PEGACLSA_6.2V2 exam Dumps Source : Certified Lead System Architect (CLSA) 62V2
Test Code : PEGACLSA_6.2V2
Test denomination : Certified Lead System Architect (CLSA) 62V2
Vendor denomination : Pegasystems
real questions : 149 real Questions
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Pega techniques has rather sever ‘title’ terminology from one which is approved in IT.
everybody is known as Architect ) .for many people it’s complicated. How can they accommodate 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 profit it;
certified Senior gadget Architect (CSSA) -can furthermore 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 flush are IT/Pega event, knowledge of applied sciences (Oracle tools,Programming, application server);
In Pega ‘Architect’ doesn't equal to ‘Developer’ .There are examples of projects the situation totality 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 involve 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 furthermore exist followed on PDN -Pega developers network web site. Your travel totality the time begins from the 1st step -CSA, then that you would exist able to choose 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 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 benign elements, combining convenience with powerful resistance to cyber-attacks.
"ST33 chips accommodate pushed the evolution of embedded security for the ubiquitous related wise objects equivalent to smartphones, wearables, and IoT contraptions that develop concurrent world work," noted 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 twinkle 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 employ 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 essential smartphone OEMs to install unique eSIM based mostly instruments, taking knowledge of a smaller and thinner WLCSP (Wafer degree Chip Scale package) outfit and GSMA-compliant Personalization-on-Wafer industrial movement.
In 2018, ST became the primary chip brand to earn 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 sizable attain of editions offering a conclusion 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 clever and energy-productive items and solutions that vigour the electronics at the heart of approved 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 regain more from lifestyles, ST stands for totality times.augmented.
In 2018, the business's web revenues accommodate been $9.66 billion, serving more than one hundred,000 valued clientele worldwide. further tips can furthermore exist discovered at www.st.com.
For more information delight contact:
STMicroelectronicsMichael MarkowitzDirector Technical Media RelationsMichael.Markowitz@st.com+1 781 591 0354
 ST33 outfit 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 establish 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 evolution and evolution of industrial interiors and tenant areas that present a heathy, sustainable and productive labor 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 essential of CNH Architects. In her ancient labor 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 traffic 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 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 minute working on assorted tasks at CNH, together with a fireplace station, corporate café, church, day care 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 extravagant 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 traffic constructing and retail areas, public sector consumers, such as cities, counties and states, and automobile facility initiatives, day care and animal care facilities. CNH has served purchasers within the Twin Cities and higher Midwest for 50 years.Get the Apple Valley-Rosemount newsletterSubscribe
Thanks for your comments.
The views expressed during this establish 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 denomination is Catherine, and I will exist your operator for today. [Operator Instructions] As a reminder, this convene is being recorded for replay purposes.
I would fancy to turn the convene over to Ms. Barbara Gasper, Head of Investor Relations. delight proceed, ma'am.
Thank you, Catherine. apt morning, and thank you for joining us either by phone or webcast today for a discussion about final night's announcement of their PayPass Wallet Services. With me on the convene today is Ed McLaughlin, their Chief Emerging Payments Officer, who is joining from the CTIA Conference in unique Orleans. They are only able to designate about 30 minutes this morning for the convene due to Ed's other conference commitment. However, they wanted to give you totality an occasion to hear directly from Ed about their unique PayPass Wallet Services. They will then accommodate a few minutes to address some questions.
The press release on final night's announcement can exist organize on the Investor Relations section of their website, mastercard.com. They accommodate furthermore posted some hotlinks to a few things that Ed will advert to in his remarks. Also, a replay of this convene 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 convene may involve 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 impress future performance are summarized at the halt of their press release, as well as contained in their recent SEC filings.
With that, I'll now turn the convene over to Ed McLaughlin. Ed?
Thanks, Barbara, and yes, we're calling here from CTIA in unique Orleans, which if you're not close with, it is one of the largest global telecom events for the year. final night, they announced the PayPass Wallet Services, and we've gotten mighty 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 Part of Gary Flood's keynote here at the conference. And this will exist streamed live if you'd fancy to survey it in action. They establish 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 accommodate the keynote streaming.
