Introduction to Nankang IC Design Incubation Center ITRI/STC June/15/2009

Introduction to Nankang IC Design Incubation Center

ITRI/STCJune/15/2009

Why Fabless IC Design Industry?

Worldwide Semiconductor Industry

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

( )營收百萬美元

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

半導體營收 $101,800$144,400$131,900$137,200$126,600$149,400$204,400$138,900$140,800$166,400$213,000$227,500$247,700$255,644$248,603$194,797$209,032$227,544$253,400

成長率 0.00% 41.85% -8.66% 4.02% -7.73% 18.01% 36.81% -32.05% 1.37% 18.18% 28.00% 6.81% 8.88% 3.21% -2.75% -18.00% 6.00% 9.00% 5.50%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue:US (M)

1994-2000

CAGR=12.32%

2001-2008

CAGR=8.67%

2009-2012

CAGR=9.16%

Revenue

Gross Rate

Fabless Industry

Fabless IC Design Industry still maintains reasonable double digit growth rate.

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

( )營收百萬美元

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

設計營收 $3,248 $5,921 $6,729 $7,435 $7,280 $10,183 $16,983 $13,307 $14,632 $22,347 $33,362 $38,977 $49,591 $53,000 $51,000 $48,894 $57,901 $71,904 $87,170

成長率 0 82.30% 13.65% 10.49% -2.08% 39.88% 66.78% -21.65% 9.96% 52.73% 49.29% 16.83% 27.23% 6.87% -3.77% -4.13% 18.42% 24.18% 21.23%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue:US (M)

Revenue

Gross Rate

1994-2000

CAGR=31.74%

2001-2008

CAGR=21.16%

2009-2012

CAGR=21.26%

Larger Cooperations have more advantages?

Worldwide Top 20 Semiconductor Companies in 2008

Rank2008

Rank1998

CompanyRevenue

2008Growth

Rate

1 1 Intel 34,274 -2.0%

2 6 Samsung 20,500 3%

3 5 TI 11,816 -11%

4 4 Toshiba 10,092 -6%

5 - TSMC 10,566 8%

6 9 STM 9,516 10%

7 - Renesas 7,836 -2%

8 20 Sony 6,750 -6%

9 - Qualcomm 6,477 15%

10 - Hynix 6,324 -31%

Worldwide top 20 ： US(8) 、 Japan(6) 、 Europe(3) 、 Korea(2) 、 Taiwan(1).The revenue of TSMC: $10.57B(Top 5).Fabless IC companies ： QUALCOMM(Top 9) 、 Broadcom(Top 19) 、 NVIDIA(Top 20).More than 50% Top-20s in 1998 drop out in 2008 list.

資料來源 : GSA. Dataquest. iSuppli

Rank2008

Rank1998

CompanyRevenue

2008Growth

Rate

11 - Infineon 6,095 6%

12 16 AMD 5,962 -1%

13 2 NEC 5,853 5%

14 - Micron 5,320 -4%

15 - NXP 5,218 -13%

16 - Freescale 5,113 -6%

17 10 Fujitsu 4,472 -2%

18 - Panasonic 4,418 16%

19 - Broadcom 4,658 23%

20 - Nvidia 3,425 -16%

US$(M)

Worldwide Top 10 Fabless Companies in 2008

Rank2008

Rank1998

CompanyRevenue

2008Revenue

2007Growth Rate YoY(%)

Main Product

1 - QUALCOMM $ 6,477 $ 5,619 15 % CDMA/3G Chipset

2 10 Broadcom $ 4,658 $ 3,774 23%Broadcast, DSL, Ethernet, WLAN,

VoIP

3 17 NVIDIA $ 3,425 $ 4,098 -16% Graphic IC

4 - Marvell $ 2,951 $ 2,895 2% Ethernet, WLAN, HDD

5 - MediaTek $ 2,755 $ 2,472 11%GSM/GPRS/WCDMA,DVD,DTV

IC

6 N/A LSI $ 2,677 $ 2,604 3% Storage and Network Chip

7 3 Xilinx $ 1,906 $ 1,809 5% FPGA

8 - Avago $ 1,665 $ 1,554 7% Analog/Mixed Signal

9 2 Altera $ 1,367 $ 1,264 8% FPGA

10 - SanDisk $ 1,030 $ 1,284 -20% Flash 、 Memory CardTop 10 ： US(9) 、 Taiwan(1).More than 60% companies in 2008 Top-10 list are new.

