The Technologically Transformational Automotive Electronics Market and the Implications for Material Supply

Transcription

1 The Technologically Transformational Automotive Electronics Market and the Implications for Material Supply Klaus Hege, Global Key Account Manager, Linde Electronics November 14, 2017

2

3

4 Safety Critical

5 Driven by innovation and growing regulation Uber Twitter Automobile industry co-locating with semiconductor industry to accelerate innovation In Europe, countries challenging the internal combustion engine Technology company Automotive company Volkswagen Tesla Facebook Hyundai General Motors Google Ford BMW Bosch Delphi Nissan Tesla Toyota Honda Continental Mercedes Benz Denso Elektrobit Apple

6 Electronics ubiquitous on cars Parental controls Engine control Airbag deployment Adaptive front lighting Adaptive cruise control Instrument cluster Night vision Head-up display Idle stop / start Driver alertness monitoring Windshield wiper control Accident recorder Event data recorder Auto-dimming mirror Interior lighting Active cabin noise suppression Voice / data communications Cabin environment controls DSRC Entertainment system Battery management Lane correction Electronic toll collection Digital turn signals Navigation system Security system Active exhaust noise suppression Active suspension Hill-hold control Regenerative braking Automatic braking Antilock braking Electronic throttle control Electric power steering Electronic valve timing Cylinder de-activation OBDII Active vibration control Blindspot detection Remote keyless entry Transmission control Lane departure warning Tire pressure monitoring Seat position control Electronic stability control Parking system

7 Electronics ubiquitous on cars Safety Negligible Parental controls Instrument cluster Interior lighting Voice / data communications Head-up display Auto-dimming mirror Active cabin noise suppression Cabin environment controls Entertainment system Battery management Electronic toll collection Navigation system Regenerative braking Idle stop / start Electronic valve timing Cylinder de-activation Active vibration control Remote keyless entry Seat position control

8 Electronics ubiquitous on cars Safety Enhancement Driver alertness monitoring Event data recorder Lane correction Security system Adaptive front lighting Night vision Windshield wiper control Accident recorder Digital turn signals Active suspension Hill-hold control OBDII Tire pressure monitoring Parking system Lane departure warning

9 Electronics ubiquitous on cars Safety Critical Engine control Airbag deployment Automatic braking Electric power steering Electronic throttle control Blindspot detection Transmission control Electronic stability control

10 Now becoming computers on wheels Radar ~ KB per second Sonar ~ KB per second GPS ~50 KB per second Cameras ~20-40 MB per second Autonomous Vehicles 4,000 GB per day each day Lidar ~10-70 MB per second Source for data: Intel

11 Planes rely on chips for safety achieved by redundancy Jets manufactured per year < 2000 Base price $270 million Passenger vehicles manufactured per year 100 million Base price $27,000

12 A fast growing market Market representing around $35B in 2016 Automotive Ind/Med 9,1% 14,1% Growing much faster than the total IC market Total ICs Computer 5,7% 6,4% Comm 5,5% Gov/Mil 4,2% Consumer 4,0%

13 Automobile application will grow all areas of semiconductor design and fabrication Power 18% Analog 9% CIS 3% MEMS 3% Memory 14% CMOS 53% Example of semiconductor content in a BMW i3 (based on silicon area) Source: Applied Materials, TechInsights If all cars have the same level of intensity of i3, this represents 600k wspm capacity requirement Note: This car has no autonomous driving capability.

