Automotive Business Update Maxim Integrated December 5, 2017
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, the Company s projections and statements regarding revenue, gross margin, earnings per share, capital expenditures and other financial and business metrics. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to the Company s Annual Report on Form 10-K for the fiscal year ended June 24, 2017 for a description of some of the risk factors that could cause actual results to differ materially from such forward-looking statements. All forward-looking statements included in this presentation are made as of the date hereof and based on the information available to the Company as of the date hereof. The Company assumes no obligation to update any forward-looking statement. 2
Over a Decade of Innovation in Automotive Semis 1 2 3 4 Maxim s Automotive Growth Drivers Electrified Vehicles Advanced Driver Assistance Systems Q&A Session 3
The Next Waves of Automotive Growth Electrification Battery Management Systems (BMS) ADAS Serial Link Power Management 4
Electrified Vehicles and ADAS Adding to Infotainment Foundation >30% CAGR $185M >$475M ADAS Electrified Vehicles Body Electronics Infotainment Maxim s Automotive Applications Automotive USB Body Control Display Power ECU Power Management and Voltage Regulation Electrified Vehicle Battery Management Exterior and Interior Lighting Infotainment Power Management Low Noise Amplifiers Remote Keyless Entry RF Tuners and Receivers Video and Data Distribution CY2012 Source: Maxim Integrated CY2017F 5
Electrified Car Production to Triple by 2022 2017F 5% 2022F 11% Inflection in EV Adoption Regulation Air Quality Cost of Ownership ~4M Electrified Cars of 95M Total Car Production ~12M Electrified Cars of 107M Total Car Production Source: Strategy Analytics. Electrified Cars includes Battery Electric/Plug in Hybrid/Hybrid Units 6
Diversified Portfolio of EV Design Wins CHINA FRANCE Phasing out combustion engines OEM scores on emissions starting 2019 2040 target of 100% EV Sales Design Wins at 28 Auto OEMs Japan Korea UNITED KINGDOM 2040 target of 100% EV sales North America China INDIA 2030 target of 100% EV sales Europe 7
...... Differentiated BMS Architecture Enables Highest ASIL Standard Li-Ion Battery Module + Maxim s 4 th Generation BMS ASIL D Certified Pack Switch BMS BMS BMS Li-ion Cells Battery Module Li-ion Cells Battery Module Li-ion Cells Battery Module Isolation - Master Controller Pack Switch Proprietary Interface 8
Maxim Has Solutions for Every EV Category Electrified Vehicle Production Per Year [Mu] 14 12 10 8 6 4 >20% CAGR Battery Electric (Car) Plug in Hybrid Battery Electric (Bus) Battery Pack Capacity Maxim s BMS Content Opportunity Full Hybrid 1 2 kwh $10 $20 Plug-in Hybrid 3 10 kwh $20 $30 Battery Electric (Car) 40 100 kwh $30 $50 2 Full Hybrid Battery Electric (Bus) 150+ kwh $80 $120 0 2016 2017 2018 2019 2020 2021 2022 Source: Strategy Analytics, Maxim Integrated 9
Enabling ADAS With GMSL and Power Management Gigabit Multimedia Serial Link Low Latency Video High Speed Data Future Scalability Power Management Small Size Efficient Clean, Reliable Power Automotive-Grade Quality and Safety 10
ADAS ECUs to More Than Double by 2022 169M ADAS ECUs 354M ADAS ECUs Lane Departure Adaptive Lighting Collision Warning Parking Level 2 ADAS is key demand driver for Maxim s High-Speed Serial Link and Power Management products E-Call/On Star 11 2017F Source: Strategy Analytics 2022F
ADAS Sensor Count Increases With Each Level of Autonomy Number of ADAS sensors per car 28 + Lidar, Exterior Camera and Interior Camera Sensors 13 + 7 + Short- and Long-Range Radar Sensors Autonomous Driving Domain Controller Level 2 Level 3 Level 4/5 Source: IHS 12
