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 true Questions
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Pega techniques has rather separate ‘title’ terminology from one which is Popular in IT.
everybody is known as Architect ) .for many people it’s complicated. How can they relish Architect with 1 12 months of event in IT??
Pega systems concerned such titles to highlight utility is build by way 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 still benefit it;
certified Senior gadget Architect (CSSA) -can too breathe mapped to middle-senior specialist;
Lead gadget Architect (LSA) — leading professional. constantly there are 1–2 LSA per project.
As for me crucial in recognizing of seniority smooth are IT/Pega event, erudition of applied sciences (Oracle tools,Programming, application server);
In Pega ‘Architect’ doesn't equal to ‘Developer’ .There are examples of projects the set entire 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 comprehend Pega and nonPega consultants for distinctive areas which is additionally first-rate ,but not preferable as per foremost practices.
nowadays in terms of trainings Pega programs developed bendy, extended ,tree-structured direction. It will too breathe followed on PDN -Pega developers network web site. Your travel entire the time begins from the 1st step -CSA, then that you would breathe 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 breathe measured and analyzed . i would breathe snug 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 snug platform featuring state-of-the-paintings cyber coverage, the ST33 household's resilient 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 benevolent elements, combining convenience with powerful resistance to cyber-attacks.
"ST33 chips relish pushed the evolution of embedded security for the ubiquitous related wise objects equivalent to smartphones, wearables, and IoT contraptions that execute concurrent world work," eminent 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 gleam 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 spend 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 well-known smartphone OEMs to install original eSIM based mostly instruments, taking erudition 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 rate the GSMA SAS-UP (safety Accreditation Scheme for UICC construction) certification to personalize ST33 eSIMs for mobiles and related IoT instruments and not using a additional programming required by means of the OEMs.
ST33 snug microcontrollers are available in a substantial sweep 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 shrewd 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 glean more from lifestyles, ST stands for entire times.augmented.
In 2018, the business's web revenues relish been $9.66 billion, serving more than one hundred,000 valued clientele worldwide. further tips can too breathe discovered at www.st.com.
For more information delight contact:
STMicroelectronicsMichael MarkowitzDirector Technical Media RelationsMichael.Markowitz@st.com+1 781 591 0354
 ST33 outfit versions meet lofty 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 rescue 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 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 well-known of CNH Architects. In her veteran 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 business and churches.
Klis is piece 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 jiffy working on assorted tasks at CNH, together with a fireplace station, corporate café, church, day pervade and a brace 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 business constructing and retail areas, public sector consumers, such as cities, counties and states, and automobile facility initiatives, day pervade and animal pervade 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 rescue 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 breathe your operator for today. [Operator Instructions] As a reminder, this convoke is being recorded for replay purposes.
I would like to turn the convoke over to Ms. Barbara Gasper, Head of Investor Relations. delight proceed, ma'am.
Thank you, Catherine. worthy 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 convoke today is Ed McLaughlin, their Chief Emerging Payments Officer, who is joining from the CTIA Conference in original Orleans. They are only able to allocate about 30 minutes this morning for the convoke due to Ed's other conference commitment. However, they wanted to give you entire an opportunity to hear directly from Ed about their original PayPass Wallet Services. They will then relish a few minutes to address some questions.
The press release on final night's announcement can breathe institute on the Investor Relations section of their website, mastercard.com. They relish too posted some hotlinks to a few things that Ed will advert to in his remarks. Also, a replay of this convoke will breathe 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 convoke may comprehend some forward-looking statements about their original services based on their current expectations and beliefs. Actual performance could differ materially from what is suggested by their comments today. Information about the factors that could touch 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 convoke over to Ed McLaughlin. Ed?
Thanks, Barbara, and yes, we're calling here from CTIA in original Orleans, which if you're not familiar with, it is one of the largest global telecom events for the year. 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 breathe demonstrating the PayPass Wallet Services to probably a few thousand people as piece of Gary Flood's keynote here at the conference. And this will breathe streamed live if you'd like to survey it in action. They rescue the link to this. It's available up on the Investor Relations website. So about 10:20 Central, 11:20 Eastern Time, they wish to relish the keynote streaming.
