MeasureFor the men and women of Hewlett-Packard / JULY 1967

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When photograph of an HP monolithic inte­grated circuit at right is finally reduced. it willfit into one of the tiny squares on the siliconwafer shown actual size at left. Hundredsof such images. known as chips. are producedon each wafer.

ICs:

New generation of migho It eems like only the day before yesterday, or at mostthe year before last, that the electronics industry first beganto talk much about integrated circuits.

There was broad speculation about how these tinymicroelectronic devices- third generation functional de­scendents of the vacuum tube and the transistor-wouldaffect existing types of products, and how their size andlow cost would encourage development of entirely newtypes of products. There were reports and rumors con­cerning the impact their use would eventually have withinour own industry.

Well, now ICs have arrived. Already any of anumber of types are being used in computers, in carradios, in portable television sets, hearing aids, missilecomponents, appliance controls, and in electronic measur­ing instruments such as HP's new counters. And there aregreat expectations for further important advances in theiruse. For its part, HP now is manufacturing ICs of its owndesign for its own use, and is marketing a number ofproducts using these and other ICs.

The most obvious thing about an integrated circuitis its size, or rather, its lack of same. The thin little chipwhich is the real heart of the IC could easily be picked upand carried off by an ant. Even in finished form, with itswire leads protruding from a protective plastic shell, anHP integrated circuit has about as much bulk as a jelly­bean. Yet, that insignificant looking unit can do jobs thatpreviously required dozens of separate electronic parts.The IC has all these-diodes, transistors, resistors- bu tin miniature.

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In spite of this real breakthrough to compactness incircuit design, it does not necessarily follow that all productswill be scaled down in size. In the first place, according toF&T Division's Ed Hilton, products still must be engineeredfor use by human beings. This sets a limit to how smallmany product components such as knobs, displays, andpanels can be made. But more importantly, for instrumentsat least, it is expected to lead to the addition of more andmore functions in each instrument. In this way, many ofthe descendents of present-day HP instruments may notshow great reductions in size, but they will be much moreversatile.

Job for job, though, there i no doubt that integratedcircuits will lead to lower costs and product prices. Usingintegrated circuits, the new HP 522IA and 5216A electroniccounters, for example, perform all the functions of con­ventional counters available today, but at about halfthe price.

Toughness and reliability are two other major claimsmade on behalf of ICs. Lacking the usual maze of separatecomponents and interconnections, IC-based productssimply have fewer connections and parts that might gowrong. Moreover, the tiny ICs themselves are rugged andcan be easily encapsulated in protective plastic.

Well, just what is an integrated circuit? One en­gineer has suggested that it can best be visualized byimagining how a familiar printed circuit board would lookif it were shrunk to a small fraction of its original size. Thischip would be on the order of one-tenth of an inch squareand only a few thousandths of an inch thick. Yet a mag-

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ty midgetsnified view would reveal an amazing complexity of elec­tronic circuitry on its surface.

Actually, an IC does start out as a series of large-scaledrawings on an engineer's drafting table. The drawingspresent a pattern of active, passive, isolation, and inter­connection regions that will function as a circuit withinthe square surface of the chip. By a process of micro­photography, the master artwork is so reduced thathundreds of reproductions are patterned on the surfaceof a silicon wafer that's smaller than a half-dollar. Followinga series of six complex steps that involve repeated masking,etching, and depositing of ultra-thin layers of conductiveor resistive materials, the wafer is scribed and broken intothe individual chips known to the industry as monolithicintegrated circuits.

There are other types of ICs-thin film, thick film,and hybrid variations-and HP has the capability todesign and manufacture these, too. At present, manyfirms produce ICs commercially. Prices have shiftedrapidly downward as volume and technology have ad­vanced. Early models of ICs sold for hundreds of dollarseach; today some are priced under a dollar, dependingupon complexity and volume.

HP has kept an interested eye on integrated circuitsright from their inception. About two years ago, after all ofthe pros and cons had been weighed, the decision was madeto go ahead with development of the company's owncapability in IC design and production.

The reasons were clear. Only by maintaining controlof the design of the circuitry in its products could the

Single chip. above. is shown mounted in center of an IC frame.to which it is connected by microscopic wires. HP integratedcircuit module. as shown below. has been completed byencapsulating it in plastic with legs bent downward so theIC can be soldered to a printed circuit board.

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ICs ( col/lil/ued)

company expect to remain creative in the development ofthose products. In addition, HP's requirements for com­plexity, performance and unique design frequently wouldrule out the use of commercially produced ICs.

Though most HP divisions now are involved in ICs,there is no likelihood of any sudden mass changeover fromexisting circuitry, but rather a continuing shift toward theiruse as more and more circuits become available in IC form.

