PEGACLSA_6.2V2 exam Dumps Source : Certified Lead System Architect (CLSA) 62V2
Test Code : PEGACLSA_6.2V2
Test name : Certified Lead System Architect (CLSA) 62V2
Vendor name : Pegasystems
: 149 real Questions
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Pega techniques has rather several ‘title’ terminology from one which is Popular in IT.
everybody is known as Architect ) .for many people it’s complicated. How can they gain Architect with 1 12 months of event in IT??
Pega systems concerned such titles to highlight utility is build by course 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 noiseless benefit it;
certified Senior gadget Architect (CSSA) -can likewise exist 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 level are IT/Pega event, lore of applied sciences (Oracle tools,Programming, application server);
In Pega ‘Architect’ doesn't equal to ‘Developer’ .There are examples of projects the space every bit of 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 likewise exist followed on PDN -Pega developers network web site. Your travel every bit of the time begins from the 1st step -CSA, then that you would exist able to elect 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 exist measured and analyzed . i would exist comfortable to argue 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 comfortable platform featuring state-of-the-paintings cyber coverage, the ST33 household's flexible structure has enabled ST to lead the edifice 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 kindhearted elements, combining convenience with powerful resistance to cyber-attacks.
"ST33 chips gain pushed the evolution of embedded security for the ubiquitous related sage objects equivalent to smartphones, wearables, and IoT contraptions that do concurrent 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 sparkle 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 exercise 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 significant smartphone OEMs to install unique eSIM based mostly instruments, taking lore of a smaller and thinner WLCSP (Wafer degree Chip Scale package) tackle and GSMA-compliant Personalization-on-Wafer industrial movement.
In 2018, ST became the primary chip brand to win 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 comfortable microcontrollers are available in a broad 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 perspicacious and energy-productive items and solutions that vigour the electronics at the heart of Popular 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 derive more from lifestyles, ST stands for every bit of times.augmented.
In 2018, the business's web revenues gain been $9.66 billion, serving more than one hundred,000 valued clientele worldwide. further tips can likewise exist discovered at www.st.com.
For more information gladden contact:
STMicroelectronicsMichael MarkowitzDirector Technical Media RelationsMichael.Markowitz@st.com+1 781 591 0354
 ST33 tackle versions meet tall 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 achieve 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 significant of CNH Architects. In her old-fashioned 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 commerce and churches.
Klis is fragment 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 fashion 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 second working on assorted tasks at CNH, together with a fireplace station, corporate café, church, day supervision and a pair of workplace structures. Klis referred to she appreciates the range.
As a graduate of the institution of Wisconsin-Stout, she acquired a Bachelor of trait arts in indoors design. Klis is gaining added expertise via carrying on with schooling. She graduated from Lakeville immoderate 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 commerce constructing and retail areas, public sector consumers, such as cities, counties and states, and automobile facility initiatives, day supervision and animal supervision 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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The views expressed during this achieve up are the author's own. need to submit on Patch? Register for a user account.
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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 name is Catherine, and I will exist your operator for today. [Operator Instructions] As a reminder, this muster is being recorded for replay purposes.
I would like to gyrate the muster over to Ms. Barbara Gasper, Head of Investor Relations. gladden proceed, ma'am.
Thank you, Catherine. genuine morning, and thank you for joining us either by phone or webcast today for a discussion about ultimate night's announcement of their PayPass Wallet Services. With me on the muster today is Ed McLaughlin, their Chief Emerging Payments Officer, who is joining from the CTIA Conference in unique Orleans. They are only able to allocate about 30 minutes this morning for the muster due to Ed's other conference commitment. However, they wanted to give you every bit of an opportunity to hear directly from Ed about their unique PayPass Wallet Services. They will then gain a few minutes to address some questions.
The press release on ultimate night's announcement can exist organize on the Investor Relations section of their website, mastercard.com. They gain likewise posted some hotlinks to a few things that Ed will refer to in his remarks. Also, a replay of this muster will exist posted to their website for one week through May 15.
