Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Investor Day (May 2023)
23 slides from Renesas Electronics's investor day presentation, May 19, 2023
Slide 1: Industrial, Infrastructure and IoT Strategy
INDUSTRIAL, INFRASTRUCTURE AND IoT STRATEGY MAY 19, 2023 SAILESH CHITTIPEDDI EVP, GM OF EMBEDDED PROCESSING, DIGITAL POWER AND SIGNAL CHAIN SOLUTIONS GROUP RENESAS ELECTRONICS CORPORATION © 2023 Renesas Electronics Corporation. All rights reserved.
Slide 2: Agenda
AGENDA Results Recap Share Gains in MCU & MPU Secular Growth Opportunities − Embedded Processing + Analog, Power & Connectivity − Embedded Processing + Ethernet PHY for Industrial Markets The AI Opportunity − AIoT Artificial Intelligence in the AI landscape − AI in the Industrial landscape −
Slide 3: Financials at a Glance
FINANCIALS AT A GLANCE Total Revenue GM Revenue (oku yen) 53% Industrial Infrastructure IoT (oku yen) 9,000 CAGR 65% 33% 4,000 79% (excl. Dialog) (Dialog) CAGR (Dialog) 6,000 GM 60% 37% 37% 3,000 (excl. Dialog) CAGR 29% (Dialog) 32% 2,000 (excl. Dialog) CAGR 3,000 55% 1,000 0 50% 0 2020 2021 2022 20
Slide 4: Market Share Gain in MCU for Industrial/IoT Applications
MARKET SHARE GAIN IN MCU FOR INDUSTRIAL/IOT APPLICATIONS MCU (excl. 8 bit) 32 bit 16 bit No.1 No.5 No.3 2021 2022 2021 2022 2021 2022 6.6% 8.0% 26.5% 29.2% 11.0% 12.2% Graphs created by Renesas based on Gartner Research. Calculations performed by Renesas Source: Gartner®, Market Share: Semiconductor
Slide 5: Market Share Gain on MPU for Industrial/IoT Applications
MARKET SHARE GAIN ON MPU FOR INDUSTRIAL/IoT APPLICATIONS General purpose and Industrial automation AI 2021 2022 2021 2022 9.1% 10.7% 0.0% 1.2% 2026 25+% 15-% target share Source: Renesas estimation © 2023 Renesas Electronics Corporation. All rights reserved. 5
Slide 6: SAM Expansion by Attaching A&P, Connectivity
SAM EXPANSION BY ATTACHING A&P, CONNECTIVITY 2022 Revenue Connectivity + A&P potential SAM ■Connectivity attach potential IoT & Consumer ■A&P attach potential 44% Industrial Industrial 41% 1,900 Infrastructure 3,800 oku yen MCU oku yen (per year) IoT & Consumer Infrastructure 15% (oku yen) 0 500 1,0
Slide 7: SAM Expansion Industrial: MPU + Ethernet PHY
SAM EXPANSION INDUSTRIAL: MPU + ETHERNET PHY Industrial Ethernet PHY IC SAM*1 Renesas Industrial Ethernet PHY IC Growth Plan Industrial Ethernet PHY SAM (oku yen) (oku yen) 100M 1G T1L Existing Smart Factory SAM 6,000 CAGR 120 17% 100 235% 4,000 80 CAGR 60 13% 2,000 40 20 0 - 2023 2024 2025 2026 202
Slide 8: Additional Growth Accelerated by AI Adoption
ADDITIONAL GROWTH ACCELERATED BY AI ADOPTION Enabling Intelligence From The Cloud To The End-Point Sustainably AI at the core AI at the edge AI at the endpoint Sustainability MCU Timing MCU/MPU/e-AI Timing Ultra-Low Power Power Power Power Power Memory Interface Connectivity Memory Interface Connect
Slide 9: AI: Transformational Growth at End-Point, Edge and Core
AI: TRANSFORMATIONAL GROWTH AT END-POINT, EDGE AND CORE © 2023 Renesas Electronics Corporation. All rights reserved.
