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The Technologically Transformational Automotive Electronics Market and the Implications for Material Supply
Klaus Hege, Global Key Account Manager, Linde ElectronicsNovember 14, 2017
Safety Critical
Hyundai
Volkswagen
General Motors
FordBosch
Tesla
BMWDelphi
HondaToyotaMercedes Benz
NissanContinental
ElektrobitDenso
Tesla
Driven by innovation and growing regulation
Automobile industry co-locating with semiconductor industry to accelerate innovation
In Europe, countries challenging the internal combustion engine
Technology company
Automotive company
Apple
Uber
Electronics ubiquitous on cars
Automaticbraking
Adaptive cruisecontrol
Adaptive frontlighting
Airbagdeployment
Enginecontrol
Parentalcontrols
Instrumentcluster
Nightvision
Head-updisplay
Driveralertnessmonitoring
Windshieldwipercontrol
Eventdata recorder
Auto-dimmingmirror
Accidentrecorder
Interiorlighting
Active cabinnoise suppression
Voice / datacommunications
Cabin environment controls
DSRC
Entertainmentsystem
Battery management
Lanecorrection
Electronic toll collection
Digitalturn signals
Navigation system
Securitysystem
Active exhaustnoise suppression
Activesuspension
Hill-holdcontrol
Regenerativebraking
Antilockbraking
Tire pressuremonitoring
Parking system
Electronic stabilitycontrol
Seat positioncontrol
Transmissioncontrol
Lane departurewarning
Blindspotdetection
Remotekeyless entry
OBDII
Activevibration control
Cylinderde-activation
Idle stop / start
Electronicvalve timing
Electronicthrottle control
Electricpower steering
Electronics ubiquitous on carsSafety Negligible
Entertainmentsystem
Electronic toll collection
Remotekeyless entry
Instrumentcluster
Head-updisplay
Cylinderde-activation
Idle stop / start
Auto-dimmingmirror
Interiorlighting
Active cabinnoise suppression
Voice / datacommunications
Cabin environment controls
Seat positioncontrol
Navigation system
Battery management
Parentalcontrols
Electronicvalve timing
Regenerativebraking
Activevibration control
Electronics ubiquitous on carsSafety Enhancement
Tire pressuremonitoring
Nightvision
Windshieldwipercontrol
Eventdata recorder
OBDII
Digitalturn signals
Hill-holdcontrol
Parking system
Adaptive frontlighting
Driveralertnessmonitoring
Accidentrecorder
Lanecorrection
Lane departurewarning
Securitysystem
Activesuspension
Automaticbraking
Airbagdeployment
Enginecontrol
Electricpower steering
Electronics ubiquitous on carsSafety Critical
Electronicthrottle control
Blindspotdetection
Electronic stabilitycontrol
Transmissioncontrol
Now becoming computers on wheels
Cameras~20-40 MBper second
Radar~10-100 KBper second
Sonar~10-100 KBper second
GPS~50 KB
per second
Lidar~10 -70 MBper second4,000 GB
per day…each day
Autonomous Vehicles
Source for data: Intel
Planes rely on chips for safety –achieved by redundancy
Jets manufacturedper year
< 2000
Base price
$270 million
Passenger vehicles manufactured per year
100 million
Base price
$27,000
A fast growing market
4,0%
4,2%
5,5%
5,7%
6,4%
9,1%
14,1%
Consumer
Gov/Mil
Comm
Computer
Total ICs
Ind/Med
AutomotiveMarket representing around $35B in 2016
Growing much faster than the total IC market
Automobile application will grow all areas of semiconductor design and fabrication
If all cars have the same level of intensity of i3, this represents
600k wspm capacity requirementNote: This car has no autonomous driving capability.
CMOS 53%
Example of semiconductor content in a BMW i3 (based on silicon area)
Source: Applied Materials, TechInsights
CIS 3%
Analog 9%
MEMS 3%
Memory 14%
Power 18%
5 to 10 years
2 to 5 years
10 to 70
Environment
<<1%
- °C
2 to 5 years
Average 1 year
0 to 40
Low
<10%
C°
Up to 15 years
Up to 30 years
40 to 160
0% to 100%
Target: 0% failure
Requirements for cars are higher than for phones
Increased requirementsLifetimeSupplyOperating conditions
Lead to “Zero defect” policyTraceability
Consumer Industrial Automotive
Operation time
Supply
Temperature - °C
Humidity
Tolerated failure rate
Quality: Between raw materials and the cleanroom
Mass market safety only achievable with quality across the full supply chainMaterial providers like Linde are the quality gatekeepers
Raw materials
Chemical production Purification Blending Analysis Distribution
Between the variability of the raw material source…
Fluorspar mine: HF, NF3, SF6, CF4, etc.
