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BROADCOM PROPRIETARY & CONFIDENTIAL 1 Q405 Taiwan + China Semiconductor Outlook January 12, 2006 Ford Tamer, Ph.D. Broadcom Corporation
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Page 1: Taiwan + China Semiconductor Outlook Ford Tamer, · PDF fileTaiwan + China Semiconductor Outlook January 12, 2006 Ford Tamer, ... WCDMA/HSDPA Cellular DOCSIS ... Drivers/Algorithms:

BROADCOM PROPRIETARY & CONFIDENTIAL1Q405

Taiwan + China Semiconductor OutlookJanuary 12, 2006

Ford Tamer, Ph.D.Broadcom Corporation

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BROADCOM PROPRIETARY & CONFIDENTIAL2Q405

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

During the course of this presentation and the question and answer session, we may make forward-looking statements regarding future events or the future performance of the Company. These forward-looking statements may include statements about the potential growth of the markets in which we compete and the development status and planned availability of new products. In fact, all statements that we make or incorporate by reference in the presentation and Q&A session, other than statements or characterizations of historical fact, are forward-looking statements. It should be clearly understood that these forward-looking statements, and our assumptions about the factors that influence them, are based on the limited information available to us at this date. Such information is subject to change, and we may not inform you when changes occur. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those described in the statements you hear today as a result of various factors. We refer you to our Annual Report on Form 10-K, as well as to our recent and subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC, which discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition.

©2005 Broadcom Corporation. All rights reserved.

Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo, 54g™, 125 High Speed Mode™, Intensi-fi™, OneDriver™, SecureEasySetup™ and SpeedBooster™ are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.

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BROADCOM PROPRIETARY & CONFIDENTIAL3Q405

Agenda

• Who is Broadcom?

• Taiwan + China–Design and development–Manufacturing–End markets

• Staying ahead: technology leadership

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BROADCOM PROPRIETARY & CONFIDENTIAL4

Who is Broadcom?

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BROADCOM PROPRIETARY & CONFIDENTIAL5Q405

About Broadcom• Founded in 1991 • Initial public offering

on April 1998 (NASDAQ-BRCM)• Leading company focused

exclusively on semiconductors for broadband communications

• 2004 revenue of $2.4 billion up 49% year-over-year• Q3 2005 revenue $695 million

– Record revenue and up nearly 15% sequentially• Currently 4,002 employees worldwide ― 2/3 of employees in Engineering ― $695,000 annualized revenue per employee

• Proven leadership expertise in mixed-signal and CMOS RF technologies, full-custom processor and DSP design and state-of-the-art system-on-a-chip (SoC) implementation

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BROADCOM PROPRIETARY & CONFIDENTIAL6Q405

Market Leadership PositionsCurrent Markets Emerging Markets

802.11x/Wi-Fi® HDTV

Cable/Satellite STBCable Modems Bluetooth®

Fast and Gigabit Ethernet Switches XDSL

Gigabit EthernetControllers Mobile

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BROADCOM PROPRIETARY & CONFIDENTIAL7Q405

2nd Largest FablessSemiconductor Company1. Qualcomm $3,224

2. Broadcom Corporation $2,401

3. ATI $2,141

4. Nvidia $2,010

5. SanDisk $1,777

6. Xilinx $1,589

7. MediaTek $1,252

8. Marvell $1,224

Source: FSA, August 2005

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BROADCOM PROPRIETARY & CONFIDENTIAL8Q405

Record Year 49% Growth 2/3 of Employees are Engineering

Annual Revenue and Headcount

20021999 2000 2001 2003 20021999 2000 2001 2003

1,069

2,497 2,5802,807

Revenue ($M) Headcount

2,780

653

1998 1998

505304422

R&DEngrs 2,771

(329)(PhD)

Sales/MktgMfgG&A

2004

3,373

3Q05

$1,097$962

$1,083

$1,610

$2,401

$521$217

4,002

2004

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BROADCOM PROPRIETARY & CONFIDENTIAL9Q405

