STMicroelectronics NATIXIS Payment Solutions Conference December, 9 th 2014 Marie-France FLORENTIN MMS Group Vice President Secure MCU General Manager
GP Microcontrollers General Purpose 8-bit and 32-bit MCUs Automotive 8-bit MCUs Memories Serial EEPROM RF memories Key Enablers State-of-the-art embedded NVM technology Advanced 8 & 32-bit CPU platforms System & Security expertise Market leadership in key products MMS Group 2 Secure Microcontrollers Personal and Embedded Security Secure Hardware platforms and Turnkey solutions Supporting our target markets SmartGrid / Industrial Healthcare Appliances Consumer Security
MMS mission 3 State-of-the Art embedded Non Volatile Memory technology developed by ST Develop highly innovative product portfolio in General Purpose and Secure Microcontrollers To be the #1 Worldwide supplier of consolidated General Purpose + Secure Microcontrollers business Target >15% market share on GP MCUs Target >20% market share on Secure MCUs Remain the indisputable #1 Worldwide supplier of EEPROM memories Target >30% market share on EEPROM
Our growth drivers 4 MEMS & Sensors Smart Power Automotive Microcontrollers * 35% growth in 2013 Digital Consumer & ASICs Targeting areas areas where ST ST leads leads or will or lead will lead *excluding automotive
MMS Positioning in 2013 5 EEPROM memories #1 worldwide supplier 2013 MMS 2013 Business by Activities Secure Microcontrollers #3 worldwide supplier 2013 General Purpose MCU Secure MCU 40% GP MCU 46% #5 worldwide supplier 2013 Consolidated MCU #2 worldwide supplier 2013 EEP 14% Major growth opportunity : General Purpose MCU + Secure MCU Source: IHS, CLT August 15 th 2014
2013 WW GP & Secure MCUs Revenues 6 1,800 US$M 1,600 1,400 1,200 1,000 800 ST #11 in 2007 #2 in 2013 Secure General Purpose* (*) without Automotive 600 400 200 0 Source: IHS CLT, March 2014 In August 2013, Spansion acquired Fujitsu s microcontroller business
Microcontrollers Enablers 7 State-of-the-Art Ecosystem Turn-key solutions General Purpose MCU High performance Advanced Analog Ultra Low Power Connectivity Focus on 32-bit ARM Cortex M0, M3, M4 Application software Contactless performance State-of-the-Art Security Focus on 32-bit ARM Cortex SC300 & SC000 Secure Microcontrollers In house manufacturing capability ensuring security of supply and mastering quality Advanced envm technologies Volume production 80nm e-flash moving to 40nm
32 bit MCUs > 500 Part Numbers Secure Microcontrollers 8 Entry level 32-bit Cortex SC000 ST31 32-bit Cortex SC300 ST33 High performance Based on Low power consumption Contactless market High security, high computing power Secure Element M Family General Purpose Microcontrollers Entry level 32-bit Cortex - M0 STM32 F0 STM32 L0 32-bit Cortex - M3 STM32 F1, F2 STM32 L1 32-bit Cortex - M4 STM32 F3,F4 STM32 L4 32-bit Cortex M7 STM32 F7 High performance Low cost, low power focus (L0) Address 8 & 16bit applications, IoT Mainstream, broadest portfolio Address broad range of 32 bit applications High computing power including DSP, ULP Sensor Hub, Wearables, Smart watch Leading Edge computing power and Digital signal processing Industrial market
MMS in ST 9 2012 2014 YTD revenues MMS 20% of ST 2013 21% 10% 5% 13% AMS APG IPG DCG 22% 9% 6% 17% AMS APG IPG DCG 18% 16% 16% IBP MMS Wireless Others 21% 16% 9% IBP MMS Wireless Others ST Revenue 2012: $8,493M MMS Revenue 2012: $1,147M ST Revenue 2013: $8,082M MMS Revenue 2013: $1,367M
MMS Key Strengths 10 General purpose MCU strengths Leadership position on the 32-bit market based on STM32 (ARM Cortex-M) platform Advanced e-nvm roadmap (ultra-low-power & RF focus) Advanced Analog capabilities Secure MCU strengths Market acceptance of ST23, ST31 & ST33 platforms Advanced e-nvm roadmap and security features know-how Leadership in Mobile Security for NFC solutions Leadership in Secure Payment (mobile payment and banking chip card) Focus on very high security platform & turnkey solutions Memory strenghts Worldwide EEPROM leadership with ~30% market share Automotive compliant advanced technology High volume state of the art manufacturing Dual Interface (RF+Contact) EEPROM innovative solution
