The Innovation Imperative GSA Expo

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The Innovation ImperativeGSA Expo Conference
October 1, 2009

• Douglas Grose
• Chief Executive Officer

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Overview

• The endless march of technology
• Increasing complexity and cost in manufacturing
• An industry in transition
• The shift from regional to global

• Creating a sustainable model
• Collaboration essential to innovation
• The next evolution in the industry
• From traditional foundry to future foundry

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Chip Design Increasing in Complexity

• Advanced performance-enhancement and
  power-management techniques now required
• Complex manufacturing process
• 45nm technology
• 6 cores
• gt1 billion transistors
• gt1 mile of Cu wire
• gt1,000 steps
• 50 mask layers
• 11 metal layers

Istanbul One of the largest, most complex dies
ever
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Technology Marches Onward

• Convergence low power, long battery life, small
  form factor
• Unprecedented performance, power-efficiency,
  cost-effectiveness

Top 5 fastest-growing market segments
Source Data from iSuppli Application Market
Forecast Tool (AMFT), Feb. 2009 edition,
normalized to 2003
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Leading-Edge Technology Adoption
MPUs and GPUs still lead, but low-power devices
are not far behind
Source Bridge GLOBALFOUNDRIES analysis,
iSuppli Mobile Handset Tracker iSuppli Consumer
Platforms Market Tracker , Mercury Reports GPU,
Gartner Reports GPU
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Continuous Innovation Required

• Innovation in thinking
• Performance-per-watt, battery life, parallel
  computing, virtualization, visual computing,
  small form factor
• Innovation in design
• Multiple cores, CPU/GPU integration, embedded
  memory, power management, system-level
  architecture
• Innovation in manufacturing and technology
• New materials, transistor structures, 3D
  stacking, immersion/EUV lithography, ultra-low k
  dielectrics, High-k Metal Gate

• Despite technical challenges, biggest hurdle to
  continued innovation is economics

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The Death of Moores Law?
The high cost of semiconductor manufacturing
equipment is making continued chip making
advancements too expensive to use for volume
production, relegating Moores Law to the
laboratory and altering the fundamental economics
of the industry. Len Jelinek, iSuppli, June
2009
Chasing Moores Law getting too expensive
Moores Law reaches its economic limits
Moores Law to die at 18nm, analysts predict
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Chip Design An Industry in Transition

• Chipmakers need to keep pace with tech and focus
  on design
• while the cost of manufacturing and RD
  continues to grow

(1) Industry average for Logic process RD (2)
Average capex of 300mm Logic fabs in World Fab
Watch database. Source In-Stat 1/07, World Fab
Watch analyst reports press clippings.
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Growing Trend toward Fablite and Fabless
Opportunity
Confirmed intention to go asset lite for Logic
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A New Technology and Manufacturing Model

• Traditional model
• Geographically centralized
• Homegrown RD
• Regional workforce
• Pre-packaged technology

• New model
• Distributed network
• Collaborative innovation
• Global talent base
• Customized design enablement

Asia Pacific
Global manufacturing network
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A New Technology and Manufacturing Model

• Traditional model
• Geographically centralized
• Homegrown RD
• Regional workforce
• Pre-packaged technology

• New model
• Distributed network
• Collaborative innovation
• Global talent base
• Customized design enablement

Asia Pacific
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A Model for Collaborative Innovation

• Shared objectives
• Early-stage RD
• Production-ready process technologies
• Shared investments
• Advanced manufacturing facilities
• Diverse teams collaborating
• Face-to-face and virtual
• Shared returns
• Accelerated access to advanced tech
• Experience from early, high-volume production

IBM Technology Alliance
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Collaborative Innovation in Action
A long list of technology firsts in volume
manufacturing and customer products
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A New Technology and Manufacturing Model

• Traditional model
• Geographically centralized
• Homegrown RD
• Regional workforce
• Pre-packaged technology

• New model
• Distributed network
• Collaborative innovation
• Global talent base
• Customized design enablement

Asia Pacific
Abu Dhabi
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A New Technology and Manufacturing Model

• Traditional model
• Geographically centralized
• Homegrown RD
• Regional talent pool
• Pre-packaged technology

• New model
• Distributed network
• Collaborative innovation
• Global talent base
• Customized design enablement

Leading-edge chip designs are unique and require
equally flexible design solutions
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A New Manufacturing and Technology Model

• Traditional model
• Geographically centralized
• Homegrown RD
• Regional talent pool
• Pre-packaged technology

• New model
• Distributed network
• Collaborative innovation
• Global talent base
• Customized design enablement

Custom, complete design solutions
Collaborative development
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Continued Innovation Demands a New Approach

• Bring intimacy of IDM model to foundry
• Extension of customer operations
• Early customer-foundry engagement
• Close collaboration, joint technology development
• Enable faster time to market
• Smooth ramps to mature yields
• Speed, accuracy, and agility
• Requires committed investment
• Technology, capacity, capabilities
• Enable global scale and service

Design and manufacturing must work in unison
Design, technology and manufacturing tightly
coupled for success of customer solutions