As this change occurs, other changes will becomeapparent. By replacing many components with HP's ICs,the company's purchasing pattern will change. A cor­respondingly higher proportion of HP-produced parts willbe in use. There will be a modification of production

procedures reminiscent of the shift to printed circuitssome years ago.

Many observers believe that the total electronicproducts market will surge upward with an avalanche ofcompletely new or improved industrial and consumerproducts based on integrated circuits. Many of them maytake "mini" form-perhaps wristwatch radios, pocket-sizecolor TV sets, or portable computers within pocketbookrange of the average student.

As one writer put it: "Any nation that could fall inlove with the electric toothbrush is really ripe for the greatnew gadgets that integrated circuits will make possible forthe consumer." D

Max Schuller. technical director of HP'slargest integrated circuit facility and majorcontributor to the companys Ie capability.

TRANSISTORDIODE

Walt Smith. head of F&T photo lab. checks adjustment of HP-designed step­and-repeat camera that makes final photo reduction of integrated circuitdesigns. Using the light of a laser beam as a guide. the camera is programmedto position itself automatically to an accuracy of 12-millionths of an inch foreach of the hundreds of photographs reproduced on a single plate. F&T's DonCross was largely responsible for development of the camera.

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RESISTOR

Typ'· al cross section of an HP monolithic integratedci shows the complex. interrelated layers ofse nductor material that make up the IC.

Sharon Martin inserts a "boat" of IC wafers into furnace that treatsthem at high temperature. one of several major steps in creatingfinished chips on surface of a silicon wafer.

Using gossamer-thin aluminum wire. microscopic connections aremade by ultrasonically joining points on an IC chip to the frame.At the controls is F&T's Frances Hartman-Kok.

Production and testing of ICs require microscopic techniques. Atleft. masking and alignment machine operated by Ilona Lehel isvisible in background. while Sonia Whitelaw. foreground. inspectsa stage in wafer manufacturing. Above is multiple probe. withwhich operator can simultaneously and automatically test eachchip while in wafer form.

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TAKING $TOCK

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o In the minds of many people, Wall Street and thestock exchanges are places of mystery inhabited by frock­coated financial wizards making complicated transactionson behalf of jewel-clad dowagers.

Actually, the basic functions of the stock market arequite simple. On the trading floor of the 175-year-old NewYork Stock Exchange, for example, what looks like chaosis in reality an organized and regulated arena whererepresentatives of people who wish to buy stock meet withthe representatives of people wishing to sell.

Let's see what happens when shares of HP stock arebought or sold. First, such buy and sell orders can beinitiated by an investor through any of the 3,800 offices ofthe 651 brokerage firms licensed to trade on the New YorkExchange. As quickly as it is received, an order is phonedor wired to the exchange floor.

Here is where the action takes place. If the order isfor an even or "round" lot of shares-increments of 100­it is phoned directly to one of the broker's representativeson the floor.

He carries the order to the floor position occupied byMarcus & Company, an exchange firm specializing inHewlett-Packard stock along with the securities of 37 otherwell-known corporations. Here, in the hands of the HPspecialist, the buy and sell orders coming in from allsources are executed. In effect, the specialist buys thestock himself and then makes it available to buyers. In mostcases he will maintain an inventory of stock for tradingpurposes, and in the event of a heavy selling surge he willbuy heavily for his own account in order to insure anorderly market.

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Another, lightly different procedure exists for stocksold in odd lots-lots of less than 100 shares. Such ersare placed in the hands of one of the several brokera tnswhose principal business is odd-lot trading. Slightly higherbrokerage fees are charged for handling such orders, whichthey then package into round lots and trade in normalfashion through the specialist.

Hewlett-Packard common stock first came intoin 1947 when the original partnership was transforme 0

a corporation having a capital structure of 3,000,000 shares(now authorized to 15,000,000 shares, of which 12,361,966shares were outstanding at the end of the first half of HP's1967 fiscal year).

The first public offering of the company's stoc smade in 1957 when Dave Packard and Bill Hewlett 0 d300,000 shares through the investment banking firm ofBlyth & Co., Inc. At the same time, HP distributed 60,000shares to employees as bonuses and made available another50,000 shares for purchase under stock options.

HP shares then began public trading in the over-the­counter market.

Results of the e developments, plus a three-for-onestock split in 1960, were a broadening of HP stock owner­ship and a widening of national distribution of 100-sharelots of the stock.