But first, let's prefer a shrimp bit of time to ensue up on any questions you may relish 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 original global offering from MasterCard that extends PayPass beyond the Tap & Go, the E and M and other types of commerce. With PayPass Wallet Services, it will breathe faster, simpler and more secure for consumers to execute purchases, both in-store or online, with a click of the mouse, touch on the tablet or tap their smartphone.
The PayPass Wallet Services are comprised of 3 separate components: the first would breathe is enhanced merchant payment acceptance capability, which includes both their PayPass Contactless NFC technology for in-store and a original PayPass Online checkout service for e-commerce. These provide consumers and merchants with better shopping experiences in-store and online, which will reduce queue time and helps to turn more browsers into buyers. It eliminates the need for customers' minute bit -- to enter minute shipping, card and other information. And that's a mighty benefit, particularly when you're on small or mobile script.
The PayPass acceptance benefits are too specifically designed to breathe very simple for merchants to integrate into their current store and online business. They accept MasterCard today. It's very effortless 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 offer their own wallet to their customers without needing to build out an infrastructure. They want to enhance relationships that their partners relish with their customers, not meddle with them. So for example, consumers could spend the selfsame login and applications they relish today from their bank and seamlessly glean mighty original payment capabilities and other service.
The wallet is too open so consumers will breathe able to spend any card they have: MasterCard, Visa, American Express, others, and store their addresses, offers and other information in one familiar, convenient and secure way. And merchants adopting PayPass acceptance know there will breathe any number of wallets the consumers can spend that will prefer edge of them.
The third component is the PayPass API, which will enable partners to connect their own digital wallets into the PayPass Acceptance Network, leveraging MasterCards checkout, fraud detection and authentication services and enabling their customers to execute purchases wherever PayPass is accepted, online or in-store.
And finally over time, the wallet services will breathe expanded to comprehend 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 prefer a jiffy to address some of the specific questions that I know you have. One of the first question is always is, well, what's the distribution model? Now it sounds great, but how would I breathe able to glean one. And as I mentioned earlier, the PayPass Wallet is designed to breathe 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 breathe through their partners, we're actively testing the PayPass Wallet with their employees, and they will relish it live later this year on paypass.com.
So consumers will breathe able to glean PayPass simplicity and enhance security from MasterCard through any number of global partners. And I contemplate you've seen from the announcement they relish out. They can sweep from a Banesto, a Citibank, Bank of Montreal, Westpac, Commonwealth Bank of Australia and many others who relish already signed us.
As they want to emphasize, the PayPass Wallet Services are designed to enhance, not to meddle with, the relationship their banks and other partners relish with their customers today. They believe the integration model will too greatly accelerate the compass to consumers they can bring to merchants, so the merchants can prefer edge of a better checkout undergo online and in-store. We've been working closely with merchants to design the service, particularly to execute it easier for them to implement. And you should check out some merchant testimonials, which I believe we're posting up on their YouTube channel. You can find the link to this in the Newsroom section of their corporate website.
Our acquirers are too key partners of it, along with MasterCard's DataCash and MiGS Internet Gateway and a large 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 breathe ongoing announcements of places and partners where the PayPass services will breathe used with digital wallet.
Another question which came up is, so why did you proceed 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 & proceed in the physical world and wanted the selfsame security and simplicity online and responded really well to extending PayPass into an open, online in-store wallet, particularly when they knew it was from MasterCard.
Our merchant partners too talked about the growing convergence in shopping. A term that was used a lot was omni-channel, we're not even multi-channel anymore, where consumers shop online and pick up in-store or in-store shopping online to relish shipped home or any other combination in between from any digital device they may relish in any account. Their converged PayPass digital wallet services provide a secure way 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 relish today. How does my existing outfit apply? And the worthy news is, PayPass Online, the online shopping component, can work purely browser-based, so you can spend it with anything that connects to the Internet: a PC, tablet, game systems, smart bridge, whatever device. As we've said earlier, every device will breathe a commerce device. This is really an infrastructure that enables it.
Now to spend the PayPass Contactless in-store directly from the phone, the phone will need to breathe 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 like Samsung, HTC, Nokia, RIM and others to execute sure as their original NFC-equipped smartphone advance to market, they're entire ready for PayPass enablement.
