New apps in semicon — smart grid and secure transactions

Happy new year and welcome to my blog.

Let’s start this year by looking at René Penning de Vries, senior VP and CTO of NXP, who spoke this morning at ISA’s CXO Conclave, titled New Applications in Semiconductors (Smart Grid & Secure Transactions) – Role semiconductors play to make our society a better place!

Dr. René Penning de Vries touched upon the role semiconductors play in two of the societal mega-trends: energy and security. In 21st century, IC industry has gone from business driven to society driven and semiconductors play key role in solving problems like energy shortage and security threat. In essence, semiconductors make our lives better.

The first part of this talk touched upon “smart grid”, it’s applications, and associated semiconductor innovations in AMS domain. The second part covered “secure transactions”, innovation, and transition in this domain from “IC hardware focus” to “HW-OS-Apps holistic”. Rene illustrated with real-life NFC example from the recent Google-NXP collaboration.

According to Rene, the IC industry is being driven from business to consumer, and now, to society. Some of the well known areas where ICs are being used today include health and wellness, transport and mobility, security and safety, energy and environment, communication and e-society.

Some of the key macro drivers in electronics include:
Energy efficiency: Includes efficient power conversion and low stand-by power, energy-saving lighting and back-lighting, energy conservation through demand side management, electric/lighter vehicles, and intelligent traffic management.

Connected mobile devices: Includes proliferation of mobile data usage, wireless infra build-out, smart mobile devices: always-on, multimedia, location-based, connected car, many broadcast and connectivity standards, and new user interfaces (e.g., touch, joystick).

Security: Includes secure mobile transactions and secure identity, authentication, tagging and tracking, car and home access, security and remote diagnostics, and radar and (body) scanning installations.

Health: Includes personal healthcare and portable emergency devices, connected hearing aids and implantable devices, car safety and comfort, and electronic diagnostics.

Key application areas include:
Wireless infrastructure: Wireless base stations, satellite, CATV infrastructure and radar.

Lighting: Lighting, LED, backlightingIndustrial: Smart metering, white goods and home appliances, Pachinko, medical, industrial and ATE.

Mobile: Mobile handset, portable power supplies and hearing aids.Automotive: Car access and immobilizers, in vehicle networking, car entertainment, telematics, ABS, transmission and throttle control, and lighting.

Identification: Secure identity, secure transactions, tagging and authentication.Consumerr: TV, satellite, cable, terrestrial and IP set-top boxes, and satellite outdoor units.

Computing: Monitor, power supplies, personal computer TV.

Local know-how, innovation (Jugaad) keys to realizing semicon/electronics growth in India

“We can’t just rely on making chips,” said Neeraj Paliwal, VP and NXP India country manager, while delivering his keynote: Semiconductor products for Indian market – leapfrog R&D workforce to product creation, at the recently held Mentor Graphics U2U conference. Local know-how and innovation hold the keys to realizing growth in the Indian context.

According to him, the semicon industry has evolved from initially being technology driven to customer driven, and lately, society driven. Paliwal listed four key macro growth drivers in electronics: energy efficiency, connected mobile devices, security and health.

Energy efficiency
* Efficient power conversion and low stand-by power.
* Energy-saving lighting and back-lighting.
* Energy conservation through demand side management.
* Electric/lighter vehicles, intelligent traffic management.

Connected mobile devices
* Proliferation of mobile data usage, wireless infra build-out.
* Smart mobile devices: always-on, multimedia, location-based.
* Connected car, many broadcast & connectivity standards.
* New user interfaces (e.g., touch, joystick).

Security
* Secure mobile transactions and secure identity.
* Authentication, tagging and tracking.
* Car and home access, security and remote diagnostics.
* Radar and (body) scanning installations.

Health
* Personal healthcare and portable emergency devices.
* Connected hearing aids and implantable devices.
* Car safety and comfort.
* Electronic diagnostics.

