Philips 2005 Annual Report Download - page 44

Philips Annual Report 200544
Information on the Philips Group
Semiconductors
Semiconductors concluded an agreement with Hewlett-
Packard to jointly accelerate the adoption of the latest
global RFID standard, which enables interoperability with,
and migration from, previous standards.
Mid-2005 saw the shipment of the 15-millionth hybrid analog/
digital TV tuner chip, which accounts for more than 30%
of the total number of tuner chips sold worldwide in the
last two years.
In Europe, Philips introduced the Nexperia 810 DVB
Semiconductors solution, which has been designed to enable
manufacturers to accelerate the move to digital television.
Semiconductorsisdeliveringon20design-insfortherst
One Chip LCD Nexperia solution and for a STB terrestrial/
cable/satellite Nexperia solution.
Philipsdeliveredtheworld’srstFlexRaysystemsolution
in October. With FlexRay as the networking bus, carmakers
can differentiate through performance and features, offering
consumers the latest safety applications.
In November, Philips opened a design center in
Shanghai to develop mobile communications solutions
for emerging markets.
NFC is nearing commercial implementation with four
major trials in 2005 in Caen (France), Atlanta (USA) as
well as Germany and the Netherlands.
Markets
In the preliminary 2005 ranking of Gartner Dataquest,
Semiconductors ranks No. 11 globally.
Semiconductors sales to third parties on a geographic basis:
in millions of euros 2003 2004 2005
Europe and Africa 1,231 1,289 1,195
North America 469 421 355
Latin America 44 57 75
AsiaPacic 2,144 2,724 2,995
3,888 4,491 4,620
Semiconductors’ revenues can experience seasonal
variations. In the past, sales have increased in connection
with Christmas electronics sales.
Semiconductors operates in an international market that
has shown enormous volatility, with annual growth rates
varyingbetween+27%and-32%inthepastveyears
(table below). In addition to the volatility, there have been
tremendous structural changes caused by the increasingly
global reach of major companies, mergers and acquisitions,
and a move in the industry to outsource the manufacturing
and design of a wide range of electronic equipment. As a
result, many of Semiconductors’ major customers now
operate on a global basis.
source: WSTS
2001 2002 2003 2004
(estimate)
2005
Total available
market
(billions of USD) 139 141 166 213 228
Growth (32%) 1% 18% 27% 7%
Live TV on your mobile
Miniaturizationhastakenyetanotherstepforward−thistimein
the shape of a thumbnail-size System-in-Package (SiP) solution from
Philips Semiconductors that enables consumers to connect to live
TV, pictures, movies and music on their mobile devices while on the
move. The solution, introduced in 2005, is based on the industry
standardDVB-H(DigitalVideoBroadcast−Handheld)andcontains
all the functionality of a complete TV receiver in one small package.
Philips is driving the development of TV-on-Mobile with top
handset makers.