before the integrated circuit

8/3/2019 Before the Integrated Circuit

1/20

BEFORE THE INTEGRATED

CIRCUIT


2/20

INDUSTRY FOCUS

The Semiconductor Industry

Companies profiled in this PowerPointdesign and manufacturing the capacitor,transistor and eventually the Integratedcircuit

What companies were there?

Texas Instruments, FairChildSemiconductor, Intel

Then and now they compete forsize/scale, power/performance and on

cost/production time through their chipmanufacturing


3/20

PAST LEADERS

December 23rd 1947

William Shockley,

Walter Brattain andJohn Bardeensuccessfully createdthe point contacttransistor

This one clip of metalcreated thesemiconductorrevolution

ATT/Bell improved thedesign and they

replaced vacuumtubes in computers


4/20

PAST LEADERS

Gordon Teal of TexasInstruments createdthe silicon-based

junction transistor

TI utilized theinvention to producethe first transistorradio

The new componentssimplicity allowed theprice to drop, allowingfor the first time itsuse in manycommercial products


5/20

PAST LEADERS

1955 -ATT/Bell Labs

Texas Instruments

Fairchild Camera andInstrument Corp.

The TRADIC shownhere was developed

by ATT&T Bell Labs.It was the first fullytransistorizedcomputer and usedonly 1/20th thepower of vacuum

tube computers


6/20

PAST LEADERS

Jean Hoernis Planarprocess was inventedby Fairchild Camera

and Instrument Corplater re-created asFairchildSemiconductor

This allowed printingdirectly on the surfaceof the transistor

Robert Noyce tookthis and invented theintegrated circuit andeventually with Moore

founded Intel


7/20

THE PRESENT

COMPETITION

Fairchild Camera andInstrument Corpproduced the widelydistributed NPNtransistor and becomean industry standardworkhorse.

Previously, in 1956Gordon Moore andRobert Noyce ranaway from thecompany to foundIntel later on.


8/20

DIFFERENTIATION: TI

Texas Instruments-

#1 Producer of Digital Signal Processor #2 Supplier of Cellular Handset Chips

#4 Manufacture of semiconductors afterIntel, Samsung and Toshiba

Focus- Sensors, RFID, IC, MicroControllers


9/20

DIFFERENTIATION:

FAIRCHILD

FairChild Semiconductor-

2

nd

Largest MOSFET supplier in theWorld

Integrated Power Solutions

Transistors

Diodes

There significance continues today with1.18 billion in revenue (2009), 124.3million shares outstanding and 8563employees


10/20

FAIRCHILD REBORN AS

INTEL

Intel-

Fairchild Semiconductor eventuallyspun two leaders off to create Intel,Intels founders Robert Noyce andGordon Moore worked for Fairchild.

35.127 billion in revenue (2008)

4.369 billion net income (2008)

41.70 billion in equity (2008)


11/20

PRODUCTS THEN AND NOW

TI

Junction transistor

Single chip processor

Single chip LPCsynthesizer

Single source fordigital LightProcessors

RFID (Radio Tags)

ICs and MicroControllers

FairChild and Intel

Silicon transistor

MOSFET circuitry

Diodes/Transistors

Intel

Microprocessors


12/20

CONCEPTS AND THEORIES:

TEXAS INSTRUMENTS

Customers as Innovators

Wanted cheap circuits for a new wave of massproduced electronics

Design

Used fine wires to connect circuits

Disruptive Innovation

Invented diffused based silicon transistor which led

to Noyces Invention

Blue Ocean

50% of All phones use TI chips

RFID- Radio Frequency ID tags used in most containershipping


13/20

CONCEPTS AND THEORIES:

FAIRCHILD

Customers as Innovators

Wanted powerful/ resilient chips that couldrun high performance jobs- IE: Computers

Design

Interconnected thin film deposit

Disruptive Innovation

Invented integrated circuit

Blue Ocean

Intel- Moore and Noyce created firstcommercially available microprocessor


14/20

SUPERVISE, SPECIALIZE

AND SYSTEMISE

Both Texas Instruments and FairChildSemiconductor were founded or started bygroups of highly skilled, visionary groups of

engineers These engineers when on to instill their

doing things first and right ideals to theirrecruits culled from the best engineeringschools in the country

Many of the orginal engineers and theirprotg when on to found still otherbreakthrough companies such as Intel

They led by example- through see one, doone, teach one

They lead by research and through sweat,trial and error


15/20

CORE COMPETENCIES

Value test and Rarity test

TI

Major world supplierof DSPs and cellphone processors-

because of theirmarket dominationin these categories,market entry wouldbe difficult anddominance allows forhigher price pointper chip

Intel

Number one supplierof computer chips inthe world-

Because of their

market dominationin PC processors,they can set pricesand work with othercomponent suppliersto keep withstandardizedproducts


16/20

OPPORTUNITIES AND

THREATS

TI

Continued expansioninto mobile markets

Core competencies indifferentiated/specialized chips

allows penetrationinto niche marketswhich are growing

Threats could includeplayers such as

Motorola, MIPS

Intel

Continued dominationof computer market,laptops, netbooks,home servers,corporate servers

Core competencies increating new powerfulCPUs and SystemBuses can be used aslevers into Digital TVs,Telecommunications,Automobiles

Threats could includeAMD VIA


17/20

MARKET CHANGE AND THE

FUTURE

TI

As long as TIcontinues tocreate highlyspecialized typesof chips and

expand thevariety of themthey will continueto succeed oversuch companies

as Motorola andSamsung

INTEL

As long as theysolveminiaturizationissues as they seekto design and

develop new morepowerfulprocessors, theywill continue todominate the

market of CPUsover Advance Micro


18/20

THE RUDDER

In the end what lead to the dominanceof Intel and not Texas Instruments or

FairChild Semiconductor can be tracedto one point in history-

The fact that the industry that theywere in preferred FairChilds IC due toits simplicity and durability. RobertNoyce (who invented the IC) thenfounded Intel

Moore and Noyce used the process toproduce wafer/layered Microchips


19/20

QUESTIONS

How do you think customers drive thedesign process for new processors?

Think: Computers, Cell Phones, XBOX360?

What do you think were the keypersonality traits Noyce, Moore, and

Teal had that made the companiesprofiled so successful?

How did they change the world we livein today?


20/20

END

before the integrated circuit

Documents