Arteris It s a vertical world after all

Transcription

1 Kurt Shuler, Vice President Arteris It s a vertical world after all November, 6 th, 2013 Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 1

2 Semico IMPACT 2013 It s a vertical world after all Kurt Shuler VP of Marketing, Arteris Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 2

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4 Design IP Vendor Semiconductor Vendor System House or OEM Service Provider or Channel

5 Market Search Commerce Social Networking Video Gaming Mobile Phones Rank #1 #1 #1 #1/#2 #1

6 NSA slide

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8 Percent of Power (%) 33% of Datacenter Power is Used for Cooling Source: Arif Khan and Osman Javed, Software and System Solutions Drive Datacenter Energy Efficiency, Electronic Design Magazine, 3 Oct 2013

9 Market Search Commerce Social Networking Video Gaming Mobile Phones Rank #1 #1 #1 #1/#2 #1

10 Multi-touch interface App Store Visual Voic Dual cameras / FaceTime Digital compass / magnetometer Accelerometer 64-bit processors

11 Source: Ben Evans of Ender s Analysis, Apple, Samsung

12 Market Search Commerce Social Networking Video Gaming Mobile Phones Rank #1 #1 #1 #1/#2 #1???

13 Cash on Hand Design IP Vendors, Billions ($B) ARM $0.91 Synopsys $0.89 Cadence $0.72 Imagination $0.08 Sources: Morningstar, Forbes, Yahoo Finance

14 Cash on Hand Semiconductor and Design IP Vendors, Billions ($B) Intel $18.16 Qualcomm $13.28 TI AMD Toshiba STMicroelectronics Broadcom Renesas Electronics ARM Synopsys Cadence Imagination $3.96 $2.94 $2.59 $2.49 $2.37 $1.60 $0.91 $0.89 $0.72 $0.08 Sources: Morningstar, Forbes, Yahoo Finance

15 Cash on Hand Systems Houses, Semiconductor and Design IP Vendors, Billions ($B) Apple $ Microsoft $68.31 Google $48.09 Samsung $35.16 Sony Intel Qualcomm Amazon Ebay TI AMD Toshiba STMicroelectronics Broadcom Renesas Electronics ARM Synopsys Cadence Imagination $19.07 $18.16 $13.28 $11.45 $9.41 $3.96 $2.94 $2.59 $2.49 $2.37 $1.60 $0.91 $0.89 $0.72 $0.08 Sources: Morningstar, Forbes, Yahoo Finance, Wikinvest

16 Operating Margin (%) Operating Margins Over Time Determine Sustained Investment Capability Make Buy or Exit Commoditization Time

17 High Operating Margins Enable Cash Accumulation Operating Margins, Q3 2013, Percent (%) 40% 30% 20% 10% 0% -10% -20% Sources: Wikinvest, Yahoo Finance

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19 Applications Middleware OS HAL / Drivers / Firmware Hardware

20 Applications Middleware OS HAL / Drivers / Firmware Hardware

21 Many Business Models Between Semiconductor Vendors and System OEMs 100% Custom No Semi OEM inputs IP Semi Sells to OEM only OEM inputs reqs Semi Sells to OEM only OEM inputs reqs Semi Sells to All COTS Microsoft Xbox with AMD Custom ASIC Intel Xeon with Facebook, ebay

22 Implications for Semi Vendors 1. Decide where to play in the design spectrum, and for which markets and customers 2. Work upstream to elicit better requirements, get your technology designed in 3. Be very flexible, focus on differentiation and time-to-market Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 22

23 Implications for IP Vendors 1. Work with System Houses and Service Providers to elicit requirements, get designed in or specified 2. (Re-)Engineer your business model: License upstream, get specified 3. Re-think revenue sources: IP licenses, software licensing, patent licensing, services Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 23

24 So what? Systems Houses / OEMs designing chips is more than a pendulum swing Strategy is reserved for the most profitable and best capitalized But that is the only place where the money is Focus on value chain members who need to differentiate, and who have cash Understand your true differentiation Be flexible in your business model Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 24

25 Semico IMPACT 2013, 6 November 2013 Copyright 2013 Arteris, Slide 25