic ICE *, and the electrification of the drivetrain (xev * ) Connectivity/security Advanced connectivity is driven by making the car part of the internet Connectivity must be secure 3
automated car human driver Overview of an ADAS * /AD * system Sense Compute Actuate Camera inside Lidar Graphics processor Powertrain domain controller Radar Camera outside Ultrasonic Sensor fusion µc Safety domain controller Partially covered by Infineon Fully covered by Infineon 4
More sensors required for any next automation level lead to sensor cocoon in level 4/5 Application * Radar # of modules ** Level of automation Level 2 Level 3 Level 4/5 Automatic emergency brake/ forward collision warning Parking assist Valet parking Lane keep assist Highway assist Highway and urban chauffeur 3 6 10 Camera # of modules ** 1 2 8 Lidar # of modules ** 0 1 1 Others Ultrasonic Ultrasonic Interior camera * Source: VDA (German Association of the Automotive Industry), Society of Automotive Engineers ** Market assumption; ** Ultrasonic Interior camera V2X *** 5
Camera modules Radar modules Lidar modules Sensor fusion Total BoM Camera modules Radar modules Lidar modules Sensor fusion Actuators Total BoM Camera modules Radar modules Lidar modules Sensor fusion Actuators Total BoM * * * ADAS * /AD * semi growth driven by radar and camera sensor modules over the next 5 years Average semiconductor content per car by level of automation ** Level 2 (today) Level 3 (~2025) Level 4/5 (2030+) $30 $50 8% $140 $0 $400 $55 $110 $165 $25 $550 $60 $0 $0 $100 $180 $195 $40 Bill of material estimates include all type of semiconductors *** ** Source: Strategy Analytics, IHS Markit, Infineon; *** e.g. radar includes µc (see page 7) Sense Compute Actuate 6
Infineon s radar solutions reduce development efforts on customer side Infineon s value proposition The SiGe * -based radar solutions are the best solutions on the market Radar chipset transceiver processor safe power supply in-vehicle network Infineon s radar solutions facilitate the system integration at customers and reduce their development efforts Infineon s optimized solutions safeguard component interoperability and comply with functional safety requirements 7
Radar technology roadmap Use case Today 2020 ACC * /FCW * 77 GHz SiGe * AEB * 77 GHz SiGe * pot. 77 GHz RF CMOS Blindspot 24 GHz SiGe * pot. 77 GHz RF CMOS 77 GHz SiGe * Parking Ultrasonic ** pot. 77 GHz RF CMOS 77 GHz SiGe * ** not offered by Infineon 8
Based on current design wins, Infineon will outgrow 24 / 77 GHz radar sensor IC market Past today tomorrow Radar sensor IC market 2015 market size: $86m * Leading customer base Infineon s radar sensor IC market share Infineon Others 57% 43% North America EMEA APAC/Japan Infineon leads the market for radar sensor IC Infineon is key supplier to the leading radar module makers in every region Infineon will outgrow the market Infineon is strengthening its market leadership in the radar sensor IC market * Source: IHS Markit, ADAS Sensor Market Database H1 2016, August 2016 9
Infineon enters lidar business through acquisition of Innoluce Key facts about Innoluce founded in 2010 as an entrepreneurial spinoff of Royal Philips fabless semiconductor company headquartered in Nijmegen, The Netherlands key competence on miniature MEMS-based laser scanning modules enabling long range (>200 m) and high resolution (<0.1 ) corresponding mirror control ASIC Deal rational Infineon completes its ADAS sensor system offering Infineon intends to repeat its radar success story Infineon will make lidar an affordable feature for every new-built car 10
... Infineon opens the door for mass-deployable lidar systems for automated driving MEMS-based lidar reference design laser source MEMSbased mirror detector diodes Innoluce s key competence Mirror control ASIC Amplifier System ASIC µc The first lidar systems introduced in premium cars within the next couple of years are based on mechanical scanning mirrors which are bulky and less robust In order to enter the car mass market lidar must get rid of mechanical parts Power supply / Power management Infineon s key competence MEMS-based lidar systems are more compact more cost-effective more robust 11
