Philips 2005 Annual Report Download - page 43

Philips Annual Report 2005 43
currently a leader in the cellular market in system solutions
for GSM, GPRS and EDGE, and it is also paying particular
attention to China, where there is strong volume growth
in the handset manufacturing market.
TheAutomotive&Identicationbusinessunitfocuseson
fast-growing areas such as car infotainment and car safety
and comfort; smart cards and electronic passports;
RadioFrequencyIdentication(RFID);andNear-Field
Communication (NFC). In automotive, where its customers
include eight of the top ten industry players, it has
maintainedconsistentgrowthoverthepastveyears.
Moreover, nine of the top ten car-radio manufacturers use
its ICs, and it holds a leading position in the fast-growing
radio/audio digital signal-processing market. The business
unit has focused investments on a number of fast-growth
application areas, including digital radio and connectivity,
video for in-car entertainment, tyre-pressure monitoring
and in-vehicle networking (including FlexRay), as well as
airbag networking and vision systems for driver assistance.
Semiconductorsisalsoaleaderinmanyidentication
applications, including eGovernment, ePayment, eTicketing,
mobile (NFC) data transfer and networking, public transport,
SIM cards, asset tracking, livestock ID, luggage tagging,
parcel services and rental/library services. Its NFC solution
enables a fast and convenient connection between devices
like mobile handsets. The NFC Forum, founded by Philips,
Sony and Nokia, now has more than 65 members, including
Samsung, NEC, Microsoft, Mastercard, Visa, Vodafone,
Orange, Matsushita and Motorola.
In the MultiMarket Semiconductors (MMS) business unit
Philips partners with distributors, EMS, OEMs and ODMs.
With these relationships, Philips is targeting growth in
system components (accounts for 45% of MMS sales),
where it focuses on power management, interface products,
sensors, microcontrollers, RF access systems and integrated
discrete components. MMS’s commodity products –
accounting for 55% of its sales – comprise standard logic,
general application, power and RF discretes. For commodity
products, the business unit enters into partnerships to
realize high volume and high market share. MMS’s main
markets are in automotive, communications, computing
and consumer electronics.
Milestones
Semiconductorspassedasignicantnumberofmilestones
during2005.ItintroduceditsrstTV-on-Mobilechipset
for the European and US markets, based on the broadcast
industry’s DVB-H standard, which enables consumers to
receive live broadcast TV pictures on their cell phones.
With three tier-one wins, the solution is gaining good
traction in the market. Samsung, a long-established customer,
announceditsrstGSM/GPRS/EDGE(EnhancedData
for GSM Evolution) mobile phone handsets based on
the Nexperia Cellular System Solution that enables
high-speed wireless connectivity for video streaming
and real-time audio.
In the US, the communications technology provider
Qualcomm selected Philips’ wireless local area network
solutions for WiFi connectivity for integration in its mobile
station modem chipsets. Philips launched a Universal
Mobile Access (UMA) Nexperia solution, which allows
mobile consumers to switch seamlessly between WiFi/
Voice-over-IP and GSM networks, in the US market.
Intheareaofidentication,theGerman,UKandNew
Zealand governments, among others, selected Philips’
contactless smart-card chip for use in their countries’
rst‘smart’passportsaimedatreducingpassportfraud
and increasing security. This brings Philips’ e-passport
wins to 75% of total worldwide projects. In addition,
Near-Field Communication
With NFC, information can be exchanged in a secure
way, simply by bringing two devices close together.
NFC currently supports three main applications –
payment and transactions; peer-to-peer communication;
and access to information on the move. For example,
bysimplyashingamobilephoneorPDAnearthis
poster, further information can be downloaded.