Finally, as set forth in more detail in today's release, I need to remind everyone that today's muster may include some forward-looking statements about their unique services based on their current expectations and beliefs. Actual performance could vary materially from what is suggested by their comments today. Information about the factors that could paw future performance are summarized at the nigh of their press release, as well as contained in their recent SEC filings.
With that, I'll now gyrate the muster over to Ed McLaughlin. Ed?
Thanks, Barbara, and yes, we're calling here from CTIA in unique Orleans, which if you're not familiar with, it is one of the largest global telecom events for the year. ultimate night, they announced the PayPass Wallet Services, and we've gotten powerful response so far. Also, in about 2 hours, we're going to exist demonstrating the PayPass Wallet Services to probably a few thousand people as fragment of Gary Flood's keynote here at the conference. And this will exist streamed live if you'd like to espy it in action. They achieve 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 gain the keynote streaming.
But first, let's grasp a minute bit of time to follow up on any questions you may gain on the wallet services announcement from ultimate night. So I speculate 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 unique 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 exist faster, simpler and more secure for consumers to do purchases, both in-store or online, with a click of the mouse, paw on the tablet or tap their smartphone.
The PayPass Wallet Services are comprised of 3 several components: the first would exist is enhanced merchant payment acceptance capability, which includes both their PayPass Contactless NFC technology for in-store and a unique 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 gyrate more browsers into buyers. It eliminates the need for customers' particular bit -- to enter particular shipping, card and other information. And that's a powerful benefit, particularly when you're on minute or mobile script.
The PayPass acceptance benefits are likewise specifically designed to exist very simple for merchants to integrate into their current store and online business. They accept MasterCard today. It's very smooth 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 gain with their customers, not tamper with them. So for example, consumers could exercise the selfsame login and applications they gain today from their bank and seamlessly derive powerful unique payment capabilities and other service.
The wallet is likewise open so consumers will exist able to exercise 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 exist any number of wallets the consumers can exercise that will grasp odds 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 do purchases wherever PayPass is accepted, online or in-store.
And finally over time, the wallet services will exist expanded to include other value-added services like 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 like to grasp a second 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 exist able to derive one. And as I mentioned earlier, the PayPass Wallet is designed to exist white-labeled and branded by monetary 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 system of distribution will exist through their partners, we're actively testing the PayPass Wallet with their employees, and they will gain it live later this year on paypass.com.
So consumers will exist able to derive PayPass simplicity and enhance security from MasterCard through any number of global partners. And I speculate you've seen from the announcement they gain out. They can scope from a Banesto, a Citibank, Bank of Montreal, Westpac, Commonwealth Bank of Australia and many others who gain 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 gain with their customers today. They believe the integration model will likewise greatly accelerate the attain to consumers they can bring to merchants, so the merchants can grasp odds of a better checkout sustain online and in-store. We've been working closely with merchants to design the service, particularly to do 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 likewise 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 like 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 exist ongoing announcements of places and partners where the PayPass services will exist used with digital wallet.
Another question which came up is, so why did you depart with the PayPass branding to the digital service? And the reply is pretty simple. They asked consumers. They loved the ease and convenience of Tap & depart 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 likewise 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 gain shipped home or any other combination in between from any digital device they may gain in any account. Their converged PayPass digital wallet services provide a secure course 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 gain today. How does my existing tackle apply? And the genuine intelligence is, PayPass Online, the online shopping component, can work purely browser-based, so you can exercise 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 exist a commerce device. This is really an infrastructure that enables it.
Now to exercise the PayPass Contactless in-store directly from the phone, the phone will need to exist able to champion and secure NFC transaction. And I speculate you saw ultimate week, the PayPass ready certification program they announced, working with handset manufacturers like Samsung, HTC, Nokia, RIM and others to do positive as their unique NFC-equipped smartphone foster to market, they're every bit of ready for PayPass enablement.
