Freescale's Rich Beyer on semicon and industry trends

Here's the synopsis of the keynote address by Rich Beyer, chairman and CEO, Freescale Semiconductor at FTF India 2009, at the Hotel Leela Palace Bangalore, on September 02, 2009.Rich Beyer, chairman and CEO, Freescale Semiconductor

This year, we have 64 hours of technical training classes apart from extensive selection of Freescale and third-party demos in our Technology Lab. Since we met last year, the industry has experienced the greatest economic challenges in generations that had an unprecedented global impact, and no region has been immune from its effects.

India, Asia’s third largest economy, seems to have been less affected by the global economic slowdown, primarily because India’s economy is driven largely by domestic demand and is not as dependent on exports. Interest rate cuts and a fiscal stimulus equivalent to 7 percent of India’s GDP helped the economy grow by almost 6 percent in the first quarter of this year, making it the world’s fastest growing economy after China.

From a global perspective, the markets are stabilizing, and we hope that the worst is over. However, in order to compete effectively, businesses will need to become more efficient and more agile, at least for the next few years.

One of the core purposes of this FTF is to demonstrate our efforts and progress in providing you with the best possible solutions to help develop products and systems that enable your companies to win.

On networking
In networking, multicore processors are essential to delivering the industry-leading levels of integration, performance and energy-efficiency required for next-generation communications systems. However, testing and optimizing application software for systems based on embedded multicore processors can be a time-consuming task. To help solve this challenge, Freescale has introduced our VortiQa software, a production-ready, application-level software specifically for our multicore solutions to dramatically reduce the time needed by you, our customers, for your development tasks.

To enable rapid prototyping for our microcontrollers, we have introduced the Freescale Tower System, a modular development platform with reconfigurable hardware that enables developers to mix and match MCU and peripheral boards to save both money and months of development time through rapid prototyping and tool re-use.

Sensor toolbox
To streamline embedded designs with our acceleration, pressure or proximity sensors, Freescale has introduced the Sensor Toolbox. This is a unified set of development software, customizable plug-and-play boards and complimentary sensor algorithms to help you get the most out of your sensor-related designs.

For the past several years, we have concentrated on three major trends that we feel represent the engines of our future growth i.e. Net Effect, Health and Safety and Going Green.

India is the world’s fastest growing mobile market, and 3G high-speed transmissions of voice, video and data is seen as the next growth driver for telecom firms in India. In Health and Safety, Freescale is helping enable monitoring solutions like glucometers and insulin pumps.

Our embedded processing technologies deliver best-in-class performance with low-power consumption and integrated RF connectivity that help diabetes patients avoid acute complications like hypoglycemia and kidney failure. Real-time cardiac monitoring solutions are allowing patients with heart disease to live a life without constant fear.

Our high-performance 32-bit embedded processors, digital signal processors and digital signal controllers help provide accurate and secure portable heart monitoring solutions for those suffering from hypertension, arrhythmias and cardiac failure.

On wellness and fitness, safety
In wellness and fitness applications from pedometers to treadmills and digital bicycles are beginning to incorporate functions like calorie counters and heart rate monitors. Freescale’s microcontroller portfolio delivers one of the best price-performance ratios available for these applications.

Safety is also an extremely important trend in the world today and is the utmost requirement in the automotive market. Safety features introduced years ago like anti-lock braking, air bags and tire pressure monitoring systems are being integrated with completely new capabilities like active safety equipment that can actually help prevent accidents before they happen.

Advanced safety systems like adaptive cruise control, lane departure warning and radar for object detection will add embedded intelligence to the vehicle for a higher level of safety, efficiency and convenience. We will begin to see vehicle-to-vehicle and vehicle-to-infrastructure wireless communications.

Embedded intelligence in the vehicle will be able to recognize traffic signs –- to maintain the proper speed limit or alert the driver about approaching stop signs. And sensors will be able to detect pedestrians around the vehicle and monitor that the driver is alert and aware.

Going Green!
Our third growth trend is Going Green. Energy is embedded in virtually every aspect of our lives energy efficient devise will make an enormous difference. The prospect of rising oil prices and global warming has intensified the demand for more fuel efficient vehicles while at the same time meeting ever-tightening standards on emissions.

In the consumer market, many countries around the world are instituting new standards to eliminate “vampire electronics”, those devices that consume a huge amount of energy even as they spend time in standby mode. The industrial sector accounts for about 37-percent of the global energy consumption. Through the use of high-efficiency motors, improved process control, automation, information processing, and robotics, we can help save the energy output equal to hundreds of coal-fired power plants.

