PEGACLSA_6.2V2 exam Dumps Source : Certified Lead System Architect (CLSA) 62V2
Test Code : PEGACLSA_6.2V2
Test cognomen : Certified Lead System Architect (CLSA) 62V2
Vendor cognomen : Pegasystems
braindumps : 149 actual Questions
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Pega techniques has rather part ‘title’ terminology from one which is favorite in IT.
everybody is known as Architect ) .for many people it’s complicated. How can they relish Architect with 1 12 months of event in IT??
Pega systems concerned such titles to highlight utility is build by artery of configuring ,now not through establishing. There are three degrees of Pega Architects available on the market:
certified device Architect (CSA) -basic degree ,each PEGA expert should soundless benefit it;
certified Senior gadget Architect (CSSA) -can too breathe mapped to middle-senior specialist;
Lead gadget Architect (LSA) — leading professional. constantly there are 1–2 LSA per project.
As for me crucial in recognizing of seniority flat are IT/Pega event, scholarship of applied sciences (Oracle tools,Programming, application server);
In Pega ‘Architect’ doesn't equal to ‘Developer’ .There are examples of projects the location complete capabilities (administration, building, checking out, evaluation) are shared amongst Pega Architects. It’s feasible when the selfsame adult combines more then one advantage. Most projects include Pega and nonPega consultants for distinctive areas which is additionally first-rate ,but not preferable as per foremost practices.
nowadays in terms of trainings Pega programs developed bendy, extended ,tree-structured direction. It will too breathe followed on PDN -Pega developers network web site. Your travel complete the time begins from the 1st step -CSA, then that you would breathe able to pick the style -manager,technical professional (CSSA,LSA) ,company evaluation ,trying out and even UI expert.
this article doesn’t give any assistance on Pega undertaking stuffing as this is pretty particular person technique ,loads of elements should breathe measured and analyzed . i would breathe restful to contend it additionally per demand.
Geneva, February 18, 2019 - STMicroelectronics (STM.PA), a worldwide semiconductor leader serving customers throughout the spectrum of electronics functions, has recorded cumulative income of over one thousand million units for its ST33 embedded-protection ICs.
The recognition of the ST33 household reflects the transforming into quintessential to protect information and methods in at ease cellular-buyer, smart-using, wise-industry and wise-cities functions. in response to a typical certified restful platform featuring state-of-the-paintings cyber coverage, the ST33 household's springy structure has enabled ST to lead the building of latest classes of protection chips including embedded SIMs (eSIMs), embedded comfy elements (eSEs), and depended on Platform Modules (TPMs). These give hardened safety in design-in- and person-friendly kindly elements, combining convenience with powerful resistance to cyber-attacks.
"ST33 chips relish pushed the evolution of embedded security for the ubiquitous related sensible objects equivalent to smartphones, wearables, and IoT contraptions that design contemporary world work," illustrious Laurent Degauque, advertising Director, cozy Microcontroller Division, STMicroelectronics. "as the first such instruments to undertake the advanced Arm® SecurCore® SC300 cozy processor, and with the expertise of their bendy structure and superior glimmer know-how, the family has normally offered insurance policy that meets the highest trade requirements while enabling the mixing of recent features reminiscent of interfaces and accelerators to aid emerging consume instances."
The ST33 is the embedded-security platform chosen by SIM companies, operating system developers, and essential Tier-1 manufacturers producing machine reminiscent of smartphones, wearables, safety readers, laptop PCs and servers. ST33 secure chips had been selected by using principal smartphone OEMs to install original eSIM based mostly instruments, taking scholarship of a smaller and thinner WLCSP (Wafer degree Chip Scale package) rig and GSMA-compliant Personalization-on-Wafer industrial movement.
In 2018, ST became the primary chip brand to rate the GSMA SAS-UP (safety Accreditation Scheme for UICC construction) certification to personalize ST33 eSIMs for mobiles and related IoT instruments and not using a additional programming required by means of the OEMs.
ST33 restful microcontrollers are available in a grandiose scope of editions offering a decision of features together with connectivity to an NFC controller, hardware accelerators for superior cryptographic services, as well as business-grade and automotive-grade qualifications.
ST is a worldwide semiconductor chief supplying astute and energy-productive items and solutions that vigour the electronics at the heart of favorite existence. ST's products are discovered far and wide today, and along side their clients, we're enabling smarter using and smarter factories, cities and houses, together with the next technology of mobile and web of things gadgets.
through getting extra from know-how to gain more from lifestyles, ST stands for complete times.augmented.
In 2018, the business's web revenues relish been $9.66 billion, serving more than one hundred,000 valued clientele worldwide. further tips can too breathe discovered at www.st.com.
For more information gratify contact:
STMicroelectronicsMichael MarkowitzDirector Technical Media RelationsMichael.Markowitz@st.com+1 781 591 0354
 ST33 rig versions meet high safety requisites spanning cellular payments, e-government, IT and different industries, together with ISO 15408 CC EAL 5+, EMVCo, Federal assistance Processing specifications (FIPS), GSMA far flung SIM Provisioning.
This location up became contributed with the aid of a community member.
CNH Architects in Apple Valley has hired a seasoned certified indoors clothier, Ashley Klis, to provide capabilities for the firm's commercial challenge interiors.
Klis expands the firm's LEED AP credentials, which are wide. LEED is the management in energy and Environmental Design, which named Klis as an approved knowledgeable for development and development of industrial interiors and tenant areas that present a heathy, sustainable and productive work ambiance.
"Ashley is an excellent listener, and suits in smartly with their group and the company's client-based service," pointed out Quinn Hutson, a principal of CNH Architects. In her used work with a nationwide company focusing on design and consulting for meals carrier, she listened to leaders for tasks in ok-12 and better training, company and trade and churches.
