Networking & Computing Systems Group Overview 25 July David Perkins Senior Vice President and General Manager

Transcription

1 Networking & Computing Systems Group Overview 25 July 2006 David Perkins Senior Vice President and General Manager

2 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.

3 Freescale s Networking & Computing Growth Revenue ($M) Operating Earnings % $400 $300 $200 $387 * * $351 $370 * 30% 25% 20% 15% 22% 23% 28% $100 10% 5% $0 Q2'05 Q1'06 Q2'06 0% Q2'05 Q1'06 Q2'06 * Apple and Clocks

4 Networking & Computing Market Growth All NCSG Markets SAM CAGR: 11% (2005 year-end to 2009 year-end) NCSG Market SAM ($B) $13.3 $12.5 $14.6 Sources: Gartner, WSTS, In-Stat, IMS, Freescal e $16.5 $17.7 $ LTM NCSG Revenue: $1,419M Home & SOHO Networking Wireline Infrastructure Pervasive Computing Enterprise Networking Wireless Infrastructure SAM CAGR 19% 12% 10% 7% 6%

5 Freescale s Networking & Computing Portfolio Advances Communications Processors Building industry momentum with new merged Power Architecture technology & unified identity Digital Signal Processors Delivering highest performance in the industry with 3 rd -generation multi-core DSP Radio Frequency Devices Application Specific Devices Extending RF LDMOS technology to 3.5GHz+ into new market applications Delivering leading home networking solutions Triple-play solutions xpon, tuners, modulators, CA, STB

6 Convergence Means Smarter Networks in Public Infrastructure, Enterprise & Home Enterprise Home Data Center LAN Private WAN Voice PBX Integrated & secure, application-aware network Phone TV / Audio system PC & Broadband Modem Home network integrating HDTV with VoD, Voice & Video, pervasive Internet access Plumbing Applications Access Experience Voice Network Wireless Network Video/TV Network Fixed and Wireless Public Network Infrastructure Converged fixed and mobile voice, video and data with advanced services Data Network Connectivity Services

7 Software-Based Value Delivery Requires Optimized Embedded Processing Enterprise Integrated, multi-core, application-accelerated, processor SOCs within power and cost envelopes Home Purpose-built, cost-optimized, processor-based ASSPs with integrated connectivity and performance options Fixed and Wireless Public Network Infrastructure Multi-service, IP-optimized control-, data- and signal-processing SoCs across broad range of performance, power and cost envelopes Freescale processors are at the heart of the network evolution driving the convergence of embedded computing and connectivity

8 Convergence in Public Infrastructure Networks Enterprise 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 Home Access Core Equipment Design Challenges Lower system & operating costs More bandwidth, smaller footprints Multi-service migration to IP More compute & signal processing performance within fixed power

9 Industry s Highest-Performance Programmable DSP Example Applications BTS CAGR 11%* Basestation Wireless IMS/Transcoding Gateway Media GW CAGR 22%* VoIP Carrier-Class Media Gateway 3G Pico Basestation WiMAX BTS CAGR 180%* Radio Netw ork Controller (RNC) WiMAX Basestation 3G-H.324M & Video Conferencing Gateway 3 rd 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 * Sources: Gartner, IDC, JP Freeman

10 WiMAX Base Station & CPE Solutions Complete WiMAX Base Station Evaluation Platform Complete multistandard e MAC & PHY solutions PowerQUICC CPU and StarCore DSP Full reference software Freescale Power RF, Processor, and/or DSPs designed into virtually every base station design known in the industry! The Leader in WiMAX RF Power LDMOS technology leadership for 3.5GHz WiMAX frequencies Advanced packaging technology delivers cost-effectiveness Converged Wired / WiMAX Wireless Business & Residential Gateway Platform Wavesat WiMAX CPE chipset and software PowerQUICC II Pro with QUICC Engine technology Freescale teams with Wavesat on WiMAX reference platform for business and residential gateways WiMAX CPE solution combines PowerQUICC II Pro processor reference boards and Wavesat s Mini-PCI board and software ORLANDO, Fla. (Freescal e Tec hnolog y Forum) Jul y 24, 2006 Freesc ale Semiconduc tor (NYSE:FSL, FSL.B) and Waves at, a l eading supplier of WiMAX chipsets, software and development tools, are collaborating to deli ver a

