networking & computing systems group...
TRANSCRIPT
![Page 1: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/1.jpg)
David PerkinsSenior Vice President and General Manager
Networking & Computing Systems Group Overview25 July 2006
![Page 2: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/2.jpg)
The forward-looking statements in this presentation include statements regarding market growth and our potential capacity, financial position, expanded addressable market, business strategy and other plans and objectives for future operations, as well as any other statements which are not historical facts.
Although we believe that these statements are based on reasonable assumptions, they 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 are listed in our Form 10K for the year ended December 31, 2005 and other SEC filings.
![Page 3: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/3.jpg)
Freescale’s Networking & Computing Growth
$351 $370$387
$0
$100
$200
$300
$400
Q2'05 Q1'06 Q2'06
22%28%
23%
0%5%
10%15%20%25%30%
Q2'05 Q1'06 Q2'06
Revenue ($M) Operating Earnings %
** *
* Apple and Clocks
![Page 4: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/4.jpg)
Networking & Computing Market Growth
All NCSG MarketsSAM CAGR: 11%(2005 year-end to 2009 year-end)
Wireless Infrastructure
Wireline Infrastructure
Enterprise Networking
Home & SOHO Networking
Pervasive Computing
SAMCAGR
6%7%
10%12%19%
LTMNCSG
Revenue:$1,419M
Sources: Gartner, WSTS, In-Stat, IMS, Freescal e
NCSG Market SAM ($B)
$13.3 $12.5$14.6
$16.5 $17.7 $18.8
2004 2005 2006 2007 2008 2009
![Page 5: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/5.jpg)
Freescale’s Networking & Computing Portfolio Advances
CommunicationsProcessors
Radio FrequencyDevices
Digital SignalProcessors
ApplicationSpecific Devices
Building industry momentum with new merged Power Architecture™technology & unified identity
Delivering highest performance in the industry with 3rd-generation multi-core DSP
Extending RF LDMOS technology to 3.5GHz+ into new market applications
Delivering leading home networking solutions• Triple-play solutions• xPON, tuners, modulators, CA, STB
![Page 6: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/6.jpg)
Convergence Means Smarter Networksin Public Infrastructure, Enterprise & Home
Fixed and Wireless Public Network Infrastructure
Home
“Connectivity” “Services”
“Plumbing” “Applications” “Access” “Experience”
Enterprise
Integrated & secure,
application-awarenetwork
Home networkintegrating HDTVwith VoD, Voice &Video, pervasiveInternet access…
Converged fixed and mobile voice, video and
data with advanced services
Voice Network
Video/TV Network
Data Network
Wireless Network
LAN
Voice PBX
Private WAN
Data Center
TV / Audio system
PC & Broadband Modem
Phone
![Page 7: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/7.jpg)
Purpose-built, cost-optimized, processor-based ASSPs with integratedconnectivity and performance options
Software-Based Value Delivery RequiresOptimized Embedded Processing
Freescale processors are at the heart of the network evolutiondriving the convergence of embedded computing and connectivity
Integrated, multi-core, application-accelerated, processor SOCswithin power and cost envelopes
Multi-service, IP-optimized control-, data- and signal-processing SoCs across broad range ofperformance, power and cost envelopes
Fixed and Wireless Public Network Infrastructure
Enterprise
Home
![Page 8: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/8.jpg)
Convergence in Public Infrastructure Networks
Equipment Design Challenges• Lower system & operating costs• More bandwidth, smaller footprints• Multi-service migration to IP• More compute & signal processing
performance within fixed power
Dramatic Changes Underway• Provider & vendor consolidation• Relentless migration to IP to enable
triple-play ARPUs• Existing technologies grow (GSM)
as new ones emerge (3G, WiMAX)
SMB
Enterprise
Home
CoreAccess
![Page 9: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/9.jpg)
Industry’s Highest-Performance Programmable DSP
WiMAX Basestation
3G-H.324M & Video Conferencing Gateway
Radio Network Controller (RNC)
Basestation
VoIP Carrier-ClassMedia Gateway