Camera systems: AURIX 32-bit real-time µc is key element as host controller Camera system overview Sensor chip Sign. processor Safe host Power supply Front camera + AURIX + + Driver monitoring REAL3 + + AURIX + AURIX positioning AURIX microcontroller is today the reference for safety in fail-operational systems ( ASIL-D ) The secure microcontroller with its embedded Hardware Security Module (HSM) is designed-in in many future camera systems offered by Infineon not offered by Infineon 12
AURIX as market reference for safe and secure applications ADAS*/AD* Sensor fusion AURIX as main or host controller Domain control AURIX as real-time main controller Fusion Domain Gateway New infotainment Connectivity gateway AURIX as real-time main controller radar and camera CON Shipping 2016 Radar and camera AURIX as main ** or host controller Shipping 2015 Shipping 2017 Always-on connectivity AURIX as host controller Shipping 2016 ; ** for radar More than $1bn design win volume Shipping 2018 13
From L2 to L3, requirements for redundancy boost semi BoM * for driving functions by 30% Level 3 (L3) ** Actuate Example: electric power steering Longer time for driver to take over Car needs to be failoperational Redundancy in driving functions are required System understanding enables cost effective solutions 2 nd auxiliary motor needs MOSFETs and drivers Redundant sensors ** Hands and feet off, eyes and brain on (see page 16) 14
Infineon's product portfolio fosters revenue growth in ADAS * /AD * for the next decade Today 2020 2025 Driver Monitoring $ $ $ $ $ Front $ $ $ $ $ Rear/surround $ SiGe * 77 GHz $ $ $ $ $ $ $ $ SiGe * 24 GHz $ $ $ $ $ $ $ $ RF CMOS $ $ $ Sensor fusion $ $ $ $ Others Lidar $ $ $ $ $ Actuators $ $ Sense Compute Actuate 15
Automated driving ADAS * /AD * semi BoM * growth is driven by radar and camera sensor modules Market penetration per level of automation ADAS * L5 Driverless L4 Fully automated L3 Highly automated L2 Partly automated L1 Assisted 2035 up to 10m vehicles p.a. 2030 up to 10m vehicles p.a. 2025 up to 10m vehicles p.a. 2020 up to 20m vehicles p.a. 2015 up to 20m vehicles p.a. 2015 Source: IHS Markit, McKinsey, UBS, Infineon tomorrow 16
Increasing semi content Automated driving Outlook: Infineon benefits from trend towards shared autonomy Infineon enables shared autonomy Increasing semi content owned autonomy shared autonomy Vehicle sharing Legislation will drive ADAS * /AD * to reduce the number of fatalities and serious injuries With the level of automation the average semi content of cars will increase today shared economy Increasing mobility demand Increasing mobility demand The demand for ad-hoc mobility will increase Shared autonomy will be available for user groups which currently use other means of transport Impact on fleet of vehicles: Shared autonomy leads to higher utilization and thus faster replacement cycles 17
Megatrends shaping the automotive market; significantly increasing semi content per car ADAS * /AD * ADAS * and AD * (automated driving) are critical enabler to reduce the number of fatalities and serious injuries ( Vision Zero ) Clean cars To reach CO 2 emission goals, the automotive industry has to focus on a higher efficiency of the classic ICE *, and the electrification of the drivetrain (xev * ) Connectivity/security Advanced connectivity is driven by making the car part of the internet Connectivity must be secure 18
Technology roadmap: SiC * is the option of choice for most demanding xev * subsystems Sweet spots for SiC * -based xev * subsystems P [W] [log scale] 1M Inverter SiC * MOSFETs 100k Si IGBT Booster 10k Si MOSFET Onboard OBC charger 1k Auxi- DC/ DC-DC liaries 1k 10k 100k 1M f [Hz] [log scale] Advancements in SiC * technology will penetrate more and more xev * subsystems over the course of the next years 19