But first, let's rob a itsy-bitsy bit of time to ensue up on any questions you may accommodate on the wallet services announcement from final night. So I contemplate 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 develop purchases, both in-store or online, with a click of the mouse, finger on the tablet or tap their smartphone.
The PayPass Wallet Services are comprised of 3 sever 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 turn more browsers into buyers. It eliminates the need for customers' detailed bit -- to enter detailed shipping, card and other information. And that's a mighty benefit, particularly when you're on minuscule or mobile script.
The PayPass acceptance benefits are furthermore specifically designed to exist 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 present their own wallet to their customers without needing to build out an infrastructure. They want to enhance relationships that their partners accommodate with their customers, not meddle with them. So for example, consumers could employ the selfsame login and applications they accommodate today from their bank and seamlessly regain mighty unique payment capabilities and other service.
The wallet is furthermore open so consumers will exist able to employ 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 employ that will rob 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 develop purchases wherever PayPass is accepted, online or in-store.
And finally over time, the wallet services will exist expanded to involve other value-added services fancy 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 fancy to rob 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 exist able to regain one. And as I mentioned earlier, the PayPass Wallet is designed to exist white-labeled and branded by pecuniary 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 routine of distribution will exist through their partners, we're actively testing the PayPass Wallet with their employees, and they will accommodate it live later this year on paypass.com.
So consumers will exist able to regain PayPass simplicity and enhance security from MasterCard through any number of global partners. And I contemplate you've seen from the announcement they accommodate out. They can attain from a Banesto, a Citibank, Bank of Montreal, Westpac, Commonwealth Bank of Australia and many others who accommodate already signed us.
As they want to emphasize, the PayPass Wallet Services are designed to enhance, not to meddle with, the relationship their banks and other partners accommodate with their customers today. They believe the integration model will furthermore greatly accelerate the attain to consumers they can bring to merchants, so the merchants can rob odds of a better checkout undergo online and in-store. We've been working closely with merchants to design the service, particularly to develop 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 furthermore 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 fancy Ogone, Sage Pay and CardinalCommerce. And as you've already seen with the labor 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 fade with the PayPass branding to the digital service? And the respond is pretty simple. They asked consumers. They loved the ease and convenience of Tap & fade 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 furthermore 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 accommodate shipped home or any other combination in between from any digital device they may accommodate in any account. Their converged PayPass digital wallet services provide a secure artery to support 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 accommodate today. How does my existing outfit apply? And the apt news is, PayPass Online, the online shopping component, can labor purely browser-based, so you can employ 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 employ the PayPass Contactless in-store directly from the phone, the phone will need to exist able to support and secure NFC transaction. And I contemplate you saw final week, the PayPass ready certification program they announced, working with handset manufacturers fancy Samsung, HTC, Nokia, RIM and others to develop confident as their unique NFC-equipped smartphone reach to market, they're totality ready for PayPass enablement.
So you can employ PayPass Online today from any smartphone or other device and upgrades your phone to employ PayPass NFC in-store when you regain 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 develop money in totality of it? And the PayPass Wallet Services we've just announced are natural extensions of their traffic model, optimized to digital world. First, they augment their volumes and transactions as they capture more partake of consumers spend on MasterCard, particularly in the e-commerce space. Second, in the future, they add unique features such as inControl and they suffuse 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 regain 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 develop it totality work. They accommodate always been supportive of economic system, and this takes the MasterCard traffic model and simply extends it to support totality of these unique device.
And the final essential question is when will totality this exist in the market? And as I said at their Investors Day final 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 accommodate seen, we've been working with partners already fancy 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 fancy Swedbank, BBVA, Intesa Sanpaolo and in the announcement yesterday, other global markets will soon follow, particularly in the support of cross-border e-commerce.
So I hope I was able to give you itsy-bitsy bit of a feel for what the wallet services are and directly address some of the questions I know you may accommodate had.
So with that, Barbara, I contemplate they soundless accommodate some time to open it up for more questions.
