Commercializing Technologies for Global Market - ITRI Experiences Dr.-Ing. Liang-Han Hsieh, General Director International Business Center/ITRI in Tomsk, RF The XI th Innovation Forum 2008 Tomsk

Copyright 2008 ITRI 工業技術研究院 2 Key success factors - success comes from concerted efforts Science-based industrial park Research and technology organizations Taiwanese/Chinese “Diaspora” Entrepreneurship and the inherent culture of risk-taking Timing, market niche, highly intensive domestic competition and expansion Financial mechanism, government funds, VC, stock market, business angels, tax incentives IP protection International partnership Copyright 2007 ITRI 工業技術研究院

Copyright 2008 ITRI 工業技術研究院 3 Value creation for industry Enterprise development Business strategies, product development, production, marketing and sale, financial operations Enterprise development Business strategies, product development, production, marketing and sale, financial operations Market development customers, competitors Market development customers, competitors Technology development Fundamental research to prototype or pilot line Technology development Fundamental research to prototype or pilot line Value creation process Business functions in value chain: Research and development/design of products, services,or processes/production/marketing & sales/distribution/customer service Business realization Market entry Spin-off, incubation Proof of concepts Working prototype Application design Corporate design Market penetration strategy TT, IP Marketing

Copyright 2008 ITRI 工業技術研究院 4 RCA technology transferred (1976) 1975 Year UMC: ITRI spin-off, st 4” Wafer Fab in Taiwan TSMC: ITRI spin-off, st 6” Wafer Fab in Taiwan VIS:ITRI spin-off, st 8” Wafer Fab in Taiwan TMC: ITRI spin-off, st Mask Company in Taiwan TSMC: 1 st 12” Wafer Fab in Taiwan, μm 1.5μm 0.35μm 0.18μm 0.13μm 0.09μm 0.065μm 2000 Revenue: US$ 33.3 billion (2004) 4 th in the world ─IC Foundry: 8 million wafers, Revenue US$12 billion, first in the world linewidth 12” Wafer ITRI and IC manufacturing 2005 Nursing Trend setting Clustering

Copyright 2008 ITRI 工業技術研究院 5 Four stages of Taiwan IC technology development * United Microelectronics→ Established basic technology * TSMC→Professional foundry services as strategic approach * Vanguard→Self brandnameDRAM * 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 sources ITRI 電子所 ITRI IC Foundry IDM DRAM SoC Source: ITRI (2004/03) Milestones of Taiwan semiconductor industry

Copyright 2008 ITRI 工業技術研究院 6 Source ： ITRI/IEK(2006/03) ～～～～ ～～～～ Market share (%) U.S No.1 U.S No.1 Taiwan No.2 Taiwan No.2 Canada No.3 Canada No.3 China Japan Korea Singapore 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 innovation Foundries favor fabless

Copyright 2008 ITRI 工業技術研究院 7 Fabrication, Wafer Probing and Dicing Wafer Starts Wafer Slicing 261 Fabless 4 Leadframe 36 Testing 34 Packaging 4 Mask 8 Wafer Mask Chip Design Packaging 19 Chemicals Final Testing 13 Fabrications 15 Substrate Backbone of the Taiwan IT industry -unique disintegrated infrastructure Source: ITRI/IEK (2007/03)

Copyright 2008 ITRI 工業技術研究院 8 Taiwan optoelectronic industry CD-ROM Scanner FAX LED CD-R TFT-LCD PC Camera MFP MP3 Player LCD Projector LIGHT LED Fiber Optics PDP HD-DVD DSC Printer DVD 8,58 Billion ,65 Billion Revenue (US$ Billion) IC design  IC manufacturing  Assembly Key component development

Copyright 2008 ITRI 工業技術研究院 9 ITRI contributed significantly in upgrading Taiwan 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