So you can spend PayPass Online today from any smartphone or other device and upgrades your phone to spend PayPass NFC in-store when you glean a original one that would breathe PayPass certified. The key is, the integrated PayPass services will breathe ready for you when you are.
And of course, what's the economic model? How does MasterCard execute money in entire of it? And the PayPass Wallet Services we've just announced are natural extensions of their business model, optimized to digital world. First, they enlarge their volumes and transactions as they capture more share of consumers spend on MasterCard, particularly in the e-commerce space. Second, in the future, they add original 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 glean 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 execute it entire work. They relish always been supportive of economic system, and this takes the MasterCard business model and simply extends it to support entire of these original device.
And the final well-known question is when will entire this breathe 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 relish 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 breathe in-market and available to their partners in the third quarter of this year, with the United States, Canada, U.K. and Australia as the initial launch market. And as you saw in the release with partners like 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 shrimp bit of a feel for what the wallet services are and directly address some of the questions I know you may relish had.
So with that, Barbara, I contemplate they still relish some time to open it up for more questions.
Right. Thanks, Ed. At this point, they enact relish a shrimp 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 abet 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 examine at V.me, there relish been quite a few announcements for Visa Inc. and Visa Europe. So the specifics on the initiatives, I really relish to stay for them. But from a MasterCard perspective, what they want to enact is design these services for integration. We're not trying to glean in front of their partners' brands but rather enable commerce to happen, and that's very well-known for merchants. We've too been emphasizing the ease of the immigration for the merchant, execute it very effortless 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 relish to rewire my settlement systems or address my consumers in a original way. The other thing that's well-known for consumers is the PayPass Wallet Services delivered genuine digital card transaction. So entire 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 meddle with the transaction itself. And probably the most unique feature is rather than epigram there's going to breathe one wallet here that will rule them all, what we're enabling is a network of wallets. We're doing what MasterCard has always done. 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 spend 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 glean to scale. But it's also, though, where they allow consumers to glean any number of experiences environment that are specifically tailored for the relationship they relish with that partner. So being able to spend the selfsame login that they spend for my mobile banking application and not having to learn something else is a mighty benefit. Being able to glean true monetary information in true time from whoever has issue the card, while I'm making my shopping -- while I'm shopping. Again, it's a true benefit. So their stress is on partnership. It's on integration. It's on edifice 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 privilege now. And merchants will betray you, I'm not e-commerce or in-store, it's both, but sometimes even both simultaneously. Because the astounding thing about a mobile phone is with your handset, you're always online, and online is always with you. So we've integrated in PayPass in-store, which is the gold standard 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 spend in physical point-of-sale in NFC terms is probably still some time off during that need for acceptance at point-of-sale. Can they anticipate to survey the click-to-buy online hump more quickly and enable materially increases in your online market volume, maybe prefer share from PayPal? And then how effortless is it for online merchants to really accept it? How many merchants online enact you need to relish for this to breathe a broad acceptance of scale where consumers are snug 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 sure you've seen the research on it, where people are affecting away from using traditional keyboard and PCs to alternate device. Search is affecting that way. Shopping is affecting that way. And in that case, merchants are now looking to mobilize their site. So the profile 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 too because where a lot of the shopping is today is using these device to proceed online. They enact contemplate that's where you'll survey a lot of the initial usage. But I wouldn't discount in any way 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 relish countries like Canada, where over 10% of their transactions are already contactless. And this is something we've been working on. If you examine at the announcement for their EMV framework that they issued earlier this year, we're talking about not only upgrading the infrastructure to a more secure EMV cryptogram-based transaction, but too for contact and contactless. Just like they saw in Canada and other markets, merchants don't relish to retrofit their outfit to enact this, but it will breathe piece 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 relish mobile and other devices supported seamlessly to tell.
And the next question is from the line of Craig Maurer from CLSA.
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
My question is, if you relish many, many, many branded wallets offered by consumers, respective banks around the world, how enact you wield the targeted marketing that the merchant might want to enact into the wallet but you relish huge fragmentation among the actual wallets that are out there?