Another result: making HP stock more readily a\"ail­able to employees in order, as the prospectus to the Hewlett­Packard Company Employee Stock Purchase Plan of 1959stated, "to foster continued cordial relations by allowingthe maximum number of employees to participate heownership of the company under conditions finallyattractive to the employees."

Chaos? No. just typical activity on the floor ofthe New York Stock Exchange. where each daysome 10.000.000 shares of stock are bought andsold in almost 90.000 individual transactions. Since1961. Hewlett- Packard stock has been traded hereand on the Pacific Coast Stock Exchange.

A final result was the listing in 1961 of HP stock onth stigious New York Stock Exchange and on thePa Coast Stock Exchange.

How has HP stock performed? As most stock brokersand security analysts will testify, HP stock has been a quietperformer compared to many stocks in the electronicsindustry. Fluctuations in its market price have generallyb mild, and seldom has the stock gained a position ont C1aily "most-active" list. Nevertheless, its quotedtrading price has moved in 10 years from a low of $15.75 ashare (equal to $5.25 after adjusting for the stock split) to ahigh that was hovering around $80 last month.

Eligible HP employees, of course, receive the benefito 5 percent contribution by the company for sharespurchased under the stock purchase plan. As oflastJanuarythere were 5,333 employees participating in the plan­well over half of all eligible employees. Many employeeswho invest the maximum allowed under the plan alsopurchase additional shares through their own brokers.

One question that keeps coming up before companypersonnel officers is whether the stock purchased under theplan can be sold at any time. The answer is yes, by signingover your stock certificates in the presence of a stock brokeror banker. There are no restrictions on resale or transferof the stock. Under New York Stock Exchange rules, youwill receive cash settlement in five working days.

Today, America's 22-million investors hold II-billionshares of listed securities worth more than $520-billion.On average trading day, about lO-million shares (about5,"J, f them HP stock) are bought and sold in almost90, individual transactions. No wonder the stock ex-change floor's brisk activity gives the impression of chaos! 0

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brief

Colorado Springs-Occupancywill begin in mid-J uly at ColoradoSprings Division's new 154,000­square-foot building. More thandoubling plant size, the new struc­ture will house engineering, manu­facturing and warehousing activi­ties as well as an employeecafeteria.

Palo Alto-HP Labs has movedinto a newly completed, 30,000­square-foot addition at the Stan­ford plant.

SacraII1ento-Two HP execu­tives- Frank Cavier, vice presi­dent and secretary, and JohnCage, director of the specialprojects laboratory, HP Labs­are on loan for 16 weeks to theState of California. They areamong 150 key management per­sonnel from California industryand professions who are servingon the Governor's Survey onEfficiency and Cost Control. Sur­vey teams are studying all func­tions of the executive branch ofCalifornia government with thegoal of providing "essential ser­vices at the least possible cost andin the most efficient, businesslikemanner. ,. Cavier is serving on theagriculture and resources study

News •In

team, Cage on the education team.Survey results are to be given toGovernor Ronald Reagan bySeptember.

Avondale-For active marketingof its Pennsylvania-made instru­ments to countries abroad, F&MScientific Division has been madea charter member of the state's"export corps" formed by Gover­nor Raymond P. Shafer. JimTebay, division marketing mana­ger, received the award duringthe first Pennsylvania interna­tional trade seminar, held recentlyin Harrisburg. F&M and theother 57 charter members havereceived the President's "E"award for exceptional accom­plishments in exporting. A thirdof the division's production is soldabroad.

Palo Alto-Bill Hewlett has beenelected a vice president of Stan­ford U niversi ty's board of trustees,of which he has been a membersince 1963.

Mountain View-Deleon Divi­sion has been awarded a 1967Putman Honors Award for itsultrasonic translator detector­cited as "a major contribution

toward more efficient and effec­tive operation of food plants."Alan Simpkins, Deleon's generalmanager, accepted the awardJune 15 from Putman PublishingCompany, publisher of Food Pro­cessing & Alarketing magazine.

San Francisco-The HP "show­boat"-a suite aboard the SantaLeonor in which electronic instru­ments are demonstrated-sailedagain late last month. On thisfourth voyage she is carrying suchindustrial electronic instrumentsas counters, oscilloscopes, signalgenerators and voltmeters to sevenLatin American portS.

Avondale-The F&M ScientificDivision is among the initialmembers of the newly formedanalytical instrument section ofthe Scientific Apparatus MakersAssociation. The section's mem­bers are manufacturers of instru­mentation designed to analyze thecomposi tion or characteristics ofmatter.

Palo Alto-HP's future plansrate tops in employee interestamong all categories of articlesand features in MEASURE, and94 percent of the HP work forceread the magazine. These wereamong key findings of a recentsurvey of readers' attitudes to­ward the company and MEASURE.