Source ： GSA (2009/03)

US$(M)

Why Taiwan?

Worldwide Foundries in 2008

Top 10 ： Taiwan(3) 、 Singapore(2) 、 China(3) 、 Korea(1) 、 Europe(1).The worldwide market shares of TSMC and UMC are 66% ； Taiwan’s worldwide market share in foundry is around 68.5%.

Rank2008

Company Country

Global Market Share

2002 2003 2004 2005 2006 2007 2008

1 TSMC Taiwan 55% 51% 47% 50% 49% 48% 50%

2 UMC Taiwan 25% 24% 24% 20% 19% 18% 16%

3 Chartered Singapore 6% 6% 7% 7% 8% 7% 8%

4 SMIC China 1% 3% 6% 7% 7% 8% 6%

5 Vanguard Taiwan 0% 2% 3% 2% 2% 2% 3%

5 Dongbu S. Korea 3% 3% 3% 2% 2% 3% 3%

7 X-Fab Europe 1% 1% 1% 1% 1% 2% 2%

8 SSMC Singapore 1% 1% 2% 2% 2% 2% 2%

9 HHNEC China 2% 1% 2% 2% 2% 2% 2%

10 He Jian China 0% 0% 1% 2% 2% 2% 2%

Source ： IC Insights ； IEK/ITRI (2009/03)

Worldwide Assembly & Testing in 2008

2008

Rank

2007

RankCompany Country

2008

Revenue2007

RevenueGrowth

Rate

2008

Market

Share

1 1 ASE( 日月光 ) Taiwan $3,016 $3,086 -2% 15%

2 2 Amkor( 艾克爾 ) UAA $2,658 $2,739 -3% 13%

3 3 SPIL( 矽品 ) Taiwan $1,917 $1,967 -3% 10%

4 4STATS Chip PAC

( 新科金朋 )Singapore $1,658 $1,631 2% 8%

5 5 Powertech( 力成 ) Taiwan $954 $744 28% 5%

6 7 UTCA( 聯測 ) Singapore $711 $765 -7% 4%

7 6 ChipMOS( 南茂 ) Taiwan $519 $718 -28% 3%

8 8 KYEC( 京元電 ) Taiwan $417 $413 1% 2%

9 9 嘉盛 (Carsem) Malaysia $370 $372 -1% 2%

10 10 Unisem Malaysia $365 $341 7% 2%

Top 10 ： Taiwan(5) 、 Singapore(2) 、 Malaysia (2) 、 USA(1). Rank 1:ASE 、 Rank 3: SPIL. Taiwan’s assembly & testing revenues accounted for 47.3% of the worldwide total. Taiwan has unique and complete vertical integration supply chain.

Source ： Gartner (2009/02)

US$(M)

Taiwan Top 10 Fabless Companies 2008

Rank

1998

RankCompany

2008

Revenue

1998

RevenueGrowth

RateProduct

1 4 MediaTek $ 2,755 $85 11% GSM/GPRS, DVD, DTV IC

2 - HiMax $ 1,005 N/A 10.9% LDC Driver IC

3 6 Novatek $ 798 $73 -28% LCD Driver IC

4 - Phison $ 575 N/A -8% Flash Controller IC

5 8 RealTek $ 510 $64 6%Ethernet/WLAN/LCD

Controller IC

6 2 VIA $ 242 $181 -46% PC Chipset

7 9 Etron $ 230 $64 -43% DRAM/SRAM IC

8 - Richtek $ 207 N/A 11% Power Management IC

9 - Sitronix $ 195 N/A 12% LCD Driver/ Micro controller

10 - Raydium $ 193 N/A 51%LCD driver IC/ LEDDriver/ P

ower Managerment IC

Source:GSA(2009/04).IEK

The top 10 fabless companies in Taiwan are small-medium enterprises except MTK.The revenue of Taiwan IC design industry accounted for 24% of the worldwide total.