Certainly, and that's where publishing mechanisms are so important. So if the wallets that will breathe using the acceptance trace will entire breathe connected to the MasterCard network. So you may relish seen with the offer services they relish today where it's offered through specific destinations, but it too has the faculty to publish out. So it will provide a distribution channel for merchants. Now the specific consumer undergo will breathe up to their partner, and they anticipate there'll breathe a lot of tailored experiences out there. So consumers can choose what works best for them. But the faculty to connect merchants to consumers through the PayPass network is not only for the transaction itself, but too for other services.
The next question comes from Glenn Fodor from Morgan Stanley.
Glenn Fodor - Morgan Stanley, Research Division
Just trying to gauge the appetite for some of these banks, large banks who already relish wallet capabilities. So can you give us a sense -- you listed a bunch of banks that relish signed on from the get-go. What percent of those already relish their own wallet technology and you're going to just integrate yours with their technology? And is it almost easier from your perspective if a bank does not relish a wallet perspective -- wallet setup already and you just start from scratch? Does it matter?
It doesn't matter. I mean, this is a market that's going to evolve. We've seen banks that relish wallet initiatives and they embraced, they admire the thought that we're edifice an open acceptance network to allow that wallet to breathe that much easier to spend at a wide sweep of merchants. They relish other institutions that voice they're interested in the white label now, but may progress to their in-house version later, which they contemplate is great. I enact contemplate in the future, they may relish some banks that relish rescue this side of application in set and realized it into scale and will breathe looking for on-behalf services from MasterCard. So that's the key to the architecture that they relish here. They can either provide this on-behalf services or link in to what monetary institutions they have. And economics and timing are really going to drive entire of these in position. But I wouldn't voice 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 entire about sort of the future as you survey -- I admire the open architecture. I just wanted to know if you contemplate that in the future when we're shopping online, enact entire these wallets glean integrated, like what if I had a MasterCard account at 2 different monetary institutions, what if I relish a Visa account online? How enact they survey the future? Obviously, we're not going to relish that many wallets. Does your product actually give the opportunity to spend different passwords to access different institutions but entire linked into the selfsame wallet?
I contemplate what you survey there, I glean to spend the word disambiguation into that, which is great, but consumers may relish more than one wallet, just like you may relish more than 1 car for whatever judgement that you do. So when they glean 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 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 spend it anywhere they see. So it really a natural extension of that. I contemplate the relationship that banks and partners relish with consumers will just breathe enhanced to incorporate online shopping and a lot of the benefit that they relish and people will naturally orient towards you serving them back.
That comes from the line of Julio Quinteros from Goldman Sachs.
Julio C. Quinteros - Goldman Sachs Group Inc., Research Division
I was wondering if you guys could sort of contemplate about or abet 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 benevolent of sort of one-click effort, I guess, either, obviously, would breathe the most relevant there. So I'm just trying to contemplate about the competitive dynamics both against Google Wallet and the eBay PayPal?
Sure. I'm really lighthearted 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 entire piece of that. So at the heart of every Google Wallet is a MasterCard prepaid card that I can tap using PayPass anywhere in the world that is accepted. We're working with Isis. We're working with others. So they believe by making this things work better, by generating the value from MasterCard, that's what's best for people who relish MasterCards today. That's what's best for their organization. That's an well-known piece of their strategy. And I contemplate the other thing which is important, when you examine at any specific way 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 relish and the relationship you have. So I think, while there's a battle for who has that single online transaction, it benevolent of missed as a consumer and what we're edifice for. And the judgement they talk about this converging world is this is already happening. I could breathe in my cab -- in a cab on with my mobile shopping online. I tap to glean out of the cab, and when I glean 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 glean to spend whatever interface makes the most sense for whatever specific I'm trying to do, but it's entire tied back to the selfsame account, entire handled by the MasterCard network. They relish 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 entire of the environments they want to shop. And their faculty to give better experiences and more secure experiences online in your original NFC-enabled handset, that's still anchored on the mighty acceptance they relish in the plastic world today, which people love. That's really the strength 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 inquisitive if you could talk about within the wallet, there's often the talk of slotting fees for hosting cards and then the battle to breathe top of wallet. Could you talk about that concept and then to what degree that is too a piece 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 business model. And you enact need to breathe observant with some of the proposals we've seen out in the marketplace for aggressive routing of consumers transaction and forcing them and entire 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 relish the faculty to provide on-behalf services. We'll breathe generating a lot of value in original transactions for merchant, and I really survey that as the basis for the economics year. And if you enact 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 like to execute the mobile payment attractive to consumers, you're going to relish to relish a bigger install basis of NFC promo. You mentioned the 400,000, number. That's still a very small percentage of retailers. And much of that has either been installed in the past or was subsidized by Google. How enact you survey the adoption and the upgrade to NFC progressing over the next 3.5 years to your first deadline? And then after that, enact you survey it as a gradual selfsame smooth of upgraded that's always happened over, let's say, a 5-year era or enact you survey an accelerated possibility that's already starting? enact you relish evidence of that? enact you anticipate more of a back-end loaded upgrade cycle in 2015? How enact you survey that and then at what point enact you survey the captious mass that's going to compel consumers to feel like they can spend an NFC-based wallet anywhere they want to shop?