On Indian industry
So, those are the global trends that we feel will drive our markets today and for the foreseeable future. Now I would like to talk about the growth opportunities we see here in India and provide some insights into what Freescale is doing to address these.

Automotive industry
Let’s start with the automotive industry.

India’s automotive industry has reached a pivotal moment. The rise of ultra-low cost four-wheel vehicles is expected to grow the domestic market by more than one million units by 2013.

By 2012, India is expected to account for 20 percent of the increase in global car sales, surpassing the markets in Italy and Spain. At that point, India could become the leader in small-car growth. For India to become a major player in the global automotive market, a key challenge will be to engineer cars that meet stringent international emissions and safety standards.

Freescale is uniquely positioned and strongly committed to helping develop the capabilities of the India automotive industry. We have partnered with the industry’s leading manufacturers and suppliers to help drive standards for component software and interconnectivity.

As emerging automotive markets like India continue to gain momentum, vehicles will need cost-optimized solutions that incorporate more advanced chassis and safety systems, like airbags, tire pressure monitoring systems, and electronic stability control. Freescale offers a full range of system solutions that can scale to higher performance as needed.

India’s networking infrastructure
Next, I want to talk about the growth of India’s networking infrastructure. Over the last few years, India’s telecommunications landscape has seen rapid growth. The 3G wireless spectrum will allow the transmission of voice, data and video at high speeds to mobile devices. Freescale is playing a key role in delivering the performance improvements and the cost reductions required to bring these next-generation networks to life.

We are the global leader in embedded communications processors. The ever-increasing amounts of digital data are continuing to push the need for high-speed data processing. And along with this need for speed are the increasing expectations of reliability, security and the overall quality of service.

As an industry, we have been talking about 3G technology, but 3G is just now coming into widespread adoption, and with the latest innovations in Long-Term-Evolution, or LTE, we are seeing even more broadband capability becoming available.

Freescale has played a leadership role in this infrastructure growth with our RF, communications processor and DSP technology.

Our QorIQ multicore communications platforms are providing new levels of performance and low-power consumption. These products are all based on our e500 Power Architecture cores and are designed for 45-nanometer technology.

Earlier this year, we began sampling our first dual-core QorIQ communications processor. Given the positive feedback, we are accelerating the introduction of our eight-core QorIQ processor. This device is being combined with our new six-core DSP to provide a comprehensive solution for wireless infrastructure equipment for advanced 3G and 4G systems.

Together our Starcore DSPs and QorIQ-based microprocessors in 45 nanometer technology can help reduce the bill-of-material costs in a 10 MHz LTE base station by as much as 60 percent, while simultaneously reducing power consumption by 50 percent.

On energy
More than a century after the invention of the light bulb, today’s energy grid is little different from the one envisioned by Thomas Edison 127 years ago. The smart grid will play a critical role in the development of India’s economy in the future.

India is home to more than one-point-one billion people, making it the world’s second largest population. And by 2025, India’s urban population is expected to increase by 50 percent.

The Indian government is investing heavily in new power plants, and this includes renewable sources such as wind and solar energy. However to take advantage of these new sources, there will need to be a new delivery system, or smart grid, that can handle a generation mix with a high percentage of renewable energy sources.

Smart electric meters will be one of the first steps toward establishing two-way communication between the home and the utility companies. Freescale is an industry leader in smart meter technology. We offer low-power and low-cost solutions for single-phase and three-phase meter measurement.

Our product portfolio includes microcontrollers with LCD drivers, and digital signal controllers for power modem functions, integrated ZigBee solutions for wireless communication, and accelerometers for antitamper security.

Once smart meters are deployed, building automation networks will help create an energy gateway to connect to home thermostats, smart appliances and other energy-intensive devices. Countries around the world are beginning to implement smart grid technologies to increase energy efficiency and incorporate renewable energy sources that will reduce our global carbon footprint.

New category of handheld devices
There is a new category of handheld devices that deliver connectivity and convenience for an integrated multimedia experience. These include e-book digital readers that are transforming paper-bound media into connected infotainment devices, and they include the new smartbook Internet devices that are filling the gap between traditional notebook computing and smartphone communications.

These devices are driven by the common market characteristics of affordability, portability, Internet connectivity and all-day battery life. Freescale is delivering a common solution based on our i.MX multimedia application processors.

