Post on 21-Dec-2015
ICSOC Workshop (Chengdu) Guest Speech
Dr. Jeremy WangAsia Pacific Executive Director, FSA
August 16, 2005
Overview
About the FSA
The superiority of the fabless business model
The global semiconductor environment
Challenging the successful innovation model
Future trends
FSA MISSION
Accelerate the growth and increase the return on invested capital of the global fabless business model by promoting an environment for innovation.
Provide a platform for meaningful global collaboration between fabless companies and their partners
Identify and articulate opportunities and challenges to enable solutions
Provide members with research, resources, publications and survey information
Promote the fabless business model
A Global Community of Leaders
500 corporate members worldwide
Jimmy S.M. Lee ISSI
KY HoATI
Richard ChangASE
Chia Song Hwee Chartered
David FrenchCirrus Logic
Sanjay JhaQualcomm
Bob BaileyPMC-Sierra
Jensen HuangNVIDIA
Robert TsaoUMC
Wim RoelandtsXilinx
Dwight DeckerConexant
Dr. Nicky LuEtron
Dr. Chintay ShihSpecial Advisor
Ming Kai TsaiMediaTek
Woody Yang Silicon7
Dr. Morris ChangTSMC
Foundry Seat
Special DirectorSpecial Director Director Emeritus
Foundry Seat
EDA SeatJodi Shelton
Executive DirectorFSA
IDM Seat
FSA’s BOARD
Back-end Seat
Fabless Seat
Foundry Seat
Fabless SeatFabless Seat
Fabless Seat
Fabless Seat Fabless Seat Fabless SeatFabless Seat
Fabless Seat
Fabless Seat
Fabless Seat Fabless Seat
12 Fabless, 3 Foundry, 1 IDM, 1 EDA, 1 Backend, 1 FSA = 19 total 1 Director Emeritus, 2 Special Directors
Almost 500 corporate members worldwide
FSA BOD Members
Dr. Jackson Hu
UMC
Jim SetoATI
Technologies
Rick CassidyTSMC North
America
David French
Cirrus Logic
Sanjay JhaQualcomm
Vahid ManianBroadcom
Corporation
Aart de GeusSynopsys, Inc.
Dennis SegersMatrix
Semiconductor
Dwight DeckerConexant
Ron TortenAgilent
Technologies
Colin HarrisPMC-Sierra,
Inc.
Jodi Shelton Ron BoydFreescale
Semiconductor
Gina GloskiFormerly with
FyreStorm, Inc.
Jeorge HurtarteTranSwitch Corporation
Michael RekucChartered
Dr. Tien WuASE, Inc.
EDA/IPDesign ServicesFoundry Partners
Wafer Fabs
Testing and subsystems
Photomask
Packaging Assembly
OEM and ODM Customers
FABLESS INFRASTRUCTURE/ECOSYSTEM
Over 1,100 Fabless Semiconductor Cos
Almost 500 corporate members worldwide
The Global Fabless Model1,300+ Fabless Companies Worldwide
Growth of global membership—nearly 500 global members!
North America600
Europe150
China & Taiwan
500Israel100
Fabless Leaders The Fabless “Billion-Dollar Club”
Rank Billion-Dollar Club Companies2004 CY Revenue
($000)
1 QUALCOMM (QCT Division) $3,224,000
2 Broadcom $2,400,610
3 ATI Technologies $2,140,871
4 NVIDIA Corporation $2,010,033
5 SanDisk Corporation $1,777,055
6 Xilinx, Inc. $1,588,700
7 MediaTek Incorporation $1,252,470
8 Marvell Semiconductor, Inc. $1,224,580
9 Altera $1,016,364
In 2004, nine fabless companies achieved $1B+ in sales.
Source: FSA
ASIA-PACIFIC LEADERSHIP COUNCIL
ChairmanDr. Nicky Lu
Etron
Ming Kai TsaiMediaTek
H.P. LinFaraday
Gordon GauHoltek
Chou-Chye Huang
Sunplus
Wen-Chi ChenVIA
Dr. Chintay ShihSpecial Advisor
Dr. Woodward Yang
Silicon7
Qin-Sheng Wang Huada Electronic Design Co., Ltd.
Dr. Dr. Zhonghan
(John) DengVimicro
K.C. ShihGlobal Unichip
Dr. Shaojun WeiDatang
MicroelectronicTechnology, Co.
Ltd.
EUROPEAN LEADERSHIP COUNCIL
David BaillieCambridge
Semiconductor
David MilneWolfson
Microelectronics
Roland PudelkoDialog
Semiconductor
John HodgsonCambridge
Silicon Radio
Svenn Tore LarsenNordic Semiconductor
Anthony SethillFrontier Silicon
The Superiority of the Fabless ModelFabless vs. Overall Semi Revenue
Fabless companies have a higher gross margin thanIDMs (47.3%vs 44.5%)
Fabless companies have significantly higher R&D expenditurethan IDMs 23.7% vs.15.2% ofsales
Fabless CAGR=22% vs.