We relish thoughts for that, and I contemplate they relish a mighty strength as they you can spend 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 spend 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 proceed in at Home Depot today and tap my PayPass-enabled smartphone and it works great. The other thing is, if you examine 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 too will survey millions of NFC-enabled handsets coming into the market, if you examine at their PayPass ready certification program that they too 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 substantial retail partners, they said they were getting 20% to 40% faster time through queue using PayPass. So obviously, they moved entire their store loyalty and other cards to prefer edge of contactless. And to your captious point, the captious mass, I can spend it today in any cab in original York. And so it becomes a near daily transaction for me when I'm around the city. But enact you contemplate it's something to build over time? I enact think, as they said earlier, rather than trying to retrofit gear for a single value proposition. This is going to breathe piece of the established upgrade cycle. entire of the major terminal manufacturers are including contactless as far as their standard mill. entire of the incentives and the model they relish to provide benefit for the adoption of EMV incorporates affecting both contact and contactless. I contemplate the true answers will breathe 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 way you survey the physical point-of-sale as it gets connected to your wallet?
Well, I guess, from a MasterCard perspective, it's hard to survey using a physical card that point-of-sale is breakthrough original innovation. You can always spend your card. They relish 31 million merchant locations globally that work flawlessly with the cards you relish today, and it's entire against the selfsame account. So the digital is simply a way of having a virtual version of that card, if you will, that could breathe optimized for online and in-store shopping. So that's why I want to glean back to this converged experience. As a consumer, MasterCard is providing a mighty option that can spend that card anywhere, anywhere MasterCard is accepted today. As you know, that's a mighty experience. And they can execute it even better, even simpler, even more secure with allowing PayPass Tap & proceed or PayPass Online. But they're entire just more secure, simpler and smarter ways to spend the selfsame account that you have. So as a consumer, it's exactly what I want. I glean one set of alerts. I glean one way of -- one account that I access in any number of ways that makes sense. So what they contemplate about the future, they relish sort of as of yet unimagined edge device in the network. And what that really means is how enact they bring the value of the MasterCard network and bring that undergo to consumers. So I'm really not worried about people trying to recreate or replace the plastic undergo they relish at the point-of-sale. We've been protecting that for 30 years. This is about extending into the original environment.
Thank you, Ed, for taking time out of your sedulous schedule this morning to relate us, and thanks to everybody who's on the call. They hope that you will breathe able to listen in to Gary Flood's keynote address at about 11:20 original York time today, where you can survey a demonstration of this technology. And as always, if you relish further questions, delight don't vacillate to compass out to Investor Relations. Thanks, and relish a mighty day.
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect, and relish a worthy day.
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More From Seeking Alpha
Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries Ltd. (SPIL) are birth 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 original York Stock Exchange. ASE Industrial Holding serves as the parent company for ASE and SPIL. But the merger is almost sure 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 seem like a lot of money, compared with many segments in the technology world it’s a tight operating margin.
