Transformation of Semiconductor R&D
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1 Transformation of Semiconductor R&D Dr. Katsuhiro Shimohigashi General Manager Semiconductor Technology Development Division Semiconductor & Integrated Circuits Hitachi,Ltd.
2 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
3 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
4 The History Communication CCC Market Convergence Consumer Calculators Computer Notebook PCs Cordless Phones PDAs ket Size Mar Transistor radios Si discretes Personal PCs Transistor TVs ICS LSIS ULSIS Ge discretes VLSIS
5 The Market CAGR B$/Year 100 '70 '80 '80 '90 '90 '00 '98 '99 18% 14% 12% '94 126B$ 141B$ '90 100B$ B$ 162B$ '79 10B$ PDA Car- Navigation 10 PC Notebook PC Cordless Phone Calculator TV
6 The Technology 1G Density (Bit) 1M Geometry Density 64K 256K 1M 4M 16M 64M 256M Dictionary 1G CD (70Min. HiFi recording) 10 Geometry (µ m) 1.0 1K 16K 4K 1K Newspaper 4pages 0.1 Letter(A4) 1page
7 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
8 Semiconductor Market Compared to Steel Production STEEL PR RODUCT TION (Mt/ /Year) 140 SEMICONDUCTOR U.S CHINA 40 JAPAN 20 KOREA
9 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
10 Semiconductor Industry Trend B$ 40B$ 150B$ Market Develop Grow Mega Competition Oligopoly Infra-Structure (Equipment) Application ASP($) Scarce Mainframe 10 6 ~10 5 Develop Grow Mega Competition PC Communication Digital Consumer 10 4 ~ ~10 3 Business Style IDM IDM IDM,Fabless,Foundry R&D CRL CRL? Government-University-Industry To be discussed today! Partnership
11 Market Trend Market Characteristics 1. Disappearance of Performance Oriented Segments (Mainframe Computer, ) Effects on R&D Density Price per Bit 2. Downsizing (PC,HPA, ) System-On-Chip Low Energy Architecture 3. Multimedia Processing (Image,Voice) CPU DSP High Bandwidth (SDRAM,R-DRAM)
12 Business Characteristics Business Trend Effects on R&D 1. Huge Investment Manufacturing System becomes Focus of study 2. Decrease of ROI Alliance,Consortium 3. Silicon Cycle Product Portfolio Segment Specialization (System Solution) 4. New Market Entry by Specialization Synergistic Technology as a new leverage
13 Technology-Process and Device Technology R&D Direction 1. Commoditization of Process Technology Precompetitive Domain Consortium Technology for Differenciation New Materials Phase-Shift,OPC 2. Uncertainty of Post Semiconductor -Society-wide Optical Lithography Cooperation for NGL 3. Low Cost Manufacturing Large Diameter Wafer Processing
14 Technology-Continued 4. Technology Maturity Acceleration of Miniaturization Multi-Value Vl Storage and dlogic Module Level Integration Contributing factors for 4-times DRAM density increase in the 80s. Miniaturization Memory Cell Improvement Circuit it Improvement Chip Size Increase Nanometer Processing Atomic Layer Manipulation (Oxide Thickness<3nm,Now!) Selective Growth (Etching - free Process) 6. War with Invisible Defects Molecular / Atomic Level Physics and Analysis 7. Wiring Material Limit (Cu) Optoelectronics
15 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
16 R&D-Past,Present,and Present and Future Past: Present: Future: Research(R), Development(D), and Production(P) were thought to be different, and separately conducted. Research Centers has been broken apart, and the distinction between D and P has been vanishing. How should we organize these three functions?
17 Transformation of R&D, and Production Relationship PAST R D P PRESENT D P R? Merging R: Research,D: Development,P: Production
18 Technology Transfer Methodology OLD R D P In Hitachi NEW Material Unit Process Early Integration Integration R D P Productization Issues Weakened Long-Range Research Development tcost treduction Methodology for Managing Large Cross Functional Team Material Integration ti & Productization New Unit Process Cross Functional Team
19 Diversification of R&D (Internal & External) Pre-Competitive Long Range Universities Government External R&D Infrastructure Standardization SEMATECH/ SELETE JEDEC/Defacto Competitive Alliance Core Competence Joint Development Internal
20 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
21 NUMBE ER OF PATENTS US-Japan Technology Management Seminar,Stanford University (Nov.18,1999) My Patent Productivity 20's 30's 40's TOTAL: YEAR
22 Think About! WHAT was Hit Ratio?
23 The Answer was 7%!
24 Number of Patents Contributed to Business The President Special Patent Award : 3 The President Patent Award : 7 The Strategic Patent Award-Gold : 5 The Strategic Patent Award-Silver :4 The Strategic Patent Award-Copper : 1 Total Useful Patents : 20
25 Discussion What Session! is Your Impression?
26 OUTLINE 1. Semiconductor Industry-History, Technology, and Market 2. Industry Vicissitude-Historical Perspective of Semiconductor Industry 3. Transformation of Semiconductor Industry 4. Transformation of Semiconductor R&D 5. A Measure of R&D Effectiveness 6. R&D History at Hitachi CRL
27 14% US-Japan Technology Management Seminar,Stanford University (Nov.18,1999) 1998 Sales Breakdown Financial Year ending 31 March 1999, USD1=JPY121 Consolidated (HITACHI Group) Services Non-Consolidated (HITACHI, Ltd) Information & Industrial Transportation Electronics Systems Systems 22% 31% 8% 7% 7,977 billion (US$65.9 billion) 24% 9% 20% 3,781 billion (US$31.2 billion) 10% 55% Materials Power & Industrial Systems Consumer Products Consumer Products Power Systems Information & Electronics
28 Organization of Hitachi,Ltd. (as of April 1999) Board of Directors Chairman President Corporate Staff Corporate Export Regulation Divn. Research & Development Group Intellectual Property Group Business Groups Power & Industrial Systems Industrial Components & Equipment Elevators & Escalators Information & Telecomm. Systems Digital Media Consumer Products Displays Semiconductor & ICs Automotive Products Instruments Business Development Division Business Staff
29 Foundation Establishment: April 1942 Mission: Creating new technologies for the coming 10 to 20 years, as well as pursuing development work for today s business. BABA Kumeo First General Manager HCRL in 1942 ODAIRA Namihei Founder of Hitachi, Ltd.
30 HCRL History Period Feature/Focus Topics I 1940 s II 1950 s III 1960 s IV 1970 s Construction during WWII Learning Expansion Quantity to Quality 42 Establishment of HCRL Start of reactor research Start of transistor research prototype Presentation of the electron microscope (grand prize) and analog computer (gold award) at the International Exhibition in Brussels Development of Japan s first mainframe computer, HITAC 5020 Development of world s largest superconducting magnet Development of the world s first solid-state image-pickup device Development of the 64 kbit DRAM
31 HCRL History Period Feature/Focus Topics V 1980 s Creating original concepts & enhancing core technologies 82 Development of electron holography technology Development of the supercomputer 83 Development of laser diodes in optical communication Proposal of high resolution TV systems (IDTV, EDTV) 86 Development of the superconducting transistor t Becoming a leader in technology for b i VI s new business Development of the 2Gb/in 2 magnetic disk Development of the Single-Chip RISC Processor (SH Microprocessor) Development of high-speed DNA analysis & functional MRI technologies Development of the 1 Gbit DRAM & Video Authoring System Operation of 128Mb Single-Electron Memory at Room Temperature
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