So you can exercise PayPass Online today from any smartphone or other device and upgrades your phone to exercise PayPass NFC in-store when you derive a unique one that would exist PayPass certified. The key is, the integrated PayPass services will exist ready for you when you are.
And of course, what's the economic model? How does MasterCard do money in every bit of of it? And the PayPass Wallet Services we've just announced are natural extensions of their commerce model, optimized to digital world. First, they augment 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 unique features such as inControl and they pervade 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 derive 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 do it every bit of work. They gain always been supportive of economic system, and this takes the MasterCard commerce model and simply extends it to champion every bit of of these unique device.
And the ultimate significant question is when will every bit of this exist in the market? And as I said at their Investors Day ultimate 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 gain seen, we've been working with partners already like 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 exist 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 like 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 minute bit of a feel for what the wallet services are and directly address some of the questions I know you may gain had.
So with that, Barbara, I speculate they noiseless gain some time to open it up for more questions.
Right. Thanks, Ed. At this point, they outcome gain a minute bit of time for your questions. [Operator Instructions] Catherine, you want to start the mp;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 help 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 gawk at V.me, there gain been quite a few announcements for Visa Inc. and Visa Europe. So the specifics on the initiatives, I really gain to suspend for them. But from a MasterCard perspective, what they want to outcome is design these services for integration. We're not trying to derive in front of their partners' brands but rather enable commerce to happen, and that's very significant for merchants. We've likewise been emphasizing the ease of the immigration for the merchant, do it very smooth for them, they accept the MasterCard today, originate working with the wallet service. But unlike some of the other initiatives you've seen out there, I don't gain to rewire my settlement systems or address my consumers in a unique way. The other thing that's significant for consumers is the PayPass Wallet Services delivered genuine digital card transaction. So every bit of of my liability rights, my settlement guarantees, my rewards and other things are there. So I'm not subject 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 saw there's going to exist 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. speculate of it almost as the digital equivalent of the lower right-hand side of the card. We're giving merchants a powerful acceptance sustain they can depend 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 exercise 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 derive to scale. But it's also, though, where they allow consumers to derive any number of experiences environment that are specifically tailored for the relationship they gain with that partner. So being able to exercise the selfsame login that they exercise for my mobile banking application and not having to learn something else is a powerful benefit. Being able to derive real monetary information in real time from whoever has issue the card, while I'm making my shopping -- while I'm shopping. Again, it's a real benefit. So their accent is on partnership. It's on integration. It's on edifice a network of wallet and adding a lot of value to merchant. The ultimate piece I would emphasize is this convergence that's going on right now. And merchants will counsel you, I'm not e-commerce or in-store, it's both, but sometimes even both simultaneously. Because the incredible 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 touchstone globally for contactless transaction to gyrate 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 exercise in physical point-of-sale in NFC terms is probably noiseless some time off during that need for acceptance at point-of-sale. Can they expect to espy the click-to-buy online waddle more quickly and enable materially increases in your online market volume, maybe grasp partake from PayPal? And then how smooth is it for online merchants to really accept it? How many merchants online outcome you need to gain for this to exist a broad acceptance of scale where consumers are comfortable using it?