Jugaad — Indian flavor of innovation
In the Indian context, local know-how holds the key to realizing growth! Here, Paliwal introduced “Jugaad” an Indian word, which simply means an improvisational style of doing things or innovation, largely driven by or making use of scare resources available.

There is a need to develop an innovation mindset with the focus on revenue growth to reach new markets. Well, it should help when the innovations look at solving local problems first, and later, go on to address related or similar international problems.

Some examples of Indian innovations, include Tata’s water filter for rural poor for $20, which does not run on electricity; and Tata’s Nano car, which aims to reach the bottom of the pyramid. Also, John Deere’s weather recession with help from innovation. In fact, innovation could well be India’s next global export.

India already has a National Innovation Council, with the aim to provide a broader plaform for innovation to redefine the understanding of innovation and move beyond the formal R&D paradigm. Another example of innovation — wireless kiosks for rural India.

NXP driving automotive electronics toward energy efficiency

NXP recently organized an Automotive Technology Day at its Bangalore campus. I shall focus on the points made by Ashok Chandak, senior director, Global Sales and Marketing, NXP Semiconductors on how global trends are challenging the society.

According to him, the key macro growth drivers in electronics include energy efficiency, connected mobile devices, securty and health. He also highlighted how HPMS or high-performance mixed signal is driving innovation at NXP.

NXP Automotive Technology Day.

NXP provides HPMS and standard product solutions that leverage its leading RF, analog, power management, interface, security and digital processing expertise.

Commenting on the BRIC market for automotives, he said that the BRIC market has been projected to grow at a CAGR of 6.1 percent vs. total market of 5 percent for the period 2010-17. Also, BRIC’s share of the global car production has been estimated to grow from 31 percent in 2010 to 34 percent by 2017.

Motivation in India has been the the fast growing automotive market and the increasing electronic content in automotives.

Drivers of innovation in automotive

The drivers of innovation in automotive include seamless connectivity, increased safety, sustainable mobility and affordability, and increased comfort. NXP has been striving to significantly address all of these.

Chandak also highlighted five examples that are driving significant fuel efficiency improvement. These include: electric power steering, eco telematics, body networks, transmission, and start/stop systems. Again, NXP provides dedicated solutions that are driving efficiency in conventional, as well as hybrid and electric cars.

He also touched upon some of NXP’s innovations. These include — electric power steering, which saves fuel consumption and CO2 emission 10g/km; dual clutch transmission, which saves fuel consumption and CO2 emission up to 10 percent; start/stop systems, which are micro-hybrid and also save fuel consumption and CO2 emission by 4-10 percent.

Body electronics is yet another NXP innovation. Partial networking is enabled since the ECUs are only active when a function is needed. This also extends the range of an electric car. The potential energy saving is up to 70W. NXP has also enabled eco-telematics by way of a telematics on-board unit. A feature includes intelligent traffic management, which saves fuel consumption and CO2 emission up to 16 percent.

Chandak added that ‘electrification’ is a technical mega trend. Vehicle efficiency is driving electrification. Innovations in electronics are driving the car toward energy efficiency.

Top 10 captivating moments in Indian semicon during 2008

Yes, the time has come for all of us to say goodbye to this year. It has been a very captivating year for the Indian semiconductor industry. Some consider it to be a year the industry came of age, while some others would look at the year as one where fab promises failed India.

Nevertheless, as I’ve maintained, having or not having a fab won’t affect India very much as its traditional strengths have been in embedded and design services.

There have been several moments during the year that I personally savor. In fact, I have either witnessed most of those or written/blogged about them.

The top 10 captivating moments in Indian semiconductors during 2008, according to me, are:

1. S. Janakiraman, former chairman, ISA, declared before the world, in May at Dubai, during the IEF 2008, about India’s growing strength in global telecom.

2. Growing interest in the solar photovoltaic industry in India, and subsequent proposals made by various companies, including Reliance.

3. EDA companies, such as Magma and also Synopsys, making their entry, or at least, intentions known, in the solar/PV industry.

