Mar

vell

Con

fiden

tial ©

2007

The

Futu

re o

f Sem

icon

duct

or In

dust

ry fr

om

“Fab

less

”Pe

rspe

ctiv

e

Roa

wen

Che

n, P

h.D

.

GM

and

VP

of C

onne

ctiv

ity B

usin

ess

Uni

t&

VP

of M

anuf

actu

ring

Ope

ratio

ns

Mar

vell

Sem

icon

duct

or

UC

Ber

kele

y S

olid

-Sta

te S

emin

ar

Feb.

1st, 2

008

2M

arve

ll C

onfid

entia

l ©20

07

Out

line

Intro

duct

ion

Fabl

ess

Bus

ines

s M

odel

Ado

ptio

n

Foun

dry

Tech

nolo

gy a

nd In

dust

ry T

rend

Obs

erva

tion

of th

eFu

ture

of S

emic

ondu

ctor

indu

stry

3M

arve

ll C

onfid

entia

l ©20

07

Sem

icon

duct

or B

usin

ess

Mod

els

Man

ufac

turin

gFo

undr

ypa

rtne

rs

Des

ign/

IP

Mar

ketin

g/Sa

les

Fabl

ess

Mar

vell,

Nvi

dia

Man

ufac

turin

g

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ign/

IP

Mar

ketin

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les

IDM

Inte

l, Sa

msu

ng

Inte

rnal

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ign/

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ufac

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gFo

undr

ypa

rtne

rs

Mar

ketin

g/Sa

les

Fab-

Lite

TI, I

nfin

eon

Sem

icon

duct

or m

anuf

actu

ring

mod

els

are

mig

ratin

g to

ass

et-li

ght

stra

tegy

4M

arve

ll C

onfid

entia

l ©20

07

Soar

ing

Cos

t of C

hip

Mak

ing

$0.2

$0.3

$0.4

$0.7

$1.3

$1.8

$3.0

$3.6

$4.3

$5.0

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

1983

1987

1990

1994

1997

1999

2001

2003

2005

2007

Year

FabCost ($B)D

ata

sour

ce:

UM

C

The

cost

of b

eing

IDM

is in

crea

sing

with

eac

h ne

w te

ch n

ode

adva

ncem

ent,

resu

lting

in a

out

sour

cing

phe

nom

enon

5M

arve

ll C

onfid

entia

l ©20

07

Fab

is s

impl

y un

affo

rdab

le b

y ID

M m

odel

2007

Top

20

Sem

icon

duct

or C

ompa

nies

by

Reve

nue

0510152025303540

Intel

Samsung

Toshiba

TI

STMicro

Hynix

Renesas

Sony

NXP

Infineon

AMD

Qualcomm

NEC

Freescale

Micron

Qimonda

Matsushita

Elpida

Broadcom

Sharp

($B)

Dat

a so

urce

: G

oldm

an S

achs

$7B

reve

nue

requ

ired

to s

uppo

rt 30

0mm

Fab

6M

arve

ll C

onfid

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l ©20

07

Why

Fab

less

Bus

ines

s M

odel

Attr

activ

e?

Demand

Y200

0

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and

Cyc

les

Y201

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Util

izat

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wor

sens

du

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dow

n tim

e,

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Lite

keep

s in

tern

al c

apac

ity

100%

load

ed,

whi

le…

IDM

cap

acity

bu

ilt fo

llow

s th

e de

man

d bu

t…H

ow to

dis

pose

ex

cess

cap

aciti

esw

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tech

nolo

gy

mov

es o

n ?

In H

ouse

Cap

acity

Sho

rtage

of

supp

ly d

urin

g bo

om ti

me!

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ss C

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Fab-

Lite

com

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Flex

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Fab

less

Mod

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ill P

reva

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Flex

ible

Fab

less

Mod

el w

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reva

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7M

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ll C

onfid

entia

l ©20

07

Fabl

ess

Sem

icon

duct

or G

row

th

050100

150

200

250

300

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Overall Semiconductor Sales ($B)

0102030405060

Fabless Sales ($B)

over

all s

emic

ondu

ctor

fabl

ess TS

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vell

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Top

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2007

)

9M

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Fabl

ess

Com

pani

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o lo

nger

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all p

laye

rs

0

1000

2000

3000

4000

5000

6000

7000

8000

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Nvidia

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Marvell

Media Tek

LSI

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Cirrus Logic

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11M

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onfid

entia

l ©20

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Proc

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Tech

nolo

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adm

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chno

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rent

iato

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nolo

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mor

e st

anda

rdiz

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tech

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th

e de

-fact

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ss

choi

ce to

day

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mic

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co

mpa

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tech

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ing-

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.

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lo

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diffe

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nolo

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e st

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Foun

dry

tech

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th

e de

-fact

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choi

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mic

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co

mpa

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dry

proc

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tech

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lead

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edge

.

12M

arve

ll C

onfid

entia

l ©20

07

Foun

dry

Tech

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Par

with

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C a

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13M

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onfid

entia

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07

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deg

rada

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Vd

dsc

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hysi

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With

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onfid

entia

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07

Futu

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rend

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Sem

icon

duct

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ry

Thre

e ty

pes

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pla

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in th

e fu

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s/Fo

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dom

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tand

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bec

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big

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sca

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win

Inno

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n an

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llabo

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e ou

r hop

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r fut

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succ

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nova

tions

nev

er d

ie. S

ome

pote

ntia

l top

ics

are

Non

-CM

OS

tech

nolo

gies

at m

atur

e pr

oces

s no

de. E

.g.,

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a-H

V po

wer

de

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effic

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), M

EMS…

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ow to

redu

ce h

igh

mas

k co

st (c

ritic

al fo

r inn

ovat

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tofly

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reak

thro

ugh

in n

ano-

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patib

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infr

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p re

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hani

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ts o

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r Man

ufac

turin

g (D

FM) a

mus

t for

45n

m a

nd b

eyon

d

15M

arve

ll C

onfid

entia

l ©20

07

Sum

mar

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Fab

cost

s sh

arpl

y in

crea

se d

urin

g th

e la

st d

ecad

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chno

logy

br

ings

onl

y in

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ch m

ay n

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stify

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sk o

f ow

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cess

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hnol

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mes

st

anda

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lysi

s of

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fabl

ess/

foun

dry

busi

ness

mod

el il

lust

rate

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at it

is

the

pref

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d m

odel

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xibi

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to a

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arke

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to fa

blite

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bles

sso

mew

here

in b

etw

een

65nm

and

32n

m

As

fabl

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beco

mes

mai

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, par

adig

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ands

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the

cost

of I

C’s

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acc

eler

ate

the

grow

th o

f sem

icon

duct

or

indu

stry

16M

arve

ll C

onfid

entia

l ©20

07

Para

digm

Shi

ft

““ Onl

y R

eal M

en h

ave

Onl

y R

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ave

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Fabs

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rry

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ers

III, C

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ers

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““ Onl

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o O

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l Men

Go

Fabl

ess

Fabl

ess ””

Mar

vell

Con

fiden

tial ©

2007

Than

k Yo

u