Klis is Part of a methodology to further strengthen the indoors design expertise at CNH, Hutson explains, and she or he brings enhanced capabilities in gadget and freestanding furnishings.
The interior style designer follows the customer's lead when settling on indoors hues, finishes and products and considers 3-D laptop drawings invaluable to assist them visualize the layout and design. She is at the minute working on assorted tasks at CNH, together with a fireplace station, corporate café, church, day impregnate and a couple of workplace structures. Klis referred to she appreciates the range.
As a graduate of the institution of Wisconsin-Stout, she acquired a Bachelor of quality arts in indoors design. Klis is gaining added expertise via carrying on with schooling. She graduated from Lakeville extreme faculty and lives in Lakeville along with her husband, their son and daughter.
CNH Architects is a inventive, service-oriented enterprise that offers creative design solutions for the trade constructing and retail areas, public sector consumers, such as cities, counties and states, and automobile facility initiatives, day impregnate and animal impregnate facilities. CNH has served purchasers within the Twin Cities and higher Midwest for 50 years.Get the Apple Valley-Rosemount newsletterSubscribe
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Darrin D. Peller - Barclays Capital, Research Division
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
Julio C. Quinteros - Goldman Sachs Group Inc., Research Division
Timothy W. Willi - Wells Fargo Securities, LLC, Research Division
Gil B. Luria - Wedbush Securities Inc., Research Division
Good day, ladies and gentlemen, and welcome to the MasterCard PayPass Wallet Services Conference Call. My cognomen is Catherine, and I will breathe your operator for today. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.
I would infatuation to swirl the call over to Ms. Barbara Gasper, Head of Investor Relations. gratify proceed, ma'am.
Thank you, Catherine. excellent morning, and thank you for joining us either by phone or webcast today for a discussion about terminal night's announcement of their PayPass Wallet Services. With me on the call today is Ed McLaughlin, their Chief Emerging Payments Officer, who is joining from the CTIA Conference in original Orleans. They are only able to earmark about 30 minutes this morning for the call due to Ed's other conference commitment. However, they wanted to give you complete an break to hear directly from Ed about their original PayPass Wallet Services. They will then relish a few minutes to address some questions.
The press release on terminal night's announcement can breathe establish on the Investor Relations section of their website, mastercard.com. They relish too posted some hotlinks to a few things that Ed will advert to in his remarks. Also, a replay of this call will breathe posted to their website for one week through May 15.
Finally, as set forth in more detail in today's release, I necessity to remind everyone that today's call may include some forward-looking statements about their original services based on their current expectations and beliefs. Actual performance could differ materially from what is suggested by their comments today. Information about the factors that could move future performance are summarized at the finish of their press release, as well as contained in their recent SEC filings.
With that, I'll now swirl the call over to Ed McLaughlin. Ed?
Thanks, Barbara, and yes, we're calling here from CTIA in original Orleans, which if you're not familiar with, it is one of the largest global telecom events for the year. terminal night, they announced the PayPass Wallet Services, and we've gotten powerful response so far. Also, in about 2 hours, we're going to breathe demonstrating the PayPass Wallet Services to probably a few thousand people as Part of Gary Flood's keynote here at the conference. And this will breathe streamed live if you'd infatuation to contemplate it in action. They location the link to this. It's available up on the Investor Relations website. So about 10:20 Central, 11:20 Eastern Time, they wish to relish the keynote streaming.
But first, let's hold a shrimp bit of time to supervene up on any questions you may relish on the wallet services announcement from terminal night. So I mediate it's probably best to start with a quick recap of what it is and who it's for.
So the PayPass Wallet Services, their original global offering from MasterCard that extends PayPass beyond the Tap & Go, the E and M and other types of commerce. With PayPass Wallet Services, it will breathe faster, simpler and more secure for consumers to design purchases, both in-store or online, with a click of the mouse, touch on the tablet or tap their smartphone.
The PayPass Wallet Services are comprised of 3 part components: the first would breathe is enhanced merchant payment acceptance capability, which includes both their PayPass Contactless NFC technology for in-store and a original PayPass Online checkout service for e-commerce. These provide consumers and merchants with better shopping experiences in-store and online, which will reduce queue time and helps to swirl more browsers into buyers. It eliminates the necessity for customers' particular bit -- to enter particular shipping, card and other information. And that's a powerful benefit, particularly when you're on small or mobile script.
The PayPass acceptance benefits are too specifically designed to breathe very simple for merchants to integrate into their current store and online business. They accept MasterCard today. It's very simple for them to adopt the PayPass Wallet Service. So that's the merchant acceptance.
The second component is the PayPass Wallet. This will enable banks, merchants, partners to tender their own wallet to their customers without needing to build out an infrastructure. They want to enhance relationships that their partners relish with their customers, not tamper with them. So for example, consumers could consume the selfsame login and applications they relish today from their bank and seamlessly gain powerful original payment capabilities and other service.
The wallet is too open so consumers will breathe able to consume any card they have: MasterCard, Visa, American Express, others, and store their addresses, offers and other information in one familiar, convenient and secure way. And merchants adopting PayPass acceptance know there will breathe any number of wallets the consumers can consume that will hold edge of them.
The third component is the PayPass API, which will enable partners to connect their own digital wallets into the PayPass Acceptance Network, leveraging MasterCards checkout, fraud detection and authentication services and enabling their customers to design purchases wherever PayPass is accepted, online or in-store.
And finally over time, the wallet services will breathe expanded to include other value-added services infatuation their inControl alerts and spending control, MoneySend, MarketPlace offers and coupons, enhanced loyalty programs and others.