4. Intel’s new chip, designed largely in Bangalore, and of course, the Intel Developer Forum in Taipei, Taiwan.

5. Visit of a strong Japanese delegation to Bangalore, which showed remarkable keenness regarding possible investments in India.

6. BV Naidu quitting SemIndia, and putting in doubt India’s fab story. Well, that’s a different story, and one person’s exit would not mean much to such a large industry.

7. ISA Excite, and the minister announcing that Karnataka could have its own semiconductor policy. The policy should be out in the new year, hopefully.

8. AMD’s new chip, the Shanghai, which again, had a lot of involvement from AMD’s Bangalore team.

9. NXP India achieving RF CMOS in a single chip. The entire analog and RF work was done in Bangalore, India.

10. Go parallel or perish, said James Reinders, of Intel! Parallelism or parallel computing involves the simultaneous use of more than one computer or processor to execute a program.

I was also present during the launch of Synopsys’ Galaxy Custom Designer, which tackles the analog mixed-signal (AMS) challenges. It would occupy a joint 10th position.

There may have been some other moments as well! Would like to hear from all of you what are those other great times in India semiconductor industry during 2008!

NXP India's Rajeev Mehtani on top trends in global/Indian electronics and semicon!

When a new year approaches, we start analyzing the year gone by and try to gauge what could happen in the coming year. This really holds true, as far as the technology industry is concerned.

It’s been a week since I’ve been mulling over these myself, especially, pondering over developments in the global semiconductor and electronics industries, as well as what could happen in India during 2009. Well, lots will happen, and I can’t wait for the new year to start!

I caught up with Rajeev Mehtani, vice president and managing director, NXP Semiconductors, India, and discussed in depth about the trends for 2009. Here’s a look at that discussion.

INDIA — ELECTRONICS & SEMICONDUCTORS

1. The DTH story will continue to increase in India with companies such as Tata Sky, DISH TV, BIG TV, etc., gaining market share. Owing to these challenges, there would be significant consolidation among the cable operators. Digitalization will also be seen in 2009.

2. The slowdown will affect growth across all sectors. Our view is that LCD TVs as well as STBs will continue to grow.

3. The year 2009 will witness e-commerce revolution and the RFID sector will grow at a 40-50 percent clip. The government has been sponsoring a lot of projects, which include RFID in the metros, e-passport cards and national ID cards. By mid-2009, we can expect a mass deployment of these projects as well as micro payments.

4. Manufacturing in India will continue to grow; EMS or OEMs, such as Samsung, Nokia, Flextronics, etc.

5. There could be a move from services to products in electronics and semiconductor spaces. The number of funded startups has grown significantly over the last years and more and more ideas are coming on the table.

6. The solar/PV sector will grow in India. High entry cost of capital for panels will be a barrier for this sector. Government enhancement is necessary. India will be different than other countries as people won’t push energy back into the grid; it will be used more for household consumption. The India grid is unstable. Tracking it requires a lot of expensive electronic switching. Solar deployment could be at the micro level, and also community level, where it makes more sense.

7. The startups in India are mostly Web 2.0 based, although there aren’t many hardware startups.

GLOBAL — ELECTRONICS & SEMICONDUCTORS

1. The semiconductor industry is truly global, That is mostly because it is a very expensive industry.

2. Things are a bit murky in the semiconductor industry. It would probably be dipping 10-15 percent next year.

3. Globally, energy management and home automation will start to take off in 2009. Satellite broadcasters will also continue to gain more strength.

4. On a worldwide scale, 3G will win. You will have 3G phones, and you’d add LTE to those. India is slightly different. Only 20 percent of Indian households are ready for broadband access. In India, WiMAX could be a way to have wireless broadband at home.

5. Industries moving to 300mm fabs will be making up only 20-25pc of the market. Not many need 45nm or 40nm chips. People will question any major capex, until there’s a big return and wait for recession to end. The bright spot is solar!

6. The fabless strategy would be the only way to go forward. While MNCs with fabless strategy are present in India, Indian startups in this space are quite few.