toshiba’s technology strategy · 2016-10-18 · global hydrogen infrastructure market global...

© 2016 Toshiba Corporation

Toshiba’s Technology Strategy The Driver of Renewed Growth

Dr. Naoto Nishida Executive Officer and Corporate Executive Vice President Toshiba Corporation

October 18, 2016

© 2016 Toshiba Corporation 2

1. Today’s Realities and Toshiba’s Basic Technology Policy

2. Technology Development: Organization, System and Roles

3. Responding to Pressing Social Issues with Innovation


The Current Situation in Technology Development: Trend in Research and Development Expenditures over 20 years

In the midst of management change, a consistent focus on technology

◀ R&D Expenditure

R&D expenditure/net sales ▶ 450 400 350 300 250 200 150 100 50 0

Unit: billion yen

Note: R&D expenditures in past years consist of the expenditures incurred across the business mix and include now discontinued businesses.

A 20-year average research and development expenditure ratio of 5.6% Also expected to be about 6% in FY16


The Current Situation in Technology Development: Research and Development Expenditures by Business

Continuing balanced, up-front investments in focus businesses

Raise R&D expenditures for power systems, infrastructure and electronic devices over 5 years from 72% to 90%

Track record to FY15 FY16

Memories, nuclear power

+ Generation of new growth businesses

• Batteries (SCiB™) • Power electronics • Energy IoT • Media intelligence

200

150

100

50

0

Unit: billion yen

Electronic devices

Power systems, social infrastructure, community solutions, and health care

Digital products, home appliances

Others

Fiscal year

Investments prioritized in focus areas

Impact of sale of Toshiba Medical Systems

Electronic devices Energy & infrastructure

Progress in structural reform

Work in ICT solutions accelerated

Digital products & home appliances

Others

Focus on technologies capable of generating cash flow

Note: R&D expenditures for past years cover costs incurred across the business mix and include businesses which are now discontinued.


Basic Policy on Technology Development

Substantial Solutions that solve social issues

Fully utilize Toshiba’s product strengths and existing connections with customers through its products.

■Examples of contact with customers through products Power generation turbines*1

4,344 units shipped worldwide

Industrial PV panels

6.7 million panels shipped worldwide

Rechargeable batteries

approx. 20 million cells shipped worldwide

Commercial air-conditioning

370,000 units a year shipped worldwide

Smart meters

6.56 million units a year shipped worldwide*2

MFP

320,000 units shipped worldwide

NAND-type flash memory

90 billion gigabytes shipped worldwide

POS cash registers

370,000 shipped worldwide

Note : Based on Toshiba research *1: Nuclear power, thermal power, hydropower, geothermal total *2: 2014


Strategy for Policy Implementation

Solve social issues with substantial solutions

Use innovative technologies to create substantial products offering high level functionality, quality and cost competitiveness ▼AP1000™ ▼SCiB™ ▼BiCS FLASH™ ▼Apply AI to improve semiconductor processes, and more Technologies that turn unique, substantial products into solutions ▼Weather and disaster prevention solutions ▼Hydrogen solutions ▼Low-carbon energy solutions ▼Energy management solutions ▼Store solutions with robot, and more Information technologies that convert data from substantial products into customer value ▼Image recognition processor ▼High-speed retrieval technology for large-scale data ▼RECAIUS™, and more Technologies that fully utilize synergies from multiple businesses and bring core competences to multi-faceted development ▼Heavy-ion radiotherapy systems, and more

1

2

3

4


The mother entity is the applied techno-logy center for mass production techno-logies for TVs, PCs, home appliances, etc.

Provide information and communication technologies that were cultivated by a huge number of customers to a variety of business, both inside and outside Toshiba

Established “Co-Creation Planning Department". Promote technology tie ups and technology provision to external customers

Changes in Research and Development Organization 1960 1970 1980 1990 2000 2010

Central Research Lab. Research & Development Center

Systems & Soft- ware Eng. Lab.

ULSI Research Labs.

Corporate Software Engineering Center

Manufacturing Engineering Center Corporate Manufacturing Engineering Center

Information & Communi- cation Systems Lab.

Communi- cation Sys.

and Tech. Lab

Information & Communi- cation Systems Lab.

Mobile Computing & Communi- cations Development Center

Information Sys.

Eng. Lab.

Computer & Network

Dev. Ctr.

Computer on Silicon Dev. Ctr. Core Technology

Center Consumer Prod. Eng.

Lab.

Audio-Video Prod. Eng. Lab. Consumer

Products Eng. Lab.

Video & Electronics

Media Eng. Lab

Multimedia Engineering Lab.

Personal and Multimedia

Sys. Dev. Ctr.

Major Appliance Engineering Dept.

Major Appliance Prod. Eng. Lab.

Airconditioners & Appliances Engineering Lab.

Data Storage Development Ctr.

Home Appliances R&D Center

Semiconductor Device Engineering Lab. Microelectronics Engineering Lab.

