STMicroelectronics e-Mobility: An outlook of new great opportunities for Automotive Industry Roberto Zafalon EU Projects Director R&D and Public Affairs STMicroelectronics Italy Bologna, September 25th, 2012

Automotive Market Structure

Car Market: •67M vehicles sold in 2010 •First 10 OEMs sell 83% total cars •Market value: over 1,000 B$ •Avg Car value: 15K$

Auto Systems Market (Tier-1): •1.48B units sold in 2010 (22/car avg) •First 10 Tier-1s sell 36% of total units •Market value: 150B$ •Avg unit value: 107$

Auto Semiconductor Market (Tier-2): •20B units sold in 2010 •First 10 Tier-2s sell 65% total IC •Market value: 21B$ (313$/car avg) •Avg unit value: 1.04$

Data Sources Cars – JDPower (Jan-11) Electronics – SA (Oct-10)

IC – SA (Oct-10)

Automotive Electronic Market

Highly Competitive Semicond. Customer Base

Automotive Semiconductors

Revenues 2010 (M$)

Growth vs. ‘09

Renesas 2.973 +149%* Infineon 1.872 +41%

Freescale 1.741 +50% STMicroelectronics 1.737 +57%

NXP 1.420 +54% Robert Bosch 1.124 +45%

Texas Instruments 963 +46% Toshiba 749 +34% Osram 707 +23%

Panasonic 571 +29%

* Merge Renesas+NEC iSuppli Data May-11

Electronics Division: Focus: vehicle’s performance, safety and comfort,

reduce environmental footprint Applications

Body & Chassis: lighting, door & window/wipers, dashboard, climate control, junction box, car steering and stability control Powertrain & Safety: engine emission, fuel

economy improvement, passive/active safety systems, car electrification

Infotainment Division: Focus: digital broadcasting, connectivity, on car

entertainment Applications

Car Radio Navigation and positioning systems Tolling and telematics

Automotive Products Group

0

500

1000

1500

2000

2008 2009 2010 2011

APG Revenues Y 2011: 1678 US$M

APG

OtherGroups

APG is 19% of ST Revenues (Y 2011)

5

1980 1990 2000 2010 2020

Electronic Ignition Central locking Car Radio

Electronic gearbox Air conditioning Antilock Brakes Cellphone Seat heating Auto Mirror

Navigation Adaptive Cruise Ctrl Airbags Stability Control Adaptive gearbox Xenon Light

Night vision Telematics Bluetooth Start Stop Hybrids LED lighting

Pedestrian detection Lane change Driver assist maps Car 2 car Internet Brake by wire Steer by wire Electric vehicles

30Mcars 35Mcars 40Mcars 70Mcars 110Mcars

244 251 247 261 276 288 300 308 315 322 327

50100150200250300350400450500550

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NAFTAJPEUKORChinaIndiaROWWorld

Average Semiconductor/Vehicle ($)

2010– 2017 Semiconductor for automotive CAGR = 8.6%

Semiconductors on Cars & Content

5%* 15%

22% 30%

50%

*Electronics as % of Car Cost

5,4

3,5

4,9

4,3

3,8

8,8

5,0

8,2

6,2

5,6

Powertrain

Chassis

Safety

Body

Infotainment

2016 2011

APAC w/o Japan 23 %

Europe 27 % Japan

16 %

N. America 23 %

Brazil 3 % ROW

8 %

Source: IHS Auto Feb12 and Strategy Analytics Feb12 (incl. Sensors)

CAGR 11-16 +8.1%

+7.6%

+10.8%

+10.3%

by Region

+7.4%

SEMICONDUCTOR DEMAND ($B)

CAGR 11-16: 9%

AUTOMOTIVE SEMICONDUCTOR GROWTH DRIVERS

POWER TRAIN, SAFETY AND BODY GROWTH DRIVEN BY LEGISLATION (EURO 6) SAFETY & TELEMATIC DRIVEN BY PASSIVE AND ACTIVE SAFETY (STAR) SYSTEMS

Airbags, curtain restraint, tire-pressure monitoring systems

Collision Warning, Vision, ESC, Rear-facing and park-assist cameras

GREEN INITIATIVES Reduce fuel consumption and Reduce Emissions

CONVERGENCE OF COMMUNICATIONS AND ENTERTAINMENT FEATURE

0,9

1

1,1

1,2

1,3

1,4

1,5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chinese-Owned BrandChinese-Produced VehiclesToyota GroupMarket Average

Automotive in China

High-end cars, full options and

creature comforts driving growth

ECU Content / Vehicle Normalized to 2007

2007 = 1

ST is #1 in China Automotive Semiconductors

Proof point: 40% market share for engine control ICs

ST in China has two R&D centers, Manufacturing facilities, and increasing local support

China is a key market propelling ST’s growth

8

Aligning to the Macro Trends in Automotive

ST Strategy Leveraging Partnerships

with Industry Leaders

Readiness, Ease of use, Cost,

Time to market

Innovation fueled by social

responsibility Saving energy,

saving accidents

A Global, Cost-Driven Market New automotive concept, fast moving markets for cars & electronics

Innovate Car electrification

The safe and connected car

Simplify, Speed up The Small Car The Low Cost Car A Global Supply Chain

Innovation Fueled by Social Responsibility

Strategy: Partnership with Mobileye

Co-development of three generations of video processing engine with WW leader

Result: We’re safest on the road

Second, co-developed generation launched 2010

First system on market with pedestrian detection

Third generation in development SOP 2013

Awards by over 10 OEMs

Application: Vision Based Active Safety

Analyzes video to actively assist the driver in critical scenarios and prevent accidents