So these are the PayPass Wallet Services they just announced. And before they open up to the open question, I'd infatuation to hold a minute to address some of the specific questions that I know you have. One of the first question is always is, well, what's the distribution model? Now it sounds great, but how would I breathe able to gain one. And as I mentioned earlier, the PayPass Wallet is designed to breathe white-labeled and branded by fiscal institutions, merchants and other partners, and this is key.
The integration services will allow issuers and their partners to connect their proprietary wallet offerings to their network and enable their customers to pay wherever PayPass Online and PayPass Contactless are accepted. Now while their primary method of distribution will breathe through their partners, we're actively testing the PayPass Wallet with their employees, and they will relish it live later this year on paypass.com.
So consumers will breathe able to gain PayPass simplicity and enhance security from MasterCard through any number of global partners. And I mediate you've seen from the announcement they relish out. They can scope from a Banesto, a Citibank, Bank of Montreal, Westpac, Commonwealth Bank of Australia and many others who relish already signed us.
As they want to emphasize, the PayPass Wallet Services are designed to enhance, not to tamper with, the relationship their banks and other partners relish with their customers today. They believe the integration model will too greatly accelerate the reach to consumers they can bring to merchants, so the merchants can hold edge of a better checkout undergo online and in-store. We've been working closely with merchants to design the service, particularly to design it easier for them to implement. And you should check out some merchant testimonials, which I believe we're posting up on their YouTube channel. You can find the link to this in the Newsroom section of their corporate website.
Our acquirers are too key partners of it, along with MasterCard's DataCash and MiGS Internet Gateway and a big number of payment service providers they are already working with infatuation Ogone, Sage Pay and CardinalCommerce. And as you've already seen with the work we're doing with Isis, with Google, with others, there will breathe ongoing announcements of places and partners where the PayPass services will breathe used with digital wallet.
Another question which came up is, so why did you vanish with the PayPass branding to the digital service? And the confess is pretty simple. They asked consumers. They loved the ease and convenience of Tap & vanish in the physical world and wanted the selfsame security and simplicity online and responded really well to extending PayPass into an open, online in-store wallet, particularly when they knew it was from MasterCard.
Our merchant partners too talked about the growing convergence in shopping. A term that was used a lot was omni-channel, we're not even multi-channel anymore, where consumers shop online and pick up in-store or in-store shopping online to relish shipped home or any other combination in between from any digital device they may relish in any account. Their converged PayPass digital wallet services provide a secure artery to champion any number of digital wallet, both online and in-store, which really met their needs.
And a few more that maybe on your mind. So what about the iPhone, My Kindle, tablet, other smartphones that I relish today. How does my existing rig apply? And the excellent news is, PayPass Online, the online shopping component, can work purely browser-based, so you can consume it with anything that connects to the Internet: a PC, tablet, game systems, smart bridge, whatever device. As we've said earlier, every device will breathe a commerce device. This is really an infrastructure that enables it.
Now to consume the PayPass Contactless in-store directly from the phone, the phone will necessity to breathe able to champion and secure NFC transaction. And I mediate you saw terminal week, the PayPass ready certification program they announced, working with handset manufacturers infatuation Samsung, HTC, Nokia, RIM and others to design positive as their original NFC-equipped smartphone approach to market, they're complete ready for PayPass enablement.
So you can consume PayPass Online today from any smartphone or other device and upgrades your phone to consume PayPass NFC in-store when you gain a original one that would breathe PayPass certified. The key is, the integrated PayPass services will breathe ready for you when you are.
And of course, what's the economic model? How does MasterCard design money in complete of it? And the PayPass Wallet Services we've just announced are natural extensions of their trade model, optimized to digital world. First, they multiply their volumes and transactions as they capture more partake of consumers expend on MasterCard, particularly in the e-commerce space. Second, in the future, they add original features such as inControl and they impregnate for these value-added services. And they believe by delivering value to banks and making these product available for white-labeling, we'll provide on-behalf services that will gain a lot of value from. And even when a competitor's card leave their wallet, we're providing value to the payment's ecosystem by providing infrastructure and routing services that design it complete work. They relish always been supportive of economic system, and this takes the MasterCard trade model and simply extends it to champion complete of these original device.
And the terminal principal question is when will complete this breathe in the market? And as I said at their Investors Day terminal September, we've been working diligently on the PayPass Wallet Services for quite some time now, getting them ready for the market. As you know, innovation is a very iterative thing. And you may relish seen, we've been working with partners already infatuation American Airlines, Barnes & Noble, using DataCash and other payment service providers and are currently in beta in the U.S.
The production platform in the PayPass Wallet Services will breathe in-market and available to their partners in the third quarter of this year, with the United States, Canada, U.K. and Australia as the initial launch market. And as you saw in the release with partners infatuation Swedbank, BBVA, Intesa Sanpaolo and in the announcement yesterday, other global markets will soon follow, particularly in the champion of cross-border e-commerce.
So I hope I was able to give you shrimp bit of a feel for what the wallet services are and directly address some of the questions I know you may relish had.
So with that, Barbara, I mediate they soundless relish some time to open it up for more questions.
Right. Thanks, Ed. At this point, they carry out relish a shrimp bit of time for your questions. [Operator Instructions] Catherine, you want to start the braindumpsmp;A session, please?
[Operator Instructions] Your first question comes from the line of Bryan Keane from Deutsche Bank.
Bryan Keane - Deutsche Bank AG, Research Division
Ed, maybe you could just assist us what differentiates the MasterCard Wallet versus V.me and the others that are out there in the marketplace?
