Phone Wars The Hardware

September 2009

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Comneon is a 100% subsidiary of Infineon Technologies dedicated to mobile software

Comneon was founded in 1991 Comneon was founded in 1991 Acquired by Infineon in 2000 Acquired by Infineon in 2000 Software for mobile phones Software for mobile phones 3GPP Protocol Stacks 3GPP Protocol Stacks IMS Device Framework IMS Device Framework Comneon has been serving numerous Comneon has been serving numerous semiconductor customers for 18 years semiconductor customers for 18 years Protocol Stacks ported to a variety of Protocol Stacks ported to a variety of different chipsets and architectures different chipsets and architectures 400 engineers for software projects 400 engineers for software projects Wide customer base Wide customer base Worldwide customer support facilities Worldwide customer support facilities CMMI standard of quality assurance CMMI standard of quality assurance

September 2009

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The Four Ps of Wireless Semiconductors

Power consumption: Need to offer long run- and standby time without a size penalty

Price: Low bill of material (eBOM) and total cost of ownership

The Four Ps of Wireless Semiconductors

-1 -2 -3 -4 -5 -6 -7
S N R [d B ]

4-5dB margin !

-8 -9 -10 -11 -12 Tx/Rx = 0/-104.7 dBm Tx/Rx = +23.5/-104.7 dBm SNR for 0.1% BER

PCB board space: Reduce PCB cost and offer design flexibility to OEMs

Performance: need to fuel today's application requirements

-13 -14 -15

September 2009

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Ongoing integration of wireless semiconductors enables more features at a lower price

PMB2400 PMB2400 GSM GSM Receiver Receiver PMB2300 PMB2300 GSM PLL GSM PLL Synthesizer Synthesizer PMB2600 PMB2600 Channel Channel Codec Codec DSP DSP PMB2200 PMB2200 GSM GSM Transmitter Transmitter PMB2900 PMB2900 GSM Analog GSM Analog Circuit Circuit PMB2500 PMB2500 GSM GSM Equalizer Equalizer PMB2700 PMB2700 Controller Controller Interface Interface Discrete Discrete Power Supply Power Supply SMARTi SMARTi GSM GSM Transceiver Transceiver PMB2906 PMB2906 GSM Analog GSM Analog Circuit Circuit Hi-GOLD Hi-GOLD GSM One Chip GSM One Chip Logic Device Logic Device Power Supply Power Supply ASIC ASIC SMARTi SD SMARTi SD GSM GSM Transceiver Transceiver E-GOLD+ E-GOLD+ (GSM BB+ABB) (GSM BB+ABB) E-POWER E-POWER Power Mgmt Power Mgmt

E-GOLDradio E-GOLDradio BB // ABB // RF BB ABB RF E-POWER E-POWER Power Mgmt Power Mgmt

E-GOLD E-GOLD voice voice BB // ABB // RF BB ABB RF

X-GOLD X-GOLD 113 // 116 // 213 113 116 213 65nm 65nm
BB + PMU + RF + BB + PMU + RF + FM Radio + mixed FM Radio + mixed signal + SRAM, signal + SRAM, ARM11, USB, ARM11, USB, Memory Card IF, Memory Card IF, Video, Stereo Audio Video, Stereo Audio

MCU MCU

Modem Components

>1000

Modem components

>320

Modem components

>160

Modem components

100

Modem components

50

Modem components

50

1992

1995

2000

2005

2006

2008

IFX GSM Chipsets

Source: Infineon Technologies September 2009

IFX GSM Platforms P2002, ULC1, ULC2

A-GOLD Radio

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Technology shrinks lower the cost per transistor at the expense of exponential growth in fab costs
Cost of Technology Shrinks
400nm 350nm 300nm 250nm 200nm 150nm 100nm 50nm nm
Courtesy of IBM

ITRS Technology node [nm] Cost per mm Silicon (relative)

1995 1997 1999 2001 2004 2007 2010 2013 2016

Source: Infineon Technologies September 2009 Copyright COMNEON. All rights reserved. Page 6

Despite ultra-high integration of the chips different phone concepts lead to different PCBs
Ultra-Low Cost Phone (ULC) Example Smart Phone Example

SIM slot

Memory

PowerAmp

Integrated GSM BaseBand, RF, PMIC

Source: Infineon Technologies September 2009

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Mobile Market Growth continues Driven by ULC, Low Cost 3G, Smartphones and LTE
General market situation and trends
Smartphones stimulate mobile market and provide killer application for 3G LTE emerges in Japan, Northern America & China from 2011 WCDMA roll-out in China from 2H 2009 Continuous growth of 2G Ultra-Low-Cost (ULC) segment Semiconductor landscape consolidation continues
3G ULC 3G ULC ULC 3G LTE

3G

Mobile convergence and low cost 3G

High demand for 3G in Europe and Northern America, driven by Smartphones Convergence of cell phone and Netbooks/ Ultra Mobile Computers fuels demand for higher data rates, Multiband, HSPA+, LTE Operators push for 3G low cost devices for emerging markets

September 2009

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Demand for ULC and Smartphones results in a squeeze in the middle of the mobile phone market
Mobile internet / Smartphones
Smart phone shipments
[units m]

~380

Other LTE

Strong growth of smartphones driven by operators subsidies due to higher ARPU, attractive user interfaces, etc.

~180

HSxPA UMTS

100%

Squeeze in the middle

EDGE

2008

2013

GSM/ GPRS

Slim Modem
75%

50%

25%

Strong growth in low-cost phones

Share of Ultra low-cost phones

Single Chip

0% 2008 Ultra-Low 2009 Entry 2010 Mid 2011 High 2012 2013 Premium

12%

21%

2008
Source: Strategy Analytics September 2009

2013

Strong growth of ULC phones driven by demand in emerging regions

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Phone Wars The Hardware

September 2009

Moderator: Hartmut Schittko, Director Mobile Software Marketing, Comneon Panelists: Tarek Fahmi, Seminconductor IP and Patent Counsel, Sonnenschein Nath & Rosenthal LLP Shyam Krishnamurthy, Head of Cellular Applications and Communications Processor Business, Marvell Clay Melugin, Director Wireless Marketing, Infineon Technologies Thomas Richter, Senior Director Marketing - Cellular Front End Products, Skyworks Solutions

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