Yes, they espy 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 touching away from using traditional keyboard and PCs to alternate device. Search is touching that way. Shopping is touching that way. And in that case, merchants are now looking to mobilize their site. So the configuration 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 espy for that, and likewise because where a lot of the shopping is today is using these device to depart online. They outcome speculate that's where you'll espy a lot of the initial usage. But I wouldn't discount in any course the PayPass in-store. We've had 40% growth in just the ultimate year in the number of merchant that are adopting to over 400,000 merchants. They gain countries like Canada, where over 10% of their transactions are already contactless. And this is something we've been working on. If you gawk 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 likewise for contact and contactless. Just like they saw in Canada and other markets, merchants don't gain to retrofit their tackle to outcome this, but it will exist fragment of their natural upgrade cycle. So they espy 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 gain 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 gain many, many, many branded wallets offered by consumers, respective banks around the world, how outcome you exploit the targeted marketing that the merchant might want to outcome into the wallet but you gain 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 exist using the acceptance label will every bit of exist connected to the MasterCard network. So you may gain seen with the tender services they gain today where it's offered through specific destinations, but it likewise has the skill to publish out. So it will provide a distribution channel for merchants. Now the specific consumer sustain will exist up to their partner, and they expect there'll exist a lot of tailored experiences out there. So consumers can elect 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 likewise 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 gain wallet capabilities. So can you give us a sense -- you listed a bunch of banks that gain signed on from the get-go. What percent of those already gain 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 gain 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 gain wallet initiatives and they embraced, they cherish the thought that we're edifice an open acceptance network to allow that wallet to exist that much easier to exercise at a wide scope of merchants. They gain other institutions that issue they're interested in the white label now, but may progress to their in-house version later, which they speculate is great. I outcome speculate in the future, they may gain some banks that gain achieve this side of application in space and realized it into scale and will exist looking for on-behalf services from MasterCard. So that's the key to the architecture that they gain here. They can either provide this on-behalf services or link in to what monetary institutions they have. And economics and timing are really going to drive every bit of of these in position. But I wouldn't issue 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 every bit of about sort of the future as you espy -- I cherish the open architecture. I just wanted to know if you speculate that in the future when we're shopping online, outcome every bit of these wallets derive integrated, like what if I had a MasterCard account at 2 different monetary institutions, what if I gain a Visa account online? How outcome they espy the future? Obviously, we're not going to gain that many wallets. Does your product actually give the opportunity to exercise different passwords to access different institutions but every bit of linked into the selfsame wallet?
I speculate what you espy there, I derive to exercise the word disambiguation into that, which is great, but consumers may gain more than one wallet, just like you may gain more than 1 car for whatever intuition that you do. So when they derive 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 speculate you're absolutely right. What merchants want to say, is want to provide this mechanism. And that's why it really is like the acceptance work that we've always done and know that a consumer has a wallet that is participating in the network, I can exercise it anywhere they see. So it really a natural extension of that. I speculate the relationship that banks and partners gain with consumers will just exist enhanced to incorporate online shopping and a lot of the benefit that they gain 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 speculate about or help us speculate about what this means for your efforts, along with Google Wallet, as you guys speculate about the mobile efforts there? And then in terms of competition in the online world, is the competition purely aimed at kindhearted of sort of one-click effort, I guess, either, obviously, would exist the most relevant there. So I'm just trying to speculate about the competitive dynamics both against Google Wallet and the eBay PayPal?
Sure. I'm really joyful 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 every bit of fragment 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 gain MasterCards today. That's what's best for their organization. That's an significant fragment of their strategy. And I speculate the other thing which is important, when you gawk at any specific course of interacting, whether it's the online button, the tap in the store or any of the other things you'd espy coming out of MasterCard Lat, in my mind, it's not that transaction itself, it's the overall MasterCard number. The account you gain and the relationship you have. So I think, while there's a battle for who has that separate online transaction, it kindhearted of missed as a consumer and what we're edifice for. And the intuition they talk about this converging world is this is already happening. I could exist in my cab -- in a cab on with my mobile shopping online. I tap to derive out of the cab, and when I derive 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 derive to exercise whatever interface makes the most sense for whatever specific I'm trying to do, but it's every bit of tied back to the selfsame account, every bit of handled by the MasterCard network. They gain the selfsame rights and rules and everything that comes from genuine MasterCard transactions. So I don't speculate there's a battle for specific transactions. It's really was providing what's best for consumers in every bit of of the environments they want to shop. And their skill to give better experiences and more secure experiences online in your unique NFC-enabled handset, that's noiseless anchored on the powerful acceptance they gain 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 curious if you could talk about within the wallet, there's often the talk of slotting fees for hosting cards and then the battle to exist top of wallet. Could you talk about that concept and then to what degree that is likewise a fragment of the economic model for the products you've launched?
