How One Multi-National EDA Vendor Navigates R&D in the Asian IC Design Market. Raul Camposano Sr. VP, CTO

Transcription

1 How One Multi-National EDA Vendor Navigates R&D in the Asian IC Design Market Raul Camposano Sr. VP, CTO

2 Agenda Industry overview Why Asia? Synopsys in Asia Selling in Asia Service and support in Asia Relocating or outsourcing company activities to Asia R&D in Asia 2003 Synopsys, Inc. (2)

3 Semiconductor Process Flow Systems $790B Computers Communications Consumer Industrial Military Embedded SW IP $0.5B $0.9B Semiconductors $141B Micros, DSP Memory ASIC, ASSP Analog, Discrete $43.4B $30.8B $37.8B $28.0B Design EDA $3.9B Chips Masks $2.8B Wafer $7.5B Front-End Manufacturing 16.8B Lithography/Mask Making $5.1B CMP equipment $.77B Ion Implanters $.68B Deposition $5.3B Etching and Cleaning $3.8B Other $1.1B Back-End Manufacturing 1.8B Assembly Inspection $.13B Bonding $.86B Packaging $.60B Dicing $.21B Inspection $.12B 2003 Synopsys, Inc. (3) Market size for 2002 Sources: VLSI, Dataquest, Synopsys Estimates filenanme: SemiProcessFlow.ppt

4 Semiconductor Revenue Growth $250 $200 Billions $150 $100 $50 $ * 2005* 2007* Source: IC Insights, August 2003 Updated: Oct 2003 Filename:SemiRevenueGrowth.ppt * Estimates 2003 Synopsys, Inc. (4)

5 Monthly Semiconductor Sales $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Jan-00 Mar May July Sept Nov Jan-01 Mar May July Sept Nov Jan-02 Mar May July Sept Nov Jan-03 March May July WSTS Monthly Sales 3 Month Average Billions Source: SIA WSTS 2003 Synopsys, Inc. (5)

6 Semiconductor Sales, Annual Growth 60% 50% 40% 30% 20% 10 % 0% March 1995 Jun Sep Dec March 1996 Jun Sep Dec March 1997 Jun Sep Dec March 1998 Jun Sep Dec March 1999 Jun Sep Dec March 2000 Jun Sep Dec March 2001 Jun Sep Dec March 2002 Jun Sep Dec March 2003 June Americas Europe Japan Asia Pacific -10% -20% -30% -40% -50% -60% 2003 Synopsys, Inc. (6) Source: WSTS Note: 3-month average, year/year monthly growth

7 Monthly Semiconductor Units & ASP 35,000,000 $ ,000,000 31,000,000 29,000,000 27,000,000 25,000,000 23,000,000 21,000,000 19,000,000 17,000,000 15,000, Units WW Units (3 month average) WW ASP (3 month average) $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 Average Selling Price $0.30 Source: SIA WSTS 2003 Synopsys, Inc. (7)

8 Worldwide Top 20 IC* Sales Leaders Intel, U.S. $24 Samsung, S.Korea $8.7 TI, U.S. $6.5 ST, Europe $5.7 TSMC, Taiwan $4.6 Motorola, U.S. $4.5 Infineon, Europe $4.5 NEC, Japan $4.4 Toshiba, Japan $4.1 Hitachi, Japan $3.8 Fujitsu, Japan $3.6 IBM, U.S. $3.5 Philips, Europe $3.4 Mitsubishi, Japan $3.1 Micron, U.S. $2.8 AMD, U.S. $2.7 Matsushita, Japan $2.4 Hynix, S. Korea $2.4 Sony, Japan $2.2 Sharp, Japan $2.0 U.S. $44 Europe $13.6 Asia $15.7 Japan $ Synopsys, Inc. (8) Source: IC Insights, McClean Report 2002

9 EDA/Semi Revenue Ratio 2003 Synopsys, Inc. (9) Semiconductor Revenue in $B % of Semiconductor Revenue) Semiconductor revenue EDA as % of semi revenue Source - Dataquest 2003 & Synopsys

10 Semiconductor Revenue, R&D and EDA 1, F 2004F Indexed to 100 EDA Revenue Semi R&D Source: IC Insights April 2003, SIA WSTS Feb 2003, Synopsys Internal Estimates 2003 Synopsys, Inc. (10)

11 Wafer Fab Cost Trend Billions of Dollars $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 9%/year $1.0 $1.6 $2.4 $3.5 $0.5 $0.4 $0.0 Source: IC Insights, April F 2010 F 2003 Synopsys, Inc. (11)

12 The Billion-Dollar Club Billion Dollar Spenders Amount Spent ($B) % of Total Cap Ex Hitachi NEC TI UMC Group Motorola Samsung TSMC Intel $ % Rohm Micron Mitsubishi Sony Hynix Philips Toshiba Infineon Fujitsu Hitachi NEC Motorola UMC Group TI IBM ST Samsung TSMC Intel $ % UMC Group Micron Infineon TI IBM ST Samsung TSMC Intel $ % IBM ST Samsung TSMC Intel $ % 2003 Budgeted Toshiba ST Infineon Micron Sony TSMC Samsung Intel $ % 2003 Synopsys, Inc. (12) Source: IC Insights, Jan 2003

13 The Need for High Volumes (2002 Units in Millions) Cable modem 111 Digital Cable Set-Top Boxes 48.0 xdsl modems/ Line card 67 Cellular Phones (only 2.5G, 3G) 25 Satellite Set-Top Boxes (STBs) 23.0 WLAN b 15 Video surveillance 15.3 DVR / PVR Digital Still Cameras 10.5 Laser Printers 7.6 Auto display/ dashboard control 5.7 Digital Camcorders 5.0 Auto Navigation 3.5 Digital TV Sets 3.4 Digital Copiers 2.3 WLAN a Synopsys, Inc. (13)

14 Adoption of New Process Technologies Fab Volume Design Percentage of N. American ASIC Designs >500nm 350nm 250nm 180nm 130nm 90nm, 65nm * 2004* 2005* 2006* *Estimates 2003 Synopsys, Inc. (14) Source: Dataquest, November 2002 filename:designstarts.ppt

15 Chip Design Design Services Floorplan Place & Route Extraction Static Timing Analysis Data path Random Logic Power Test Logic Synthesis Libraries Central Data Base DRC Mask Synthesis 2003 Synopsys, Inc. (15) Essentially compiling a program (Verilog, VHDL) into the patterns for manufacturing (Masks) Include IP Many complex steps

16 Design Needs To Meet Hard Requirements Timing Test Closure Design Planning Timing Power Closure Design Planning Timing Synthesis SI Synthesis Closure P&R P&R Synthesis Extract Extract Phy Verif DC P&R Ultra Phy Extract Verif MaskPC /Astro Mask Phy Star-RCXT Verif PrimeTime Design Planning Timing Closure FPC/JupiterXT Milkyway Milkyway Hercules Mask Proteus Milkyway Milkyway Timing Closure to achieve performance Power Closure to enable low-power designs Test Closure to reduce silicon test costs SIClosure to account for parasitics Size optimization to minimize cost Mask Synthesis to account for lithography 2003 Synopsys, Inc. (16)

17 Resolving Small Patterns Layout 0.25µ 0.18µ 0.15µ 130nm 90nm 2003 Synopsys, Inc. (17)

18 Mask Synthesis 250nm 130nm 90nm and Below Design OPC PSM Mask OPC Wafer 2003 Synopsys, Inc. (18)

19 Design Verification Verification IP Design Services System Analysis and Design Smart RTL Verification Analog / Mixed Signal Verification Unified Design and Verification Language Functional verification: does the chip do what it is intended to do? Simulation Formal verification Digital and analog 2003 Synopsys, Inc. (19)

20 Verification Is a Major Problem 61% of IC designs require one or more re-spins Source: 2002 Collett Research International, Inc Synopsys, Inc. (20)

21 Example: Equivalency Checking?= Checks all stages of a design for functional equivalence 100% Exhaustive 2003 Synopsys, Inc. (21)

22 Agenda Industry overview Why Asia? Synopsys in Asia Selling in Asia Service and support in Asia Relocating or outsourcing company activities to Asia R&D in Asia 2003 Synopsys, Inc. (22)

23 Why Asia? Customer proximity Access to local talent Cost Growth Moving up the value chain 2003 Synopsys, Inc. (23)

24 Synopsys Major Customers in Asia National Chiao Tung University MediaTek Incorporation Samsung Electronics LG Electronics Creative Labs Inc Ali Corporation VIA UMC Silicon Integrated Systems Corp. Huawei Technologies Corp. Hynix Semiconductors State 863 Project Datang Telecom Faraday TSMC SMIC 2003 Synopsys, Inc. (24)

25 Growth Of China s IC Design Houses 300 ~ ~ 300 design houses in China = ten-fold increase in 8 years! Synopsys, Inc. (25) THE INFORMATION NETWORK, Feb. 2003

26 10% % of Degrees By Highest Level Of Education 10% 20% 2003 Synopsys, Inc. (26) Bachelors 20% 13% 13% Source: FSA China Handbook , Survey 40% 13% 13% None 1-10% 21-30% 41-50% >70% Masters 10% 10% 48% None 11-20% 41-50% 51-60% >70% Ph.D.s 10% None 70% 1-10% 11-20% 31-40%

27 Talent Costs >$100K $90K - $100K $70K - $90K $50K - $70K $30K - $50K $20K - $30K $15K - $20K $10K - $15K <$10,000 Design Engineer 25% 50% 25% Process Engineer 50% 50% R&D Engineer 25% 25% 25% 25% Field Application Eng. 60% 20% 20% Customer App. Eng. 25% 25% 50% Human Resources 67% 33% Accounting / Financial 86% 14% Customer Service Rep. 25% 25% 50% Legal 34% 33% 33% Information Technology 33% 67% Sales Representative 14% 14% 14% 30% 14% 14% Marketing Representative 14% 14% 14% 14% 39% 14% 2003 Synopsys, Inc. (27) Data source: FSA China Handbook , Survey

28 China IC Demand Versus Supply $ US Billion China IC Market Demand China IC Market Supply Forecast Synopsys, Inc. (28) THE INFORMATION NETWORK, Feb. 2003

29 Semiconductor Revenue in Asia China / Hong Kong Taiwan South Korea Singapore Other In Billions Synopsys, Inc. (29) Source: IC Insights, McClean Report 2003

30 Semiconductor Growth in Asia % of total China / Hong Kong Taiwan South Korea Singapore Other Synopsys, Inc. (30) Source: IC Insights, McClean Report 2003

31 Asia GDP Growth 8.0% 6.0% 4.0% China South Korea Singapore Taiwan 2.0% 0.0% -2.0% -4.0% * 2004* 2003 Synopsys, Inc. (31) Source: IC Insights, McClean Report 2003, Sept. update

32 Moving Up The Value Chain Speed Size 2003 Synopsys, Inc. (32)

33 Average Chip Speed by Region Synopsys SNUG Data % 40% North America Europe Japan Asia 20% 0% 1-100MHz 101K- 150MHz MHz MHz MHz MHz 800MHz Synopsys, Inc. (33)

34 Average Chip Speed Asia Synopsys SNUG Data % 40% Asia 20% 0% 1-100MHz 101K- 150MHz MHz MHz MHz MHz 800MHz Synopsys, Inc. (34)

35 Average Design Geometries by Region Synopsys SNUG Data % 40% North America Europe Japan Asia 20% 0% > <.11 microns 2003 Synopsys, Inc. (35)

36 Average Design Geometries Asia Synopsys SNUG Data % 40% Asia 20% 0% > <.11 microns 2003 Synopsys, Inc. (36)

37 Average Gate Counts By Region Synopsys SNUG Data % 20% North America Europe Japan Asia 10% 0% 1-100K 101K- 300K 301K- 999K 1M- 1.9M 2M- 3.9M 4M- 5.9M 6M- 7.9M 8M+ Gates 2003 Synopsys, Inc. (37)

38 Average Gate Counts Asia Synopsys SNUG Data % 20% Asia 10% 0% 1-100K 101K- 300K 301K- 999K 1M- 1.9M 2M- 3.9M 4M- 5.9M 6M- 7.9M 8M+ Gates 2003 Synopsys, Inc. (38)

39 Agenda Industry overview Why Asia? Synopsys in Asia Selling in Asia Service and support in Asia Relocating or outsourcing company activities to Asia R&D in Asia 2003 Synopsys, Inc. (39)

40 Synopsys Presence In Asia Goes Through Four Phases 1. Sales 2. Support / Service 3. Outsourcing Infrastructure Distribution Customer Training Finance HR IT 4. R&D 2003 Synopsys, Inc. (40)

41 Synopsys: Current Stats Largest EDA supplier $1B+ revenue per year Headquartered in Mountain View, CA 60+ offices globally employees 25%+ revenue on R&D per year 2003 Synopsys, Inc. (41)

42 Synopsys Revenue By Region 16% 65% 8% 11% Europe Intercontinental Japan North America 2003 Synopsys, Inc. (42)

43 Synopsys in Singapore Since 1994 ~ 30 employees 41% Sales 40% Support / Services 19% Infrastructure 0% R&D Headquarters 2003 Synopsys, Inc. (43)

44 Synopsys In Korea Since 1991 Office in Seoul ~ 60 employees 25% Sales 34% Support/ Services 9% Infrastructure 32% R&D Support ETRI IT SOC Incubation Center University program through IDEC 2003 Synopsys, Inc. (44)

45 Synopsys in Taiwan Synopsys in Taiwan since June 1990 Offices in Taipei Hsinchu ~ 150 employees 23% Sales 32% Support/Services 10% Infrastructure 35% R&D Employee Educational Level in Taiwan Masters 83 people 56% PhD 12 people 8% BA 54 people 36% 2003 Synopsys, Inc. (45)

46 Six Major Shifts Driving The Industry Growth in China School labs to key industry Government owned to private owned Government funding to policy shifting Pure Chinese companies to multinational JVs Melody chips to SoC IC chip design to industry standard proposal 2003 Synopsys, Inc. (46) IC DESIGN IN CHINA AND ARK PIONEER MICRO Yun Liu April l 13, 2002 Harvard China Review s s 5 th Annual Conference

47 Synopsys In China Since 1995 Offices in Shanghai, Beijing, Shenzhen, Hong Kong Partnering in IC design initiatives: 7 National IC Design incubation centers University programs at 30 leading universities, Partnerships with Chinese Academy of Science, Datang Telecom, and SMIC ~ 250 employees 11% Sales 8% Support/Services 9 Infrastructure 72% R&D 2003 Synopsys, Inc. (47)

48 Synopsys in China Since 1995 P Synopsys Offices National IC Design Incubation Centers University Programs 30 locations 220 R & D Engineers Partnerships Chengdu University of Electronics Science and Technology of China Xian Jiaotong University Xi an P Datang Telecom Wuxi Hangzhou Zhejiang University Chinese Academy of Sciences P SMIC Harrbin University P Beijing Tsinghua University Beijing Polytechnical Universit Northern JiaoTong University Peking University Beijing College of Aeronautics Shanghai Shanghai Jiao Tong University Tongji University Fudan University Shenzhen Research Institute of Tsinghua University Hong Kong 2003 Synopsys, Inc. (48)

49 India s Huge Leap in Software Exports Rs. in Billions Y2K Euro * Nasscom: $50B US by Synopsys, Inc. (49) *National Association of Software & Service Companies

50 Synopsys in India Since 1995 Bangalore R&D for tool development IP & design services Corporate applications Advanced technology Hyderabad Technical support Product validation & infrastructure Foundry & library support Delhi : sales ~ 200 employees 4% sales 40% support/services 9% infrastructure 47% R&D 2003 Synopsys, Inc. (50)

51 Summary Semiconductor / EDA business in Asia increasingly same as everywhere else Large markets / production Talent for Services Support Infrastructure R&D Cost advantages will diminish Growth will diminish relatively 2003 Synopsys, Inc. (51)

52 Thank you! 2003 Synopsys, Inc. (52)