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People on the move

Deleon-Ken Conroy, R&D staff, MicrowaveDivision-to engineering staff, Deleon; ~oel Damon,development engineer, systems group, Dymec-toengineering staff, Deleon.Dymec-Tom Perkins, administrative manager,corporate R&D-to marketing manager, Dymec.Eastern Sales Region Sal Oi Giovanni, chemicalsiaff representative-to field representative· chemical),Englewood; Jim Fill.patrick, staff en~ineer to fieldengineer. Englewood; Al Napolitano, accountingstafT. ~ti(rowavc Division to administration mana­ger, Eastern Sales-Burlinglon.F&T-Len Kraska, engineering-to manufacturingengineering; Dale Ridenour, production engineer,Oymce-to frequency standards manufacturing,F&T; john Templeman, section manager, trans­formers, Paeco-to printed circuit prototype shop,F&T.HP Associates-jim Courtice, corporate exhibitsmanager, corporate Marketing-to marketing staff,HP Associates,HP Labs-Charles Adams, frequency standards,F&T Division-to Physical Electronics Lab, HPLabs; Bob Gray, manager computer memory section,Dymec-to Physical Electronics Lab, HP Labs;Dan Lansdon, engineering manager, F&T Division­to administrative manager, corporate R&D; Darlene

Watson, frequency standards, F&T Division-toPhysical Electronics Lab, H P Labs,Harrison-Harry Mayo, field engineer, EasternSales-Englewood-to product manager, TV picturemonitors, marketing staff, Harrison Division,HP~Palo Alto-Frank Burkhard, editor HP journal-to corporate Engineering staff; Bill Gross, marketingmanager, Oymec-to corporate Marketing staff;Vince Morgan, Palo Alto office services-to PaloAlto finance staff; Larry Rayher, R&D staff, Micro­wave Division-to corporate engineering EDP co~

ordination, corporate Management Services; StanSmith, corporate Customer Service-to corporatesystems planning, corporate Management Services;Frank Westley, personnel manager, DYOlec-tocorporate Personnel staff; Cal Worley, marketingmanager, Mountain View Division- to corporateMarketing staff.International-Asbjorn Horn, in training, PaloAlto International Operations-to sales department,HPSA; Mike Meara, in training, Palo Alto Inter­national Operations-to electronics sales engineer,Export Marketing,Microwave-Mike Chambreau, corporate Manage­ment Services-to production control systems staff,Microwave; Ev McKeen, inplant production engi~

neering-to manufacturing engineering; Bob Perdriau,special products engineer, Sanborn to contractengineer, Microwave; Russ Perricone, from section 2production supervisor-to master scheduler, pro­duction control; Larry Stratford, corporate ~Ianu­

facturing Engineering-to manufacturing engineering,

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Microwave Division; Bill Swift, R&D staff-lOapplications engineer; :\ancy Thoman, secretan togeneral manager, Dymec-lO secretary to generalmanager, Microwave; Dave Weibel, computermanufacturing supervisor, Dvmec-to manager,computer systems manufacturing, Micro\.\ave,Mountain View- Lew Bohnstedt, manufacturingmanager-to division planning manager; HowardBossert, production engineering, ~1icrowave Division-to manufacturing engineering, ~Iountain ViewDivision; Mel Byrns, production control, MicrowaveDivision-to production control, Mountain ViewDivision; Ed Daw, sales manager, Melabs-tomarketing manager, Mountain View Division;Bill Girdner, magnetic tape engineering staff, Micro­wave Division to engineering staff, Mountain ViewDivision; John Hartman, production control, Micro­wave Division to materials manager, MountainView Division; Curt Kohanek, production control,Dymee Division-to production control, MountainView Division; Ray Smelek, manufacturing manager,HP Ltd,-to manufacturing manager, MountainView Division; Gordon Smith, machine shop super­visor, Dymec-to model shop lead, Mountain ViewDivision,Neely Sales Region-Glenn Stewart, producttraininK, corporate Marketing:- to staff engineer,Neely-Palo Alto,Western Service Center Earl Norris, countermanufacturing, F&T Division-to F&T repairdepartment, \VSC; Stewart Peck, data processingsupervisor, Dymec- to inventory control staff, \VSC.

from the chairman's desk

Last month in Palo Alto we had a two-day meeting of all our manufacturingdivision managers and marketing region managers. The purpose of the meetingwas to review our performance for the first half of the fiscal year, to evaluatetargets for the second half, and to exchange ideas and views on a number ofdifferent subjects affecting our operations, both short and long term.