Overall Semiconductor Growth at 7%
$102B
$213B
$3.6B
$33.2B
$0
$50,000
$100,000
$150,000
$200,000
$250,000
19941995 199619971998 1999200020012002 20032004
($M
)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
($M
)
Overall Semi RevenueWW Fabless Industry
$0.4
$0.7
$1.9
$2.5 - $3.0
$0.0
$1.0
$2.0
$3.0
0.80um, 6-inch 1990
0.50um, 6/ 8-inch 1994
0.18um, 8-inch 2001
0.13um,300mm 2003
0
150
300
450
600
750
The Rising Cost of Manufacturing
Source: Goldman Sachs
($B
)
% G
row
th In
du
stry
Reven
ue
Fab Cost Growth 7x
Semi Industry Revenue Growth 5x
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Inte
l
Sam
sung
TI
Renesas
STM
icro
Infi
neon
Toshib
a
NEC
Moto
rola
Mic
ron
Phil
ips
AM
D
Fuji
tsu
IBM
Sony
Hynix
Mats
ushit
a
Sharp
AD
I
Sanyo
Who Can Afford a 300mm Fab?
“ A company must have the long-term endurance for maintaining its technology leadership or risk falling behind foundries.”
Top 20 Semiconductor Companies by 2004 Revenue
($M
)
A company must have revenue $5B - $7B to support 300mm expansion
Source: Goldman Sachs; FSA
A company must have revenue $5B - $7B to support 300mm expansion
Recent Hybrid and Partnership Models
Partnered with TSMC to achieve process alignment for 90-nm
STMicroFreescale
Philips
Partnered with Chartered for 65-nm down to 45-nm technology development
SamsungIBM
Infineon
Takes 50% investment in UMCAMD
Makes 30% investment in UMCInfineon
Announced “capital-efficient” manufacturing strategy”; Halted current plans to build a new fab;
Goal is 50% outsourcing on advanced CMOS processingPhilips
To outsource 40-50%+TI
50+ Foundries Worldwide
The Proliferation of the Foundry
Architecture
Verification
Physical
Validation
Prototype
0
5
10
15
20
25
30
0.35µm 0.25µm 0.18µm 0.13µm 90nm
Cost
($
M)
Cost of Implementing Designs Increasing
Source: IBS (2005)
24
7
16
38
0
5
10
15
20
25
30
35
40
0.35µm 0.25µm 0.18µm 0.13µm 90nm
Pro
bab
lility
of
Desi
gn
s n
ot
Op
era
tin
g
as
Exp
ect
ed
Probability of Re-spin Increasing
Source: IBS (2005)
Design Composition (Typical)
HEAD COUNT WITHIN DESIGN TEAMSIS INCREASING RAPIDLY
0.18µm (5M gates)
0.13µm (10M gates)
90nm (20M gates)
65nm* (40M gates)
Design engineeringhead count
EDA toolexp
Design engineeringhead count
EDA toolexp
Design engineeringhead count
EDA toolexp
Design engineeringhead count
EDA toolexp
No. % % No. % % No. % % No. % %
Architecture & project mgmt
3 10.0 2.0 8 13.3 3.0 29 20.4 4.0 66 21.2 ?
Specification to RTL 3 10.0 3.0 9 15.0 5.0 26 18.3 7.0 58 18.7 ?
Functional verification
13 43.3 52.0 22 36.7 50.0 42 29.6 47.0 88 28.4 ?
Physical design 9 30.0 42.0 16 26.7 39.0 28 19.7 36.0 58 18.5 ?
Post-GDSII 2 6.7 1.0 5 8.3 3.0 17 12.0 6.0 41 13.2 ?
Subtotal hardware 30 100.0 100.0 60 100.0 100.0 142 100.0 100.0 311 100.0 ?
Software 18 37.5 54 47.4 170 54.5 390 55.6
TOTAL 48 100.0 114 100.0 312 100.0 701 100.0
* Estimate
Standard Setting is the key
PC (Intel), Multimedia, DVD (Media Tek), Wi-Fi (WAPI), Wimax, 3G (Qualcomm), Digital TV,
Leverage collaboration and integration of supply chain partners into a cohesive unit--designers, EDA and IP vendors & foundries
SiP vs. SOC (Hybrid model)
Heterogeneous Integration for SiP
3rd party IPs for SOC
Consumer and communication applications
System and software knowledge
Future Trends & Challenges
Thank you!
Dr. Jeremy Wang王智立博士Asia Pacific Executive Director
e-mail: jwang@fsa.org
全球 IC設計與委外代工協會 FSA (Fabless Semiconductor Association )
www.fsa.org