Secure MCUs solutions 12 NFC full solution Controller + SE Mobile Payment NFC M2M Enhanced Secure Element M2M for Car Computer Trusted Platform Banking Turnkey solution Contactless Migration Consumer & Brand Protection Identification Secure authentication Home Automation & SmartGrid Transport e-flash flexibility Solution
Market 13 Market Dynamics 3.4 SAM Secure MCUs ~ 4,0% CAGR 2014-18 Growth initially driven by the Smartcards business market New applications embedding security are emerging to address Mobile payment, NFC, M2M, Home Automation, Trusted Platform, Healthcare, Brand Protection Customers Few tens traditional card makers New comers requiring highly secure turnkey solutions (application software in secure hardware platform) $B 3.3 3.2 3.1 3.0 2.9 2.8 2.7 Combined HW & SW to ensure the highest level of security ST Turnkey Secure Solution provider 2.6 2.5 2014e 2015e 2016e 2017e 2018e Source: WSTS May 2014
Be one of the top 3 Worldwide indisputable supplier Objectives 14 Maintain leadership on secure element with new wave of products Expand ST31 portfolio with strong focus on contactless Target >20% share in a growing market Profitable growth supported by Turn- Key Solutions $M 800 700 600 500 400 300 200 100 0 WW Ranking ST #5 in 2007 #3 in 2013 Enlarge customer base in consumer electronics & automotive Source: IHS isuppli CLT March 10th 2014
Secure MCUs Growth Drivers 15 Market growth driven by mobility, contactless convenience and an increasing need for security & authentication in the digital world (consumer, ) Secure RF ese-nfc eprotect PERSONAL SECURITY EMBEDDED SECURITY SMARTCARD MOBILE CONSUMER & INDUTRIAL Contactless platform: ST31 e-flash flexibility NFC secure element: ST33 NFC combo: SE + CLF End-to-end turn key solutions Hardware, Software, Personalization
ST Payment solutions 16 Payment Contact Cards NFC Controller Contactless Cards Wearable Bands Embedded SE SWP SIM Connected watches
17 Mobile Payment NFC & Mobile Payment With leadership position in NFC-SIM and e-se ST is the ideal partner For OEMs and Card Vendors
Source : ABI, ST, Sept 2014 1200 1000 800 NFC & Secure Element market (Mu) Secure Element TAM Embedded Secure Element (e-se) OEMs driven business Strong market growth expected the next 2 years 18 600 400 200 0 1200 1000 800 600 400 200 0 2012 2013 2014 2015 2016 SWP SIM e-se NFC Controllers TAM (Mu) 2012 2013 2014 2015 2016 SIM Secure Element (or NFC SIM) Mass Deployment confirmed in 2013 Main markets : US, EMEA, China, Korea, Japan Connectivity Combo WiFi, Bluetooth, GPS, NFC in single die Should gain share in long/medium term, but regularly delayed Standalone NFC Controller ST estimation based on: - Eurosmart - SPA -The Nilson report Deployment confirmed in 2012 Will still represent majority of NFC controllers shipment the next few years NFC Ctrl NFC Combo ~ 400Mu ST33 delivered to date to address SWP-SIM & ese Market
RF controllers Mobile Payment NFC 19 Secure Elements Source : ABI Q314 NFC is now deployed in most of high-end smartphones 2013 shipments > 250Mu (mainly Android) 2014 shipments expected > 400Mu 2015 shipments expected > 700Mu Source : Eurosmart 2014 Secure NFC devices include NFC enabled UICCs, embedded SE and other form factors of NFC enabled SE. Volume shipments: > 200Mu in 2013 > 300Mu expected in 2014 > 500Mu expected in 2015 OEMs NFC controller deployment Mobile Network Operators Secure SWP- SIM deployment OEMs Embedded Secure Element NFC drives massive deployment of NFC controllers, Secure SIM and Embedded Secure Elements, all co-existing into a smartphone Secure Microcontroller Division - December 2014