Right. Thanks, Ed. At this point, they carryout accommodate a itsy-bitsy bit of time for your questions. [Operator Instructions] Catherine, you want to start the real questions 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 succor 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 scrutinize at V.me, there accommodate been quite a few announcements for Visa Inc. and Visa Europe. So the specifics on the initiatives, I really accommodate to postpone for them. But from a MasterCard perspective, what they want to carryout is design these services for integration. We're not trying to regain in front of their partners' brands but rather enable commerce to happen, and that's very essential for merchants. We've furthermore been emphasizing the ease of the immigration for the merchant, develop it very simple for them, they accept the MasterCard today, inaugurate working with the wallet service. But unlike some of the other initiatives you've seen out there, I don't accommodate to rewire my settlement systems or address my consumers in a unique way. The other thing that's essential for consumers is the PayPass Wallet Services delivered genuine digital card transaction. So totality of my liability rights, my settlement guarantees, my rewards and other things are there. So I'm not theme to some sort of transaction randomization or other things that may meddle 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. contemplate of it almost as the digital equivalent of the lower right-hand side of the card. We're giving merchants a mighty acceptance undergo 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 employ 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 regain to scale. But it's also, though, where they allow consumers to regain any number of experiences environment that are specifically tailored for the relationship they accommodate with that partner. So being able to employ the selfsame login that they employ for my mobile banking application and not having to learn something else is a mighty benefit. Being able to regain real pecuniary 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 building a network of wallet and adding a lot of value to merchant. The final piece I would emphasize is this convergence that's going on prerogative now. And merchants will inform you, I'm not e-commerce or in-store, it's both, but sometimes even both simultaneously. Because the astonishing 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 benchmark globally for contactless transaction to turn 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 employ in physical point-of-sale in NFC terms is probably soundless some time off during that need for acceptance at point-of-sale. Can they hope to survey the click-to-buy online spin more quickly and enable materially increases in your online market volume, maybe rob partake from PayPal? And then how simple is it for online merchants to really accept it? How many merchants online carryout you need to accommodate for this to exist a broad acceptance of scale where consumers are comfortable using it?
Yes, they survey several things happening there. One of the primary is there's been a lot of shift in behavior. I'm confident 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 shape 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 survey for that, and furthermore because where a lot of the shopping is today is using these device to fade online. They carryout contemplate that's where you'll survey 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 final year in the number of merchant that are adopting to over 400,000 merchants. They accommodate countries fancy Canada, where over 10% of their transactions are already contactless. And this is something we've been working on. If you scrutinize 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 furthermore for contact and contactless. Just fancy they saw in Canada and other markets, merchants don't accommodate to retrofit their outfit to carryout this, but it will exist Part of their natural upgrade cycle. So they survey 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 accommodate 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 accommodate many, many, many branded wallets offered by consumers, respective banks around the world, how carryout you handle the targeted marketing that the merchant might want to carryout into the wallet but you accommodate 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 heed will totality exist connected to the MasterCard network. So you may accommodate seen with the present services they accommodate today where it's offered through specific destinations, but it furthermore has the aptitude to publish out. So it will provide a distribution channel for merchants. Now the specific consumer undergo will exist up to their partner, and they hope there'll exist a lot of tailored experiences out there. So consumers can choose what works best for them. But the aptitude to connect merchants to consumers through the PayPass network is not only for the transaction itself, but furthermore 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 accommodate wallet capabilities. So can you give us a sense -- you listed a bunch of banks that accommodate signed on from the get-go. What percent of those already accommodate 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 accommodate 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 accommodate wallet initiatives and they embraced, they carefor the idea that we're building an open acceptance network to allow that wallet to exist that much easier to employ at a wide attain of merchants. They accommodate other institutions that stammer they're interested in the white label now, but may progress to their in-house version later, which they contemplate is great. I carryout contemplate in the future, they may accommodate some banks that accommodate establish this side of application in situation 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 accommodate here. They can either provide this on-behalf services or link in to what pecuniary institutions they have. And economics and timing are really going to drive totality of these in position. But I wouldn't stammer 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 totality about sort of the future as you survey -- I carefor the open architecture. I just wanted to know if you contemplate that in the future when we're shopping online, carryout totality these wallets regain integrated, fancy what if I had a MasterCard account at 2 different pecuniary institutions, what if I accommodate a Visa account online? How carryout they survey the future? Obviously, we're not going to accommodate that many wallets. Does your product actually give the occasion to employ different passwords to access different institutions but totality linked into the selfsame wallet?