Average Average Average

Growth Rate GPM NPM

Worldwide Fabless Top10 30% 45% 25% 20%

Taiwan Fabless Top10 30% 30% 20% 10%

Operation Cost

US$(M)

Background & Goals

Strategies

Introduction of Nankang IC Design Incubation Center

Background & Goal

Project funded by government to grow fabless IC design industry in Taiwan since 2003.

STC

Nan-kang IC DesignIncubation Center

Incubated Companies Syncpower, 5VT, Kolorific, Terminus, IC ARTiS, …

•High Added Value•Fast Growth Rate•Excellent Profit Margin

Technical, financial, and other services

Strategic Alliances

• EDA Vendors• Measurment instruments vendors• Design Services• VCs

Technology Transferand Joint Development• ITRI• Universities

Strategies

Capital Requirement IC Design Infrastructure Government Incentive Program Semiconductor Industrial Alliance VCs

Talent Pool ITRI/STC Service & Support ITRI/STC Joint-development

Technology M&A ITRI/STC Transfer Industry Collaboration

Member Qualifications

Qualifications: Fabless IC design start-ups registered in Taiwan within 3 years Fabless IC design SME registered in Taiwan & has joint-develop

ment or needs technical services/support of ITRI/STC.

All applications are subjected to be approved by the committeefor membership of the incubation center

Application Process:

Submit Business Plan

Committee Meeting

Conclusion Approval

Reviewed by the

Incubation Center

Application Documentation

Documents to be submitted for application: One business plan or brief report for application which contains:

Basic Information and Current Status of the Company Product and Technology: IC related technologies and the innovativeness and market value analysis of th

e product Management Team: Background information on company officers and main managers Financial Plans: Projected financial statements for the next three years Other Items: EDA usage plans, SWOT analysis , and other information if necessary

Incubation Services Items-IC Design Automation Computing Center

Beseline Services ： Network

Provide one set of L2 Switch: 24 ports 10/100Base + 2 Gigabit Ethernet ports

Optic fiber network is deployed and tested To allocate VLAN to each company for ensuring data securi

ty Firewall for network access control

Servers To provide half-sized server rack space

Storage To provide 50GB RAID storage.

＊ Free Services

Incubation Services Items-IC Design Automation Computing Center (Continue)

Beseline Services ： Backup

Full Backup (once per week) Incremental Backup (once per day) The backup data will be preserved at least one month.

Server Room Entrance control UPS Environment monitoring & auto-reporting system 24-hour temperature & humidity control

＊ Free Services


IC Design Automation Computing Center- Optional Server Leasing and Management Storage Leasing and Management Customized Data Backup Remote Backup Services IT management technical service

＊ Provide favorable rate


IC Design Automation Computing Center- Operation Model

Firewall

Firewall

Mail Server

WEB Server

Storage & BackupServers

FOUNDRYNETWORKS FastIron Edge 2402

Console

PS1PS2

Power12

1314

FDXFDX

Lnk/ActLnk/Act

Internal File Server

License Servers

EDA ComputingServers

Management Servers

1Gb Fiber

1Gb Fiber

Terminal or PCFor Login to

EDA Computing Servers

PC For OA

SYST RPS

STRT DUPLXSPEEDUTIL

MODE

Catalyst 2950SERIES

1 2

3

4

5

6

7

8

9

10

11

12

1

2

15

16

17

18

19

20

21

22

23

24

13

14

Office Spaces

Server Room

Computing Server 由廠商自行採購育成中心提供部份Server租用。

育成中心提供Foundry FES-2402

裝置雙網卡以同時連接EDA Domain 與

OA Domain

ADSL Router

INTERNET


Incubation Services Items-EDA Tools

EDA Tools (EDA-On-Demand) Fault-tolerant license server scheme and license management. Management, update & maintenance of various EDA tools and bi

nary executable version. EDA tool environment setups EDA Vendors ： Cadence, Synopsys (Synplicity), Tanner, Incentia

….

