IoT on Bicycle-Sharing and influence on Semiconductor

IoT on Bicycle-Sharing and influence on Semiconductor Dec.2017 Hui,He, Senior Analyst hui.he@ihsmarkit.com

2 Bicycle-Sharing Market Background Sharing Economy Sharing Economy means share assets in hand to other people, to increase utilization. In a word, Sharing than exclusive IoT Bicycle Manufacture In passed decades, Bicycle is one of major transportation in China. But from 2000, Bicycle manufacture stagnate. In 2016, China total bicycle shipment is 53 Millions, YoY decrease 5% Thing connect to Thing: Base on the Internet to extend, Make information exchange and communicate, In the way of smart sensor, Identification, to apply on the network fusion. User experiences is the core of IoT Innovation 2.0.

3 Bicycle-Sharing Business Chain Upstream Midstream Downstream Forever Pigeon Phoenix Traditional Bike Manufacturer Hisilicon Qualcomm MTK Spreadtrum China Unicom China Telecom China Mobile Module Maker Cooperate Operator Platform Maintain Mobike OfO Xiaomin Xiaolan Youbai Bike Maintainer E X T E N D E D S E R V I C E S Value-added service Cooperate with scenic spot Cooperate with Cycling club Big Data Cooperate with research institute Cooperate with advertiser Advertisement Printed on Bike App embedded..

4 Configuration Teardown and Analysis Forever Pigeon Phoenix Upstream Hisilicon Qualcomm MTK Spreadtru m China Unicom China Telecom China Mobile GPS smart lock is the key part of sharing bicycle Positioning system Use app to look for available bike, Improve the user experience and Easy to maintain Electronic Lock Use handset app to scan the attached QR Code to unlock, BT embedded enhance the communication. Traditional Bike Manufacturer Selfdeveloped Manufacturer Tyre Solid tyre : MOBIKE Normal tyre : OfO Driving Force Shaft drive Chain drive

5 Electronic Lock Case Study 1 st Gen Mechanical lock Send un-lock code to app, Manual open 2 nd Gen GSM+QR Code Send SMS to SIM card enable the lock open, Energy conversion for recharger 3 rd Gen GSM+GPRS+GPS BT+Sensor Open instruction send from GPRS,BT connect with Handset to open lock 4 th Gen NB-IoT+eMTC More connection with one base station, Low power consumption

6 Major Chip Player on Bicycle Sharing BT BT+ GPS GPRS +BT GPRS +GP S BT GPS+NB -IoT+BT MTK Qualcomm Spreadtrum Hisilicon MT6261 55nm ARM Core,GSM Modem MT2503 40nm SC6500 40nm ARM-7EJ-S,GSM Modem GPRS+GPS+Beidou+GNSS ARM Core,GSM Modem GPRS+GPS+Beidou+GNSS MT2625 28nm MDM9206 28nm MDM9205 28nm Boudica 120 28nm NB-IoT ARM Core,LTE Modem GPRS/NB-IoT/EMTC ARM Core NB-IoT ARM Core NB-IoT

7 Modem Cost Analysis RF(40%) BB(60%) PA 25%-30% ADC/DAC 10% SAW 5%-10% FFT/IFFT 5% Transceiver 40%-50% Post-FFT data storage 10-15% Duplexer/Switch 15%-25% Transceiver module 20-35% Others ~10% Turbo/Viterbi code 5-15% HARQ Buffer 10-15% Sync search module 10-15% UL Module 5-10% Typical Solutions: BB+AP(ARM-M0*3)+Flash+Power Management(Sensor Interface optional), LiteOS(embeded IoT system) BB+AP(CK802) (YunOS) 2G/NB-IoT dual mode, 3GPP R14, 2G/NB-IoT/eMTC Multi-mode LTE Cat M+NB-IoT (x86, Pentium process)

8 IoT Case Study-Bicycle-Sharing Smart Bicycle Big Data Big Data Base on MOBIKE Smart lock, GPS and communication module produced big data, after analysis these data then estimate market demand, in order to modify existing bikes and optimize new bikes release. IOT Cloud Cloud All the big data storage on cloud, User can scan QR code to un-lock, then make the connection between user and smart lock Deal with recharge and Payment, establish or reuse some other credit system to rule the use habit. IoT Smart lock integrated GPS module to realize precise localization, Exclusive SIM card to make the Instant Messaging, via the cloud can monitor use status Cooperate Baidu Yun to set up Smart point to fuse the Power Supply, manage and maintain

9 NB-IoT and emtc fusion to influence China IoT industry

10 Connected Devices Hierarchy Internet of Things Connected Electronic (NB-IoT) Connected Unconnected IP Addressable Non-IP Addressable Closed Network All Objects Non- Electronic Tagged (NB-IoT) Untagged Internet of Everything

11 More and More things connect to the Internet As predicted by Huawei, By the 2025,Physical things connection will reach to 100 Billion

Network Performance Vast connection 12 emtc and NB IoT fusion on China IoT industry development emtc NB-IoT Bandwidth 1.4Mbps 200Kbps 5G,LTE-V Peak Value DL:1Mbps UL: 1Mbps Duplex mode Half-duplex modefdd/tdd DL:20Kbps UL:60Kbps Half-duplex mode FDD Mobility Limited mobility to free mobility immovability WIFI UWB LPWA (emtc) VoLTE Yes No Deployment LTE Deployment Band Deployment Protect Band deployment Individual Deployment Capacity Tens of thousands 50 K/cell Bluetooth ZigBee NB-IoT, LoRa,Sigfox db(versus GSM) 15dB 20dB Battery Life 5-10 years 5-10 years Firmwave upgrade Yes No Short Distance Long Distance

13 emtc versus NB-IoT application emtc high reliability, Key Business, Latency sensibility NB-IoT Cost efficiency, Small data transportation, Wide coverage Car Tracing Building Surveillance Wearable Sharing Bike environmental monitoring community facilities

15 IoT devices and IC Shipment Trend IoT devices Shipment 2014-2025 IoT Semiconductor Shipment 2014-2025 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 201420152016201720182019202020212025 0 2014 2015 2016 2017 2018 2019 2020 2021 2025 Military & Aerospace Industrial Computers Automotive Medical Consumer Communications Processors Sensors Connectivity

16 China IC Design Outlook China IC design industry revenue forcast 2009 2021 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sensors & Actuators Optical Semiconductor Discrete Analog IC Logic IC Microcomponent Memory CAGR % Local Design demand 0 The 2015 20 CAGR target of China s IC design industry will be around 30%, which is higher than the whole semiconductor industry s 20% growth rate target that was specified in the government guideline file. As indicated in the Made in China 2025 policy, China is targeting 40 50% IC self-sufficiency by 2020. IHS Markit predicts the self-sufficiency in 2020 will be 45%. Sensors, Connectivity and Processors will be IoT main demand.

17 IoT is the major driving force for next decade China Major Carriers go all-out on NB-IoT deployment > NB-IoT base station will complete 400K by 2017. > The target in 2020, Total NB-IoT base station will be 1500K. NB-IoT and emtc fusion is the major technology trend in China for multiscenario usage. > NB-IoT with GSM/LTE network, is weak on mobility, especially between base station transportation, But in new released R14 standard, Mobility is enhanced. > emtc with LTE network will make things connection in high speed, some feature like VoLTE can be used as well. 2017 2016 IHS Markit. All Rights Reserved.