11 Convergence in Enterprise Networks SMB Home Enterprise Access Core 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 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

12 Embedded Performance Scalability Requires More Than Multi-Core Power 1 x CPU n x CPU 30W Ceiling Scalability CPU + Hardware Acceleration Performance Requirement Aggregate Application Performance

13 Freescale Multilayer Communications Processing Performance Tomorrow s Communications Processor Layer 4-7 Content Processing Requirements Today s Communications Processor Introducing MPC8572 PowerQUICC III processor Targeted at new content aware security and B2B collaboration applications Dual-core Power Architecture with advanced application acceleration 1 st PowerQUICC product to leverage IP from acquisition of Seaway Networks, August 05 e500 Core Cache e500 Core NPU L2 L3 L4 L7 OSI Protocol Layers General CPU TLU Crypto Deflate Pattern Match Application Acceleration Coherency Module Gigabit Ethernet Memory Controller PCI Express RapidIO

14 Convergence to All-in-One Business Gateways L2 Switch VPN Router Security Appliances Office-in-a-Box SMB Gateway VPN Router, Security Appliance, Ethernet Switch, IP-PBX and NAS Lower system cost Simpler management Flexible deployment of hosted services Voice, data, video Storage, security Hosted applications services Remote management IP-PBX NAS Server

15 Convergence in the Home SMB Home Enterprise Access Core 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 Equipment Design Challenges Purpose-built devices require performance/price range High levels of integration High-speed data handling and security acceleration

16 Freescale Success in the Home as Computing Power Becomes Embedded and Connected Wireless Video Data Voice Modem Digital Digital A/V A/V Plane Plane Media Adapter Terminal Adapter Phones/ FAX STB/DVR Residential Gateway Wireless IP Phone AP Router Desk IP Phone Media Server PC Plane Thin STB Media Center PC Desktop PC Notebook PC Printer NAS Internet Terminal Living Environment Plane Home Automation Security HVAC Energy Management 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

17 Recent Home-Networking Headlines from Freescale

18 Leveraging RF Power Leadership into New Markets New RF Markets & Pervasive Computing Offer Additional Growth Opportunities Embedded Applications Based on Power Architecture Technology RF Power Industrial Broadcast LDMOS LDMOS CATV SiBP SiBP PHEMT PHEMT Frequency LDMOS LDMOS Avionics LDMOS LDMOS 2G Infrastructure LDMOS 3G Infrastructure LDMOS BWA PHEMT PHEMT WiMAX WiMAX LDMOS LDMOS LDMOS LDMOS WiMAX GPA HBT HBT H FET FET Market Segment TAM +$250M ~$100M +$20M +$20M Radar LDMOS LDMOS LDMOS/PHEMT LDMOS/PHEMT FSL a Market Leader New FSL Market Entry VSAT HFET HFET 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 protocol Freescale 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 in Orlando, Fla.

19 Strong, Global Networking Customer Relationships NCSG Customer Recognition Quality & Service Technology Supplier Award (2005) Impact Award (Supplier of Year, 2005) Golden Link Award (2004) Winning Edge Award (2004) Most-Valued Supplier Award (2005) Silver Award for Excellent Supplier (2005) Supplier Award (2005) RF Power Amplifier Electrical Component Supplier of the Year (2004) Excellence in Supplier Account Team Service (2004)

20 NCSG Design Wins by Market Segment 2003 Q1 NCSG OEM Design Win Value by Segment 2003 Q Q3 Wireline Infrastructure Wireless Infrastructure Pervasive Computing Home & SOHO Networking Enterprise Networking 2003 Q Q Q Q Q Q Q Q Q Q1 Q2 Top Sub-Segments DSLAM / MSAN / MTU / MDU Power Amplifiers Baseband Control Processors Other Wireless Infrastructure Transceivers Communications Infrastructure Printing/Imaging Set-Top Box Residential Gateway Gaming Low-End Routers Mid-Range Routers Mid-Range Switches High-End Switches IP PBX Wireless LAN

21 We Deliver the Processing Intelligence and Connectivity Solutions Behind the World s Networks

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