industrial & iot edge processing: teach-in
TRANSCRIPT
EXTERNAL
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 RES PECTIVE OWNERS. © 2021 NXP B.V.
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Ron MartinoSenior Vice President & General Manager
Edge Processing
INDUSTRIAL & IoT EDGE PROCESSING: TEACH-IN
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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.
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NEW AGE – EDGE COMPUTING
~$500 BILLIONTOTAL SEMICONDUCTORS
~$250 BILLIONTOTAL SEMICONDUCTORS
~$150 BILLIONTOTAL SEMICONDUCTORS
INTELLIGENTEDGE
SMART PHONES
CLOUD COMPUTING
LAPTOP / DESKTOP
MOBILE PHONES
GAMING CONSOLES
HOME AUDIO / VIDEO
50 BILLIONSMART CONNECTED
DEVICES BY 2025
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“THE PROCESSOR IS THE FIRST DECISION A
DEVELOPER MAKES IN ANY SYSTEM AND THUS
CREATES A LOCK-IN DUE TO SOFTWARE
STICKINESS; AND ALLOWS NXP TO CROSS-SELL
ITS PORTFOLIO, AS ANY SMART SYSTEM WOULD
REQUIRE POWER, ANALOGUE
AND CONNECTIVITY.”
EXANE S.A. (09-JUL-2020)
Leading supplier of edge
processors with high
growth and profitability
NETWORK EDGENetwork Computing
APPLICATION EDGEIndustrial & IoT
CLOUDData Centers
10’S TO 100’SOF MILLIONS
BILLIONS
MILLIONS
NETWORK
IoT INDUSTRIAL
Building
GatewaysLocal
Servers
Base Station &
Access Points
Home
Gateway
Appliances Smart Home
Devices
Wearables
Building &
Energy
Healthcare
Factory
Automation
Industrial
HMI
Machine Vision
Transportation
& Mobility
POS
Home
Control
NXP STRENGTH – SERVING
THE FAST-EXPANDING
INTELLIGENT EDGE
BENEFITS OF INTELLIGENT EDGE
Enhances quality of experience
Protects data privacy
Reduces cloud dependency & power
Decreases total cost of ownership
Reduces application latency
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REAFFIRMING NXP’S FASTER -THAN-MARKET GROWTH OPPORTUNITY
SEP 2018 ESTIMATEINVESTOR DAY 2018
MAR 2021 ESTIMATEINDUSTRIAL & IoT TEACH-IN 2021
INDUSTRIAL &
IoT SAM
REVENUE
GROWTH
NXP GROWTHESTIMATED
2018-2021
8-11%
CAGR
NXP GROWTHESTIMATED
2020-2023
8-11%
CAGR
#1 in Microcontrollers #1 in Industrial Apps Processors* Top 3 in Industrial & IoT Connectivity
Processors + attach
Connectivity, Analog, Security
Sources: WSTS, Omdia, Gartner, NXP CMI
* excluding camera logic ASSP
Processors
2018E 2019E 2020E 2021E
$28B
$33B
2018 2019 2020 2021E 2022E 2023E
$34B
$29B$34B
2018 2021E 2020 2023E
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EMPOWERINGTHE EDGE PRODUCT
LONGEVITY, QUALITY
& RELIABILITY10-15 YEARS
GUARANTEED SUPPLY
EXTENDED TEMPERATURE RANGE
LEADERSHIPBROAD MARKET
SUPPORTDIVERSE ECOSYSTEM PARTNERS
EXTENSIVE REFERENCE DESIGNS
CHANNEL ACCESS
SOLUTIONS & PROFESSIONAL SERVICES
SCALABLEPLATFORMS
DEVELOPMENT EFFICIENCY
CUSTOMER RETENTION
NXP DIFFERENTIATORS FOR THE INTELLIGENT EDGE
COMPLETESYSTEM-LEVEL
OFFERINGENERGY EFFICIENCY
& SECURITY
CONNECTIVITY & ANALOG ATTACH
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ESSENTIAL FOUNDATION FOR INDUSTRIAL AND I oT EDGE
EdgeLock TM SECURITY SOLUTIONS
SOFTWARE DEVELOPMENT KITS TURN-KEY SOLUTIONS
FIELD APPLICATIONS ENGINEERING & CUSTOMER SUPPORT TEAMS
HETEROGENEOUSCOMPUTING
ENERGY EFFICIENTPROCESSING
MACHINELEARNING
USER EXPERIENCE(GRAPHICS, VOICE, AUDIO)
CONNECTIVITY
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SCALABLE COMPUTE PLATFORMSDIFFERENTIATED SOFTWARE
ENABLEMENT & SERVICES
EDGE MLAUDIO & VOICE
SOLUTIONSSECURITY SERVICES
DEVICE LIFECYCLE MANAGEMENT
CLOUD PLATFORM EXAMPLES
SECURITY CONNECTIVITY GRAPHICSAUDIO/VIDEO
NETWORKING
ANDROID LINUXREAL-TIME OPERATING SYSTEM
(FREERTOS, AZURE RTOS, ZEPHYR)
Crossover MCUs
CORTEX-M CORES
CORTEX®-MCORTEX®-M
Traditional MCUs
CORTEX®-M
Embedded Flash
I/Os
Applications Processors
HETEROGENEOUS