The ASE/SPIL deal is being very closely watched by Amkor Technology, JCET Group, and smaller contractors. OSATs are not just competing among themselves anymore. Increasingly, they are facing competition from TSMC, UMC and other foundries, which relish pressed into chip packaging and testing services for several years now. There are too internal assembly and testing operations at some of the bigger semiconductor vendors, such as Intel, Samsung Electronics, and Texas Instruments, that prefer away sure business opportunities.
“There are a bunch of pressures in the OSAT business 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 substantial customer, and integrated device manufacturers are too competing in that field, he notes. (TSMC’s largest customer, not identified in its most recent 20-F filing, accounted for 22% of the foundry’s 2017 net revenue.)
There is more competition on the horizon, too. “The other pressure point that the OSATs feel is China,” says Puhakka. “There’s a substantial amount of packaging coming up in China, with the much lower cost, whether it’s through subsidies or something else. There is definitely pressure at the low end. It comes in the profile of cost pressure. Because the OSATs want to maintain up the volume; their pricing is a much tougher environment. If you examine at those two trends, you survey people probably want to glean bigger, they want to breathe operating in China, they want to breathe more competitive. The cycle in R&D is to glean back that high-end business, and there are a number of things pushing in those directions. If you examine at the OSAT business final year, there was growth, but nothing spectacular. Then, you examine 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 breathe involved in integration initiatives in the near future, according to Puhakka. “The bigger question is, what will Amkor do? What will JCET do? The substantial players may want to buy from China. That’s not out of the question, but there would breathe some regulatory hurdles, I would imagine, to enact that.”
The large OSATs today relish geographically diverse operations throughout Asia. But China represents the largest growth opportunity.
“It is a market not to breathe ignored,” he says. “It just that you relish the Chinese regulations, the requirement of joint ventures and technology transfers. It makes people very uneasy to enact something like that. Those kinds of actions relish limited how much business transfers to China. If you’re operating in China, you relish ongoing IP protection issues. You’re constantly making decisions about what IP are you affecting to China, what are you not. By default, people are basically saying, whatever you hump 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 surprise that ASE and SPIL came together, because of the increasingly challenging OSAT business environment and the major consolidation we’re seeing in their customer base,” says Hal Lasky, senior vice president of sales and marketing for JCET Group, who too serves as executive vice president and chief sales officer for STATS ChipPAC. “It’s benevolent of inevitable that they would survey this at the OSAT level. Clearly, we’re a piece of that as well, as they are now a piece of the JCET Group. What does it value 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 share of ASE and SPIL within their own TAM. I convoke it unhealthy, or maybe a shrimp too high. We’ve had many chances to compete for market share 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 spoiled thing for this very competitive OSAT industry.”
Lasky anticipates there will breathe more consolidation ahead, for the OSAT segment in particular, and the semiconductor industry in general.
“In the OSAT space, while I enact anticipate us to ensue the trend, they won’t survey quite the pace. There is still 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 small players are not always of interest for M&A for the larger OSAT because the recur you glean versus the alternative of just competing for the business—when you examine at that and the ROI and the deal around that, it doesn’t advance out in favor of acquisition. Also, in the OSAT space, the technology gap between top-tier OSATs and the smaller OSATs continues to grow. That has an repercussion on the interest smooth in the larger OSATs to drive M&A with smaller ones.”
So rather than accelerating consolidation, consolidation among OSATs actually could tedious 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 worthy apt for those products. They’re investing in the back end, and they’re doing it in a way that makes sense to their business. And it lets them optimize their overall business 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 reconcile to that.”
Peaceful coexistence?So can foundries and OSATS live and work 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 reconcile to that shift in TAM, it’s mostly TSMC when you examine 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 prefer pervade of and support their customers. Key to how they reconcile as an OSAT industry really is finding where their strengths and their capabilities in the OSAT industry can prefer edge of original growth areas, to prefer 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 smooth to create a packaging-level solution, suddenly you need the abilities of OSATs, where in the past you might relish done that as an EMS board-level solution,” he says. “There’s miniaturization, there are shielding concerns, there are a lot of different intricate process-level concerns, and it’s required at a very lofty yield. And those are entire 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 proceed for that. Even in wafer-level, where the foundries relish the very strong solutions for some of these processors, they relish their own fan-out wafer-level and wafer-level CSP solutions that don’t execute sense in the foundry space. The OSAT can enact a better job.”