Broadcom’s Global Presence

TaiwanHsinchu

Design CentersSales / Marketing Manufacturing

India

GermanyBelgium

AtlantaNorth Carolina

Boston

DallasTempe

AustinSan Diego

San Jose New Jersey

Bristol NetherlandsSeattleSunnyvale

Houston

Richmond, BC

Germantown

Israel

Santa ClaraFrance

Tokyo

Singapore

Korea

Sweden Finland

Andover

Representative Offices

MarlboroughBurlington

LongmontColorado Springs

Nashua

Palm BeachSeoulGumi

Taipei

Cambridge

Chicago

Shenzhen

ChinaBeijing

ShanghaiIrvine

Mequon

Oak Park

Denmark

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BROADCOM PROPRIETARY & CONFIDENTIAL10

Taiwan and China

– Design and development– Manufacturing– End markets

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BROADCOM PROPRIETARY & CONFIDENTIAL11Q405

Taiwan Design Center, Sponsored by MOEA (Ministry Of Economic Affair)

Dr. Henry Samueli and Taiwan Government Vice President Ms. Lu Dr. Henry Samueli and Taiwan Government Vice President Ms. Lu Announcement of BRCM Taiwan Design CenterAnnouncement of BRCM Taiwan Design Center

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BROADCOM PROPRIETARY & CONFIDENTIAL12Q405

Broadcom Taiwan Design Center

CEO

CTOCEO

Taiwan Design Center

Business Unit Business Unit

NetworkInfrastructure

Enterprise Computing

Broadband Communication

Wireless & Mobility

Central Engineering

System & Application

Software & AE Support

ASIC & SoCTechnology

Analog & RF Technology

Testing & SQA

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BROADCOM PROPRIETARY & CONFIDENTIAL13Q405

Broadcom Taiwan Design Center• From 30 to 120 engineers in 3 years• Cooperation with research and academic institutions: ITRI,

National Chiao Tung University, National Taiwan University• Support for Asia product requirements and customers

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BROADCOM PROPRIETARY & CONFIDENTIAL14Q405

Diversified Manufacturing Flow

Wafer Fab WaferProbe Assembly Final

Test

FinishedGoods

Shipping/Receiving

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BROADCOM PROPRIETARY & CONFIDENTIALQ405

World Class Manufacturing Partners

World Class Manufacturing Partners

• Foundry– TSMC - Taiwan, Singapore (SSMC)– Chartered - Singapore– UMC - Taiwan, Singapore– Silterra - Malaysia– SMIC - China

• Assembly & Final Test– STATSChipPAC - Singapore, China, Korea & Malaysia– ASAT - Hong Kong, China– AMKOR - Korea, Philippines & China– Signetics - Korea– SPIL - Taiwan & China– UTAC - Singapore & China

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BROADCOM PROPRIETARY & CONFIDENTIAL16Q405

China Semiconductor Consumption

$0

$50

$100

$150

$200

$250

$300

$350

2003 2004 2005 2006 2007 2008

Bill

ions

of

US

Dolla

rs

0%

5%

10%

15%

20%

25%

30%

China Global China / Global

Source – iSuppli Research, February 2005

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BROADCOM PROPRIETARY & CONFIDENTIAL17Q405

World Class ODMs and OEMsin Taiwan and China

• Arima• Bird• Dasan• D-Link• Huawei• Huawei-3COM• Konka• Starnet• Toplly• UT Starcom• Yuhua• ZTE

• Accton• Alpha• Ambit• Asustek• Cameo• Compal• Delta• Foxcom• LiteOn• Runtop• Zyxel

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BROADCOM PROPRIETARY & CONFIDENTIAL18

Staying Ahead:Technology Leadership

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BROADCOM PROPRIETARY & CONFIDENTIAL19Q405