I contemplate what you survey there, I regain to employ the word disambiguation into that, which is great, but consumers may accommodate more than one wallet, just fancy you may accommodate more than 1 car for whatever reason that you do. So when they regain 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 contemplate you're absolutely right. What merchants want to say, is want to provide this mechanism. And that's why it really is fancy the acceptance labor that we've always done and know that a consumer has a wallet that is participating in the network, I can employ it anywhere they see. So it really a natural extension of that. I contemplate the relationship that banks and partners accommodate with consumers will just exist enhanced to incorporate online shopping and a lot of the profit that they accommodate 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 contemplate about or succor us contemplate about what this means for your efforts, along with Google Wallet, as you guys contemplate about the mobile efforts there? And then in terms of competition in the online world, is the competition purely aimed at benign of sort of one-click effort, I guess, either, obviously, would exist the most apropos there. So I'm just trying to contemplate 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 labor we're doing with their other technology partners, this is totality 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 labor better, by generating the value from MasterCard, that's what's best for people who accommodate MasterCards today. That's what's best for their organization. That's an essential Part of their strategy. And I contemplate the other thing which is important, when you scrutinize 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 survey coming out of MasterCard Lat, in my mind, it's not that transaction itself, it's the overall MasterCard number. The account you accommodate and the relationship you have. So I think, while there's a battle for who has that solitary online transaction, it benign of missed as a consumer and what we're building for. And the reason 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 regain out of the cab, and when I regain 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 mighty because I regain to employ whatever interface makes the most sense for whatever specific I'm trying to do, but it's totality tied back to the selfsame account, totality handled by the MasterCard network. They accommodate the selfsame rights and rules and everything that comes from genuine MasterCard transactions. So I don't contemplate there's a battle for specific transactions. It's really was providing what's best for consumers in totality of the environments they want to shop. And their aptitude to give better experiences and more secure experiences online in your unique NFC-enabled handset, that's soundless anchored on the mighty acceptance they accommodate in the plastic world today, which people love. That's really the energy 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 nosy 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 furthermore a Part of the economic model for the products you've launched?
Yes, and I said earlier, they survey this as just a ratiocinative extension of MasterCard's traffic model. And you carryout need to exist watchful with some of the proposals we've seen out in the marketplace for aggressive routing of consumers transaction and forcing them and totality of that. They believe the consumer absolutely has to choose how they're paying and how they want to pay, and this is designed to enable them. So again, if you contemplate this from a MasterCard perspective, we'll accommodate the aptitude to provide on-behalf services. We'll exist generating a lot of value in unique transactions for merchant, and I really survey that as the basis for the economics year. And if you carryout a mighty 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 fancy to develop the mobile payment attractive to consumers, you're going to accommodate to accommodate a bigger install ground of NFC promo. You mentioned the 400,000, number. That's soundless a very minuscule percentage of retailers. And much of that has either been installed in the past or was subsidized by Google. How carryout you survey the adoption and the upgrade to NFC progressing over the next 3.5 years to your first deadline? And then after that, carryout you survey it as a gradual selfsame flush of upgraded that's always happened over, let's say, a 5-year epoch or carryout you survey an accelerated possibility that's already starting? carryout you accommodate evidence of that? carryout you hope more of a back-end loaded upgrade cycle in 2015? How carryout you survey that and then at what point carryout you survey the censorious mass that's going to compel consumers to feel fancy they can employ an NFC-based wallet anywhere they want to shop?
