Electrification, edge computing, cybersecurity, artificial intelligence-the technological world is moving in this direction, and semiconductors are at the heart of so many transformations.
Interpreters of this change are the companies that manage to move through this confusing post-pandemic era with agility and efficiency, following market drivers and supporting as best they can those engaged in new manufacturing paradigms. We took stock of the present and future of this large slice of electronic components with Gianfranco Cardamone, Senior Sales Director South East and Country Manager Italy of NXP Semiconductors.
The last interview was two years ago. Meanwhile, many challenges since the pandemic. How has NXP changed and how is it still changing?
These were two years that saw the emergence of new challenges: the pandemic, which peaked in the first half of 2020, was the spark for a series of ripple effects. Companies, business processes, governments, and individuals were not ready for these scenarios. The companies (and people) that succeed in emerging in this environment are those that demonstrate agility and resilience. NXP is also facing this transformation. This means constantly reinventing itself, monitoring advances in the most available technologies, and often working side by side with customers. To be effective in these situations, it is necessary to operate with very agile teams. This is an ongoing journey that will see very profound transformations in the way companies operate.
The latest data show steady growth in the global semiconductor market-how is your 2022 going globally, but also in Europe? As difficult as it is to make predictions, what do you expect from the coming months?
The global semiconductor market continues and will continue to grow. And it is also supported by strong demand in NXP's strategic end markets, automotive and industrial, which are important in Italy and also in the rest of Europe. The continued growth of the market and its application trends, such as vehicle electrification and assisted driving, will accompany that of our products.
Automotive, industry, mobility and infrastructure are the target markets for NXP. What are the applications of the moment for the Italian market? What do you think could become priorities in the near future?
The good news is that Italy has many companies that excel in the automotive and industrial sectors. The context that is undergoing the strongest transformation is probably the automotive sector. Electrification is now law, with European directives that manufacturers must comply with by 2035. Along with electrification in the freight or passenger vehicle sector, we will see a rise of fully automatic driver control systems, as well as the development of the on-board gateway concept (Pc on four wheels...). It may seem a fortuitous combination, but the main markets for Italy are exactly the markets for NXP around the world. All of them are transforming sectors, under the megatrends of the aforementioned electrification, but also energy efficiency and personal care and remote assistance for the elderly. Usually, changes also bring new players, who enter the market with disruptive solutions or business models for the so-called "incumbents" (those who historically hold dominant positions in the market). In this case, it is important to provide solutions that drastically reduce the time to market. We are very focused on developing products that give companies easy access to technologies to transform their business model and enrich the value proposition to consumers. Artificial intelligence, as well as secure wireless connections embedded in ultra-high-performance computing and ultra-low-power devices, are technologies that are accessible today. Easily and with extremely low investment.
Specifically, what emerging technologies and products for the automotive and industrial sectors is NXP working on?
In both markets, NXP's strategy focuses on developing solutions dedicated to the "Secure Connected Edge." We can say that there is no clear dichotomy between Edge and Cloud: the two domains are complementary to each other and not at odds. The Edge is most important because it is where data are generated (sensing) and where real-time decisions (computing) and implementations (control) must be made. Edge devices are then securely connected to the Cloud. These are the domains of NXP's expertise; they belong to our DNA. The Edge combines needs for low power, "Functional Safety," "System Security," and clearly real-time. A concrete example comes from the automotive sector. With the advent of electrification, the BMS (Battery Management System) has become the heart of an electric vehicle's efficiency, and it is an Edge solution. We offer a complete system that consists of analog components to do good current and voltage sensing to determine the best values to use for cell charging. The data acquired from the real-time measurements are also processed by microcontrollers with other degree of safety (Asil-D) in which run AI algorithms-particularly machine learning algorithms-that change the charging profile of the cells themselves based on various parameters (e.g., charge level, temperature level, pressure, cell aging, etc.). Finally, the BMS is securely connected to the cloud via the car's gateway, thanks to the use of secure-elements, which are now almost fully integrated into the latest generation of microcontrollers.
What does the distribution channel represent for NXP?
Distribution is a key channel for NXP. Our industry is very complex and customers, all of them, need a partner to guide them, to help them reduce product development time and, most importantly, to increase the resilience of their supply chain.
Sustainability chapter: NXP's investments and projects have been following a well-defined path for some time. Where do we stand?
Sustainability is at the top of NXP's agenda. We are constantly focused on developing solutions that reconcile high pre-stations and extremely low power consumption. In this sense, we are also proceeding with strategic IP acquisitions related to the sustainability goals of our products. In 2022, we announced the acquisition of PLSense, which is strategic for the development of ultra-low-power solutions in next-generation microcontrollers. The systems approach is fundamental in the solutions we propose: for example, in the automotive sector we have advanced solutions that respond to electrification with clean, sustainable, energy-efficient electric vehicle and infrastructure solutions. But the way we do business is also sustainability-oriented. At the corporate level, we have begun publishing an annual report on the actions and results the company is achieving in relation to Esg (Environment, Social and Governance) goals.
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