I am excited about the opportunities for growth in India, and I am constantly impressed by the innovation and ingenuity demonstrated by India’s talented engineers.

We are grateful to have the opportunity to share our product directions and tell you about the new and innovative solutions that we are bringing to the marketplace.

Let’s go make the world a smarter place.

Despite automotive slump, by 2010 12 percent of new cars will ship with embedded telematics

LONDON, UK: Amidst a very challenging automotive environment rife with mergers, acquisitions and bankruptcies, and rumors of more to come, OEMs continue to enhance existing embedded and hybrid telematics services and/or launch new ones, driving global penetration rates in new cars to 12 percent in 2010 and 43 percent in 2014.

"OEM telematics is gaining momentum across the globe. With GM’s OnStar and Ford’s SYNC to be joined by telematics solutions from Toyota and Chrysler launching later this year, the US remains the most competitive market," says ABI Research practice director Dominique Bonte. "At the same time Toyota and GM will expand into the Chinese market, while government regulation in Brazil and the EU will drive uptake in Latin America, Western and Eastern Europe."

Safety and security features such as emergency calling (eCall), breakdown assistance (bCall) and remote diagnostics remain the most popular, but connected infotainment such as off-board navigation, online local search, concierge services, and Internet access offered by OEMs such as BMW are enjoying increasing interest.

While embedded aftermarket solutions offered by companies such as LoJack and OCTO Telematics remain popular in specific markets for stolen vehicle tracking and PAYD insurance, new affordable portable and converged consumer telematics are bringing features such as geofencing, speed monitoring and basic diagnostics to a wider audience.

ABI Research expects that by offering multiple safety, cost and entertainment benefits to different stakeholders such as governments, car manufacturers and dealers, and end-users, consumer telematics will become a standard automotive feature in developed regions by 2015.

However, this evolution will require the removal of barriers such as high cost and long development cycles. Standardization initiatives such as the Next Generation Telematics Protocol (NGTP) and the adoption of open source automotive software development platforms supported by the recently announced GENIVI consortium will help.

Freescale to leverage on embedded processing leadership: Rich Beyer

During the recent Freescale Technology Forum (FTF) 2008 India, in Bangalore, Rich Beyer, CEO, Freescale indicated that the company will continue to leverage its leadership in embedded processing in the high-growth industrial, consumer, networking and automotive markets.

He said: "We are the number one supplier of automotive semiconductors, and this has been built on a leadership position in automotive microcontrollers and with technology leadership in telematics, sensors, analog and power management for safety and infotainment. We are the leader in communications processors for networking, and we are number one in RF power amplifiers for wireless infrastructure. We will extend this leadership to address the growing demand for broadband and Internet access, both wired and wireless.

"We also offer technology leadership in our i.MX multimedia processors, sensors, analog and power management for embedded solutions used in personal mobile internet devices, personal navigation, gaming and other consumer applications." Beyer's vision is that Freescale will help redefine best-in-class customer support.

Beyer touched upon the three three major trends impacting the world, the markets, and its customers. These are The Net Effect: this is the emergence of user-created content and the insatiable demand for bandwidth to fuel the multimedia experience. Health and Safety: the need for improved healthcare monitoring and the opportunity for electronics to keep us out of harm's way. And, Going Green: the need for energy.

The Net Effect
According to Beyer, Freescale is the only semiconductor company to publicly demonstrate working LTE technology in both handset and network platforms. We expect to be in field trials with cellular infrastructure providers in early 2009, and field deployment shortly thereafter in selected markets.

Freescale's QorIQ (Core-IQ) multicore platform will address the new era in networking. The QorIQ communications platform brings to market multicore technology that takes system performance, power efficiency and programmability to a new level. "As we enter this new era of networking, we will continue to leverage our long heritage in embedded processing," he added. "We are leveraging many of our existing as well as new innovations in our QorIQ communications platforms."

He also touched upon the acquisition of Intoto, a leading provider of software platform products for multicore networking and communications applications. According to Beyer, "Multicore implementation is not just about great hardware, it has to focus on the software and the developer's experience."

Health and Safety
Beyer talked about the need to find new solutions, and that those solutions will be based on semiconductor technology, as the current methods of housing and caring for the senior members of our society will not scale.

With over 2 billion cell phones in use worldwide, the estimated market for wireless remote monitoring systems to help care for the sick is projected to increase to a $345 billion market by 2010. "The proliferation of personal medical devices connecting patient and doctor will redefine the way we conduct regular check-ups, help detect diseases early, dramatically decrease complications, and simplify care," he added.