Absolutely, and there's been so many different announcements in the marketplace. If you quest at V.me, there relish been quite a few announcements for Visa Inc. and Visa Europe. So the specifics on the initiatives, I really relish to shelve for them. But from a MasterCard perspective, what they want to carry out is design these services for integration. We're not trying to gain in front of their partners' brands but rather enable commerce to happen, and that's very principal for merchants. We've too been emphasizing the ease of the immigration for the merchant, design it very simple for them, they accept the MasterCard today, commence working with the wallet service. But unlike some of the other initiatives you've seen out there, I don't relish to rewire my settlement systems or address my consumers in a original way. The other thing that's principal for consumers is the PayPass Wallet Services delivered genuine digital card transaction. So complete of my liability rights, my settlement guarantees, my rewards and other things are there. So I'm not topic to some sort of transaction randomization or other things that may tamper with the transaction itself. And probably the most unique feature is rather than saying there's going to breathe one wallet here that will rule them all, what we're enabling is a network of wallets. We're doing what MasterCard has always done. mediate of it almost as the digital equivalent of the lower right-hand side of the card. We're giving merchants a powerful acceptance undergo they can reliance on. We're standing behind those transactions. We're ensuring the reliability of the overall service, but we're letting lots of their partners either consume their white-label wallet services or even develop their own wallets and hook it into their network of wallet. And that's where, I think, they gain to scale. But it's also, though, where they allow consumers to gain any number of experiences environment that are specifically tailored for the relationship they relish with that partner. So being able to consume the selfsame login that they consume for my mobile banking application and not having to learn something else is a powerful benefit. Being able to gain actual fiscal information in actual time from whoever has issue the card, while I'm making my shopping -- while I'm shopping. Again, it's a actual benefit. So their stress is on partnership. It's on integration. It's on building a network of wallet and adding a lot of value to merchant. The terminal piece I would emphasize is this convergence that's going on privilege now. And merchants will narrate you, I'm not e-commerce or in-store, it's both, but sometimes even both simultaneously. Because the astounding thing about a mobile phone is with your handset, you're always online, and online is always with you. So we've integrated in PayPass in-store, which is the gold measure globally for contactless transaction to swirl that mobile into a payment device and along with what we've just announced with PayPass Online to give the selfsame easing convenience from any channel that consumers want to shop.
The next question comes from the line of Darrin Peller from Barclays.
Darrin D. Peller - Barclays Capital, Research Division
Ed, while the wallet consume in physical point-of-sale in NFC terms is probably soundless some time off during that necessity for acceptance at point-of-sale. Can they hope to contemplate the click-to-buy online rip more quickly and enable materially increases in your online market volume, maybe hold partake from PayPal? And then how simple is it for online merchants to really accept it? How many merchants online carry out you necessity to relish for this to breathe a broad acceptance of scale where consumers are restful using it?
Yes, they contemplate several things happening there. One of the primary is there's been a lot of shift in behavior. I'm positive you've seen the research on it, where people are poignant away from using traditional keyboard and PCs to alternate device. Search is poignant that way. Shopping is poignant that way. And in that case, merchants are now looking to mobilize their site. So the figure fill of data entry is not really optimal sometimes for the smaller keypads you'd see. So as merchants mobilize their site, there is a tremendous amount of interest in putting up the button for a one-click checkout. So it really is in line with the merchant objectives they contemplate for that, and too because where a lot of the shopping is today is using these device to vanish online. They carry out mediate that's where you'll contemplate a lot of the initial usage. But I wouldn't discount in any artery the PayPass in-store. We've had 40% growth in just the terminal year in the number of merchant that are adopting to over 400,000 merchants. They relish countries infatuation Canada, where over 10% of their transactions are already contactless. And this is something we've been working on. If you quest at the announcement for their EMV framework that they issued earlier this year, we're talking about not only upgrading the infrastructure to a more secure EMV cryptogram-based transaction, but too for contact and contactless. Just infatuation they saw in Canada and other markets, merchants don't relish to retrofit their rig to carry out this, but it will breathe Part of their natural upgrade cycle. So they contemplate merchants where it brings a lot of value to their business, I think, doing it earlier. But we're on a path on market-wide levels around the world relish mobile and other devices supported seamlessly to tell.
And the next question is from the line of Craig Maurer from CLSA.
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
My question is, if you relish many, many, many branded wallets offered by consumers, respective banks around the world, how carry out you exploit the targeted marketing that the merchant might want to carry out into the wallet but you relish huge fragmentation among the actual wallets that are out there?
Certainly, and that's where publishing mechanisms are so important. So if the wallets that will breathe using the acceptance heed will complete breathe connected to the MasterCard network. So you may relish seen with the tender services they relish today where it's offered through specific destinations, but it too has the skill to publish out. So it will provide a distribution channel for merchants. Now the specific consumer undergo will breathe up to their partner, and they hope there'll breathe a lot of tailored experiences out there. So consumers can pick what works best for them. But the skill to connect merchants to consumers through the PayPass network is not only for the transaction itself, but too for other services.
The next question comes from Glenn Fodor from Morgan Stanley.
Glenn Fodor - Morgan Stanley, Research Division
Just trying to gauge the appetite for some of these banks, big banks who already relish wallet capabilities. So can you give us a sense -- you listed a bunch of banks that relish signed on from the get-go. What percent of those already relish their own wallet technology and you're going to just integrate yours with their technology? And is it almost easier from your perspective if a bank does not relish a wallet perspective -- wallet setup already and you just start from scratch? Does it matter?
It doesn't matter. I mean, this is a market that's going to evolve. We've seen banks that relish wallet initiatives and they embraced, they savor the faith that we're building an open acceptance network to allow that wallet to breathe that much easier to consume at a wide scope of merchants. They relish other institutions that whine they're interested in the white label now, but may progress to their in-house version later, which they mediate is great. I carry out mediate in the future, they may relish some banks that relish location this side of application in location and realized it into scale and will breathe looking for on-behalf services from MasterCard. So that's the key to the architecture that they relish here. They can either provide this on-behalf services or link in to what fiscal institutions they have. And economics and timing are really going to drive complete of these in position. But I wouldn't whine it's 100% yet?
