Page 2Copyright © COMNEON. All rights reserved.

Phone Wars – The Hardware

September 2009

Page 3Copyright © COMNEON. All rights reserved.September 2009

Comneon is a 100% subsidiary of Infineon Technologies dedicated to mobile software

Comneon was founded in 1991Acquired by Infineon in 2000Software for mobile phones

3GPP Protocol StacksIMS Device Framework

Comneon has been serving numeroussemiconductor customers for 18 years

Comneon was founded in 1991Acquired by Infineon in 2000Software for mobile phones

3GPP Protocol StacksIMS Device Framework

Comneon has been serving numeroussemiconductor customers for 18 years

Protocol Stacks ported to a variety of different chipsets and architectures400 engineers for software projectsWide customer baseWorldwide customer support facilitiesCMMI standard of quality assurance

Protocol Stacks ported to a variety of different chipsets and architectures400 engineers for software projectsWide customer baseWorldwide customer support facilitiesCMMI standard of quality assurance

Page 4Copyright © COMNEON. All rights reserved.September 2009

The Four P’s of Wireless Semiconductors

Power consumption:Need to offer long run- and standby time without a size penalty

The Four P’s of Wireless Semiconductors

PCB board space:Reduce PCB cost and offer design flexibility to OEMs

-15

-14

-13

-12

-11

-10

-9

-8

-7

-6

-5

-4

-3

-2

-1

SNR

[dB

]

Tx/Rx = 0/-104.7 dBmTx/Rx = +23.5/-104.7 dBmSNR for 0.1% BER

4-5dB margin !

Performance:need to fuel today's application requirements

Price:Low bill of material (eBOM) and total cost of ownership

Page 5Copyright © COMNEON. All rights reserved.September 2009

Ongoing integration of wireless semiconductors enables more features at a lower price

Source: Infineon Technologies

PMB2400GSM

Receiver

PMB2400GSM

Receiver

PMB2300GSM PLL

Synthesizer

PMB2300GSM PLL

Synthesizer

PMB2200GSM

Transmitter

PMB2200GSM

Transmitter

PMB2900GSM Analog

Circuit

PMB2900GSM Analog

Circuit

PMB2500GSM

Equalizer

PMB2500GSM

Equalizer

PMB2600Channel Codec

PMB2600Channel Codec

PMB2700ControllerInterface

PMB2700ControllerInterface

DSPDSP

Discrete Power Supply

Discrete Power Supply

>1000Modem Components

SMARTi™GSM

Transceiver

SMARTi™GSM

Transceiver

PMB2906GSM Analog

Circuit

PMB2906GSM Analog

Circuit

Hi-GOLDGSM One Chip Logic Device

Hi-GOLDGSM One Chip Logic Device

Power SupplyASIC

Power SupplyASIC

E-GOLD™+(GSM BB+ABB)

E-GOLD™+(GSM BB+ABB)

E-POWERPower MgmtE-POWER

Power Mgmt

SMARTi ™ SDGSM

Transceiver

SMARTi ™ SDGSM

Transceiver E-GOLD™radioBB / ABB / RF

E-GOLD™radioBB / ABB / RF

E-POWERPower MgmtE-POWER

Power Mgmt

E-GOLD™voice

BB / ABB / RF

E-GOLD™voice

BB / ABB / RF

X-GOLD™113 / 116 / 213

65nmBB + PMU + RF + FM Radio + mixed

signal + SRAM, ARM11, USB,

Memory Card IF,Video, Stereo Audio

X-GOLD™113 / 116 / 213

65nmBB + PMU + RF + FM Radio + mixed

signal + SRAM, ARM11, USB,

Memory Card IF,Video, Stereo Audio

>320Modem

components

>160Modem

components

100Modem

components

50Modem

components

1992 2000 2005 2006 20081995

IFX GSM Platforms P2002, ULC1, ULC2

A-GOLD RadioIFX GSM Chipsets

MCUMCU50

Modem components

Page 6Copyright © COMNEON. All rights reserved.September 2009

Technology shrinks lower the cost per transistor –at the expense of exponential growth in fab costs

nm

50nm

100nm

150nm

200nm

250nm

300nm

350nm

400nm

1995 1997 1999 2001 2004 2007 2010 2013 2016

ITRS Technology node[nm]Cost per mm² Silicon(relative)

Source: Infineon Technologies

Courtesy of IBM

Cost of Technology Shrinks

Page 7Copyright © COMNEON. All rights reserved.September 2009

Despite ultra-high integration of the chips –different phone concepts lead to different PCBs

Source: Infineon Technologies Source: Phonewreck.com

Smart Phone ExampleUltra-Low Cost Phone (ULC) Example

SIM slot

Integrated GSM BaseBand, RF, PMIC

PowerAmpMemory

Page 8Copyright © COMNEON. All rights reserved.September 2009

Mobile Market – Growth continues Driven by ULC, Low Cost 3G, Smartphones and LTE

Smartphones stimulate mobile market and provide killer application for 3GLTE emerges in Japan, Northern America& China from 2011 WCDMA roll-out in China from 2H 2009Continuous growth of 2G Ultra-Low-Cost (ULC) segment Semiconductor landscape consolidation continues

General market situation and trends

High demand for 3G in Europe and Northern America,driven by Smartphones

Convergence of cell phone and Netbooks/Ultra Mobile Computers fuels demand for higher data rates, Multiband, HSPA+, LTE

Operators push for 3G low cost devices for emerging markets

Mobile convergence and low cost 3G

ULC

3G3G3G

ULC

ULC

3G

LTE

Page 9Copyright © COMNEON. All rights reserved.September 2009

Demand for ULC and Smartphones results in a “squeeze in the middle” of the mobile phone market

Mobile internet / Smartphones

Strong growth in low-cost phones

Source: Strategy Analytics

“Squ

eeze

in th

e m

iddl

e” Slim Modem

Single Chip

Strong growth of smartphones driven by operators subsidies due to higher ARPU, attractive user interfaces, etc.

Strong growth of ULC phones driven by demand in emerging regions

0%

25%

50%

75%

100%

2008 2009 2010 2011 2012 2013

Ultra-Low Entry Mid High Premium

21%12%

2008 2013

Share of Ultra low-cost phones

2008 2013

Other

LTE

HSxPA

UMTS

EDGE

GSM/GPRS

Smart phone shipments[units m]

~180

~380

Page 10Copyright © COMNEON. All rights reserved.

Phone Wars – The Hardware

September 2009

Moderator:Hartmut Schittko, Director Mobile Software Marketing, Comneon

Panelists:Tarek Fahmi, Seminconductor IP and Patent Counsel, Sonnenschein Nath & Rosenthal LLP

Shyam Krishnamurthy, Head of Cellular Applications and Communications Processor Business, Marvell

Clay Melugin, Director Wireless Marketing,Infineon Technologies

Thomas Richter, Senior Director Marketing - Cellular Front End Products, Skyworks Solutions