Slide 10: AIoT @End Point: Explosive Market Growth
AIoT @END POINT: EXPLOSIVE MARKET GROWTH Why endpoint intelligence? AI chip TAM (oku yen) Real-time response DSP 3,000 FPGA Security & Data privacy Others SAM 2,000 CAGR Efficiency & Low power MCU 53% MCU 1,000 Low cost 45% MPU MPU 0 2023 2024 2025 2026 AIoT: Artificial Intelligence of Things Source
Slide 11: Scalable Embedded Processor Solutions by AI Application Type
SCALABLE EMBEDDED PROCESSOR SOLUTIONS BY AI APPLICATION TYPE RZ/G RZ/V Embedded AI MPU (Hardware acceleration) Classification (Mobilenet) Memory Pose estimation RZ/A, RZ/T Object detection (Mobilenet SSD) Object detection (YOLOv2) Classification (ResNet50) RX, RA Optical number recognition Object de
Slide 12: AI Opportunity @Edge: Industrial Automation Market
AI OPPORTUNITY @EDGE: INDUSTRIAL AUTOMATION MARKET (oku yen) SAM Target Use cases 2,000 driving market potential Predictive maintenance 1,500 SAM (Embedded processors+ Sensor) Real-time monitoring of process conditions 31% 1,000 CAGR (2023-2030) Preventive quality control Target Machine insp
Slide 13: AI Opportunity for Infrastructure: Memory & Timing
AI OPPORTUNITY FOR INFRASTRUCTURE: MEMORY & TIMING Now AI SAM expansion Memory DIMM Memory DIMM Mother board AIC Memory DIMM RCD Hub RCD RCD DB DB RCD DB RCD DB CXL memory PMIC DRAM PMIC PMIC Hub Hub PMIC PMIC Hub expansion Hub TS TS TS DRAM TS TS DRAM AI/NW accelerators Oscillator Clock PCIe slots
Slide 14: AI Opportunity for Infrastructure: SAM Expansion Opportunity
AI OPPORTUNITY FOR INFRASTRUCTURE: SAM EXPANSION OPPORTUNITY (oku yen) Baseline DIMM Baseline Timing AI + additional memory +CXL AI + New Timing 4,000 AI + new product 2,000 Baseline 0 2023 2024 2025 2026 2027 2028 2029 2030 Source: Renesas estimation 1 USD=100 JPY © 2023 Renesas Electronics Corpora
Slide 15: Performance Digital Power by Platform & Generation
AI OPPORTUNITY FOR INFRASTRUCTURE: PERFORMANCE DIGITAL POWER BY PLATFORM & GENERATION VR13HC Server VR14 Birchstream Next Gen AI In Production Production 2H 2024 In design 12V E-Fuse 48V E-Fuse 48V E-Fuse 48V-12V 48V-12V 48V IBC On-board module Multiphase CPU Multiphase DDR4 Multiphase CPU Multiphas
Slide 16: Data Center Performance Digital Power SAM Expansion Opportunity
DATA CENTER PERFORMANCE DIGITAL POWER SAM EXPANSION OPPORTUNITY (oku yen) Baseline - Non-AI Baseline - AI New Products - AI New Products - Non-AI 3,000 New product 2,000 1,000 Baseline 0 2023 2024 2025 2026 2027 2028 2029 2030 Source: Renesas estimation 1 USD=100 JPY © 2023 Renesas Electronics Corpo
Slide 17: Digital Multiphase Migration in Automotive
DIGITAL MULTIPHASE MIGRATION IN AUTOMOTIVE Today Tomorrow Future Distributed architecture Centralized architecture Zone architecture Distributed low power MCU’s Software-Defined Vehicle No application for multiphase High compute/High Security High power multiphase needed Performance- Capacit
Slide 18: Timing Contents Increase in Automotive
TIMING CONTENTS INCREASE IN AUTOMOTIVE Today Tomorrow Future Distributed architecture Centralized architecture Zone architecture Distributed low power MCU’s Software-Defined Vehicle No application for multiphase High compute/High Security ~1 clock ~2 clocks >4 clocks Contents per vehicle © 2
Slide 19: UX Enhancement
UX ENHANCEMENT Embedded SW Development kits (Flexible software package) Tool chains Configurable Integrating (e2 Studio) mixed-signal tools AI training models © 2023 Renesas Electronics Corporation. All rights reserved. 19
Slide 20: Financial Model
FINANCIAL MODEL Grow @SAM++ GM ≈60% OM 30-35% © 2023 Renesas Electronics Corporation. All rights reserved. 20
Slide 21: Summary
SUMMARY Market share gain for MCU and MPU, using attach as a growth opportunity Exponential data growth, pervasive AI Integrating AI elements into industrial infrastructure, and IoT UX enhancement & SG collaboration © 2023 Renesas Electronics Corporation. All rights reserved. 21
Slide 22: Thank You
THANK YOU © 2023 Renesas Electronics Corporation. All rights reserved. 22
Slide 23: Forward-Looking Statements
(FORWARD-LOOKING STATEMENTS) The statements in this presentation with respect to the plans, strategies and forecasts of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. Such forward looking statements do not r