Wireless IMS/TranscodingGateway
3G Pico Basestation
Example Applications
BTS CAGR 11%*
WiMAX BTS CAGR 180%*
Media GW CAGR 22%*
* Sources: Gartner, IDC, JP Freeman
3rd Generation Multi-Core DSP Leadership:• Leading VoIP channel density• Leading video density for IMS and
triple-play convergence • Best performance per watt
Over 15 key patent-pending innovations improving performance, efficiency and usability
![Page 10: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/10.jpg)
Converged Wired / WiMAX Wireless Business & Residential Gateway Platform• Wavesat WiMAX CPE
chipset and software• PowerQUICC II Pro
with QUICC Engine™technology
WiMAX Base Station & CPE Solutions
Complete WiMAX Base Station Evaluation Platform• Complete multi-
standard 802.16e MAC & PHY solutions
• PowerQUICC™ CPU and StarCore™ DSP
• Full reference software
The Leader in WiMAX RF Power
• LDMOS technology leadership for 3.5GHz WiMAX frequencies
• Advanced packaging technology delivers cost-effectiveness
Freescale teams with Wavesat on WiMAX reference platform for business and residential gatewaysWiMAX CPE solution combines PowerQUICC™ II Pro processor reference boards and Wavesat’s Mini-PCI board and software
ORLANDO, Fla. (Freescal e Technolog y Forum) – Jul y 24, 2006 – Freescale Semiconduc tor (NYSE:FSL, FSL.B) and Wavesat, a l eading supplier of WiMAX chipsets, software and development tools, are collaborating to deli ver a
Freescale Power RF, Processor, and/or DSPs designed into virtually every base
station design known in the industry!
![Page 11: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/11.jpg)
SMB
Enterprise
Home
CoreAccess
Convergence in Enterprise Networks
Equipment Design Challenges• Security and application-aware
processing acceleration• Multi-core processor architectures• Voice and video signal processing• More compute and signal processing
performance within fixed power
Enterprise Datacom meets Telecom• Integrated voice and data over IP• Unified Threat Management (UTM)
security as embedded function• Gigabit Ethernet for “infinite” bandwidth• Video-enabled tele-presence
becoming viable business application
![Page 12: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/12.jpg)
Embedded Performance ScalabilityRequires More Than Multi-Core
Power
Aggregate Application PerformancePerformance Requirement
1 x CPU
n x CPU
30W Ceiling
CPU + Hardware
Acceleration
Scalability
![Page 13: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/13.jpg)
Layer 4-7 ‘Content’Processing
Requirements
Freescale Multilayer Communications Processing
Introducing MPC8572 PowerQUICC III processor
• Targeted at new ‘content aware’ security and B2B collaboration applications
• Dual-core Power Architecture™ with advanced application acceleration
• 1st PowerQUICC product to leverage IP from acquisition of Seaway Networks, August ‘05
OSI Protocol Layers
NPU
Perfo
rman
ce
L2 L3 L4 L7
GeneralCPU
Tomorrow’sCommunications
Processor
Today’sCommunications
Processor
Application Acceleration
TLU Crypto Deflate PatternMatch
e500Core
e500CoreCache
GigabitEthernet
PCI ExpressRapidIO
Coherency Module MemoryController
![Page 14: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/14.jpg)
Convergence to All-in-One Business Gateways
VPN Router
IP-PBX
L2 Switch
Security Appliances
• Lower system cost• Simpler management• Flexible deployment of
hosted services• Voice, data, video• Storage, security• Hosted applications serv ices
• Remote management
Office-in-a-Box SMB GatewayVPN Router, Security Appliance,
Ethernet Switch, IP-PBX and NAS
NAS Server
![Page 15: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/15.jpg)
SMB
Enterprise
Home
CoreAccess
Convergence in the Home
Equipment Design Challenges• Purpose-built devices require
performance/price range• High levels of integration• High-speed data handling and
security acceleration
Computing Power Beyond the PC• Smart and fast residential gateways
deliver and manage carrier services• Intelligent set-top boxes for
next-generation HDTV• Optimized purpose-built devices• “No new wires” networking
![Page 16: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/16.jpg)
Freescale Success in the Home as Computing Power Becomes Embedded and Connected
