As a leading semiconductor company, although the semiconductor itself is not conspicuous, it has become an indispensable part of our daily life. Especially with the development of intelligent and electrified cars, Cypress will usher in the second place in the field of automotive semiconductors, the secondary expansion.
In 2016, automotive chips are considered to be one of the fastest growing application areas in the semiconductor market with a $30 billion market.
In 2020, the global automotive chip market will increase to US$43 billion.
With the development of automobile intelligence, networking, and electrification, Gartner Consulting predicts that by 2020, the profit growth rate of automotive semiconductors will be twice that of the global chip market.
According to estimates, in 2018, the semiconductor part of a car will cost approximately US$300 to US$1,000. By 2023, the semiconductor part of a car will account for $400 to $1500.
From 2018 to 2023, compared with the compound growth rate of the overall semiconductor market of only about 2%, the compound annual growth rate of automotive semiconductors will reach 7%.
Recently, at the Cypress media communication meeting, Wen Junpei, Marketing Director of the Asia-Pacific Region of the Automotive Electronics Division of Cypress Semiconductor Corporation, said, "The compound growth rate of the entire automotive semiconductor is about 7%. Growth has slowed down, but the degree of electronization continues to increase, so it also gives electronic semiconductor companies a lot of room for development."
From the perspective of Cypress, it can provide cars with car-grade Wi-Fi, Bluetooth/Bluetooth low energy consumption, USB connection, and can provide car-grade microcontrollers (MCU), human-computer interaction solutions, storage product.
At present, Cypress's wireless connection products, USB-C controllers, microcontrollers, human-machine interface controllers, and storage are all in the No. 1 market share in the automotive field.
It is worth mentioning that in the ADAS reference design in the NOR Flash part, including NVIDIA, Mobileye, NXP, and Intel, Cypress's Flash is basically used in the reference design.
Its direct performance is that the NOR Flash part has a global market share of nearly 70% in 2018, and the global market share of Wi-Fi+Bluetooth Combo exceeds 65%. Overall, solutions such as wireless connection, Bluetooth, and Wi-Fi account for the global market more than 30% of the share.
It is worth noting that the Wi-Fi Alliance announced the first batch of products that have passed the latest Wi-Fi 6 certification. Cypress, together with Intel, Qualcomm, Broadcom and other companies, has become one of the first semiconductor companies to obtain Wi-Fi 6 certification. .
The Auto-Grade Wi-Fi 6 chip Cypress CYW 89650 is among them, the only one of its kind.
Wi-Fi 6 is based on the latest wireless LAN standard IEEE 802.11ax released in 2019, and the corresponding Wi-Fi 5 is based on the wireless LAN standard IEEE 802.11ac released in 2012.
Wi-Fi 6 provides almost 4 times the capacity of Wi-Fi 5, which can bring display improvements to densely connected Wi-Fi environments. Wi-Fi 6 will usher in a new era, which allows connected devices to have lower latency, higher bandwidth, and more concurrency, and can support more IoT nodes.
This is a very big advantage that Cypress has in automotive wireless connectivity.
In the face of the development of the four modernizations of automobiles, Wen Junpei believes, "In the 5G era, automobiles are now starting to include the traditional body network architecture, including communication with the cloud, and car-to-car communication. The interconnection of all subsystems inside the car will become Smarter, more demand. In addition, when autonomous driving continues to improve, the increase in lidar and cameras puts high demands on our transmission bandwidth and its security."
An important strategy of Cypress in the automotive market is to provide scalable platform solutions, deliver a full range of chip products, provide automotive-grade, high-quality components, and allow customers to realize software reuse, and develop a set of software. Used for entry-level configurations to high-end configurations, for several generations of models, and even for different brand series of a manufacturer.
To this end, Cypress will invest 60 million to 100 million US dollars in each platform to create mature products and greatly reduce risks.
1. The instrument panel MCU market. Cypress's Traveo II currently has a market share of 37%, and the potential market opportunity in the future is about 1 billion US dollars per year.
2. In the body MCU market, Cypress currently has a 7% market share, and its potential future opportunities are estimated to reach US$1.7 billion per year.
3. The HMI human-computer interaction field. Cypress’s MCU market share is 46%. The business opportunities in this field are estimated to reach $31 per vehicle in 2023.
4. The storage field. At present, Cypress's NOR flash memory has a share of nearly 70%, and it has been recognized by all autonomous driving platforms and all autonomous driving processors. 50% of the autonomous driving platforms completely use Cypress. The business opportunity in this space is estimated to reach $45 per vehicle by 2023.