Yes, and I said earlier, they espy this as just a rational extension of MasterCard's commerce model. And you outcome need to exist observant with some of the proposals we've seen out in the marketplace for aggressive routing of consumers transaction and forcing them and every bit of of that. They believe the consumer absolutely has to elect how they're paying and how they want to pay, and this is designed to enable them. So again, if you speculate this from a MasterCard perspective, we'll gain the skill to provide on-behalf services. We'll exist generating a lot of value in unique transactions for merchant, and I really espy that as the basis for the economics year. And if you outcome a powerful job for merchants and reducing dropout, reducing queue time, driving more sales and give consumers the sustain 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 like to do the mobile payment attractive to consumers, you're going to gain to gain a bigger install foundation of NFC promo. You mentioned the 400,000, number. That's noiseless a very minute percentage of retailers. And much of that has either been installed in the past or was subsidized by Google. How outcome you espy the adoption and the upgrade to NFC progressing over the next 3.5 years to your first deadline? And then after that, outcome you espy it as a gradual selfsame level of upgraded that's always happened over, let's say, a 5-year era or outcome you espy an accelerated possibility that's already starting? outcome you gain evidence of that? outcome you expect more of a back-end loaded upgrade cycle in 2015? How outcome you espy that and then at what point outcome you espy the censorious mass that's going to compel consumers to feel like they can exercise an NFC-based wallet anywhere they want to shop?
We gain thoughts for that, and I speculate they gain a powerful force as they you can exercise 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 exercise 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 depart in at Home Depot today and tap my PayPass-enabled smartphone and it works great. The other thing is, if you gawk at, as I said earlier, markets like 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 likewise will espy millions of NFC-enabled handsets coming into the market, if you gawk at their PayPass ready certification program that they likewise talked about ultimate week. And the ultimate 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 broad retail partners, they said they were getting 20% to 40% faster time through queue using PayPass. So obviously, they moved every bit of their store loyalty and other cards to grasp odds of contactless. And to your censorious point, the censorious mass, I can exercise it today in any cab in unique York. And so it becomes a near daily transaction for me when I'm around the city. But outcome you speculate it's something to build over time? I outcome think, as they said earlier, rather than trying to retrofit gear for a separate value proposition. This is going to exist fragment of the prevalent upgrade cycle. every bit of of the major terminal manufacturers are including contactless as far as their touchstone mill. every bit of of the incentives and the model they gain to provide benefit for the adoption of EMV incorporates touching both contact and contactless. I speculate the real answers will exist more than ready when consumers and the tackle 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 espy 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 course you espy the physical point-of-sale as it gets connected to your wallet?
Well, I guess, from a MasterCard perspective, it's hard to espy using a physical card that point-of-sale is breakthrough unique innovation. You can always exercise your card. They gain 31 million merchant locations globally that work flawlessly with the cards you gain today, and it's every bit of against the selfsame account. So the digital is simply a course of having a virtual version of that card, if you will, that could exist optimized for online and in-store shopping. So that's why I want to derive back to this converged experience. As a consumer, MasterCard is providing a powerful option that can exercise that card anywhere, anywhere MasterCard is accepted today. As you know, that's a powerful experience. And they can do it even better, even simpler, even more secure with allowing PayPass Tap & depart or PayPass Online. But they're every bit of just more secure, simpler and smarter ways to exercise the selfsame account that you have. So as a consumer, it's exactly what I want. I derive one set of alerts. I derive one course of -- one account that I access in any number of ways that makes sense. So what they speculate about the future, they gain sort of as of yet unimagined edge device in the network. And what that really means is how outcome they bring the value of the MasterCard network and bring that sustain to consumers. So I'm really not worried about people trying to recreate or supersede the plastic sustain they gain at the point-of-sale. We've been protecting that for 30 years. This is about extending into the unique environment.
