1. The Convergence of fabless Companies to Application Driven DesignDavid Dahan Primesense COO May 4, 2011

2. Presentation Topics User Experience / Application driven product Solution layers and sales cycle Industry supply chain and trends Delivering a complete solution and implications Success story Summary 2

4. Experience and Value … Nevertheless mostly the doesn’t know that he needs it at all….

5. "I think there is a world market for about five computers" — Remark attributed to Thomas J. Watson (IBM Chairman)

7. Consumer Product Launch Cycle EVT/DVT/PVT System and SW Dev FAB Cycle RTM Validation and Qual X-mass Holiday Season Sale CM/ODM Production Ramp Chip Sample Design Start RTL Freeze Production TO Oct. Dec Dec. Apr 2011 2012 2010 Note: At the consumer market ~60%—70% of the yearly sales happen at Q4

8. Electronics Equipment Industry Supply Chain Sale Channel Semiconductor Design System Design Fabless IDM ODM Manufacturing & Procurement Retail Distribution Marketing Equipment Distributor Electronic Retailer OEM EMS ODM: Original Device Manufacturer EMS: Electronics Manufacturing Services OEM: Original Equipment Manufacturer

9. Industry Trend Traditionally OEM/ODM derived requirement to Fabless and chip makers, nowadays OEM looking for complete and holistic solution and brand the product Fabless OEM Involve at the Application level Control the BOM and COGS cost Copy Ready reference Design (SW/HW) Si consolidate and merges  SoC Performance Retail Price Time to Revenues Pass for Cost down

10. Fabless and OEM/ODM Relation ODM Reference Design ATE Support Fabless Product OEM Silicon Retail Chain

11. What is a Complete Solution ? Reference Design (RD) is a product(HW+SW) in a production level form and quality Fully QA SW that support the relevant OS Application eco system Qualified Reference Design Pass Reliability, Environmental and Certification Full BOM (Production files) The COGS meet the target price (Retail = 3X BOM) AVL Suppliers that meet cost and capacity needs Production line set up (at final destination)

12. Development Consideration Electronic Design Mechanical Design Thermo Optics Design Audio / Video Design RF Design Select vendor and Tech. Simple production flow … Control the cost Manufacturing System/Engineering SW BOM and COGS NPI process Qualified design (EV/DV/PV) DFx Components and AVL Tool (Optics / Mechanical etc) Stable Production line Yield and SPC (>90% FPY) SW Architecture Configurable Structural Development Release Methodology QA, RN, Bug Fix, patch etc …. Room for customization Chip Requirement Cost, Process Technology, IP, Si Speed, Memory Size, IF, Package , Test and Qual

14. MediaTek as an Example Taiwanese fabless chip vendor that secured design wins in handsets by enabling the handset OEM to roll out a product rapidly 12 MediaTek 3G Reference Phone

15. Primesense Solution Layers Content is created by Primesense Partners and Developer Application PrimeSense is piloting the consortium of OpenNI developers Middleware OS PrimeSensor Reference Design Develop by PrimeSense and ODM partner System (RD) PS1080 SoC + FW Develop and sale by PrimeSense Chip + FW 13

16. Key Take Away Product is driven by Experience/ Application Vs. Cost OEM focus on the product branding and retail chain The “D” at the ODM isn't so strong Fabless needs to feel the gap and to do “more then Moore” This drive Fabless to be more system company and incorporate competence at System / SW and manufacturing domain but still revenue to flow in from Chip sale ! 14