＊ Exact Favorable rate is subject to the EDA Vendors’ offerings.

Incubation Services Items-Measurement Lab

Measurement Lab Measurement equipments and open lab space for

leasing.

Measurement Equipment Services:　Vendor Agilent 、 LeCroy 、 R&S 、 Tektronix

Categories

Signal Generator 、 Spectrum Analyzer 、 Oscilloscope 、 Logic Analyzer…etc

Duration Weekly/ Monthly/ Quarterly

＊ Provide favorable rate

Incubation Services Items-Measurement Lab

Incubation Services Items-Design Service & MPW

Design Service & MPW Global Unichip CORP

Foundry ： tsmc (0.35um~65nm)Vanguard(0.5um~0.18um) EE solution

Foundry ： tsmc(0.25um~0.13um) 、 UMC(0.5um~90nm) 、 SMIC(0.35um~0.13nm) 、 HEJIAN(0.18um) 、 TOWER (0.35um~0.18um)

Uleadtek Foundry ： IBM(0.35um~90nm) 、 Chartered(0.35um~90nm) 、

UMC(0.5um~0.18um) 、 Vanguard(0.5um~0.18um) 、 GSMC (0.25um~0.13um) 、 HHNEC (0.35um~0.18um) 、 X-fab(0.25um~0.18um) 、 HEJIAN(0.35um~0.18um)

Incubation Services Items-Office Space & Administration

Item Cost Payment Term Remarks

Free of Charge items Conference room & exhibition zone

No

Appliance No Projector, shredder, refrigerator, microwave oven….

Administration supports

No Mails delivery, repair claiming assistance, miscellaneous information provision

Services charged by costs Rent + admin. cost Approx.

USD$1.4/feet2 Quarterly payment

1坪 = 35.6 Square Feet

Water, electricity & air conditioning

Yes Monthly payment

Electricity—independent-metered electric bill Water & air conditioning—proportionate share of

the building’s bill ($ per rent area) Copy Card USD$10/each 500 copies available

Security entrance badge

USD$3/each While move-in

Office Space & Administration

Incubation Services Items-Office Space & Administration (Continue)

Space Saving (Example)

No other separate large meeting room is needed in office.

About 10% office space can be saved.

No computing server room is needed in office.

No cost on electricity and air-conditioning.

About 5% office space and 10% water and electricity expenses can be saved.

•Lab bench and other basic facilities are provided with 24 hr access.

•No extra lab is needed in the office.

About 10% office space can be saved.

Space available

Actual space rented

Meeting room/

break room

Free

Computing Server room

Free

Laboratory space is open.

Usage fee is charged accordingly.

Incubation Services Items-Office Space & Administration (Continue)

Cost Saving (Example) Original rental, water and electricity expenses are about USD$ 6,270 (Take 3500 Square Feet for example)

Location Size USD/Month

Main Office 2275 ft2

(Actual Size:65P)

4,800

Lab 105 ft2 152

Meeting Room 290 ft2 727

Rental Water + ElectricityLocation USD/Month

Main Office 364

Lab (Electricity /Air Condition) 76

Server Room (Water/Electricity /Air Condition)

152

Partial expenses absorbed by NKIC USD$955

Reduce approximate 15% more! (955÷6,270)