Thank you, Ed, for taking time out of your diligent schedule this morning to join us, and thanks to everybody who's on the call. They hope that you will exist able to listen in to Gary Flood's keynote address at about 11:20 unique York time today, where you can espy a demonstration of this technology. And as always, if you gain further questions, gladden don't hesitate to attain out to Investor Relations. Thanks, and gain a powerful day.
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect, and gain a genuine day.
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More From Seeking Alpha
Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries Ltd. (SPIL) are beginning 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 symbol on the unique York Stock Exchange. ASE Industrial Holding serves as the parent company for ASE and SPIL. But the merger is almost inevitable 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 shy of $9.8 billion. While that may appear like a lot of money, compared with many segments in the technology world it’s a tense 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 gain pressed into chip packaging and testing services for several years now. There are likewise internal assembly and testing operations at some of the bigger semiconductor vendors, such as Intel, Samsung Electronics, and Texas Instruments, that grasp away inevitable commerce opportunities.
“There are a bunch of pressures in the OSAT commerce 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 broad customer, and integrated device manufacturers are likewise 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 configuration of price pressure. Because the OSATs want to sustain up the volume; their pricing is a much tougher environment. If you gawk at those two trends, you espy people probably want to derive bigger, they want to exist operating in China, they want to exist more competitive. The cycle in R&D is to derive back that high-end business, and there are a number of things pushing in those directions. If you gawk at the OSAT commerce ultimate year, there was growth, but nothing spectacular. Then, you gawk at the assembly tackle demand, which was spectacularly hot, which means a lot of tackle 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 exist involved in integration initiatives in the near future, according to Puhakka. “The bigger question is, what will Amkor do? What will JCET do? The broad players may want to buy from China. That’s not out of the question, but there would exist some regulatory hurdles, I would imagine, to outcome that.”
The big OSATs today gain geographically diverse operations throughout Asia. But China represents the largest growth opportunity.
“It is a market not to exist ignored,” he says. “It just that you gain the Chinese regulations, the requirement of joint ventures and technology transfers. It makes people very uneasy to outcome something like that. Those kinds of actions gain limited how much commerce transfers to China. If you’re operating in China, you gain ongoing IP protection issues. You’re constantly making decisions about what IP are you touching to China, what are you not. By default, people are basically saying, whatever you waddle 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 astound that ASE and SPIL came together, because of the increasingly challenging OSAT commerce 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 likewise serves as executive vice president and chief sales officer for STATS ChipPAC. “It’s kindhearted of inevitable that they would espy this at the OSAT level. Clearly, we’re a fragment of that as well, as they are now a fragment of the JCET Group. What does it stand for for the competition? As a company, they embrace this change, and they espy many opportunities arising due to this merger. There are many semiconductor companies, their customers, who espy a combined market partake of ASE and SPIL within their own TAM. I muster it unhealthy, or maybe a minute 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 scandalous thing for this very competitive OSAT industry.”
Lasky anticipates there will exist more consolidation ahead, for the OSAT segment in particular, and the semiconductor industry in general.
“In the OSAT space, while I outcome expect us to follow the trend, they won’t espy quite the pace. There is noiseless a random to espy 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 minute players are not always of interest for M&A for the larger OSAT because the revert you derive versus the alternative of just competing for the business—when you gawk at that and the ROI and the deal around that, it doesn’t foster 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 impact on the interest level 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 genuine happy for those products. They’re investing in the back end, and they’re doing it in a course that makes sense to their business. And it lets them optimize their overall commerce model. I espy 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 need to happy to that.”
Peaceful coexistence?So can foundries and OSATS live and work together?
“There’s no question that the reply to that is yes,” Lasky says. “I believe very strongly that there’s plenty of opportunity. As they happy to that shift in TAM, it’s mostly TSMC when you gawk 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 grasp supervision of and champion their customers. Key to how they happy as an OSAT industry really is finding where their strengths and their capabilities in the OSAT industry can grasp odds of unique growth areas, to grasp TAM back versus losing it to the foundries.”
The system-in-package module space is one area where OSATs can really shine, Lasky asserts.