He also highlighted the Monebo and Freescale partnership to deliver an ECG-on-a-Chip platforms for OEMs to integrate into a variety of other implementations.

Freescale envision applications in the medical market like hospital bedside monitors, telemedicine and portable ambulatory monitors. It also sees possibilities on the consumer side with products for fitness and personal health.

Going Green
"Perhaps, the most significant challenge facing the engineering community is the need to increase energy efficiency in everything we create," said Beyer. He touched upon emerging standards like Wireless Highway Addressable Remote Transducer, or WirelessHART, which are helping deliver affordable and efficient industrial-strength wireless networking solutions.

According to him, major industrial automation vendors believe that wireless sensors will make up 60 percent of the instrumentation in a future green field plant and in existing plants; many believe that wireless technology will result in a 30-40 percent increase in instrumentation.

Beyer touched upom how Freescale drove the effort to form the Wireless Industrial Technology Konsortium, or WiTECK, and its first project is to develop a fully certified WirelessHART stack by December of this year.

Given the rising demand for more fuel efficient vehicles, in the mid-term, Freescale believes that the more likely candidate is the plug-in hybrid-electric vehicle.

Beyer also touched upon smart meters. He said: "One of our North American customers, Trilliant a leading provider of advanced metering network solutions uses our 802.15.4 solution in their smart meters to help deliver demand response and grid management programs to more than 100 utility companies. Major utility companies across Europe are also planning to deploy smart meter networks in the coming years. Italy has already deployed 25 million connected meters, and France and Spain are running pilot projects for the planned deployment of their automated meter network in 2011."

Solar lanterns in India
Turning towards India, Beyer mentioned that 26 million Indian households are without an electrical connection, and that the Indian government provides a subsidy on kerosene oil for lamps to help provide lighting for these homes.

With the rising price of oil and the carbon emissions associated with burning kerosene, the Prime Minister's Energy Coordination Committee is considering a proposal to shift part of this subsidy to fund solar lanterns in India's rural areas. If implemented on a large scale, replacing at least one kerosene lantern with a solar-powered LED lantern in each of these homes could eliminate 1.9 million metric tones of carbon dioxide per year.

In this context, Beyer highlighted Freescale's work with InnovLite, a Bangalore-based provider of new generation lighting technology, to help create clean and energy-efficient lighting solutions.

Despite EDA challenges, Mentor keeps faith on India

Great! All of these EDA firms, despite their current financial woes, remain strong and bullish on India! Mentor Graphics is no exception in this case!

It is well documented that the global EDA industry, along with the global semiconductor industry, has not had a smooth ride this year. However, this situation has only made both the industries work harder toward restoring some recovery.

Thanks to Veeresh Shetty, a dear friend, and Marcom Manager-Pacrim South, Mentor Graphics, I had the pleasure of meeting up with Joseph Sawicki, vice president & GM, Design to Silicon Division, Mentor Graphics Corp., during the recently held EDA Tech Forum in Bangalore.

We discussed a range of issues, such as the state of the EDA industry, Mentor's focus on India, and low-power design challenges. I did not discuss the proposed acquisition of Mentor by Cadence, as I feel it is no point in going over what was never on the cards, at least, for now.

According to Sawicki, Mentor Graphics is very optimistic about semiconductors and electronics, especially in India. "The EDA industry is currently having a pretty challenging environment. The recession in 2002 was the deepest in its history," he says.

"We (the EDA industry) haven't had the growth rates we would like. However, we have done better. We have re-invented Mentor," adds Sawicki. "We have now invested more in back-and-route ICs, which is about 40 percent of our revenue. Our product portfolio is the youngest within the company." He adds that the recession has been more in semiconductors. However, take out memory, and the scenario changes.

The drive of the semiconductor industry toward smaller and smaller features sizes requires more sophisticated correction methods to guarantee the final tolerances for the etched features in both wafer manufacturing and mask making.

Flat growth likely for EDA
Commenting on EDA industry's growth, Sawicki, adds that growth will be flat in 2008. Interestingly, the growth rate for EDA was 10 percent during the last two years. He notes: "EDA always does best when it delivers new technology. There are two reasons. One, on the manufacturing side of things. The extra results will be completely delivered by the software."

The other reason is that the aspects of manufacturing power and manageability will assume great importance. "Finally, the ESL space also provides the potential for growth. It also brings out a whole new design capability," he notes.