Staying Ahead:Technology Leadership

• Education and talent pool

• Infrastructure

• Engineering focus

• Innovation

• Tackling complexity

• Intellectual Property

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BROADCOM PROPRIETARY & CONFIDENTIAL20Q405

GPRS/EDGE/WCDMA/HSDPA

Cellular

DOCSISCable Modem

ADSLVDSL

QPSK/8PSKSatellite

WANAccess

OC-48/192SONET

TerrestrialHDTV/DVB-H

10/100/1000Ethernet PHY

10/100/1000/10GEthernet

Switching

1/3/6 GbpsSERDES

802.11a/b/gRadio/BB/MAC

LANAccess

802.11nMIMO

BluetoothRadio/BB/MAC

PCI/CBHost/Dev

USB 1.1, 2.0Host/Dev

P-ATA 100S-ATA I/II

400/800 MHzP1394

SystemInterfaces

GPIO/FlashPCMCIA

1.6 GbpsDVI

MPEG-2Encode/Decode

MPEG-4 AVCEncode/Decode

HDTVVideo

Processing

2D/3DGraphics

VideoFunctions

NTSCEncode/Decode

ConditionalAccess/DRM/

Encryption

MIPS 32™300 MHz

MIPS 64™1 GHz

ARM 7/9/11100-300 MHz

ZSP DSP150 MHz

ProcessorOptions

TeakLite DSP150MHz

FirePath™ DSP400 MHz

DDR I/II200/400 MHz

PCI-X 2.0PCI Express

1.6 GbpsHyper-

Transport

12.5 GbpsXAUI

ChipsetInterfaces

10 GbpsSPI-4

Fiber ChannelPHY

World’s Broadest Portfolio of Communication IC Intellectual Property

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BROADCOM PROPRIETARY & CONFIDENTIAL21Q405

Analog and RF IP Library

IB-AFE for NTSC/QAMIB-AFE for NTSCIF Demodulator AFEVideo DACUS DAC + Power

Amplifier3/4RF ModulatorAudio CODECBTSC ADCHiFi Audio DACOTPOut Of Band ReceiverDiSEcQDS-AFE for Satellite VCXOUSB2.0DVIHDMI Tx & RxPLL3rd Overtone OscillatorUHF RemoteCMTS Up converter

Cable Set-Top BoxE-PHYG-PHYFireWire IEEE-1984BUSB2.0SerDes/SGMIIS-ATA S-ATA IISATAXAUI/XAUI+/CX-4PCI-ExpressSPI-4HyperTransportRegulatorPLL / DLL64-Channel Charge SensorLC-based Clock Multiplier

Networking

1.25 Gb/s SerDesSATASATA2/SAS1IMB3 5Gb/sFiber-Channel PHYHT-2

Server/Storage

IB-AFE for QAMVideo DACUS DAC + Power

AmplifierPLLE-PHYADC for HeadEndCMTS Up converter

Cable Modem

Optical Equalization AFEXAUI OC-48 TXVROC-192 TXVRXFI TXVRSFI-5 (2.7 Gb/s * 16)SFI-4 (667 Mb/s * 16)10-G Cu EqualizerSMF-EDC 10-Gb/sMMF-EDC 10-Gb/s

Optical

802.11-a AFE802.11-b AFE802.11-a/b/g AFE802.11-n AFEHeadset Audio Rx

WLAN

CODEC for CellularBaseband for CellularPower Amplifier ControlPower Management UnitGSM Radio Tx AnaGSM Radio Rx AnauPower DC-DC32-kHz oscillatorClass-D Audio Driver

Cellular

xDSLADSL-CPE AFEADSL-CPE LDxDSL AFEVDSL AFE

Over 600 Unique Cores Available

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BROADCOM PROPRIETARY & CONFIDENTIAL22Q405

World Class Software Expertise

Microprocessors/CompilersMicroprocessors/Compilers::MIPS, ARM, MIPS, ARM, FirePathFirePath, ZSP, X86, , ZSP, X86, ……UniUni and Multiprocessors to 1GHzand Multiprocessors to 1GHz