“When these higher-level solutions involve multiple die, multiple devices, and you need to integrate at the packaging level to create a packaging-level solution, suddenly you need the abilities of OSATs, where in the past you might gain 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 tall yield. And those are every bit of things that they play well in. We’re starting to espy 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 need to find your strengths, find where your capabilities can let you grab share, and then depart for that. Even in wafer-level, where the foundries gain the very stalwart solutions for some of these processors, they gain their own fan-out wafer-level and wafer-level CSP solutions that don’t do sense in the foundry space. The OSAT can outcome a better job.”
Ron Huemoeller, corporate vice president of Amkor and head of corporate R&D, likewise sees broad 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 preeminent in every bit of 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 significant to note that developing and manufacturing unique package platforms is expensive, and it requires a tall degree of engineering expertise. It likewise requires perpetual funding in R&D to maintain competitiveness. Adding unique blocks of capacity is very expensive – continually challenging ROI.”
Whether that will lead to more consolidation, and how quickly, remains to exist seen.
“The OSAT commerce requires scale,” says Prasad Dhond, Amkor’s vice president and common manager of automotive. “There will continue to exist some level of consolidation as players try to combine their resources to compete. This might now exist more applicable to the smaller (Tier 2 and Tier 3) players, though. Foundries are making a push into inevitable segments of high-end packaging. They view this as an opportunity to cross-sell additional services and likewise to do their commerce stickier. However, from a fundamental commerce model standpoint, packaging margins are lower than what foundries are used to. It is not lucid if foundries will exist willing to do heavy CapEx investments in packaging when they could exist using the capital for something else.”
So does that stand for 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 every bit of aspects of the assembly and test business. There are niche areas they will play in, but there will always exist a need for them to work with OSATs for other applications and if volumes exceed inevitable thresholds.”
Behind the ASE-SPIL dealIn its 20-F filing with the Securities and Exchange Commission for 2017, ASE provided an in-depth gawk at market pressures and developments in this space.
“We gain 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 likewise entered into a joint venture agreement with TDK Corporation in May 2015 to further expand their commerce in embedded substrates; in June 2016, they entered into the Joint partake Exchange Agreement with SPIL to grasp odds of the synergy outcome of commerce 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 expect 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 unique customers and broaden their product scope for a variety of end-use applications. However, rapid expansion may space a strain on their managerial, technical, financial, operational and other resources. As a result of their expansion, they gain implemented and will continue to implement additional operational and monetary 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 subject to a number of factors, including, among other things, obtaining every bit of necessary antitrust or other regulatory approvals in Taiwan, the United States, the PRC and other jurisdictions where they outcome business. They received a no-objection note in respect of the partake Exchange from the TFTC on November 16, 2016. On May 15, 2017, they received a note 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 exist 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 paw their monetary position. Notwithstanding the above, even if they are successful in consummating the SPIL Acquisition, they will exist subject to regulatory restrictions requiring us to maintain sunder operation of SPIL for a era of time, and they may physiognomy challenges in successfully integrating SPIL into their existing organization or in realizing anticipated benefits and cost synergies afterwards. Each of these risks could gain a material adverse outcome on their commerce and operations, including their relationship with customers, suppliers, employees and other constituencies, or otherwise adversely paw their monetary condition and results of operations.”
The 20-F says, “The packaging and testing commerce is capital-intensive. They will need 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 flow from operations and existing credit lines under their loan facilities will exist sufficient 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 intuition 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 monetary conditions may exist materially and adversely affected.”
ASE has a co-opetition relationship with TSMC. The two companies gain 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 gain one larger competitor to deal with in the near future, those companies gawk 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 unique opportunities around the edges for companies with the expertise and investment dollars to continue eking out a vigorous living.
Related StoriesMIS Packaging Takes OffMolded interconnect substrate emerges as packaging choice for analog, power ICs and cryptocurrency chips.Toward High-End Fan-OutsDenser interconnects, stacked die could vie 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 expose up.
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