ST in Mobile Payment 20 Embedded Secure Element NFC in Mobile Handsets Host Host Controller NFC usd NFC CTRL NFC Middleware NFC Controller SWP SIM
ST Solutions for Mobile Payment 21 NFC SIM ST33 family, in mass production MIFARE enabled Secure NFC usd ST33 family, in mass production usd and custom packaging Embedded Secure Element NFC Controller ST33 family, in mass production Secure Java OS, EMVco & GP2.2 certified MIFARE enabled ST21NFC, in mass production Android & WIN8 compatible Integrated SE/NFC ST21NFC + ST33 + Secure Java OS = ST54 Android & WIN8 compatible Stacked solution, Effective footprint optimization MIFARE is trademark of NXP Semiconductors
ST IC s for Secure Element 22 2015 2010 ST33 1 st Gen FLASH 90nm ARM SC300 1.2MBytes, 90nm EMVCo, CC EAL5+ Massively deployed Leadership position MIFARE 2013 ST33 2 nd Gen FLASH 80nm ARM SC300 1.2MB and 768KB Enhanced performances, security & footprint Fully qualified Mass production now MIFARE ST33 3 rd Gen FLASH 40nm ARM SC300 Ultra advanced lithography Larger Flash size In development stage MIFARE is trademark of NXP Semiconductors
ST leader on Secure Elements 23 Wearable Bands Payment NFC Controller Connected watches ST leading position with SWP-SIM Embedded SE SWP SIM ST leading position on high-end e-se
24 Card Payment Card Payment secure ICs With strong security know-how and 20-year experience in banking, ST offers a unique range of contact and contactless ICs
Munits 3,500 Card Payment IC s market trend 25 3,000 Contact Contactless / Dual 2,500 2,000 Contactless Payment Massive migration in China : 250Mu in 2013 Europe progressive switch to contactless 1,500 1,000 500 EMV contact Continuous mag stripe to chip card migration SDA to DDA migration - 2012 2013 2014 2015 2016 2017 2018 Source : ABI Sept 2014
Major banking chip card migrations 26 Massive migration from mag stripe to dual interface chip cards : 500Mu in 2014 ; 600Mu/y in 2015 ST31Z052 90nm ROM/EE 8 BCTC certificates with key players ST31Z052 roll-out planned in 2015 Massive EMV migration : 150Mu in 2014 ; 250Mu/y in 2015 Main stream = DDA contact card ST share > 30% in 2014 (through WW and local players)
ST IC s for Card Payment 27 2012 ST23Y ST23Z EEPROM 90nm NVM : 4 48 KB ISO 7816 ISO 14443 Type A/B EMVCo, CC EAL5+/6+ 2012 ST31Z EEPROM 90nm NVM : 16 52 KB ISO 7816 ISO 14443 Type A/B EMVCo, CC EAL5+ ST31- ARM SC000 CPU High speed contactless Multi-RF protocols MIFARE Proven ST23 CPU 2014 ST31G / J / H FLASH 80nm NVM : 128-480 KB ISO 7816 ISO 14443 Type A/B ISO 18092 passive EMVCo, CC EAL6+ ST31- ARM SC000 CPU Flash flexibility High speed contactless Multi-RF protocols MIFARE MIFARE is trademark of NXP Semiconductors
New ST31 Advanced Contactless platform 28 ST23 platform ST31 platform 90nm ROM/EE ISO 14443 Type A & B 90nm ROM/EE ISO 14443 Type A & B VHBR up to 3.4Mb/sec 80nm FLASH ISO 14443 Type A & B VHBR up to 3.4Mb/sec ISO 18092 passive First ARM 32-bit SC000 based Secure MCU Multi-protocol ISO 14443 A & B, 18092 passive MIFARE and Calypso enabled Flash 80nm technology Highly secure CC EAL6+ architecture Transaction speed Interoperability Multi-application Transport Supply chain flexibility Security
ST31G480 selected by SONY 29
ST leader in IC s for Card Payment 30 Payment Contact Cards Contactless Cards Wearable Bands ST banking market share 2013 > 16% (ST estimates in volume) Strong position in Latin America, Western Europe and Asia More than 1.8B. units Smartcard ICs shipped for Banking cards Connected watches
Summary 31 ST solid leader in Secure Payment solutions Above 15% market share in IC s for Card Payment Above 50% market share in Secure Elements SWP-SIM ICs + ese Solid experience and broad range contactless offer RF multi-protocol ISO 14443 Type A, B and F NFC Controller for Smartphones MIFARE libraries for contactless Transport Leader in Security First to achieve Common Criteria EAL6+ Support certified cryptography library