That's from the line of Chris Brendler from Stifel, Nicolaus.
Christopher Brendler - Stifel, Nicolaus & Co., Inc., Research Division
Can you talk at complete about sort of the future as you contemplate -- I savor the open architecture. I just wanted to know if you mediate that in the future when we're shopping online, carry out complete these wallets gain integrated, infatuation what if I had a MasterCard account at 2 different fiscal institutions, what if I relish a Visa account online? How carry out they contemplate the future? Obviously, we're not going to relish that many wallets. Does your product actually give the break to consume different passwords to access different institutions but complete linked into the selfsame wallet?
I mediate what you contemplate there, I gain to consume the word disambiguation into that, which is great, but consumers may relish more than one wallet, just infatuation you may relish more than 1 car for whatever intuition that you do. So when they gain request for wallets, so consumers registered more than one wallet in the MasterCard network of wallets, we'll route it to their default, but we'll give them option to switch between them. And I mediate you're absolutely right. What merchants want to say, is want to provide this mechanism. And that's why it really is infatuation the acceptance work that we've always done and know that a consumer has a wallet that is participating in the network, I can consume it anywhere they see. So it really a natural extension of that. I mediate the relationship that banks and partners relish with consumers will just breathe enhanced to incorporate online shopping and a lot of the benefit that they relish and people will naturally orient towards you serving them back.
That comes from the line of Julio Quinteros from Goldman Sachs.
Julio C. Quinteros - Goldman Sachs Group Inc., Research Division
I was wondering if you guys could sort of mediate about or assist us mediate about what this means for your efforts, along with Google Wallet, as you guys mediate about the mobile efforts there? And then in terms of competition in the online world, is the competition purely aimed at kindly of sort of one-click effort, I guess, either, obviously, would breathe the most pertinent there. So I'm just trying to mediate about the competitive dynamics both against Google Wallet and the eBay PayPal?
Sure. I'm really glad you asked because what we're doing with Google, what you're doing with Isis, the work we're doing with their other technology partners, this is complete Part of that. So at the heart of every Google Wallet is a MasterCard prepaid card that I can tap using PayPass anywhere in the world that is accepted. We're working with Isis. We're working with others. So they believe by making this things work better, by generating the value from MasterCard, that's what's best for people who relish MasterCards today. That's what's best for their organization. That's an principal Part of their strategy. And I mediate the other thing which is important, when you quest at any specific artery of interacting, whether it's the online button, the tap in the store or any of the other things you'd contemplate coming out of MasterCard Lat, in my mind, it's not that transaction itself, it's the overall MasterCard number. The account you relish and the relationship you have. So I think, while there's a battle for who has that sole online transaction, it kindly of missed as a consumer and what we're building for. And the intuition they talk about this converging world is this is already happening. I could breathe in my cab -- in a cab on with my mobile shopping online. I tap to gain out of the cab, and when I gain to that restaurant, maybe just slip my existing piece of plastic into the folio to pay for the meal. For me, as a consumer, that's powerful because I gain to consume whatever interface makes the most sense for whatever specific I'm trying to do, but it's complete tied back to the selfsame account, complete handled by the MasterCard network. They relish the selfsame rights and rules and everything that comes from genuine MasterCard transactions. So I don't mediate there's a battle for specific transactions. It's really was providing what's best for consumers in complete of the environments they want to shop. And their skill to give better experiences and more secure experiences online in your original NFC-enabled handset, that's soundless anchored on the powerful acceptance they relish in the plastic world today, which people love. That's really the force across the board, so I wouldn't focus on much on one specific edge device or transaction key.
That's from the line of Tim Willi from Wells Fargo.
Timothy W. Willi - Wells Fargo Securities, LLC, Research Division
I had a question going back to sort of the economic model. So I was snoopy if you could talk about within the wallet, there's often the talk of slotting fees for hosting cards and then the battle to breathe top of wallet. Could you talk about that concept and then to what degree that is too a Part of the economic model for the products you've launched?
Yes, and I said earlier, they contemplate this as just a logical extension of MasterCard's trade model. And you carry out necessity to breathe watchful with some of the proposals we've seen out in the marketplace for aggressive routing of consumers transaction and forcing them and complete of that. They believe the consumer absolutely has to pick how they're paying and how they want to pay, and this is designed to enable them. So again, if you mediate this from a MasterCard perspective, we'll relish the skill to provide on-behalf services. We'll breathe generating a lot of value in original transactions for merchant, and I really contemplate that as the basis for the economics year. And if you carry out a powerful job for merchants and reducing dropout, reducing queue time, driving more sales and give consumers the undergo the really want, the bits in the middle will sort themselves out.
And that's from the line of Gil Luria from Wedbush Securities.
Gil B. Luria - Wedbush Securities Inc., Research Division
It seems infatuation to design the mobile payment attractive to consumers, you're going to relish to relish a bigger install ground of NFC promo. You mentioned the 400,000, number. That's soundless a very small percentage of retailers. And much of that has either been installed in the past or was subsidized by Google. How carry out you contemplate the adoption and the upgrade to NFC progressing over the next 3.5 years to your first deadline? And then after that, carry out you contemplate it as a gradual selfsame flat of upgraded that's always happened over, let's say, a 5-year term or carry out you contemplate an accelerated possibility that's already starting? carry out you relish evidence of that? carry out you hope more of a back-end loaded upgrade cycle in 2015? How carry out you contemplate that and then at what point carry out you contemplate the censorious mass that's going to compel consumers to feel infatuation they can consume an NFC-based wallet anywhere they want to shop?
