U.S. Semiconductors

Romit Shah – NSI212.298.4326romit.shah@nomura.com

ontact Heading

Sidney Ho, CFA, CPA – NSI212.298.4329sidney.ho@nomura.com

Contact Heading

Sanjay Chaurasia – NSI212.298.4305sanjay.chaurasia.1@nomura.com

Global Communications Equipment

Stuart Jeffrey – NSI212.298.4709stuart.jeffrey@nomura.com

Technology | Semiconductors 2012Equity ResearchComponents, Key Suppliers, and Market Share

Source: Gartner, Company data, Nomura estimates, * not covered by Nomura

Source: Gartner, Company data, Nomura estimates

Source: Gartner, Company data, Nomura estimates, * not covered by Nomura

NAND Flash

Display

Applications Processor

DRAM

Baseband

GPS Image SensorsTouch Controller

RF and FEM

Silicon content: $20–22

$18–20

$15–17

$8–10

$10–13

$4–5

$1–2$2–3 $1–2

PMIC

$3–4Combo-chip (WiFi/BT/FM)

$3–4$3–4Power

Amplifier

� Broadcom (75%)

� TI (17%)

� Marvell (3%)

� Skyworks* 30–34%

� RF Micro* 22–25%

� TriQuint* 15–18%

� Avago 5–8%

� Anadigics* 5–6%

� Atmel 25%

� Broadcom 25%

� Cypress 15%

� Synaptics* 15%

� TI 10%

� Qualcomm (45%)

� MediaTek (13%)

� Intel (10%)

� ST Ericsson (11%)

� Broadcom (5%)

� Marvell (3%)

� Qualcomm (35%)

� TI (20%)

� Samsung (12%)

� Nvidia (5%)

� Samsung (31%)

� Toshiba (27%)

� SanDisk (19%)

� Micron (9%)

� Qualcomm 40%

� TI 20%

� ST Ericsson 12%

� Maxim 8%

� Dialog Semi* 6%

� Skyworks* (34%)

� RF Micro Devices* (32%)

� TriQuint* (16%)

� Avago (7%)

� Samsung (38%)

� Hynix (21%)

� Elpida (16%)

� Micron (13%)

� Omnivision (30%)

� Samsung (25%)

� Aptina* (20%)

� Sony (12%)

� Toshiba (8%)

� Samsung (25%)

� Japan Display* (20%)

� LG Display (15%)

� Sharp (10%)

� Chimei (10%)

� AUO (10%)

� CSR* (40%)

� Broadcom (25%)

� u–blox* (20%)

� TI (8%)

Camera Lens

$1

MEMs Microphone $0.70–0.80 Compass

IC Substrate Audio Codecs $0.70–0.80 Speaker $0.50–0.60

Gyroscope / Accelerometer

$2–3LCD Driver IC

$1–2

$1–2

$1.00–1.50

Camera Module

Silicon content: $9–10

Touch Panel

$7–11

Battery (Li Polymer)

$5–6

HDI PCB$3–5

� AAC Tech Holdings (15–20%)

� Knowles Elec. (15–20%)

� Akustica* (10–15%)

� Analog Devices (7–10%)

� BSE* (10–15%)

� Simplo 40–50%

� Dynapack 35–40%

� Largan 15–20%

� Kantatsu* 10–15%

� Diostech* 10–15%

� Genius* 10–15%

� STMicro 60–70%

� InvenSense* 10–15%

� Analog Devices 5–10%

� AKM Semiconductor* (30–40%)

� Memsic* (20–30%)

� Samsung (10–15%)

� Samsung (30%)

� Renesas (20%)

� Novatek (15%)

� Himax* (10%)

� AAC (35%)

� NXP* (30%)