As our company grows larger, these meetings are especially useful instrengthening inter-divisional communications, in generating fresh approachesto problems, and in setting common goals and objectives for all our divisions.We covered a broad range of subjects at the June meeting, a few of which I wouldlike to review here.

We discussed, at some length, our product quality and reliability. Ananalysis of warranty costs over the past several months indicates that we have toput increasing emphasis, in every division, on maintaining the high standardsof quality associated with HP products. As I have pointed out in the past, qualitycan't be added on to an instrument; it must be built in. It begins at the designstage, and carries on through every step in manufacture and testing.

Good quality requires careful attention to details and an awareness oneveryone's part that the customer is our ultimate taskmaster. If we cannot con­sistently provide him with instruments that work properly and reliably, he willbuy them from someone else. I hope all of you will remember this and will doyour utmost to see that every HP instrument merits our customers' confidence.

Another important subject discussed at the meeting was the increasing needfor qualified, well-trained people at all levels in the company. Because of therapid growth of our product line, the need for good engineers and technicians isespecially great in our field sales organization and our other marketing groups.

We are tackling this problem in a number of different ways. It was agreedat the meeting, for example, that we need to do a more effective recruiting jobat various colleges and universities. We need to have more of our people takeadvantage of the many training programs that are offered throughout the companyso they can broaden their knowledge and skills. We also need to do a better jobof evaluating individual performance and determining which of our people havethe potential to be good supervisors and managers. The whole subject of manage­ment development is one that demands our increasing attention as we continueto grow and thereby create more opportunities for our people.

We also talked about, and re-emphasized, the importance of broadeningemployment opportunities for minority groups. Several of our divisions have takenthe lead in their respective communities in developing programs to train thesegroups and to help them find worthwhile jobs. We want to continue and accelerateour efforts in this direction as a means of obtaining good people and doing some­thing constructive about a pressing social and economic problem.

Our meeting covered a number of other subjects, all of which were discussedwith considerable thoughtfulness and enthusiasm. I sensed from this meeting areal determination throughout our management group to turn in a record-breakingperformance in the second half of our fiscal year, and to build a solid foundationfor continuing growth in the years ahead.

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MeasureEDITORMerle Mass

ASSOCIATE EDITORles Carpenter

ART DIRECTORTom Martin

CONTRIBUTING EDITORS COLORADOSPRINGS. Ed ligan. OYMEC. Joe Bailey.EASTERN SALES. New England area. RuthAmbrose • New York City area. DorothyClink • Philadelptll& area. Barne Wilmarth .F&M SCIENTIFIC. Charles Butler • FRE­QUENCY &. TIME. Karen Austin. HARRISON.Dorothy McMahon • HP ASSOCIATES.Suzanne Garratt. HP BENELUX. Amsterdam.Conny Koedam • Brussels. Helene Meylema"s• HP (CANADA). Doug P,dduck . HP GmbH.Ann PatnCla Haupl., . HP FRANCe. JacquesSruga'•. HP LTD. South Queens'any. JaneCampbell • Slough, Ann,ka Hannaford •HP 5 A. Sid Mann. HP VrnbH. Hans Hubman"• LOVELAND. Walt Skowron. MICROWAVEDean Abramson . MIDWEST SALES. RonRosen. MOSElEY. Frank Hicks. Jr • MOUNTAIN VIEW. Ray ratmal1 . NEELY SALES.MIke Talbert • ROCKAWAV, Jokn RICCI •SANBORN. Janet Dale. SOUTHERN SALES.North Carolina are.. Virginia Thornton 'Flonda area. Gene Cline· Te.as area. HelenHobson· VOKOGAWA·HP. Yosuke Ishikawa

1501 Page Mill Road, Palo Alto, California 94304

HP goesto the races

One's a soap box racer and theother a powerful stock car, but they'reboth running against precision HPelectronic counters! The last weekendin June saw Colorado Springs HPitesloaning their time and equipment totwo local racing events: the ColoradoSprings Soap Box Derby and theworld-renowned Pikes Peak HillClimb.

When 80 youngsters trundledout their homemade racers to viefor a trip to the National Soap BoxDerby finals in Akron, Ohio, HPwas ready and waiting. Two cars ata time, each clocked by an HPcounter, were released at the top ofa hill. As they zipped across thefinish line at the bottom, the countersstopped, giving a readout of elapsedtime to the nearest thousandth of asecond.

HP scored a "first" the next dayat the Hill Climb: initial use ofelectronic timing equipment in theevent. As the powerful stock andracing cars, piloted by top flightdrivers, roared up the winding roadto the peak their elapsed times werecounted and then printed out by HPdigital printers, giving judges animmediate and accurate record ofeach car's performance.

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