We relish thoughts for that, and I mediate they relish a powerful force as they you can consume your payment credentials anywhere you want to and with alerts and other things they can tie it back to the phone. And then you could you consume an NFC-enabled phone wherever PayPass is accepted. So I would point to a few things, one of which is the 40% growth year-over-year we've seen in merchant adopting them. So it this at your 7-Eleven and McDonald's. It is at Subway. It is at Macy's and Bloomingdale's and Home Depot. I can vanish in at Home Depot today and tap my PayPass-enabled smartphone and it works great. The other thing is, if you quest at, as I said earlier, markets infatuation Canada, where 1 out of 10 MasterCard transaction are already contactless. Some phones and other markets are catching up to that. So they are actually seeing that momentum. They too will contemplate millions of NFC-enabled handsets coming into the market, if you quest at their PayPass ready certification program that they too talked about terminal week. And the terminal thing I'd highlight, if you haven't seen it, they just published some empirical research for their MasterCard Advisors, where they looked at consumers who were using PayPass and those who weren't. And there was a 30% greater spend, 30% greater usage of your cards when they were PayPass-enabled. So it's a powerful piece of research, and those types of value are what drives decision. Carrefour, one of their grandiose retail partners, they said they were getting 20% to 40% faster time through queue using PayPass. So obviously, they moved complete their store loyalty and other cards to hold edge of contactless. And to your censorious point, the censorious mass, I can consume it today in any cab in original York. And so it becomes a near daily transaction for me when I'm around the city. But carry out you mediate it's something to build over time? I carry out think, as they said earlier, rather than trying to retrofit gear for a sole value proposition. This is going to breathe Part of the orthodox upgrade cycle. complete of the major terminal manufacturers are including contactless as far as their measure mill. complete of the incentives and the model they relish to provide benefit for the adoption of EMV incorporates poignant both contact and contactless. I mediate the actual answers will breathe more than ready when consumers and the rig are.
That comes from the line of Ramsey El-Assal from Jefferies.
Ramsey El-Assal - Jefferies & Company, Inc., Research Division
Understanding what you just said about handset manufacturers are starting to build the NFC capability. Now that they contemplate PayPal at the physical point-of-sale using -- connecting with the digital wallet with a PIN code or plastic card, enabling consumers to transact that way. Can you contemplate using your wallet to transact without NFC and some future modality or is really NFC the artery you contemplate the physical point-of-sale as it gets connected to your wallet?
Well, I guess, from a MasterCard perspective, it's arduous to contemplate using a physical card that point-of-sale is breakthrough original innovation. You can always consume your card. They relish 31 million merchant locations globally that work flawlessly with the cards you relish today, and it's complete against the selfsame account. So the digital is simply a artery of having a virtual version of that card, if you will, that could breathe optimized for online and in-store shopping. So that's why I want to gain back to this converged experience. As a consumer, MasterCard is providing a powerful option that can consume that card anywhere, anywhere MasterCard is accepted today. As you know, that's a powerful experience. And they can design it even better, even simpler, even more secure with allowing PayPass Tap & vanish or PayPass Online. But they're complete just more secure, simpler and smarter ways to consume the selfsame account that you have. So as a consumer, it's exactly what I want. I gain one set of alerts. I gain one artery of -- one account that I access in any number of ways that makes sense. So what they mediate about the future, they relish sort of as of yet unimagined edge device in the network. And what that really means is how carry out they bring the value of the MasterCard network and bring that undergo to consumers. So I'm really not worried about people trying to recreate or replace the plastic undergo they relish at the point-of-sale. We've been protecting that for 30 years. This is about extending into the original environment.
Thank you, Ed, for taking time out of your industrious schedule this morning to relate us, and thanks to everybody who's on the call. They hope that you will breathe able to listen in to Gary Flood's keynote address at about 11:20 original York time today, where you can contemplate a demonstration of this technology. And as always, if you relish further questions, gratify don't waver to reach out to Investor Relations. Thanks, and relish a powerful day.
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect, and relish a excellent day.
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More From Seeking Alpha
Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries Ltd. (SPIL) are nascence the process of uniting the two companies, which are among the largest outsourced semiconductor assembly and testing contractors in the world.
For now, the companies will continue to operate separately, while their shares are traded under the ASX emblem on the original York Stock Exchange. ASE Industrial Holding serves as the parent company for ASE and SPIL. But the merger is almost positive to change the competitive landscape in the assembly, packaging and test markets.
All of these areas are tough markets. ASE posted net income of $670 million on 2017 revenue that was just slightly diffident of $9.8 billion. While that may seem infatuation a lot of money, compared with many segments in the technology world it’s a taut operating margin.
The ASE/SPIL deal is being very closely watched by Amkor Technology, JCET Group, and smaller contractors. OSATs are not just competing among themselves anymore. Increasingly, they are facing competition from TSMC, UMC and other foundries, which relish pressed into chip packaging and testing services for several years now. There are too internal assembly and testing operations at some of the bigger semiconductor vendors, such as Intel, Samsung Electronics, and Texas Instruments, that hold away positive trade opportunities.
“There are a bunch of pressures in the OSAT trade that will shape the industry in coming years,” says Risto Puhakka, president of VLSI Research. TSMC is competing in the high-end packaging business, with Apple as its grandiose customer, and integrated device manufacturers are too competing in that field, he notes. (TSMC’s largest customer, not identified in its most recent 20-F filing, accounted for 22% of the foundry’s 2017 net revenue.)
There is more competition on the horizon, too. “The other pressure point that the OSATs feel is China,” says Puhakka. “There’s a substantial amount of packaging coming up in China, with the much lower cost, whether it’s through subsidies or something else. There is definitely pressure at the low end. It comes in the figure of expense pressure. Because the OSATs want to maintain up the volume; their pricing is a much tougher environment. If you quest at those two trends, you contemplate people probably want to gain bigger, they want to breathe operating in China, they want to breathe more competitive. The cycle in R&D is to gain back that high-end business, and there are a number of things pushing in those directions. If you quest at the OSAT trade terminal year, there was growth, but nothing spectacular. Then, you quest at the assembly rig demand, which was spectacularly hot, which means a lot of rig went to others—other than the traditional OSATs. It went mainly to China, to IDMs, to TSMC, Samsung.”