5. Wireless connection. Cypress currently has a market share of 34%. The business opportunity in this segment is estimated to reach $33 per vehicle by 2023.
6. The field of wired connection, USB-C charging will be popularized in cars, and the business opportunity of Cypress’s USB-C chip will gradually grow to $6 per car by 2023.
Facing the opportunities brought by the four modernizations of automobiles, safety and reliability are the keynote and characteristic advantages of Cypress's products and solutions.
Cypress is the first company to provide a driver chip with functional security. Cypress has met the industry's intermediate standards in the encryption part. The secure encryption brings security risks to the gateway because it is connected to the cloud. It requires a special MCU and HSM function.
Here it can be understood as a more advanced encryption mechanism.
On the other hand, Cypress will provide solutions from three aspects: storage, computing and connection.
The memory chip is the earliest product of Cypress. Cypress mainly provides industrial-grade storage with high reliability, low power consumption and durability, and provides the most comprehensive storage product portfolio in the industry, covering NOR Flash, SRAM, NVRAM , eNVM, etc.
It is worth noting that Cypress's storage products have a PPM assessment index, which is the number of substandard products in 1 million pieces.
Taking Cypress car-standard NOR flash memory as an example, this indicator was 4 in the fourth quarter of 2015, and has shown a downward trend year by year in recent years, falling below 1 in the fourth quarter of 2017. The goal for 2019 is to drop below 0.5.
On the computing side, the latest architecture is PSOC 6, a microcontroller specifically targeted at IoT applications.
It has three advantages:
1. Low power consumption.
First of all, it is an ultra-low-power microcontroller. According to the same computing power of PSoC 6, its power consumption is two to three times lower than other products on the market, which means that it can help customers extend 50-80% Battery Life.
2. High security.
In addition to the basic encryption and decryption engine, PSOC 6 also sets a very strict security boot process. Moreover, PSoC6 supports the mechanisms of the trusted execution environment through the dual-core architecture.
Here, Cypress specifically emphasizes a term called functional safety, which is to ensure that the product can be used normally in various environments. In addition, Cypress has also developed new technologies to resist hacker attacks at the chip level.
3. Programmability.
PSoC has very flexible scalability and programmability, and integrates many analog/digital interfaces and programmable logic inside, which can improve the speed of products going to market.
1. Technical details. For example, Cypress's RF (radio frequency) design is excellent in terms of transmit power and receive sensitivity, achieving the industry's best network range, speed and stability.
2. World-class integration and power consumption performance, integrating Wi-Fi, Bluetooth, power amplifiers, low-noise amplifiers, power management units, switches, and baluns (baluns) on one chip.
Cypress's Wi-Fi+Bluetooth Combo chip is very popular in the market, and 50% of its revenue comes from the Combo chip.
3. The coexistence of multiple wireless protocol stacks. Cypress has benefited from more than ten years of technology accumulation and has developed very good coexistence algorithms and engines. For example, Bluetooth and Wi-Fi coexist without mutual interference. Software and The combination of hardware is also well done, and the product is very stable.
4. Provide complete software development tools, middleware, development kits, etc., such as WICED Bluetooth, WICED Wi-Fi, so that customers can quickly develop their own applications.
It can be said that Cypress is fully prepared for the future automotive market.
At present, from the perspective of the global automotive chip market, NXP, STMicroelectronics, Renesas, Bosch, Cypress, etc. are traditional players in automotive chips.
Traditional automotive chip manufacturers not only have to compete with their old rivals, but also keep an eye on the dynamics of new players including Qualcomm, Intel, Samsung, Nvidia, Xilinx, etc.
However, most of these players have embarked on the route of developing automotive chips through acquisitions
In the past few months, Infineon has acquired Cypress for $23.85 per share in cash, with a total enterprise value of 9 billion euros.
It can be said that the combination of Cypress and Infineon will be highly complementary in power semiconductors, sensors and security solutions.
At the same time, combining the technical assets of both parties will provide more comprehensive and advanced solutions for high-growth applications such as electric motors, battery-powered devices and power supplies.
As a leading semiconductor company, although the semiconductor itself is not conspicuous, it has become an indispensable part of our daily life. Especially with the development of intelligent and electrified cars, Cypress will usher in the second place in the field of automotive semiconductors. secondary expansion.
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