Ron Huemoeller, corporate vice president of Amkor and head of corporate R&D, likewise sees substantial 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 entire 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 well-known to note that developing and manufacturing original package platforms is expensive, and it requires a lofty degree of engineering expertise. It too requires perpetual funding in R&D to maintain competitiveness. Adding original blocks of capacity is very expensive – continually challenging ROI.”
Whether that will lead to more consolidation, and how quickly, remains to breathe seen.
“The OSAT business requires scale,” says Prasad Dhond, Amkor’s vice president and common manager of automotive. “There will continue to breathe some smooth of consolidation as players try to combine their resources to compete. This might now breathe more applicable to the smaller (Tier 2 and Tier 3) players, though. Foundries are making a shove into sure segments of high-end packaging. They view this as an opportunity to cross-sell additional services and too to execute their business stickier. However, from a fundamental business model standpoint, packaging margins are lower than what foundries are used to. It is not limpid if foundries will breathe willing to execute cumbersome CapEx investments in packaging when they could breathe using the capital for something else.”
So does that value 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 entire aspects of the assembly and test business. There are niche areas they will play in, but there will always breathe a need for them to work with OSATs for other applications and if volumes exceed sure thresholds.”
Behind the ASE-SPIL dealIn its 20-F filing with the Securities and Exchange Commission for 2017, ASE provided an in-depth examine at market pressures and developments in this space.
“We relish significantly expanded their operations through both organic growth and acquisitions in recent years,” ASE says. “For example, they acquired the controlling interest of Universal Scientific in 2010 to expand their product offering scope to electronic manufacturing services; they too entered into a joint venture agreement with TDK Corporation in May 2015 to further expand their business in embedded substrates; in June 2016, they entered into the Joint Share Exchange Agreement with SPIL to prefer edge of the synergy sequel of business 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 anticipate that they will continue to expand their operations in the future. The purpose of their expansion is mainly to provide total solutions to existing customers or to attract original customers and broaden their product sweep for a variety of end-use applications. However, rapid expansion may set a strain on their managerial, technical, financial, operational and other resources. As a result of their expansion, they relish implemented and will continue to implement additional operational and 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 entire necessary antitrust or other regulatory approvals in Taiwan, the United States, the PRC and other jurisdictions where they enact business. They received a no-objection missive in respect of the Share Exchange from the TFTC on November 16, 2016. On May 15, 2017, they received a missive from the FTC confirming that the non-public investigation on the Share 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 Share Exchange under the condition that ASE and SPIL maintain independent operations, among other conditions, for 24 months. In the event these conditions cannot breathe satisfied, they may re-evaluate their interest in SPIL and may consider, among other legally permissible alternatives, to dispose their SPIL shares at a loss, which may significantly touch their monetary position. Notwithstanding the above, even if they are successful in consummating the SPIL Acquisition, they will breathe subject to regulatory restrictions requiring us to maintain separate 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 relish a material adverse sequel on their business and operations, including their relationship with customers, suppliers, employees and other constituencies, or otherwise adversely touch their monetary condition and results of operations.”
The 20-F says, “The packaging and testing business 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 breathe 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 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 monetary conditions may breathe materially and adversely affected.”
ASE has a co-opetition relationship with TSMC. The two companies relish had a “strategic alliance” since 1997. ASE serves as the foundry’s non-exclusive, preferred provider of packaging and testing services for microchips fabricated by TSMC.
ConclusionWhile OSATs will relish one larger competitor to deal with in the near future, those companies examine forward to the fray. TSMC’s muscling in on the high-end packaging business, especially when it comes to Apple’s custom application processors for the iPhone and the iPad, is a competitive challenge.
Yet OSATs retain expertise in the areas of SiP modules, molded interconnect substrates, substrate-like printed circuit boards, semiconductor embedded in substrate, and other emerging technologies. And while competition continues to ratchet up, there are always original opportunities around the edges for companies with the expertise and investment dollars to continue eking out a hardy living.
Related StoriesMIS Packaging Takes OffMolded interconnect substrate emerges as packaging election 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 panoply up.
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