Power Infineon offers the most complete portfolio of power semis to match OEM and tier-1 needs Plug-n-Play Scalable products Bare die Application Main inverter HybridPACK solutions HybridPACK DSC Bare die Onboard charger, auxiliaries Easy modules Discretes IGBT driver Ease of design integration Design flexibility 20
Total Infineon will benefit more and more from the increase in xev * penetration Average xev * semiconductor content by degree of electrification BoM * BoM * ICE Power Others ICE Power Sense μc Others Total Total Mild-hybrid * / 48 V PHEV * / HEV * EV * $415 $15 $60 $77 $50 $49 $29 $339 $47 BoM * Power Sense μc Others In contrast to micro-hybrid systems, these systems support aside from start-stop functionality DC-DC conversion (12/48 V) recuperation (coasting/sailing) e-motor use auxiliary applications $29 Adder for DC-DC, inverter, onboard charger $284 $15 $60 $712 $387 $77 $190 $705 $47 $339 2015: 0.2m units 2020: 3.4m units 2025: 15.0m units 2015: 1.9m units 2020: 5.5m units 2025: 15.0m units Source: IHS Markit, Alternative Propulsion Forecast, January 2016, Infineon 2015: 0.4m units 2020: 1.4m units 2025: 10.0m units Sense Compute Actuate 21
In 2015, 7 out of 10 top selling EVs * were powered by Infineon World s top 10 selling EVs * Sold cars in 2015 Drivetrain powered by Infineon US car manufacturer 51,390 Nissan Leaf 43,651 Mitsubishi Outlander 43,269 BYD Qin 31,898 BMW i3 24,083 Kandi Panda 20,390 Renault Zoe 18,846 BYD Tang 18,375 Chevrolet Volt 17,508 Volkswagen Golf GTE 17,282 Source: InsideEVs.com, Baader Helvea Equity Research, Infineon 22
Megatrends shaping the automotive market; significantly increasing semi content per car ADAS * /AD * ADAS * and AD * (automated driving) are critical enabler to reduce the number of fatalities and serious injuries ( Vision Zero ) Clean cars To reach CO 2 emission goals, the automotive industry has to focus on a higher efficiency of the classic ICE *, and the electrification of the drivetrain (xev * ) Connectivity/security Advanced connectivity is driven by making the car part of the internet Connectivity must be secure More information at Infineon Automotive presentation (pp. 19) 23
ADAS * /AD *, clean cars, and adoption of premium features drive growth Vehicle production Drivers for semiconductor content per car Clean cars ADAS * /AD * Comfort, premium ~2% growth p.a. Driven by legislation Improvements of ICE * (e.g. EPS * ) Adoption of xev * Higher efficiency of all electric consumers Today: crash avoidance ADAS * Tomorrow: AD * Premium cars are early adopters of high-end comfort and safety features Trickling down to midrange ~8% p.a. through-cycle growth 24
Summary Our achievements #1 across the main applications powertrain, safety, body and comfort ** #2 overall position in the automotive semi market *** 40 years of experience in the automotive semiconductor market 50% of revenue growth will stem from ADAS * /AD * and clean cars over the next 5 years Our targets Outgrow the automotive semiconductor market Sustain and expand high market share in ADAS * /AD * and clean cars ** Source: Strategy Analytics, Infineon; *** Source: Strategy Analytics 25
Glossary ACC AD ADAS AEB BoM EPS EV FCW HEV ICE micro-hybrid mild-hybrid PHEV SiC SiGe V2X xev adaptive cruise control automated driving advanced driver assistance system automatic emergency braking bill of material electric power steering electric vehicle forward collision waring mild and full hybrid electric vehicle internal combustion engine vehicles using start-stop systems and limited recuperation vehicles using start-stop systems, recuperation, DC-DC conversion, e-motor plug-in hybrid electric vehicle silicon carbide silicon germanium vehicle-to-everything communication all degrees of vehicle electrification (EV, HEV, PHEV) 27