� Sharp 10–15%

� LG Innotek 10–15%

� Foxconn 8–10%

� SEMCO 5–10%

� STM 5–10%

� Ibiden 15–20%

� Unimicron 15–20%

� AT&S* 10–15%

� SEMCO 10–15%

� TPK 15–20%

� Young Fast 15–20%

� Wintek 10–15%

� Nissha Printing 10–15%

� SEMCO 15–20%

� Ibiden 15–20%

� Kinsus 10–15%

� Unimicron 10–15%

� Cirrus Logic* 15–20%

� TI 15–20%

� Wolfson Micro* 10–15%

� STMicro 10–15%

� Analog Devices 10–15%

2012 Smartphone Guide

Smartphone Bill of Materials

BOM (front of the phone) Avg. Cost ($)

NAND Flash (16GB) $20–22

Display $18–20

Applications Processor $15–17

Baseband $10–13

Touch Screen $11–13

DRAM $8–10

FEM and Misc RF $4–5

Combo-chip (WiFi, BT) $3–4

Power Management $3–4

Power Amplifier $3–4

Touch Controller $2–3

GPS $1–2

Image Sensors ASP $1–2

Smartphone Bill of Materials

BOM (back of the phone) Avg. Cost ($)

Camera Module $9–10

Touch Panel $7–11

Battery $5–6

HDI PCB $3–5

Gyro/Accelerometer $2–3

LCD driver IC $1–2

Camera Lens $1–2

Digital Compass $0.80–1.00

Speaker $0.50–0.60

Audio Codecs $0.70–0.80

MEMS Microphone $0.70–0.80

IC Substrates (incl. in chip cost)

Smartphone Unit Shipments by Vendor (in mn)

Smartphone units 2008 2009 2010 2011

Apple 11 25 47 89

Samsung 5 6 25 87

Nokia 61 71 102 85

RIM 23 34 50 52

HTC 7 11 25 43

LG 0 1 6 19

Motorola 3 3 14 17

Sony Ericsson 2 1 10 20

Huawei 0 0 0 16

ZTE 0 0 0 11

Others 27 21 67 34

Total 139 172 299 472

Mobile Semiconductor Market by Device Type

Cellular Baseband

54%

Apps Processor9%

RF Devices19%

Wireless Connectivity

10%

Others8%

Mobile Semiconductor Market Share, 2011

Others22% Qualcomm

24%

TI12%

MediaTek9%STMicro

9%

Intel6%

Broadcom5%

Samsung4%

RFMD3%

Skyworks3%

Renasas3%

Overall Smartphone Market Share, 2011

Others7% Samsung

19%

Nokia18%

Apple19%

RIM11%

HTC9%

ZTE2%

Huawei3%

LG4%

Motorola4%

Sony Ericsson4%

Handset Shipments by Technology, 2009–2016E

Handset Shipment (in mn)

2009 2010 2011 2012E 2013E 2014E 2015E 2016E

2G Devices 3G Devices 4G Devcies

2500

2000

1500

1000

500

0

Average Selling Price by OEM, 2011

Average Selling Price (US$)

Apple HTC LG Motorola Nokia RIM Samsung SonyErisson

800

600

400

200

0

Operating Margin by OEM, 2011

Operating Margin

Apple HTC LG Motorola Nokia RIM Samsung SonyEricsson

40%

30%

35%

20%

10%

25%

15%

5%

(5%)

0

3G Unit Shipments, 2009–2016E

Unit Shipment (in mn)

2009 2010 2011 2012E 2013E 2014E 2015E 2016E

CDMA 1x EVDO HSPA W-CDMA TD-SCDMA

1600

1400

1200

1000

400

600

800

200

0

Shipments by Operating System, 2008–2011

Smartphone Shipment

2008 2009 2010 2011

Android iOS Symbian RIMMicrosoft BADA Others

100%

80%

60%

40%

20%

0

Smartphone Unit Shipments by Region, 2007–2013E

Smartphone Shipment

Asia/Paci�c Eastern Europe Japan Latin AmericaMiddle East & Africa North America Western Europe

100%

80%

60%

40%

20%

02009 2010 2011 2012E 2013E20082007