Best in breed compiler technologyBest in breed compiler technology

Drivers/AlgorithmsDrivers/Algorithms::Cable, DSL, SatelliteCable, DSL, Satellite

10/100/1000 Ethernet, 802.11a/b/g,10/100/1000 Ethernet, 802.11a/b/g,Bluetooth, GPRS/EDGE, MPEG2/4,Bluetooth, GPRS/EDGE, MPEG2/4,

MP3, WMV/WMA, VoIP, 1394, USB, MP3, WMV/WMA, VoIP, 1394, USB, ……

Operating Systems Expertise/PortsOperating Systems Expertise/Ports::Microsoft Windows, Windows CE, Linux, Microsoft Windows, Windows CE, Linux, VxWorksVxWorks, , eCoseCos, Nucleus, , Nucleus, pSOSpSOS

PowerTVPowerTV, , uCosuCos, VRTX, Proprietary , VRTX, Proprietary RTEsRTEs, , ……

Networking/SecurityNetworking/Security::LAN, WAN, WLAN, BTLAN, WAN, WLAN, BTIPv4/IPv6, TCP, IPv4/IPv6, TCP, ToEToE, ,

RDMA, iSCSI, SNMP, UPnP,RDMA, iSCSI, SNMP, UPnP,BroadsafeBroadsafe, WPA, AES,, WPA, AES,Conditional Access, Conditional Access, ……

MiddlewareMiddleware::Liberate, Liberate, OpenTVOpenTVNDS, NDS, PowerTVPowerTV,,

MSTV, MSTV, ……

ApplicationsApplications::Communication Manager,Communication Manager,

Diagnostics, AppletsDiagnostics, AppletsNetworking Wizards,Networking Wizards,Web Configuration,Web Configuration,

XML, ToolsXML, Tools

Standards, Compliance & CertificationStandards, Compliance & Certification::IEEE, IETF, ITU, ANSI, WECA, IEEE, IETF, ITU, ANSI, WECA, CableLabsCableLabs, , KeyLabsKeyLabs, WHQL, UPnP, WME, MPEG, , WHQL, UPnP, WME, MPEG, ……

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BROADCOM PROPRIETARY & CONFIDENTIAL23Q405

Complexity Is Our Friend• Moore’s Law still applies

– 1 billion transistor SoC’s are on the horizon– SoC’s incorporate high-performance embedded processors, sophisticated

DSP engines, millions of gates of random logic, high-density memories, high-precision analog interface circuits and multi-GHz RF transceivers

– These SoC’s require extensive firmware, software and reference design platforms to enable complete systems solutions

• Need breadth and depth of skills and tools to design systems of such complexity

– Digital, mixed signals, analog, RF, software, systems, standards– Design methodology, EDA tools, cell and I/O libraries, memory technology,

hardware emulation, design verification, software QA

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BROADCOM PROPRIETARY & CONFIDENTIAL24Q405

Technology FirstsSingle-chip

cable modem w/VoIP

Single-chip24-portGbE switch

MPEG-4/AVC HD decoder

CMOS tuner

Octal gigabit

Ethernet PHY

Single-chipWi-Fi

Single-chipADSL modem

Single-chip Bluetoothwith EDR

Quad-core gigahertz processor

10GbE OC-192 CMOS

transceiver

Single-chip satellite set-top box with integrated tuner

Superior Engineering Execution

Superior Engineering Execution

SAS/SATARAID-on-chip

controller

Single-chipGigabit Ethernet

IP phone

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BROADCOM PROPRIETARY & CONFIDENTIAL25Q405

Conclusion• Taiwan + China will be key to the semiconductor

industry in 2006 and beyond–Design and development resources–Foundry, assembly and test partners–Tremendous end market opportunities

• Technology leadership requires staying ahead by attracting and retaining the best talent, innovation, intellectual property development, and tackling complexity

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BROADCOM PROPRIETARY & CONFIDENTIAL26

Thank You


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