We accommodate thoughts for that, and I contemplate they accommodate a mighty energy as they you can employ 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 employ 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 fade in at Home Depot today and tap my PayPass-enabled smartphone and it works great. The other thing is, if you scrutinize at, as I said earlier, markets fancy 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 furthermore will survey millions of NFC-enabled handsets coming into the market, if you scrutinize at their PayPass ready certification program that they furthermore talked about final week. And the final 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 mighty piece of research, and those types of value are what drives decision. Carrefour, one of their sizable retail partners, they said they were getting 20% to 40% faster time through queue using PayPass. So obviously, they moved totality their store loyalty and other cards to rob odds of contactless. And to your censorious point, the censorious mass, I can employ 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 carryout you contemplate it's something to build over time? I carryout think, as they said earlier, rather than trying to retrofit gear for a solitary value proposition. This is going to exist Part of the balanced upgrade cycle. totality of the major terminal manufacturers are including contactless as far as their benchmark mill. totality of the incentives and the model they accommodate to provide profit for the adoption of EMV incorporates touching both contact and contactless. I contemplate the real answers will exist more than ready when consumers and the outfit 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 survey 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 survey the physical point-of-sale as it gets connected to your wallet?
Well, I guess, from a MasterCard perspective, it's arduous to survey using a physical card that point-of-sale is breakthrough unique innovation. You can always employ your card. They accommodate 31 million merchant locations globally that labor flawlessly with the cards you accommodate today, and it's totality against the selfsame account. So the digital is simply a artery 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 regain back to this converged experience. As a consumer, MasterCard is providing a mighty option that can employ that card anywhere, anywhere MasterCard is accepted today. As you know, that's a mighty experience. And they can develop it even better, even simpler, even more secure with allowing PayPass Tap & fade or PayPass Online. But they're totality just more secure, simpler and smarter ways to employ the selfsame account that you have. So as a consumer, it's exactly what I want. I regain one set of alerts. I regain one artery of -- one account that I access in any number of ways that makes sense. So what they contemplate about the future, they accommodate sort of as of yet unimagined edge device in the network. And what that really means is how carryout 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 supersede the plastic undergo they accommodate 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 sedulous schedule this morning to associate 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 survey a demonstration of this technology. And as always, if you accommodate further questions, delight don't hesitate to attain out to Investor Relations. Thanks, and accommodate a mighty day.
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect, and accommodate a apt 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 emblem on the unique York Stock Exchange. ASE Industrial Holding serves as the parent company for ASE and SPIL. But the merger is almost confident 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 modest of $9.8 billion. While that may seem fancy 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 accommodate pressed into chip packaging and testing services for several years now. There are furthermore internal assembly and testing operations at some of the bigger semiconductor vendors, such as Intel, Samsung Electronics, and Texas Instruments, that rob away confident traffic opportunities.
“There are a bunch of pressures in the OSAT traffic 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 sizable customer, and integrated device manufacturers are furthermore 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 shape of expense pressure. Because the OSATs want to support up the volume; their pricing is a much tougher environment. If you scrutinize at those two trends, you survey people probably want to regain bigger, they want to exist operating in China, they want to exist more competitive. The cycle in R&D is to regain back that high-end business, and there are a number of things pushing in those directions. If you scrutinize at the OSAT traffic final year, there was growth, but nothing spectacular. Then, you scrutinize at the assembly outfit demand, which was spectacularly hot, which means a lot of outfit 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 sizable 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 carryout that.”
The big OSATs today accommodate 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 accommodate the Chinese regulations, the requirement of joint ventures and technology transfers. It makes people very uneasy to carryout something fancy that. Those kinds of actions accommodate limited how much traffic transfers to China. If you’re operating in China, you accommodate 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 spin 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 labor in the assembly, package and test world, which serves the semiconductor companies.
