Andy Williams, Senior Vice President, Automotive and Power Products, ON Semiconductor Reporter: Please talk about ON Semiconductor's business in the automotive industry. Andy Williams: From the end-market revenue division in 2010, the automotive market and other markets are evenly divided, except for medical care, with the automotive market accounting for 20%, computers 25%, communications 16%, consumer products 17%, industrial, military And aviation accounts for 19%, and medical care accounts for 3%. Although ON Semiconductor is headquartered in the United States, its business focus is in Asia. According to market revenue in 2010, the Asia Pacific region accounts for 63%. The automotive business is the strength of ON Semiconductor. It mainly includes LED lighting and smart grid business, such as power management of LCD panels or LEDs, and energy-saving vehicle management solutions. ON Semiconductor was separated from Motorola in 1999, but has been involved in the automotive industry for 50 years. It can be said that almost every car has ON Semiconductor, used in power systems, heating ventilation and air conditioning, sensors and lighting systems. Huge car market has unlimited opportunities. On the one hand, global car production and sales will continue to climb. If we do not take measures to reduce fuel consumption, fuel consumption will be higher and air pollution will become more serious. ON Semiconductor can help cars to save fuel and reduce fuel consumption. Reporter: What do you think of the development of semiconductors in China's auto industry? Andy Williams: Looking at ON Semiconductor’s revenue per vehicle in different regions in 2010, the average US revenue is US$8.50 per vehicle, Europe’s average is US$12.5 per vehicle, and Asia’s average is US$3 per vehicle, which has great potential, so we’re optimistic. The Asian market, especially the Chinese market, has therefore established a solution engineering center for the automotive industry in Shanghai. We are ranked ninth among semiconductor companies facing the automotive industry. With the increasing demand for advanced semiconductors in the Chinese market and the desire of users to become more intelligent in their cars, the demand for semiconductors in the Chinese market has continued to increase. This force from the market is driving the continuous increase in the proportion of semiconductors in automobiles. I am very optimistic about the development of the Chinese market. Reporter: ON Semiconductor has already cooperated with Chinese parts and auto companies. Andy Williams: In China, we have more cooperation with tier one suppliers. For tier one suppliers, we have started small projects and will gradually implement the plans based on the models and specific needs of the vehicle manufacturers. In the past two years, we and customers in southern China have cooperated in the lighting industry and jointly developed our first ASIC (Application Specific Integrated Circuit) in China for HID lamps. In China, from FAW, SAIC, Chery to Changan, etc., ON Semiconductor and the first-tier suppliers of these OEMs all have good cooperation. We have not yet carried out large-scale project cooperation for Chinese automakers, but the outlook is bright. China's OEMs will face design challenges in some complex functions, such as adaptive headlamp systems, we have very advanced technologies, new Mercedes-Benz c-class or s-class car assembly The adaptive headlamp system is our supply. We can fully assist Chinese customers with all or part of the headlamp design. The SEC (Solution Engineering Center) team will help us better understand customer needs and serve Chinese customers. Reporter: What changes will be made to ON Semiconductor's acquisition of the Cypress image sensor business and the Sanyo Semiconductor business? Andy Williams: Over the past five years, we have taken a drastic merger and acquired a total of nine companies. Sanyo Semiconductor’s acquisition completed early this year was the largest acquisition, and Cypress’s acquisition was the latest acquisition. Sanyo Semiconductor’s global sales are US$1.2 billion, which accounts for approximately half of ON Semiconductor’s global sales and employs 6,500 people. After the acquisition, ON Semiconductor's competitiveness in Asia has been greatly enhanced, especially in Japan. Sanyo's main business is automotive radio. We mainly manage power, so Sanyo can bring technology that we don't have, including audio and video tuners, LED lighting technology in automotive unlimited power. At the same time, we have expanded our strengths in power management products, automotive products and portable products, and achieved strong alliances. After being spun off from Motorola in 1999, we are a discrete device company and now one of the most mainstream and competitive IC (integrated circuit) companies in the world. In addition to discrete device products, we also produce standard products and mixed-signal products. Prior to the acquisition of Sanyo, we ranked 29th in the overall semiconductor market and 41th in Sanyo. After the acquisition, we became the world’s top 20 overall semiconductor supplier and the world’s No. 4 multi-market semiconductor supplier. After the acquisition, Asia Pacific sales accounted for 70% of total sales. Cypress brings to ON Semiconductor the image sensor technology and camera-related technologies. The latter includes the front-end and rear-end camera technology. These technologies will be digested and applied to ON Semiconductor's products in the future. Reporter: Please talk about the status of the Solution Engineering Center (SEC) recently established in Shanghai. Andy Williams: Our SEC engineering center for automotive industry in Shanghai has four main areas: The first area is fuel economy and emission reduction, including engine control, transmissions and hybrid vehicles; the second area is growth. In the field of strong infotainment and links, the annual growth rate of the market is about 30%. The third area is the automotive lighting market we are very optimistic about, including LED, high-intensity discharge lamps and adaptive headlights systems, and the expected growth rate. More than 50%; the fourth area is parking assistance and dynamic braking, and the annual growth rate is expected to exceed 15%. In order for the vehicle to truly achieve energy savings, the engine management system must have high-efficiency electronic devices. If you combine the solutions and products in the engine management system, there will be an average US$23 in ON Semiconductor content per engine. We will fully explore the opportunities in each area and provide customers with a value-added experience by way of solution. Reporter: How do you see the development of new energy vehicles? Does ON Semiconductor have product development in combination with new energy automotive technology? Andy Williams: The ownership of hybrid and pure electric vehicles is still rising. We are optimistic about this. We expect that the global hybrid and pure electric vehicles will together account for about 10% of all car ownership in the next 8 years. With the growing momentum of new energy vehicles, ON Semiconductor faces more and more opportunities. In the field of new energy automotive technology, what we are best at is the efficient power conversion technology, followed by the application of LED lighting in new energy vehicles. Reporter: Many investment banks, such as Goldman Sachs, Needham, and DA Davidson have all given ON Semiconductor a buy rating and raised their target prices. Where do you think they are optimistic about the origin of ONSM? Reporter: There is a view that the development of automotive electronics and electronics will bring huge profits to the semiconductor industry. How do you view this? Andy Williams: Our confirmation is that automotive semiconductors are new gold mines. Because now the use of electronic and electrical vehicles in the rising content. For example, previous energy saving and actual output power of the engine have always been contradictory. With the introduction of innovative technologies, sensors can now be applied more in new designs, so that the maximum power of gasoline and diesel can be truly realized, and energy saving can be achieved. the goal of. Guangdong Heidler Technology Co., Ltd , https://www.hyhemit.com.jpg)
In addition, the focus of the ON Semiconductor's aftermarket is in the South, including the replacement of car entertainment and HID lamps.
Andy Williams: It is not surprising that investment banks raised their target prices. In 2010, the actual growth of global light vehicle sales was higher than 13%, and the automotive business of ON Semiconductor increased by more than 47%. I believe this data can completely convince analysts.