14 Requirements for cars are higher than for phones Consumer Industrial Automotive Increased requirements Lifetime Supply Operating conditions Operation time 2 to 5 years 5 to 10 years Up to 15 years Supply Average 1 year 2 to 5 years Up to 30 years Temperature 0 to 40 C - 10 to 70 C - 40 to 160 C Lead to Zero defect policy Traceability Humidity Tolerated failure rate Low <10% Environment <<1% 0% to 100% Target: 0% failure

15 Quality: Between raw materials and the cleanroom

16 Mass market safety only achievable with quality across the full supply chain Material providers like Linde are the quality gatekeepers Raw materials Chemical production Purification Blending Analysis Distribution

17 Between the variability of the raw material source Fluorspar mine: HF, NF 3, SF 6, CF 4, etc.

18 Between the variability of the raw material source Tungsten mine: WF 6

19 Between the variability of the raw material source Germanium mine: GeH 4, Ge 2 H 6

20 and the precision of manufacturing

21 and the precision of manufacturing

22 Material suppliers like Linde are the quality gatekeepers Source Quality Use

23 Quality: Customers are driving tighter requirements Number of measurements Customers Expect Linde to meet purity specifications and control limits Mean +3σ Spec Are even more concerned about unknown and uncontrolled impurities Example Specification: 50 ppm Control limit: 20 ppm Mean: 8 ppm ppm impurities

24 Managing supply chain determines quality Measure at each step, prevent defects, continuous improvement Delivery QA/QC/Lab Fill Blending Purification Prep Receiving Raw materials Final product quality Traditional quality focus Measurement systems analysis (MSA), Statistical process/quality control (SPC/SQC)

25 Production plant for Electronic Specialty Gases: Cylinder preparation

26 Production plant for Electronic Specialty Gases: Cylinder filling

27 Production plant for Electronic Specialty Gases: Blending

28 Production plant for Electronic Specialty Gases: Analysis

29 Supply chain: Ensuring business continuity

30 Supply interruptions can be caused by natural disasters Fukushima Earthquake and Tsunami: 2011

31 Supply interruptions can be caused by human events Tianjin Port Explosion: 2015

32 Global EM supply network Linde global suppliers network: multiple sourcing HCl

33 Global EM supply network Linde global suppliers network: multiple sourcing N 2 O

34 Global EM supply network Linde global suppliers network: multiple sourcing NH 3

35 Global EM supply network Linde global suppliers network: multiple sourcing TCS

36 Global EM supply network Linde global suppliers network: multiple sourcing He

37 Global EM supply network Linde global suppliers network: distributed portfolio N. America Europe Asia BCl 3 B 2 H 6 Cl 2 DCS Halocarbons HBr Laser gas NH 3 Si 2 H 6 WF 6 BF 3 ClF 3 D 2 GeH 4 HCl HF He SiH 4 TCS Xe He Ne Xe TCS NF 3 SiH 4 WF 6 Halocarbons BCl 3 HCl GeH 4 NH 3 N 2 O Dopants Si 2 H 6 Cl 2 DCS F 2 Mix Halocarbons HBr HCl NF 3 NH 3 SF 6 Si 2 H 6 CHF 3 F 2 GeH 4 HCDS He N 2 O POCl 3 SiH 4 TCS >50+ sources globally

38 Material supply by trading Multiple sources same product example: HCl Supplier D (10%) Supplier G (4%) Supplier F (5%) Supplier E (6%) Supplier A (29%) Supplier C (17%) Supplier B (29%) Global Capacity 2017 (>17.5 Ktons) Sourcing Assets Quality Access to 4/7 Global suppliers representing 67% of HCl capacity Distribute prime source to the respective region, as well as introduce new source for BCP Variety of fleet - ISO tube - Drum, Y Tonner, Cylinder Capability in ISO tube service Periodic testing, maintenance, and upgrading of assets in line with global standards Proven track record of bulk HCl supply to semiconductors customers across the world for several decades Multiple sources same final product

39 Conclusion: Quality and supply chain work together

40 Quality: Holistic, collaborative approach We achieve electronics industry quality standards with close collaboration throughout the supply chain Qualify suppliers Qualify products Manage process changes Raw materials Establish & certify QMS Align with EICC Manage deviations from specification Linde Ensure business continuity Check & develop required capability Understand customer requirements Customer Manage supplier performance Manage deviations from specification Manage process changes Control production quality Perform incoming material QC Manage deviations from specification Manage process changes

41 Europe: Global: