Principles of Innovation
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1 Principles of Innovation November 2013 Lessons from 4 top CTO s g dan hutcheson This report has been reproduced for SEMI. It is approved for public release with attribution to VLSIresearch. 1
2 Innovation We all talk about being innovative We all like to think we are All tech companies position themselves as leaders in innovation But what is innovation Really? How is it done? And, what makes innovation in semiconductors different 2
3 Versus The word Innovation Comes with no negative baggage Something useful has to be created Takes R&D to add value Hence, finished product 3
4 Innovation Models: why semiconductors are different Innovation Classic There is an innovator Usually a single individual Sometimes two to four With vision and likes to tinker Examples Thomas Edison Henry Ford Bill Hewlett and David Packard Steve Jobs Akio Morita Larry Page and Sergei Brin Innovation in Semiconductors No single innovator Thousands of people involved Self-organized, chaotic Collective action To meet a common goal Occurs between and across many companies At different positions in the supply chain It wasn t always that way 4
5 Innovation Classic If I d asked customers what they wanted, they would have said a faster horse. Steve Jobs quoting Henry Ford 5
6 Innovation Classic Apple keeps even internal collaboration to a minimum Even employees don t know what s coming Development team room doors are locked All Computer screens turned off for visitors How is this possible? Innovation is simplistic Relies on system integration in a few brilliant minds 6
7 Innovation Models: how semiconductors are different 7
8 With Innovation Classic There are no equivalents to a SEMATECH, Common Platform, or a Co-investment program 8
9 Innovation Models: how semiconductors are different Chip innovation comes from massively scaled collaboration that is globally interconnected 9
10 Innovation Models: how semiconductors are different Hundreds of companies with thousands of people solving millions of problems still hitting each node on schedule every two years 10
11 Innovation Models: how semiconductors are different Chance favors the 1650: England s 1 st Coffee Shop opens 84 High Street, Oxford GLOBALFOUNDRIES SEMATECH G450C CNSE IBM NIST TSMC Intel Samsung Qualcomm connected mind Lam TEL Nikon Advantest Applied Materials KLA-Tencor ASML Steven Johnson JSR AZ And 100 s more 11
12 Innovation Maxims (1) Develop products on needs and benefits Applied Materials P5000, Hex etcher, ASML Twinscan Don t confuse clever with cluttered Novellus Concept One & Lam Autoetch Disruptive products start with a problem, not a market To be truly innovative, it must be stupid TSMC s foundry invention and Intel s HKMG Discipline in development leads to long-term sustainable competitive advantage Intel and KLA-Tencor 12
13 Innovation Maxims (2) Faster learning cycles: the gains are exponential, not additive AMD, TSMC, SK hynix, and Samsung Winning shootouts: First-to-Market versus Right-to-Market Sony versus Apple in MP3 players GCA versus Nikon Customer development: where most R&D programs fail CMP and Westech versus Applied Materials Varian s Dual Magnet ribbon beam Ultratech s Laser Annealing 13
14 Innovation Maxims (3) Use a platform strategy to maximize success and create opportunities for multiple product introductions Applied Materials Profits from the current generation of products pay the development of the next Applied Materials and ASML Great to Good: Bureaucracy chokes product development Google versus YouTube Presentations and Legal Approval versus Satisfying Customer Needs 14
15 Innovation Challenges 10nm and then 7nm finfet 3D, STT, RRAM TSV Multi-Patterning EUV Atomic Precision 450mm 15
16 A Reminder Optimism is an Essential Ingredient for Innovation Robert N. Noyce 16
17 November 2013 So what do the CTOs have to say? How do they run faster to stay in the lead? 17
18 Hyeong Soo Kim, Ph.D. SK hynix Vice President of New Memory Process at SK hynix s R&D Division. Leads process technology development for STT-MRAM, PcRAM and ReRAM Previously the head of technology planning Joined SK hynix in 1992 as a lithography process engineer Has developed a variety of KrF / ArF / EUV process technology, including DRAM process integration Holds a doctorate degree in materials science from Korea Advanced Institute of Science and Technology He completed his undergraduate degree at Seoul National University, Korea. 18
19 John Lin, Ph.D. TSMC assignee at G450C Vice President and General Manager of Operations of G450C Consortium Appointed in March, 2012 Prior to joining G450C, John was the Director of Manufacturing Technology Center in TSMC Held various management positions on semiconductor technology development and manufacturing since 1994 Awarded Outstanding Contribution Engineer from the President of Taiwan in 2008 Holds 59 U.S. Patents Author/coauthor of 25 papers Received his D.Phil in Opto-electronics from University of Oxford 19
20 David (Dave) Hemker, Ph.D. Lam Research Senior Vice President & Chief Technology Officer Responsible for long range research and technology development 25 years in semi. eq. focusing on advanced technology development Joined Lam in 1998 as vice president of New Product Development Prior to joining Lam, he was vice president of Technology for PMT/Trikon He also spent five years in various technology roles at Applied Materials Holds more than 35 patents Authored numerous technical publications on processing and thin-film applications Received his Ph.D. from Stanford University Bachelor s degree in chemical engineering from the University of Wisconsin 20
21 Omkaram (Om) Nalamasu, Ph.D. Applied Materials Senior vice president and chief technology officer (CTO) Joined Applied in 2006, after serving as Vice president of research at Rensselaer Polytechnic Institute (RPI). Held key research and development leadership positions at AT&T Bell Laboratories, Bell Laboratories/Lucent Technologies, and Agere Systems, Inc., and was director of Bell Laboratories' Nanofabrication Research Laboratory, MEMS and Waveguides Research, and Condensed Matter Physics organizations Seminal contributions to the fields of optical lithography and polymeric materials science and technology Received numerous awards Authored more than 180 papers Holds more than 35 patents Received his Ph.D. from the University of British Columbia, Vancouver, Canada. 21
22 Principles of Innovation November 2013 Lessons from 4 top CTO s Dan Hutcheson VLSI Research Hyeong Soo Kim SK hynix John Lin TSMC/G450C Dave Hemker Lam Research Om Nalamasu Applied Materials 22
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