New Engagement Models for Next Generation

Technology Nodes
Critical Factors for Success

Sam Shoemaker, Vice President

Semiconductor Technologies
Dow Electronic Materials

September 8, 2010

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 Agenda

• The Technology Evolution:

– Collaboration is the Future

• Collaboration Structure:
– Benefits and Challenges

• Critical Success Factors:

– Timeline and Responsibilities

• A Good Collaboration Partner:

– Identifying Quality Partners

• Concluding Thoughts

2
 Next Generation Technology Nodes
Require New Models for Collaboration
• Integration schemes are becoming more
complex
– No “one size fits all” solution for manufacturers

• New nodes are more costly to develop

– No one company can “go it alone”
– ROI will be difficult without partners

• No single product / consumable / tool

combination can be used for entire
integration scheme

• Collaboration is critical
– Reduces Development costs
– Enables Innovative, Efficient, Rapid Mass-Customization
to address complexity

3
 For Device Makers: Node Shrink
Becoming More Costly

45 nm <20 nm
• Lithography costs 2x
• Process development costs 75% greater
• Manufacturing costs 2x

Total Device Maker costs have doubled and beyond

4
 For Consumable Manufacturers:
Increasing Complexity at Every Layer
CMP Process
Cleaners Conditioners

Cleaning CMP Tool

Chemistries

Integration
Scheme Σ Results

Pads Slurry
Distribution
& Filtration
Pad/Slurry Slurries
Interactions

Mass customization allows for rapid, tailored innovative

solutions
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 Increasing Complexity and Costly
Development for Lithography
The cost to develop advanced litho materials has significantly
increased with each technology node introduction
EUV >
Litho Cluster Cost $100MM??
$70,000,000

ƒ Equipment costs >1000X 1.3 NA 193 i

$60,000,000
ƒ Wafer costs from 4” to 12” >8X 300 mm
ƒ Product proliferation increasing
$50,000,000
ƒ Raw materials proliferation increasing
ƒ Correlation with customers’ processes more
$40,000,000
complex
ƒ New and tighter specification targets
$30,000,000

$20,000,000
0.6 NA DUV,
200 mm

$10,000,000
g-line,
100 mm

$0
1980 1985 1990 1995 2000 2005 2010
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 Advantages to Well-Developed
Collaboration
Traditional roles in collaboration typically involves sharing of ideas,
resources and technology between industry members

Universities / Consortia
Advantages:

• Problem definition
Tool • Share information
Consumables
Manufacturers Suppliers • Share investment
• Share risk
• Advance science
through collaboration
Device
Manufacturers

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 Traditional Roles in Collaboration:
Challenges in Collaboration Design
If collaboration is poorly designed, challenges can develop

Universities / Consortia Challenges:

• Too many players lead to
inefficiencies and excess cost
• Issues of ownership and
Tool Consumables sharing of IP / exclusivity
Manufacturers Suppliers
• Potential for imbalance of
risk / reward
• Competitive rivalry between
Device
Manufacturers
value chain participants could
yield to inefficiencies in
product solutions

Collaboration will occur only when all parties perceive

they have more to gain than they risk losing
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 Critical Success Factors For
Collaborative Agreements
Collaboration must be well-designed around business models, risk
mitigation & rewards sharing
Amount
Amount Depth
Depth of
of Time
Time in
in Market
Market Amount
Amount
to
to Offer
Offer ~ Understanding
Understanding ~ Business
Business ~ Share
Share ~ to
to Lose
Lose

Value must be created through the collaboration by:

• Clear and specific agreements with the understanding of each
players business position and risk
• Clear understanding of roles, responsibilities, and deliverables
• Effective information exchange
• Clear structure for reward sharing
• Clear understanding of IP challenges
• Strong sense of partnership

Goal: Innovative, Efficient, Rapid, Mass Customization

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 Collaboration Timeline and
Responsibilities
T-5 T-4 T-3 T-2 T-1 T0
Device
Manufacturers
Problem Definition Engineering
Testing and Integration
Identification of Enablers Scale-up

Universities / Consortia

Problem Definition
Testing and Integration
Identification of Enablers

Consumables
Suppliers
Innovation (Formulation,
Invention Manufacturing and
Product Development)
(Material Platform Dev) Engineering
Tool Mass Customization
Manufacturers
Universities / Consortia

Tool Consumables

Feedback loop is critical for success Manufacturers Suppliers

Device
Manufacturers

10
 What to Look for in Collaborative
Partners
• Invention

• Innovation

• Engineering and Manufacturing

(M&E) Expertise

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 What to Look for in Collaborative
Partners: Invention
A strong fundamental R&D capability
Ability to leverage broad research capability to bring to problem solving

Innovation rich pipeline

“Best-in-class” researchers and

knowledge owners

Access to cutting-edge
equipment, tools, and
expertise
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 What to Look for in Collaborative
Partners: Innovation
Rapid formulation turnaround for mass customization

• High throughput testing

• Advanced modeling capabilities

• Co-located facilities

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What to Look for in Collaborative
Partners: M&E (Manufacturing & Engineering)

Prototype
Product
Final
Product
Product Development & Scale-up Pilot HVM

1 Gal 10 Gal 100 Gal 1000 Gal

• Scale-up capabilities

• Full product and raw material capabilities

• Operational excellence
 Good Collaboration Yields Innovative,
Rapid, Efficient, and Mass Customized
Solutions
• Too expensive to go it alone

• Collaboration is necessary, but must be

designed well

• Critical success factors must be acknowledged

• Establishing problem definition and

technology enablers early allows for invention
and cycles of innovation

• Good partners have the knowledge, resources,

and capabilities to collaborate for a solution

15
 Thank You

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