0

0

0

Incubation Services Items-Joint Research & Design

Joint-Research & Design EDA tools evaluation & design methodology / flow

development ITRI technology transfer and consultation. IC joint-development

Incubation Services Items- Knowledge-Based Services

Knowledge-Based Services

VC Alliance

Technical Seminars

Financial Consulting

Industrial Technology Investment CorporationTalents Recruit

Services

Government Incentives

項目主辦單位

補助方式補助額度對象 /範圍備註

New Leading Products Program

MOEA-IDB

補助款

總經費 40% 為上限 1.新興高科技開發之產品，符合「晶片系統國家型科技計畫」前瞻產品、平台分項計畫範圍。

2.產品關鍵技術需超越國內目前工業技術水準。

配合晶片系統國家型科技計畫總目標，協助半導體產業開發潛力 IC產品，並推動 SoC 科技之整合。

ITDPIndustrial Technology Development Program

MOEA-IDB

專案貸款

1. 前瞻性、重大影響技術開發：總經費 40% 為上限。

2.一般技術開發：總經費 30% 為上限。

各開發產業技術之廠商

SBIRSmallBusinessInnovationResearch

MOEA-department of industrial technology

補助款

先期階段 -個別申請： NT100 萬為上限研發聯盟： NT500 萬為上限研究開發階段 -個別申請： NT1000 萬元為限研發聯盟：申請家數 x NT1000 萬，最高至 NT5000 萬

1. 依公司法設立之本公司2.資本額 NT8,000 萬元以下或加入勞

保員工人數 200 人以內之中小企業。

3. 無欠稅紀錄，且於近五年內未曾因執行政府相關科技專案計畫有解除合約紀錄者。

SMEGsmall and medium enterprise credit guarantee fund of Taiwan

MOEA-Small and Medium Enterprise Administration

貸款協助

1. 不得超過該計劃所需經費之 80%

2. 最高 NT 一億元3.保證成數最高九成

1.實收資本額 NT 8,000 萬元以下。2.連續營業達半年以上，或經常僱用員工人數未滿 200 人，且連續營業已達 1年以上。

1.透過信用保證，分擔銀行辦理中小企業貸款之信用風險，提升銀行貸款意願。

2.協助信用無嚴重瑕疵，具發展潛力但擔保品不足的中小企業取得銀行融資。

Convenient Transportation NetworkConvenient Transportation Network

Nan-Kang Software ParkNan-Kang Software ParkSong Shan Song Shan AirportAirport

Xinyi Dist.Xinyi Dist.

XizhiXizhiTianmuTianmu

Taipei Main Taipei Main StationStation Taipei City Taipei City

Downtown Downtown

30 minutes30 minutes




KeelongKeelong

XindianXindian

SanchongSanchong

ZhongheZhonghe

XinzhuangXinzhuang

TaoyuanTaoyuan

CKS CKS AirportAirport

Hsinchu Hsinchu Science ParkScience Park

Taipei CountyTaipei County

Nei Hu

Transportation Map

( 國道五號 )

Public Transportation System-NowPublic Transportation System-Now Easy access to major highways and expressways -Chungshan First Highway -The Second Freeway -The National Highway No.5 -Huan Dong Blvd

About 2 minutes drive to the above connections to other Taipei areas

By MRT

Nankang Software Park Station (will be available in Dec. 2008)

By Bus

經貿園區站 311 、 620 、 645 、 629 、 51 、 281 、小 1 、藍 12 、藍21 、藍 22 。南港站 203 、 205 、 212 、 276 、 306 、 281 、 605 。

Nangkang Software Park sulttle bus

Tien-Mu Line 、 Tu-Chen Line 、 Pei-To Line 、 Chung-Ho Line

Parking

Parking spaces for visitors in NK Software Park Phase I & II

Monthly rental parking spaces around NK Software Park

Railway + Metro + High Speed Rail in Nangkang

High Speed Rail in Nangkang － Starts from Dec./2010

Taiwan Railway in Nangkang － Starts from Dec/2008

Metro in Nangkang － Nangkang Line & Neihu Line ：Nangkang Line ( 南港站 ) － Starts from Dec/2008

Neihu Line ( 南港軟體園區站、南港展覽館站 ) － Starts from

July/2009

Public Transportation System-Public Transportation System-FutureFuture

View of Nangkang Software Park

H

G

F

Contact Window

STC/ ITRI: Amanda Lee Phone: 02-2655-7155 ext.318 E-Mail ： [email protected] Fax: 02-2655-7115 Address: 10F, No.3-2, Yuanqu St., Nan-Kang District, Taipei City

STC/ ITRI : Miranda Soon Phone: 02-2655-7155 ext.323 E-Mail: [email protected]

STC/ ITRI : Rita Huang Phone: 02-2655-7155 ext.328 E-Mail: [email protected]

Ｑ＆Ａ