May 4, 2011 1

The Convergence of fabless Companies to Application Driven Design

David Dahan Primesense COO

May 4, 2011

May 4, 2011 22

Presentation Topics

• User Experience / Application driven product • Solution layers and sales cycle • Industry supply chain and trends • Delivering a complete solution and implications• Success story• Summary

May 4, 2011 3

User Experience Driven Product What I can do with that ?

Application System HW+SW

Silicon Requirement

• End user cares about • Experience and Value … Nevertheless mostly the doesn’t know that

he needs it at all…. – "I think there is a world market for about five computers" — Remark

attributed to Thomas J. Watson (IBM Chairman)

• Product Cost / Performance (retail price) price needs to be factored in at the same time and drive the cost targets

May 4, 2011 4

Typical Solution Layers

Chip + FW

Middleware OS

Application

System (RD)

May 4, 2011 5

Consumer Product Launch Cycle

2011

2012

X-mass Holiday Season

Sale

Oct. Dec

CM/O

DM P

roducti

on Ramp

RTM

Production TO

FAB

Cyc

le

Validation and Qual

EVT/DVT/PVT

Chip

System and SW Dev

Dec. Apr

RTL Freeze

2010

DesignStart

Sample

Note: At the consumer market ~60%—70% of the yearly sales happen at Q4

May 4, 2011 6

Electronics Equipment Industry Supply Chain

ODM: Original Device ManufacturerEMS: Electronics Manufacturing ServicesOEM: Original Equipment Manufacturer

EMS OEM Electronic Retailer

EquipmentDistributor

Retail Distribution Marketing Manufacturing

&Procurement

Fabless IDM

Semiconductor Design

ODM

System Design

Sale Channel

May 4, 2011 7

• Traditionally OEM/ODM derived requirement to Fabless and chip makers, nowadays OEM looking for complete and holistic solution and brand the product

Industry Trend

• Performance • Retail Price • Time to Revenues • Pass for Cost down

• Involve at the Application level • Control the BOM and COGS cost • Copy Ready reference Design (SW/HW) • Si consolidate and merges SoC

OEM Fabless

May 4, 2011 8

Fabless and OEM/ODM Relation

OEM

ODM

Reference DesignATE

Support

Silicon

Product Fabless

Retail Chain

May 4, 2011 9

• Reference Design (RD) is a product (HW+SW) in a production level form and quality– Fully QA SW that support the relevant OS

• Application eco system – Qualified Reference Design

• Pass Reliability, Environmental and Certification• Full BOM (Production files)• The COGS meet the target price (Retail = 3X BOM) • AVL Suppliers that meet cost and capacity needs

– Production line set up (at final destination)

What is a Complete Solution?

May 4, 2011 10

Development Consideration

Chip Requirement

Cost, Process Technology, IP, Si Speed, Memory Size, IF, Package , Test and Qual

SW

BOM and COGS NPI process Qualified design (EV/DV/PV)DFx Components and AVL Tool (Optics / Mechanical etc)Stable Production lineYield and SPC (>90% FPY)

Manufacturing System/Engineering

Electronic Design Mechanical Design Thermo Optics Design Audio / Video Design RF Design Select vendor and Tech. Simple production flow … Control the cost

SW Architecture Configurable Structural Development Release Methodology QA, RN, Bug Fix, patch etc …. Room for customization

May 4, 2011 1111

Fabless Manpower Distribution

To support this industry trends Fabless shall invest more and more in System, SW and Manufacturing

• Reference: Primesense

May 4, 2011 1212

MediaTek as an Example • Taiwanese fabless chip vendor that secured design wins in handsets

by enabling the handset OEM to roll out a product rapidly

MediaTek 3G Reference Phone

May 4, 2011 1313

PrimeSensor Reference Design Develop by PrimeSense and ODM partner

PS1080 SoC + FW Develop and sale by PrimeSense

Application

System (RD)

Chip + FW

Middleware OSPrimeSense is piloting the consortium of OpenNI developers

Content is created by Primesense Partners and Developer

Primesense Solution Layers

May 4, 2011 1414

Key Take Away

• Product is driven by Experience/ Application Vs. Cost• OEM focus on the product branding and retail chain• The “D” at the ODM isn't so strong • Fabless needs to feel the gap and to do “more then Moore”• This drive Fabless to be more system company and

incorporate competence at System / SW and manufacturing domain but still revenue to flow in from Chip sale !