Between the variability of the raw material source…
Tungsten mine: WF6
Between the variability of the raw material source…
Germanium mine: GeH4, Ge2H6
…and the precision of manufacturing
…and the precision of manufacturing
Material suppliers like Linde are the quality gatekeepers
Source Quality Use
Spec
0 10 20 30 40 50
ppm impurities
Number of measurements
Quality: Customers are driving tighter requirements
CustomersExpect Linde to meet purity specifications and control limits
ExampleSpecification: 50 ppmControl limit: 20 ppmMean: 8 ppm
Mean
+3σ
Are even more concerned about unknown and uncontrolled impurities
Managing supply chain determines quality
Measure at each step, prevent defects, continuous improvement
Measurement systems analysis (MSA), Statistical process/Quality control (SPC/SQC)
Rec
eivin
g
Prep
Purific
ation
Ble
ndin
g
Fill
Traditional quality focus
QA
/QC
/Lab
Delivery
Raw materials Final product quality
Production plant for Electronic Specialty Gases: Cylinder preparation
Production plant for Electronic Specialty Gases: Cylinder filling
Production plant for Electronic Specialty Gases: Blending
Production plant for Electronic Specialty Gases: Analysis
Supply chain: Ensuring business continuity
Supply interruptions can be caused by natural disastersFukushima Earthquake and Tsunami: 2011
Supply interruptions can be caused by human eventsTianjin Port Explosion: 2015
Linde global suppliers network: multiple sourcing HCl
Global EM supply network
Linde global suppliers network: multiple sourcing N2O
Global EM supply network
Linde global suppliers network: multiple sourcing NH3
Global EM supply network
Linde global suppliers network: multiple sourcing TCS
Global EM supply network
Linde global suppliers network: multiple sourcing He
Global EM supply network
Linde global suppliers network: distributed portfolio
Global EM supply network
BCl3B2H6
Cl2DCSHalocarbons HBrLaser gasNH3
Si2H6
WF6
BF3
ClF3
D2
GeH4
HClHF HeSiH4
TCSXe
N. America Asia
Cl2DCSF2 MixHalocarbonsHBrHCl NF3
NH3
SF6
Si2H6
CHF3
F2
GeH4
HCDS HeN2OPOCl3SiH4
TCS
Europe
He NeXeTCSNF3
SiH4
WF6
Halocarbons
BCl3HClGeH4
NH3
N2ODopantsSi2H6
>50+ sources globally
Sourcing
• Access to 4/7 Global suppliers representing 67% of HCl capacity
• Distribute prime source to the respective region, as well as introduce new source for BCP
Assets
• Variety of fleet- ISO tube- Drum, Y Tonner, Cylinder
• Capability in ISO tube service
• Periodic testing, maintenance, and upgrading of assets in line with global standards
Quality
• Proven track record of bulk HClsupply to semiconductors customers across the world for several decades
• Multiple sources – same final product
Global Capacity 2017 (>17.5 Ktons)
Multiple sources – same product example: HCl
Material supply by trading
Supplier D (10%)
Supplier A (29%)
Supplier C (17%)
Supplier B (29%)
Supplier E (6%)
Supplier F (5%)Supplier G (4%)
Conclusion: Quality and supply chain work together
LindeEstablish & certify QMS
Align with EICC
Ensure business continuity
Perform incoming material QC
Control production quality
Manage deviations from specification
Manage process changes
CustomerManage deviations from specification
Manage process changes
Understand customer requirements
Check & develop requiredcapability
Raw materials
Manage deviations from specification
Manage process changes
Qualify suppliers
Qualify products
Manage supplier performance
Quality: Holistic, collaborative approachWe achieve electronics industry quality standards with close collaboration throughout the supply chain