DOMAIN COMPUTING
CORTEX®-M
AUDIOMEDIA2D & 3D
GRAPHICSVOICE TOUCH
SENSING CAMERA
CORTEX®-A
BROAD CONNECTIVITY PORTFOLIO
Pe
rfo
rma
nce
& P
ow
er
Functional Integration
Wi-Fi
TSN end nodes
TSN switch
Wi-FiBLE
ZigbeeThread
TSN end nodes
TSN switch
Wi-FiBLE
ZigbeeThreadBLE
ZigbeeThread
COMPLETE PORTFOLIO FOR THE INTELLIGENT EDGE
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FROM LOCAL INTELLIGENCE TO CONTEXTUAL AWARENESS
SENSE THINK ACT
HUMAN ENVIRONMENT INITIATION COLLABORATIVE
INTELLIGENCE
CONTEXTUAL RESPONSE
ENHANCED eIQ™ ML DEVELOPMENT ENVIRONMENT
SHARE WORKLOAD
VISION RECOGNITION
MULTI-OBJECT RECOGNITION
NATURALLANGUAGE
PROCESSING
ANOMALYDETECTION
ALERT OWNERS/AUTHORITIES
ARM HOME MONITORING
SENSORS
CAMERA VOICE GESTURE
Gyrometers
Accelerometers
Sound sensors
Touch sensors
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EDGE PROCESSING NEWS DRIV ING THOUGHT LEADERSHIP
Secure time-sensitive
communications for IoT
A WORLD THAT ANTICIPATESAND AUTOMATES
NXP SHOWS FIRST DETAILS OF EDGE AI i.MX9 PROCESSOR
NXP INVESTS IN AU-ZONE TO ENHANCE MACHINE LEARNING CAPABILITIES
NXP eIQ Machine Learning Software
Development Environment – NXP
SemiconductorBEST IN SHOW
AWARDS
Dual-Core Micro Pushes 1 GHz
to Handle AI Chores
Crossover applications processors
feature enhanced security28nm FD-SOI i.MX8 TARGETS LOW POWER
NXP Announces CC-Link IE TSN
Support and its First Cloud-
Secured, Microsoft Azure Sphere-
Certified Processor
PROCESSING HAS MOVED TO THE EDGE. NOW IT’S BECOMING MORE “AWARE” SAYS NXP
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Battery
PROCESSOR AT THE HEART & NXP ATTACH PORTFOLIO TO BECOME ONE -STOP -SHOP
Processor
NFC
Reader
Security
NXP Technology
SMART CAMERAHOME CONTROL PANEL
Connectivity
Secure
Element
(Discrete)
Processor
High-speed
Multiplexer
High-speed
Switch
Voltage Level
Translator
Wi-Fi
Video Amp
PMIC
Display
HDMI
Memory
Cards
I2C Bus
Expander
Real Time
Clock
Temperature
Sensor
LCD
Driver
LED
DriverNFC
Ethernet
Audio / Video
Signal
ConditionerUSB Type-C
Home
Entertainment
Lighting
Heat
Metering
Air
Conditioning
Major Home
Appliance
Power and
Battery
Management
Touch
DisplayMIC
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SMART HOME
Fit-for-purpose scalable processors
Wireless connectivity
ML & multi-sensory interaction
Data privacy, Safety, Security
Comprehensive software
SMART ENERGY
SECURE ACCESS
SMART LIGHTING
INTELLIGENT IRRIGATION
SMART APPLIANCES
SMARTSENSORS
SECURE CONNECTIVITY
HOME ENTERTAINMENT
WEARABLES
Wi-Fi
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SMART ENERGY INFRASTRUCTURE
MACHINE VISION
AUTOMATED VEHICLES
ROBOTIC CONTROLS
SECURE, PRECISION CONNECTIVITY
Scalability with common software
Industrial safety & security
Wired & wireless connectivity
ML, Machine Vision, Intuitive GUIs
5G
Wi-Fi 6
METROLOGY & CONNECTIVITY
SMART FACTORY
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NXP UNIQUELY POSIT IONED FOR LEADERSHIP IN EDGE PROCESSING
Source: Gartner, Omdia, WSTS, NXP CMI
STRONG MARKET GROWTH UNIQUE NXP POSITION TRUE LEADERSHIP
Leadership in scalable, secure and
energy efficient edge processor portfolio
Differentiated software, enablement
and services
Complete system level offering with
connectivity and analog attach
Thought leadership and customer trust
> 25,000 diverse customer base
INDUSTRIAL & IoT REVENUE
NXP TARGETS
→ #1 IN MICROCONTROLLERS
→ #1 IN INDUSTRIAL APPS PROCESSORS
→ #1 IN SMART HOME
→ #1 IN SMART FACTORY
FOCUSED ON FAST GROWING SEGMENTS
+ =
IoT: SMART HOME, APPLIANCES, WEARABLES
INDUSTRIAL: FACTORY AUTOMATION,
BUILDING & ENERGY, HEALTHCARE
2020 2021E 2022E 2023E
$34B
$29B
2020 2023E
8-11% CAGR
Processors
Connectivity,
Analog, Security
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