China’s OSAT industry is mostly made up of smaller firms, aside from Jiangsu Changjiang Electronics Technology (JCET), which owns STATS ChipPAC and other companies. JCET acquired STATS ChipPAC in 2015.
ASE and SPIL will breathe involved in integration initiatives in the near future, according to Puhakka. “The bigger question is, what will Amkor do? What will JCET do? The grandiose players may want to buy from China. That’s not out of the question, but there would breathe some regulatory hurdles, I would imagine, to carry out that.”
The big OSATs today relish geographically diverse operations throughout Asia. But China represents the largest growth opportunity.
“It is a market not to breathe ignored,” he says. “It just that you relish the Chinese regulations, the requirement of joint ventures and technology transfers. It makes people very uneasy to carry out something infatuation that. Those kinds of actions relish limited how much trade transfers to China. If you’re operating in China, you relish ongoing IP protection issues. You’re constantly making decisions about what IP are you poignant to China, what are you not. By default, people are basically saying, whatever you rip to China, it becomes Chinese knowledge.”
Fig. 1: Pressures mount for OSATs. Source: CLSA
Bigger dealsJust as more limited opportunities and growing R&D investments fostered some mega-deals in the semiconductor business, similar forces are at work in the assembly, package and test world, which serves the semiconductor companies.
“It was certainly no astonish that ASE and SPIL came together, because of the increasingly challenging OSAT trade environment and the major consolidation we’re seeing in their customer base,” says Hal Lasky, senior vice president of sales and marketing for JCET Group, who too serves as executive vice president and chief sales officer for STATS ChipPAC. “It’s kindly of inevitable that they would contemplate this at the OSAT level. Clearly, we’re a Part of that as well, as they are now a Part of the JCET Group. What does it move for the competition? As a company, they embrace this change, and they contemplate many opportunities arising due to this merger. There are many semiconductor companies, their customers, who contemplate a combined market partake of ASE and SPIL within their own TAM. I call it unhealthy, or maybe a shrimp too high. We’ve had many chances to compete for market partake where, without this merger, they wouldn’t have. I absolutely believe this merger enhances the competitive nature of the OSAT space. Maybe it gives us a higher bar to shoot at, which is not necessarily a detestable thing for this very competitive OSAT industry.”
Lasky anticipates there will breathe more consolidation ahead, for the OSAT segment in particular, and the semiconductor industry in general.
“In the OSAT space, while I carry out hope us to supervene the trend, they won’t contemplate quite the pace. There is soundless a haphazard to contemplate continued OSAT consolidation, but maybe not at the pace of their customer set. And the issue with OSATs is that the long tail of their industry—where the small players are not always of interest for M&A for the larger OSAT because the revert you gain versus the alternative of just competing for the business—when you quest at that and the ROI and the deal around that, it doesn’t approach out in favor of acquisition. Also, in the OSAT space, the technology gap between top-tier OSATs and the smaller OSATs continues to grow. That has an repercussion on the interest flat in the larger OSATs to drive M&A with smaller ones.”
So rather than accelerating consolidation, consolidation among OSATs actually could gradual down, he says. At the selfsame time, TSMC will continue to compete with OSAT contractors in IC packaging services. “Their solutions in the wafer-level space—InFO and CoWoS—those are outstanding packaging solutions. They are targeted at key segments in their customer space, and they are staking out their portion of the application space. Within the overall application space, there is a very excellent suitable for those products. They’re investing in the back end, and they’re doing it in a artery that makes sense to their business. And it lets them optimize their overall trade model. I contemplate them continuing with that and continuing to stake out that position. While that’s certainly a challenge to the OSAT space, it’s not really a killer. But they necessity to conform to that.”
Peaceful coexistence?So can foundries and OSATS live and work together?
“There’s no question that the confess to that is yes,” Lasky says. “I believe very strongly that there’s plenty of opportunity. As they conform to that shift in TAM, it’s mostly TSMC when you quest at it, the bottom line is I believe very strongly in the spirit of co-opetition, because they continue to work very closely with the foundries to hold impregnate of and champion their customers. Key to how they conform as an OSAT industry really is finding where their strengths and their capabilities in the OSAT industry can hold edge of original growth areas, to hold TAM back versus losing it to the foundries.”
The system-in-package module space is one region where OSATs can really shine, Lasky asserts.
“When these higher-level solutions involve multiple die, multiple devices, and you necessity to integrate at the packaging flat to create a packaging-level solution, suddenly you necessity the abilities of OSATs, where in the past you might relish done that as an EMS board-level solution,” he says. “There’s miniaturization, there are shielding concerns, there are a lot of different intricate process-level concerns, and it’s required at a very high yield. And those are complete things that they play well in. We’re starting to contemplate their TAM actually grow in that space in the OSAT world. There is no one packaging solution that’s going to wallpaper the entire application space. You necessity to find your strengths, find where your capabilities can let you grab share, and then vanish for that. Even in wafer-level, where the foundries relish the very stout solutions for some of these processors, they relish their own fan-out wafer-level and wafer-level CSP solutions that don’t design sense in the foundry space. The OSAT can carry out a better job.”
Ron Huemoeller, corporate vice president of Amkor and head of corporate R&D, likewise sees grandiose changes and challenges in the OSAT industry.
