BROADCOM PROPRIETARY & CONFIDENTIAL1Q405
Taiwan + China Semiconductor OutlookJanuary 12, 2006
Ford Tamer, Ph.D.Broadcom Corporation
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.
BROADCOM PROPRIETARY & CONFIDENTIAL3Q405
Agenda
• Who is Broadcom?
• Taiwan + China–Design and development–Manufacturing–End markets
• Staying ahead: technology leadership
BROADCOM PROPRIETARY & CONFIDENTIAL4
Who is Broadcom?
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
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
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 $1,224
Source: FSA, August 2005
BROADCOM PROPRIETARY & CONFIDENTIAL8Q405
Record Year 49% Growth 2/3 of Employees are Engineering
Annual Revenue and Headcount
20021999 2000 2001 2003 20021999 2000 2001 2003
1,069
2,497 2,5802,807
Revenue ($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
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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Taiwan and China
– Design and development– Manufacturing– End markets
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 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 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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Diversified Manufacturing Flow
Wafer Fab WaferProbe Assembly Final
Test
FinishedGoods
Shipping/Receiving
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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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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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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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Staying Ahead:Technology Leadership
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Staying Ahead:Technology Leadership
• Education and talent pool
• Infrastructure
• Engineering focus
• Innovation
• Tackling complexity
• Intellectual Property
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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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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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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, ……
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
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
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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Thank You