talk of semiconductors what exactly does it mean in terms of products and
components that go into a vehicle? Since semiconductors and the
automotive electronics industry have a massive synergy, how has the
industry evolved over the last decade or so?
last decade, we have seen rapid growth in the automotive electronics industry.
With the digital revolution happening in the country the consumer demand for
connected and smart products are on a rise. Customers are looking forward to
make their driving smart and easy.
lies in the evolution of the semiconductor space as it is playing an
instrumental role in making vehicles advanced and more user friendly. The
space covers a very wide area from vehicle networking, automotive lighting, car
infotainment to, any electronic circuit present in a car, involves different
semiconductors working together. Currently a modern connected car contains up
to 100 control units (ECUs), managing everything from infotainment systems to
mission-critical systems. Every car is laced with the microcontrollers,
processors and sensors to help driver drive smart and secure.
like IoTs and Smart Cities have inflated the demand for automotive electronics,
as consumers want their cars to be smart, secure and connected. In India too,
we are seeing rapid transformation and growth in automotive electronics
segment. We are seeing a trickle-down effect in this segment as now it is not
just restricted to luxury vehicles, it acts as a point of differentiation in
the lower segment. According to IMS Research, the global market for automotive
electronics is set to rise to Rs.13.04 lakh crore ($240 billion) in 2020. Today
90% of auto innovation is happening via electronics and there is furthermore
opportunity in this segment. There is a massive opportunity for the
semiconductor market in India.
been the exposure / contribution of NXP Semiconductors towards the automotive
industry, both in India and abroad?
years, our operations have significantly grown in India and today we are a team
of professional engineers working tirelessly to move up the value chain. They
are a vital part of global network of design teams which form the core of NXP
business operations. In 2007, NXP India expanded its Noida operation with
acquisition of 300,000-sqare-foot campus. The India Design Center is involved
in development of hardware and software designs for the embedded market.
We are now
leaders in various segments; automotive, networking, connected homes are few of
the segments which have immense scope and we are looking at tapping this
opportunity aggressively. Today, we are the #1 suppliers of automotive
electronics and a significant part of our revenue is generated from automotive
business. We are also India’s no. 1 semiconductor supplier in the non-memory
space and rank 4th worldwide. This is the testimony of our success and focus in
the India market.
global perspective, we are leading in various segments like communications
processors, broad-based MCUs, secure identifications, RF power transistors,
small signal discrete and automotive.
Can you tell
us about your production capabilities and your presence in India / globe?
India is a
key market for us and especially with the kind of focus on R&D and other
initiatives like Digital India, Smart cities etc. we believe we have huge
opportunity here and are looking to significantly contribute to various
initiatives of the government. As mentioned earlier, we are the #1 automotive
suppliers in India and with the proliferation of automotive electronics
segment, there is a huge opportunity for us. We have the right kind of
products, solutions and the expertise to cater to this segment. Today almost
80% of the cars use NXP chip for RFID key. We are working with multiple Indian
OEMs in India and abroad and this is a segment which contributes to a
significant amount of our overall business. The India Design Center is involved
in development of hardware and software designs for the embedded market.
working extensively on in-car infotainment, ADAS and other security solutions
in the automotive space. Today, what is increasingly becoming important is
security. Our R&D team is focused on enabling secure car access and are
working on other security solutions. We are also focusing on other areas like
the non-memory space, connected home and have solutions to cater to larger
initiatives like Smart cities, secure gateways etc.
nutshell, globally we are $10 billion in revenue, 45000 employees with more
than 11000 engineers, present in more than 35 countries, more than
9000 patent families and the fourth largest semiconductor player.
As automobiles begin to have more and more electronics content in them,
what is the scope of business for your company and also with concepts like
driverless cars becoming a reality how does the business scenario look for your
betting big on IoT which makes us bullish on the opportunities it creates for
us. The concept of smart and connected cars is slowly progressing. With
major technology and semiconductor players investing heavily, the ecosystem is
only booming. Today, most automobile companies are banking on technologies
within the car to drive sales and carve a niche. Technology is going to
be the deciding factor in the sale of any vehicle moving forward. Connected
cars are certainly the future, though it will take some time to permeate into
the Indian market.
are preferring technology updates to make their driving safer, easier and fun.
Technologies like advanced driver assistance systems (ADAS) are gaining
traction as it helps drivers with every aspect of driving, from safety to
better fuel economy. The main idea of ADAS is to enable drivers to foresee what
lies ahead. NXP has three types of ADAS systems based on the needs of any
individual. Very recently, we achieved live reception of Digital Radio Mondiale
(DRM) services for vehicles in India. Digital Radio Mondiale (DRM) is a service
which helps to boost AM audio quality so as to provide individuals with
enhanced radio quality. We designed a chipset module that is capable of
handling three digital standard signals on a single platform. The DRM module so
developed, will not only help to improve radio quality over AM channels but
also provide users with utilities like updates pertaining to real-time traffic
scenarios, news and natural disaster warnings.
committed to transforming the car from a simple mode of transport into a mobile
information hub. NXP’s robust in-vehicle networking and secure interfaces
connect vehicles to each other and the outside world. Apart from this, the
systems capture data, process it and share control with drivers in critical
situations. Our recognized strengths are in car access, broadcast reception,
automotive microcontrollers and in-vehicle networks. These technologies are
complemented by a growing portfolio of vision, radar and sensor fusion
processors, telematics, car-to-car, car-to-infrastructure communications and
NFC solutions. We are enabling car owners to leverage services like seamless
communication between vehicles on road, remote car management, broadcast
management, location based services and personalization settings.
automotive electronics, with newer technologies coming up, how challenging is
it for your company?
every level is utmost important. Security is the backbone for ADAS, V2X, V2V
from hardware all the way to software. We are addressing the challenges
successfully at all levels with heavy R & D investment especially in this
physical infrastructure challenges as well specially in developing countries
like India. A lot of planning, R & D needs to be done in this sector.
Initiatives like “Make in India” surely gives a ray of hope to company like
ours for a brighter and advanced India.
the automotive industry, which are the other industries that you address and
what is the share of the business that comes from automotive?
committed to providing scalable IOT and security technologies to help bring
smart cities to life making urban living simpler and safer. We are one of the
leading brands in the security and connected ecosystem and we are working
tirelessly to ensure that our solutions and products can solve the security
challenges of today. We know security is an increasingly critical part of the
connected solutions you use and design. Identity theft is at an all-time high.
Data privacy concerns are arising on pace with the growth of connected devices.
And newly-connected command and control systems present attractive targets for
hackers. Our R&D team is focused on enabling secure car access and are
working on other security solutions. In order to ensure data is protected and
guarantee the security of networked devices in future, regulatory precautions
are called for to minimize risk.
In the near
term to long term, how do you see the growth of your company panning out?
India is a
key market for us, and with government’s focus on initiatives like Digital
India, Smart Cities etc., we believe we have a lot to offer. Our products and
solutions are a great fit for these segments and we can further enable to boost
the overall ecosystem. From a market positioning perspective, we are clearly
the top automotive supplier in the country. We are already working with most of
the leading automotive companies here and we want to further maintain and grow
our business in this segment.