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1
Transformation of Semiconductor RD
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 RD 5. A Measure
of RD Effectiveness 6. RD 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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


4
The History
CCC Market
Convergence
Communication
Computer
Consumer
PDAs
Cordless Phones

Calculators
Notebook PCs

Personal PCs
Transistor TVs
ULSIS
Market Size
Transistor radios
LSIS
ICS
Si discretes
VLSIS
Ge discretes
1950
1960
1970
1980
1990
2000


5
The Market
'98
'99
'70

'80
'90

'00
'80

'90
CAGR
126
B
18
12
141
B
14
'94
B/Year
100
B
2000
'90
50
B
162
B
100
'79
Car-
10
B
Navigation
PDA
10
Cordless
Notebook
Phone
PC
PC
Calculator
TV
1970
1980
1990
2000


6
The Technology
1G
1G
10
256M
Geometry
Density
64M
(µ m)
(Bit)
Geometry
16M
CD
4M
(70Min. HiFi
1M
recording)
DICTIONARY
Density
1M
1.0
256K
Dictionary
64K
16K
4K
1K
0.1
1K
Newspaper 4pages
Letter(A4) 1page
1990
1970
2000
1980


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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


8
Semiconductor Market Compared to Steel Production
SEMICONDUCTOR
U.S.
STEEL PRODUCTION (Mt/Year)
CHINA
JAPAN
KOREA
?60?
?70?
?80?
?90?
?00?
YEAR FOR SEMICONDUCTOR

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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


10
Semiconductor Industry Trend
70
80
90
00
40B
150B
10B
Market
Grow
Mega Competition
Develop
Oligopoly
Grow
Mega Competition
Infra-Structure
Develop
Scarce
(Equipment)
Application
Mainframe
PC
Communication
Digital Consumer
ASP()
106105
104103
104103
Business Style
IDM
IDM
IDM,Fabless,Foundry
RD
CRL
CRL
? To be discussed today!
Government-University-Industry Partnership


11
Market Trend
Market Characteristics
Effects on RD
1. Disappearance of Performance Oriented
Segments (Mainframe Computer,) 2.
Downsizing (PC,HPA,) 3. Multimedia
Processing (Image,Voice)
Density ? Price per Bit System-On-Chip Low
Energy Architecture CPU ? DSP High Bandwidth
(SDRAM,R-DRAM)


12
Business Trend
Business Characteristics
Effects on RD
1. Huge Investment 2. Decrease of ROI 3.
Silicon Cycle 4. New Market Entry by
Specialization
Manufacturing System becomes Focus of
study Alliance,Consortium Product
Portfolio ?Segment Specialization (System
Solution) Synergistic Technology as a new
leverage


13
Technology-Process and Device Technology RD
Direction
1. Commoditization of Process Technology
? Precompetitive Domain ? Technology for
Differenciation
? Consortium ? New Materials ? Phase-Shift,OPC
2. Uncertainty of Post Optical Lithography
Semiconductor -Society-wide Cooperation for NGL
Large Diameter Wafer Processing
3. Low Cost Manufacturing


14
Technology-Continued
4. Technology Maturity
?Acceleration of Miniaturization ?Multi-Value
Storage and Logic ?Module Level Integration
Contributing factors for 4-times DRAM density
increase in the 80s.

• Miniaturization
• Memory Cell Improvement
• Circuit Improvement
• Chip Size Increase

2.2 1.2 1.1 1.4
5. Nanometer Processing (Oxide
Thicknesslt3nm,Now!)
Atomic Layer Manipulation Selective Growth
(Etching - free Process)
6. War with Invisible Defects
Molecular / Atomic Level Physics and Analysis
Optoelectronics
7. Wiring Material Limit (Cu)


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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


16
RD-Past,Present,and Future
Past
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?
Present
Future


17
Transformation of RD, and Production Relationship
PAST
PRESENT
R
3
Time to Product (Year)
D
R ?
2
D
Merging
P
P
1
R Research,D Development,P Production


18
Technology Transfer Methodology
In Hitachi
R
D
P
OLD
Material Unit Process Early Integration
Integration
Productization
D
P
R
Issues

• Weakened Long-Range Research
• Development Cost Reduction
• Methodology for Managing

NEW
Large Cross Functional Team
Material New Unit Process
Integration Productization Cross Functional Team


19
Diversification of RD (Internal External)
External
Long Range
Universities Government
Pre-Competitive
SEMATECH/ SELETE
Infrastructure
RD
Standardization
JEDEC/Defacto
Competitive
Alliance
Joint Development
Core Competence
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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


21
My Patent Productivity
30's
20's
40's
40
TOTAL 286
NUMBER OF PATENTS
20
0
72
78
84
90
96
75
81
87
93
YEAR


22
Think About!
WHAT
was
Hit Ratio?


23
7 !
The Answer was


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 Session!
What
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 RD 5. A Measure
of RD Effectiveness 6. RD History at Hitachi
CRL


27
1998 Sales Breakdown
Financial Year ending 31 March 1999, USD1JPY121
Consolidated (HITACHI Group)
Non-Consolidated (HITACHI, Ltd)
Information Electronics
Transportation Systems
Industrial Systems
Services
7
31
8
22
\7,977 billion (US65.9 billion)
\3,781 billion (US31.2 billion)
55
20
14
9
10
24
Materials
Consumer Products
Information Electronics
Consumer Products
Power Industrial Systems
Power Systems


28
Organization of Hitachi,Ltd. (as of April 1999)
Board of Directors

• Research Development Group

Chairman

• Intellectual Property Group

Business Groups
President

• Power Industrial Systems
• Industrial Components Equipment
• Elevators Escalators
• Information Telecomm. Systems
• Digital Media
• Consumer Products
• Displays
• Semiconductor ICs
• Automotive Products
• Instruments

• Corporate Staff

• Corporate Export
• Regulation Divn.

• 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 todays business.
HCRL in 1942
ODAIRA Namihei Founder of Hitachi, Ltd.
BABA Kumeo First General Manager


30
HCRL History
Period
Feature/Focus
Topics
I 1940s
Construction during WWII
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
54 56 58
II 1950s
Learning
66 69
Development of Japans first mainframe
computer, HITAC 5020 Development of worlds
largest superconducting magnet
III 1960s
Expansion
Development of the worlds first solid-state
image-pickup device Development of the 64 kbit
DRAM
78 80
IV 1970s
Quantity to Quality


31
HCRL History
Period
Feature/Focus
Topics
Development of electron holography
technology Development of the supercomputer Develo
pment of laser diodes in optical
communication Proposal of high resolution TV
systems (IDTV, EDTV) Development of the
superconducting transistor
82 83 86
Creating original concepts enhancing core
technologies
V 1980s
Development of the 2Gb/in2 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
91 92 93 95 98
Becoming a leader in technology for new business
VI 1990s