Given the global semiconductor scenario, Mentor is also looking at other markets outside semiconductors, especially automotive. Sawicki adds that this quarter, 20 percent of Mentor's business has been from the automotive segment.

There have been several global initiatives aimed at consolidation in the recent past. Sawicki says: "Consolidation should not be looked at as a goal. We also do acquisitions in the technology space. It augments a strong position."

So what are some of the other challenges facing the industry? Sawicki lists those as the economics of the industry itself, especially the design and verification costs.

On low power design, Sawicki agrees that there has been a transition of electronics from the US to Asia. "You have got to handle far lower power downward. We can reduce leakage current by 20-30 percent. Looking forward, how do you tie in ESL with physical design? When doing ESL, you can do architectural exploration. I will have my ESL to drive the place-and-route tool. I can get fast execution as well as low leakage power."

He advises that India has the ability to go beyond the innovation that has been happening.

Mentor in India
Mentor Graphics has three sites in India. It has R&D centers in Hyderabad and Noida, near New Delhi, and a sales and support office in Bangalore. The Hyderabad R&D center handles system design, while the Noida R&D center takes care of the front-end side, such as functional verification products.

Raghu Panicker, sales director, India, Mentor Graphics, says that the company has been very bullish on India. "We do not see any lull anywhere. Lot of design starts are happening here, in India," he adds.

I will continue my conversation with Joseph Sawicki in the next blog!

IC shipments likely to grow 3.8pc in 2008

The latest wireless/DSP bulletin from Forward Concepts has highlighted an improved shipments of DSP and RISC chips for cell phones as well as DSP shipments for wireless infrastructure.

I had the privilege of interacting directly with Will Strauss, President & Principal Analyst, Forward Concepts, author of this particular bulletin.

On being quizzed about the improvement in shipments of DSP and RISC chips for cell phones, Strauss indicated that new cellular subscribers in China and India are continuing to grow, even as Europe and the US are reaching saturation.

"Since most people here have cell phones, the market is mostly driven by the replacement devices. In the US, handsets are also subsidized by the carriers under a subscription plan that ties the subscriber to a handset for two years," he says.

An interesting point in the wireless/DSP bulletin is the fact that although DSP shipments for wireless infrastructure were down 14 percent in May compared to April, it was still 30 percent higher than May of 2007. What are the reasons for this peculiar trend?

Citing that the reasons were not yet clear, Strauss adds that in infrastructure, more so than for cellphones, the quarterly shipments are all that really matter. Forward Concepts hopes to have better calibration when June shipments are reported at the end of July.

Going forward, how are DSPs likely to perform? Well, it is to be noted that DSP chips, as devices with that specific nomenclature, are now becoming a decreasing percentage of the DSP silicon market. That's because DSPs as cores are becoming just part of SoCs in everything multimedia, in VoIP, in cell phones, etc., adds Strauss.

Similarly, RISCs, like DSPs, are simply part of the SoCs, and often in lock step with DSP. That's because every cell phone chip has at least one DSP core and one RISC core inside.

Another point noticeable in the bulletin is that automotive, wired communications and storage (disk drive controllers) sectors have seen a slowdown.

On this, Strauss clarifies that the automotive market has seen a drastic slowdown because of high fuel prices. Telecom companies have been slow to invest in infrastructure as wireless is taking over their traditional wireline market.

As for the disk drive controllers, their prices are akin to those of DRAM memory, subject to big swings in selling prices, lowering revenue even when production is strong.

Mobile Internet devices or MIDs are devices people are looking forward to. It is hoped they would bring some cheer to the IC market. This remains to be seen as the MID market doesn't begin until late in Q3 2008.

Finally, the key question: what's the industry outlook likely to be for the rest of the year? Strauss says: "The semiconductor industry is also subject to world economic changes. The outlook is for minimal world economic growth in 2008, mostly because of high oil prices and the weak US dollar. We are forecasting only 3.8 percent revenue growth in worldwide IC shipments for 2008, down from its traditional annual growth rate of about 7 percent."

Collision course ahead?
On another note, the IC Insights reported that current spending plans by IC manufacturers worldwide will lower total semiconductor capital expenditures by 18 percent to $49.7 billion in 2008 from $60.3 billion in 2007, according to new data collected by IC Insights.

A growing number of large IC firms are now outsourcing more products to foundries. Also, major pure-play wafer foundries are aiming to increase their profitability by controlling capital spending. As such, IC Insights believes that the IC industry continues on a "collision course" with respect to supply, demand, and average selling prices or ASPs!