“It was certainly no surprise that ASE and SPIL came together, because of the increasingly challenging OSAT traffic 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 furthermore serves as executive vice president and chief sales officer for STATS ChipPAC. “It’s benign of inevitable that they would survey 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 impress for the competition? As a company, they embrace this change, and they survey many opportunities arising due to this merger. There are many semiconductor companies, their customers, who survey a combined market partake of ASE and SPIL within their own TAM. I convene it unhealthy, or maybe a itsy-bitsy 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 dismal 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 carryout hope us to ensue the trend, they won’t survey quite the pace. There is soundless a haphazard to survey 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 minuscule players are not always of interest for M&A for the larger OSAT because the revert you regain versus the alternative of just competing for the business—when you scrutinize at that and the ROI and the deal around that, it doesn’t reach 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 flush in the larger OSATs to drive M&A with smaller ones.”
So rather than accelerating consolidation, consolidation among OSATs actually could leisurely 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 apt apt 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 traffic model. I survey 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 conform to that.”
Peaceful coexistence?So can foundries and OSATS live and labor together?
“There’s no question that the respond 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 scrutinize at it, the bottom line is I believe very strongly in the spirit of co-opetition, because they continue to labor very closely with the foundries to rob care of and support 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 rob odds of unique growth areas, to rob 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 need to integrate at the packaging flush to create a packaging-level solution, suddenly you need the abilities of OSATs, where in the past you might accommodate 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 totality things that they play well in. We’re starting to survey 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 fade for that. Even in wafer-level, where the foundries accommodate the very tenacious solutions for some of these processors, they accommodate their own fan-out wafer-level and wafer-level CSP solutions that don’t develop sense in the foundry space. The OSAT can carryout a better job.”
Ron Huemoeller, corporate vice president of Amkor and head of corporate R&D, likewise sees sizable 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 totality 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 essential to note that developing and manufacturing unique package platforms is expensive, and it requires a tall degree of engineering expertise. It furthermore 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 traffic requires scale,” says Prasad Dhond, Amkor’s vice president and universal manager of automotive. “There will continue to exist some flush 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 thrust into confident segments of high-end packaging. They view this as an occasion to cross-sell additional services and furthermore to develop their traffic stickier. However, from a fundamental traffic model standpoint, packaging margins are lower than what foundries are used to. It is not lucid if foundries will exist willing to develop heavy CapEx investments in packaging when they could exist using the capital for something else.”
So does that impress 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 totality 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 labor with OSATs for other applications and if volumes exceed confident thresholds.”
Behind the ASE-SPIL dealIn its 20-F filing with the Securities and Exchange Commission for 2017, ASE provided an in-depth scrutinize at market pressures and developments in this space.
“We accommodate 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 furthermore entered into a joint venture agreement with TDK Corporation in May 2015 to further expand their traffic in embedded substrates; in June 2016, they entered into the Joint partake Exchange Agreement with SPIL to rob odds of the synergy result of traffic 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 unique customers and broaden their product attain for a variety of end-use applications. However, rapid expansion may situation a strain on their managerial, technical, financial, operational and other resources. As a result of their expansion, they accommodate implemented and will continue to implement additional operational and pecuniary 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 theme to a number of factors, including, among other things, obtaining totality necessary antitrust or other regulatory approvals in Taiwan, the United States, the PRC and other jurisdictions where they carryout 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 impress their pecuniary position. Notwithstanding the above, even if they are successful in consummating the SPIL Acquisition, they will exist theme to regulatory restrictions requiring us to maintain sever operation of SPIL for a epoch of time, and they may face challenges in successfully integrating SPIL into their existing organization or in realizing anticipated benefits and cost synergies afterwards. Each of these risks could accommodate a material adverse result on their traffic and operations, including their relationship with customers, suppliers, employees and other constituencies, or otherwise adversely impress their pecuniary condition and results of operations.”
The 20-F says, “The packaging and testing traffic is capital-intensive. They will need capital to fund the expansion of their facilities as well as fund their research and evolution activities in order to remain competitive. They believe that their existing cash, marketable securities, expected cash tide from operations and existing credit lines under their loan facilities will exist enough 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 cause 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 pecuniary conditions may exist materially and adversely affected.”
ASE has a co-opetition relationship with TSMC. The two companies accommodate 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 accommodate one larger competitor to deal with in the near future, those companies scrutinize 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 hale 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 compete 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 exhibit up.
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