Commercializing Technologies for Commercializing Technologies for Global Market - ITRI ExperiencesGlobal Market - ITRI Experiences

Dr.-Ing. Liang-Han Hsieh, General Director International Business Center/ITRI

2008. 10. 12. in Tomsk, RF

The XIth Innovation Forum2008 Tomsk

2Copyright 2008 ITRI 工業技術研究院

Key success factors - success comes Key success factors - success comes from concerted effortsfrom concerted efforts

Science-based industrial parkResearch and technology organizationsTaiwanese/Chinese “Diaspora” Entrepreneurship and the inherent culture of risk-takingTiming, market niche, highly intensive domestic competition and expansionFinancial mechanism, government funds, VC, stock market, business angels, tax incentivesIP protectionInternational partnership

Copyright 2007 ITRI 工業技術研究院

3Copyright 2008 ITRI 工業技術研究院

Value creation for industryValue creation for industry

Enterprise developmentBusiness strategies, product development, production, marketing and sale, financial operations

Enterprise developmentBusiness strategies, product development, production, marketing and sale, financial operations

Market developmentcustomers, competitors

Market developmentcustomers, competitors

Technology developmentFundamental research to prototype or pilot line

Technology developmentFundamental research to prototype or pilot line

Va

lue

cre

atio

n p

roce

ss

Business functions in value chain: Research and development/design of products,services,or processes/production/marketing & sales/distribution/customer service

Business realizationBusiness realization

Market entryMarket entry

Spin-off, incubation Spin-off, incubation

Proof of conceptsProof of concepts

Working Working prototypeprototype

Application designApplication design

Corporate designCorporate design

Market penetration strategyMarket penetration strategy

TT, IPTT, IPMarketingMarketing

4Copyright 2008 ITRI 工業技術研究院

• RCA technology transferred (1976)

1975 Year

• UMC: ITRI spin-off, 1979 1st 4” Wafer Fab in Taiwan

• TSMC: ITRI spin-off, 1987 1st 6” Wafer Fab in Taiwan

• VIS:ITRI spin-off, 1994 1st 8” Wafer Fab in Taiwan

• TMC: ITRI spin-off, 1988 1st Mask Company in Taiwan

• TSMC: 1st12” Wafer Fab in Taiwan, 2002

7μm 1.5μm 0.35μm 0.18μm 0.13μm 0.09μm 0.065μm

2000

Revenue: US$ 33.3 billion (2004)4th in the world─IC Foundry: 8 million wafers, Revenue US$12 billion, first in the world

linewidth

12” Wafer

ITRI and IC manufacturingITRI and IC manufacturing

2005

• Nursing• Trend setting• Clustering

5Copyright 2008 ITRI 工業技術研究院

Four stages of Taiwan IC technology development

United Microelectronics→ Established basic technology

TSMC→Professional foundry services as strategic approach

Vanguard→Self brandname DRAM

SoC Design Center→Innovation-oriented

* UMC 80→ ERSO, RCA

* TSMC 87→ ERSO

I TI-Acer 87→ TI, IBM

I Winbond 87→ Toshiba Entered DRAM market in 1998

I Mosel Vitelic 87→ Siemens

I MXIC 89→ Matsushita Entered DRAM market in 1997

* Vanguard

94→ ERSO, Etron

I PSC 94→ Mitsubishi

I Nan Ya 95→ Oki, IBM

I ProMOS 96→ Siemens

I Rise 98→ Winbond ,Toshiba

Main technology sourcesITRI電子所ITRI

IC

FoundryIDM

DRAM

SoC

Source: ITRI (2004/03)

Milestones of Taiwan semiconductor industryMilestones of Taiwan semiconductor industry

6Copyright 2008 ITRI 工業技術研究院

Source： ITRI/IEK(2006/03)

～

～

1985 1990 1995 2000

60

20

Market share (%)

U.SNo.1

U.SNo.1

TaiwanNo.2

TaiwanNo.2

CanadaNo.3

CanadaNo.3

ChinaChina JapanKoreaSingapore

•IP

•Innovation

•IP•Innovation

• Newly emerged• Domestic -driven market

• Quick Tech follower

• Cost - down

• U.S & Taiwan together capture over

90% of WW market share

Fabless realizing IT innovationFabless realizing IT innovation

Foundries favor fablessFoundries favor fabless

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Fabrication, Wafer Probing and Dicing

WaferStarts

WaferSlicing

261 Fabless

4Leadframe

36 Testing34

Packaging

4 Mask

8Wafer

MaskChip Design Packaging

19 Chemicals

Final Testing

13Fabrications

15Substrate

Backbone of the Taiwan IT industry Backbone of the Taiwan IT industry -unique disintegrated infrastructure-unique disintegrated infrastructure

Source: ITRI/IEK (2007/03)

8Copyright 2008 ITRI 工業技術研究院

Taiwan optoelectronic industryTaiwan optoelectronic industry

1995 1996 1997 1998 1999 2000 2001 2003 2004 ...

CD-ROM

Scanner

FAX

LED

CD-R

TFT-LCD

PC Camera

MFP

MP3 Player

LCD Projector

LIGHT LED

Fiber Optics

PDP

HD-DVDDSC

Printer

DVD

8,58 Billion

1999 200532,65 Billio

nRevenue (US$ Billion)

IC design IC design IC manufacturing IC manufacturing Assembly Assembly Key component developmentKey component development

9Copyright 2008 ITRI 工業技術研究院

ITRI contributed significantly in upgrading ITRI contributed significantly in upgrading Taiwan to a technology powerhouseTaiwan to a technology powerhouse

Establish the foundations of Taiwan’s semiconductor industry span off the United Microelectronics Corporation (UMC) in

1979 span off the Taiwan Semiconductor Manufacturing Company

(TSMC) in 1987 Support the information industry

started development of a basic input-output system (BIOS) for IBM compatible PCs

powered Taiwan to become the world’s fourth largest producer of information & communication industry products

Breakthrough in flat-panel display technologies 7 local TFT LCD makers and 4 color film makers were

established with investment of some US$ 3 billion has reached the world-class level