Cars Becoming Data Centers on Wheels ADAS Links Infotainment Links Source: Maxim Integrated * Data Transmission Rates based on estimated Serial Link Data Rate multiplied by number of links in a premium car 13 Data Link Type Premium Car Premium Car in 2017 in 2022 Surround view system Front facing camera system Mirror replacement system In-cabin monitoring system Driver monitoring system Adaptive front lamp system RADAR LiDAR Central Information Display Instrument Cluster Head-Up Display Consumer Box to Head Unit Rear Seat Entertainment Passenger Information Display 4X Data Transmission Rates * ~80Gb/s ~20Gb/s Sensor Display Camera 2017 2022F
Uncompressed, Low Latency HD Video Requires Serial Link >10Gb/s Video Links [Mu] 300 Highest Speed and Future Scalability 6Gb/s 200 Serial Link: 3 to 6Gb/s Uncompressed Video 3Gb/s 100 Ethernet: 100Mb/s Compressed Video 1Mb/s 1Mb/s CAN Bus 100Mb/s 100Mb/s Auto Ethernet Automotive Ethernet 1Gb/s Serial Link Serial Link Serial Link 1st Gen Serial 1st Gen Serial 2nd Gen Serial (Gigabit Link Ethernet) (1 st Gen LinkVideo) (2 nd Gen LinkVideo) Serial Link Future Gen Serial (Future) Link Analog 0 2017 2018 2019 2020 2021 2022 Source: Strategy Analytics, Maxim Integrated 14
Maxim Serial Link Innovation Simplifies ADAS Systems Simultaneous Video and Gigabit Ethernet Multi-Video Streaming SoC Video SER Video RGMII GbE PHY GbE DES GbE PHY Video RGMII SoC SoC SER SER Video Video DES DES CID IC Simplifies Infrastructure Reduces Infrastructure Cost SoC Video RGMII SER Video & GbE Over GMSL DES Video RGMII SoC SoC SER DES DES CID IC 15
ADAS Analog SAM to Double by 2022 CONSOLE DISPLAY TOUCH/ BUTTONS $1.3B $2.8B E-Call/On Star Lane Departure Warning Parking CAMERA ECU (x4) IMAGE CAPTURE LDO COLLISION AVOIDANCE RADAR ECU (x2) RADAR FRONT END IC LDO STEP-DOWN DC-DC SoC ADC STEP-DOWN DC-DC VIDEO SoC CAMERA SERIALIZER CAN OSCILLATOR SUPERVISOR VIDEO INPUT PROTECTOR CAMERA INTEGRATOR LOAD SWITCH CAN SEQUENCER DISPLAY SERIALIZER IMAGING AND CONTROL SoC DRAM ADAS CONTROL UNIT OSCILLATOR SUPERVISOR TEMP SENSE CAN POWER RAILS BRAKES STEERING ALERTS Collision Warning PARKING ASSIST/BLINDSPOT ECU (x4) PMIC MEMORY POWER LV STEP-DOWN DC-DC STEP-UP DC-DC LDO ULTRASONIC MODULE CAN V/I PROTECTION HV STEP-DOWN DC-DC 2017F 2022F LDO STEP-DOWN DC-DC Maxim Power Management IC Opportunity BATTERY Source: Strategy Analytics Other Maxim IC Opportunity 16
Integration Delivers Power Performance for ADAS 3 rd Generation PMIC 4 th Generation PMIC ~4x Power Density 15W to 30W 50% smaller footprint Lowest Standby Power MAX20006 17
Advanced Process Enables Next Generation Auto PMICs 450nm Design Rule 90nm Design Rule Smaller Footprint Lower Power Loss 18
Safety and Quality with Volume Production Experience Shipped Units [B] 2.0 1.5 1.0 0.5 Parts Per Million Defect Level Defect Rate Trend Cumulative Automotive Units Shipped Since 2010 Defect Rate [ppb] 7000 6000 5000 4000 3000 2000 Parts Per Billion 1000 Defect Level ~2 Billion High Volume Automotive IC Shipments from 2010 70% Improvement in Defect Rate 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018F Axis Title 0 Source: Maxim Integrated 19
Maxim Content Opportunity in Premium Car Infotainment & Body Electronics CY2017 CY2022F $50 $70 $80 $100 ADAS $15 $30 $40 $60 + Battery Pack Capacity Maxim s BMS Content Opportunity Full Hybrid 1 2 kwh $10 $20 Plug-in Hybrid 3 10 kwh $20 $30 Battery Electric (Car) 40 100 kwh $30 $50 Maxim s Content Opportunity in a Premium Car $65 $100 $120 $160 Battery Electric (Bus) 150+ kwh $80 $120 Maxim s BMS Content in an EV Car $10 $120 Source: Maxim Integrated 20
Key Takeaways 1 2 3 4 EV Units to Triple, ADAS ECUs to Double in Next 5 Years BMS Design Wins Position Maxim in EV Inflection Serial Link Enables High-Speed Data & Video for ADAS Integrated Power Management Drives Higher Performance, Safety and Reliability 21
Empowering Design Innovation