Innovation Fueled by Social Responsibility

Strategy: Partnership with innovator

Co-developed ASIC with LG-Chem

Allow re-architecture to fit Automotive challenges (totally safe, long-lasting, affordable)

Using well-proven silicon IPs

Result: We’re first on the road

First silicon fully functional, able to run system trials in Q209

First WW system validated by a major OEM

Awards by over 5 OEMs SOP in Q3-10

To GND

To VBat

MCU

Charging strategy

Smart BatteryManager

MonitorBalance

Communicate

Stack Modules

Lithium Battery Cells

Application: Electric Car Battery

Enable Li-Ion technology to enter Auto Market

Year 2009 Reached 60% of internal

market share

ECU is present on most successful Chinese vehicles

Solution proved to be competitive in other regions

Driven by a Fast, Cost-Driven Market

Years 2005-2007 From concept to

production

Target: engine control for China 4-cylinder car

ST provided all semiconductors, plus SW / HW support

Joint technical teams co-worked for two years

Year 2011 ST is awarded for the full

new generation

Smart, super-integrated ASIC in BCD technology

32bit Power™ MCU ECU produced at WW level

2 14

31

58 65

2007 2008 2009 2010 2011

Revenues (M$)

Main ST Enabler – BCD Smart Power

Solid Leader WW

Automotive-Committed Internal Manufacturing

Partners to Market Leaders

24% share for BCD tech* 600M parts sold in 2010

Top Quality, Long Lifetime Dual source technologies

All Major Tier 1’s Shared Tech Roadmaps

H-Bridge

Regulators

Sensor IFs

Comm Blocks

Logic

Drivers

Source: Strategy Analytics Sep-10

Main ST Enabler – Power™ MCU

JDP Alliance

Automotive-Committed Internal Manufacturing Architecture and Products

Unique business model Shared costs, lower risk Industry-leading architecture

90nm->55nm roadmap Internal manufacturing as

differentiator

Over 20 products in pipeline ST target share=15% in 2016 ST ramp up 2012

Automotive – A New World of Applications

Driver Assistance Systems

Satellite Radio & Positioning

Web Access Smart Navigation Comfort Enhancement

Hybrid to Electric Traction

Integrated Chassis Control

Head Units to Smartphones

15

0.13um BiCMOS RF 24/77GHz Radar For Active Safety

5.6um Pixel Video Camera For Active Safety

40nm CMOS video processor For Active Safety

40nm CMOS For GPS and Navigation

0.16um BCD Smart Power

For Safety, Power Train, Body, Chassis

55nm e-Flash For Automotive Microcontroller

MEMS For Sensing

0.32um SOI BCD For LiON Battery

Management

DIGITAL

ANALOG

POWER

C B

D

STMicroelectronics: Leader and Partner in Automotive Technologies

PMOS, IGBT, VIPower For Drivers and Hybrid

What can 48 V modules bring up? Example:

1 module 48V 200A up to 10 kW Electric Scooter 2 modules … … Hybrid electric drive 0 to 30 km/h 4 modules … … Electric vehicle with 40 kW

Benefit for the business

Standardisation of a voltage stabilised market requirements and Volume effects

Incitation for innovation in order to get costs down and functionality up

cost reduction and

higher willingness of customers to buy

Morgan Stanley June 2012 on e-Mobility Scale matters more than ever and standardisation helps

Connected Car - Telematics Becomes Reality

E-Call Insurance: Pay-Per-Use Traffic Control: Pay-As-You-Drive Traffic Prediction Diagnostic Services Option collaborative safety through communication

GPS LTE Accelerometer

More than 1.3 M users !

Telematics services inside and outside the car

18

90

100

110

120

130

140

150

160

170

180

190

200

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

gC

O2

/km

161 gCO2/km

130 gCO2/km

120 gCO2/km

95 gCO2/km

Economics of Energy Saving in Vehicles

18

Example : 200 W 3 g/km (total)

Penalties 2012 to 2018

1st g : 5 € for each car 2nd g : 15 € 3rd g: 25 €

… 3 g CO2 above limit= 45 € fee

Electric Vehicle Growth Trend

Includes full & mild hybrids, plug-ins and pure EVs Represents 6% of light vehicle production by 2015

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Prod

uctio

n (k

Uni

ts)

IndiaChinaS. KoreaEuropeJapanNAFTA

Excludes ROW

Source: Strategy Analytics IAEC Paris 2009

20

Electric & Hybrid vehicles

New battery New power electronics Renewables Internet of Energy

Renewable & Smartgrid for more (H)EVs

New opportunities for automotive industry 20

Infrastructure growing at all levels

Example: EU R&D Projects in Motion

Vbat 400V

MotorBrain EV hardware platform Inverter DC/AC DC/DC motor Step-up

IoE Battery Charging infrastructure for EV

THOR DC/DC 2KW

E3CAR Single wheel drive Simulation Current sensor Driver

SASHA JDP Functional safety ISO26262 TLM model

QUASPER Imaging Platform for development & test

Smart-LIC Li-Batt BMS

IDEAS Packaging of high power modules

POLLUX EV intelligence

Thank You!