Digital A/V Plane
Terminal Adapter
Phones/FAX
Wireless IP Phone
Desk IP Phone
NAS
Media Center PC
Desktop PC
Notebook PC
Printer
Internet Terminal
STB/DVR
Modem RouterAP
Residential Gateway
Home Automation
Security HVAC
Energy Management
Living Environment Plane
Video
Data
Voice
Wireless
Digital A/V Plane
PC Plane
Thin STBMedia Adapter Media Server
Unique RF skills + SoC capability = growing set-top box presence
• #1 in RF modulators• RF tuner and stereo encoder
design win momentum• Hughes Networks DVB-S2 ASIC• Key DVB-T design win
Most integrated PON CPE device• Triple-play enablement (V2D)• Integrated GPON chipset
volume shipments starting• Poised for leading market position
by mid-2007
Leveraging existing technologies• MPC8323 PowerQUICC II Pro with
QUICC Engine technology for residential gateway applications
![Page 17: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/17.jpg)
Recent Home-Networking Headlines from Freescale
![Page 18: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/18.jpg)
New RF Markets & Pervasive Computing OfferAdditional Growth Opportunities
Frequency
Leveraging RF Power Leadership into New Markets
FSL a Market LeaderNew FSL Market Entry
Embedded Applications Based on Power Architecture™ Technology
CATVSiBP PHEMT
CATVSiBP PHEMT
RF
Pow
er
3GInfrastructure
LDMOS
3GInfrastructure
LDMOS
2G Infrastructure
LDMOS
2G Infrastructure
LDMOS
GPAHBT HFET
GPAHBT HFET
IndustrialLDMOS
IndustrialLDMOS
WiMAXLDMOS
WiMAXLDMOS
BWAPHEMTBWA
PHEMT
VSATHFET
VSATHFET
WiMAXLDMOS/PHEMT
WiMAXLDMOS/PHEMT
RadarLDMOSRadarLDMOS
AvionicsLDMOS
AvionicsLDMOS
BroadcastLDMOS
BroadcastLDMOS
WiMAXLDMOS
WiMAXLDMOS
Strong and growing Power Architecture technology presence in industrial markets including control & automation, robotics, aerospace, medical, test & automation
PowerQUICC™ processors integrate IEEE 1588 time synchronization protocolFreescale communications processors now include hardware to increase time synch precision, supported by protocol software from IXXAT
AUSTIN, Texas, July 17, 2006 — Freescale Semiconductor (NYSE:FSL, FSL.B) has teamed with IXXAT, a leading supplier of industrial and automotive communications solutions, to offer comprehensive IEEE 1588 time-synchronization protocol solutions for PowerQUICC™ communications processors built on Power Architecture™ technology. To showcase this collaboration, IXXAT is demonstrating the 1588 protocol running on the MPC8349E PowerQUICC II Pro processor at the Freescale Technology Forum, July 24-27 in Orlando, Fla.
+$20M +$20M +$250M+$250M ~$100M~$100MMarket Segment TAM
![Page 19: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/19.jpg)
Strong, Global Networking Customer RelationshipsNCSG Customer Recognition
• Excellence in SupplierAccount Team Service (2004)
• RF Power Amplifier ElectricalComponent Supplier of the Year (2004)
• Impact Award (Supplier of Year, 2005)• Golden Link Award (2004)• Winning Edge Award (2004)
• Supplier Award (2005)
• Silver Award for Excellent Supplier (2005)
• Most-Valued Supplier Award (2005)
• Quality & Service –Technology Supplier Award (2005)
![Page 20: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/20.jpg)
NCSG OEM Design Win Value by Segment Top Sub-SegmentsDSLAM / MSAN / MTU / MDUPower AmplifiersBasebandControl ProcessorsOther Wireless Infrastructure Transceivers Communications InfrastructurePrinting/Imaging Set-Top BoxResidential GatewayGamingLow-End RoutersMid-Range RoutersMid-Range SwitchesHigh-End SwitchesIP PBXWireless LAN
NCSG Design Wins by Market Segment
2003Q1
2003Q2
2003Q3
2003Q4
2004Q1
2004Q2
2004Q3
2004Q4
2005Q1
2005Q2
2005Q3
2005Q4
2006Q1
2006Q2
Wireless InfrastructureWireline Infrastructure
Enterprise NetworkingHome & SOHO NetworkingPervasive Computing
![Page 21: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/21.jpg)
We Deliver theProcessing Intelligence
andConnectivity Solutions Behind the World’s Networks
![Page 22: Networking & Computing Systems Group Overviewlibrary.corporate-ir.net/library/17/175/175261/items/207131/David... · Networking & Computing Systems Group Overview ... Media Gateway](https://reader031.vdocuments.site/reader031/viewer/2022021503/5a722c097f8b9aac538d5510/html5/thumbnails/22.jpg)