“It’s a changing competitive environment and the OSAT market continues to narrow at the top, with only two OSATs remaining predominant in complete phases of technology, ASE and Amkor, following the merger of SPIL and ASE. With fewer choices, more dependence on the premier OSATs is inevitable. It is principal to note that developing and manufacturing original package platforms is expensive, and it requires a high degree of engineering expertise. It too requires perpetual funding in R&D to maintain competitiveness. Adding original blocks of capacity is very expensive – continually challenging ROI.”
Whether that will lead to more consolidation, and how quickly, remains to breathe seen.
“The OSAT trade requires scale,” says Prasad Dhond, Amkor’s vice president and universal manager of automotive. “There will continue to breathe some flat of consolidation as players try to combine their resources to compete. This might now breathe more applicable to the smaller (Tier 2 and Tier 3) players, though. Foundries are making a propel into positive segments of high-end packaging. They view this as an break to cross-sell additional services and too to design their trade stickier. However, from a fundamental trade model standpoint, packaging margins are lower than what foundries are used to. It is not clear if foundries will breathe willing to design massive CapEx investments in packaging when they could breathe using the capital for something else.”
So does that move everyone will co-exist in their own space?
“One of the key aspects of foundry success in entering into the OSAT market segment is the bundling of their silicon with advanced packaging technology,” Huemoeller observes. “They secure the silicon sale by attaching it to the package technology. Foundries and OSATs are key components of the ecosystem. The foundries won’t engage in complete aspects of the assembly and test business. There are niche areas they will play in, but there will always breathe a necessity for them to work with OSATs for other applications and if volumes exceed positive thresholds.”
Behind the ASE-SPIL dealIn its 20-F filing with the Securities and Exchange Commission for 2017, ASE provided an in-depth quest at market pressures and developments in this space.
“We relish significantly expanded their operations through both organic growth and acquisitions in recent years,” ASE says. “For example, they acquired the controlling interest of Universal Scientific in 2010 to expand their product offering scope to electronic manufacturing services; they too entered into a joint venture agreement with TDK Corporation in May 2015 to further expand their trade in embedded substrates; in June 2016, they entered into the Joint partake Exchange Agreement with SPIL to hold edge of the synergy sequel of trade combination between SPIL and us; furthermore, they entered into a joint venture agreement with Qualcomm Incorporated in February 2018 to expand their SiP business. They hope that they will continue to expand their operations in the future. The purpose of their expansion is mainly to provide total solutions to existing customers or to attract original customers and broaden their product scope for a variety of end-use applications. However, rapid expansion may location a strain on their managerial, technical, financial, operational and other resources. As a result of their expansion, they relish implemented and will continue to implement additional operational and fiscal controls and hire and train additional personnel. Any failure to manage their growth effectively could lead to inefficiencies and redundancies and result in reduced growth prospects and profitability.”
It adds, “The successful consummation of the SPIL Acquisition is topic to a number of factors, including, among other things, obtaining complete necessary antitrust or other regulatory approvals in Taiwan, the United States, the PRC and other jurisdictions where they carry out business. They received a no-objection epistle in respect of the partake Exchange from the TFTC on November 16, 2016. On May 15, 2017, they received a epistle from the FTC confirming that the non-public investigation on the partake Exchange has been closed. On November 24, 2017, they received approval from the Ministry of Commerce of the People’s Republic of China (MOFCOM) for the partake Exchange under the condition that ASE and SPIL maintain independent operations, among other conditions, for 24 months. In the event these conditions cannot breathe satisfied, they may re-evaluate their interest in SPIL and may consider, among other legally permissible alternatives, to dispose their SPIL shares at a loss, which may significantly move their fiscal position. Notwithstanding the above, even if they are successful in consummating the SPIL Acquisition, they will breathe topic to regulatory restrictions requiring us to maintain part operation of SPIL for a term of time, and they may countenance challenges in successfully integrating SPIL into their existing organization or in realizing anticipated benefits and cost synergies afterwards. Each of these risks could relish a material adverse sequel on their trade and operations, including their relationship with customers, suppliers, employees and other constituencies, or otherwise adversely move their fiscal condition and results of operations.”
The 20-F says, “The packaging and testing trade is capital-intensive. They will necessity capital to fund the expansion of their facilities as well as fund their research and development activities in order to remain competitive. They believe that their existing cash, marketable securities, expected cash flood from operations and existing credit lines under their loan facilities will breathe adequate to meet their capital expenditures, working capital, cash obligations under their existing debt and lease arrangements, and other requirements for at least the next twelve months. However, future capacity expansions or market or other developments may antecedent us to require additional funds…If they are unable to obtain funding in a timely manner or on acceptable terms, their results of operations and fiscal conditions may breathe materially and adversely affected.”
ASE has a co-opetition relationship with TSMC. The two companies relish had a “strategic alliance” since 1997. ASE serves as the foundry’s non-exclusive, preferred provider of packaging and testing services for microchips fabricated by TSMC.
ConclusionWhile OSATs will relish one larger competitor to deal with in the near future, those companies quest forward to the fray. TSMC’s muscling in on the high-end packaging business, especially when it comes to Apple’s custom application processors for the iPhone and the iPad, is a competitive challenge.
Yet OSATs retain expertise in the areas of SiP modules, molded interconnect substrates, substrate-like printed circuit boards, semiconductor embedded in substrate, and other emerging technologies. And while competition continues to ratchet up, there are always original opportunities around the edges for companies with the expertise and investment dollars to continue eking out a healthy living.
Related StoriesMIS Packaging Takes OffMolded interconnect substrate emerges as packaging option for analog, power ICs and cryptocurrency chips.Toward High-End Fan-OutsDenser interconnects, stacked die could emulate 2.5D approaches.What Next For OSATsASE’s COO opens up on the future of fan-out, growth prospects, and where the next opportunities will demonstrate up.
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