Process & Manufacturing Engineering Center

Device Process

Dev. Ctr.

Electron Device Engineering Lab. LCD Research and

Development Center

SoC Research &

Development Center

New Material Eng. Lab. Materials and

Devices Dev. Ctr.

System Integration Technology Ctr.

Heavy Apparatus Engineering Lab. Heavy Apparatus Engineering Lab.

Nuclear Engineering Lab.

Medical Engineering Lab.

Corporate Research & Development Center

Center for Semi- conductor R&D

Power & Industrial Systems Research & Development Center

Healthcare Technology Center

Platform & Solution Development Center

Lifestyle Solutions Development Ctr.

IoT Technology Center

Corporate Solutions Development Center

Established new Corporate Solutions Development Center (April 2016)

Energy & Infrastructure

Medical & Healthcare

Semiconductors & Materials

Digital, Visual, Information Systems & Home Appliances

Consumer Products Engineering Laboratory

Med. Eng. Lab

Med. Systems R&D Center


Research & Development Organizations

Corporate Research & Development Center Corporate Solutions Development Center Corporate Manufacturing Engineering Center

Toshiba Research Europe, Ltd. - Cambridge Research Lab. - Telecommunications Research Lab.

Toshiba America Research, Inc.

Toshiba (China) Co. Ltd. R&D Center

Toshiba Software (India) Pvt. Ltd. R&D Division

Technology and engineering divisions

Company’s R&D Organizations

Corporate’s R&D Organizations

Overseas R&D Organizations

Power and Industrial Systems Research and Development Center

Center for Semiconductor Research & Development

IoT Technology Center

Energy Systems & Solutions Company

Infrastructure Systems & Solutions Company

Storage & Electronic Devices Solutions Company

Industrial ICT Solutions Company

Toshiba TEC Corporation

Toshiba Carrier Corporation

Toshiba Elevator and Building Systems Corporation

Toshiba Lighting & Technology Corporation

Materials & Devices Division

Toshiba Solutions Corporation

Toshiba Client Solutions Co., Ltd.

Toshiba Visual Solutions Co., Ltd

Corporate


Research and Organizations: Roles and Resource Allocations

• Technologies for new business creation • Technologies to solve future business

challenges • Research, development, accumulation,

application and deployment of advanced fundamental technologies that can be utilized across multiple business

In the company business area: • Business problem-solving

technology • Development of cutting-edge

technologies and differentiated technologies

Problem-solving in respect of the business division's products and services; implementation of cutting-edge technologies and differentiated technologies

Engineers also in direct dialog with customers

approx.77% approx.11% approx.12%

Corporate R&D organizations

Company technology division

Group companies

Product planning,

Sales, Procure-

ment, Manufac-

turing

Customers

Company R&D organizations

3 years ahead

5 years ahead Future Targets for turning technologies

into products and services

Company R&D organizations

Corporate R&D organizations

Company technology divisions

R&D expenditure breakdown (FY16)





• The information explosion • The increase in greenhouse gases • An aging society and decreasing workforce • Intensifying extreme weather

and natural disasters


A World of Complex Problems and Challenges

Respond to globally diversifying challenges and aim to develop together with society

Information explosion

Amount of data generated worldwide ― approx. 4.4 zettabytes (2013) approx. 44 zettabytes (2020) Increase in cyber attack victims

worldwide (2013) ― approx. 380 million per year, over 1 million a day, approx. 12 in every second

Aging of social capital

Maintenance and upgrade

costs of infrastructure inspection in Japan ― approx. 5.1 trillion yen(2023) in maximum

Aging of Japan’s waterworks

facilities ― 2031-2035 upgrade costs over 1.4 trillion yen / year

Extreme weather and natural disasters

Landslide disasters in Japan ―

approx. 10,500 cases in 10 years Cost of crop damage from

natural disasters in Japan ― 23 billion yen (2014)

Global warming

Global CO2 emissions ― approx. 31.6 billion tons(2012) approx. 34.2 billion tons(2020) Global increase in energy

consumption ― approx. 9.3 billion tons (2000) approx. 19.3 billion tons(2040)

Aging

Global life expectancy at birth ― approx. 71 years (2010-15) approx. 77 years (2045-50)

Number in elderly people in

the world ― surpasses 1 billion (2030)

Decrease in the labor force

Working-age population per

elderly person in Japan ― 3.6 (2000) 1.2 (2050) In 2030, there will be labor

shortages in nine of the 11 G7+BRICs countries

Traffic congestion

Deaths from road traffic injuries worldwide ― approx. 1.4 million a year Time lost due to congestion in

Japan ― the time caught up in traffic jams is approx. 40% of total drive time

Expanding inbound

Number of foreign tourists visiting Japan in recent years ― toward 20 million people

Logistics

Global number of letter-post items per year ― approx. 330 billion items (2014) Increase in courier and mailing

service in Japan ― approx. 9.1 billion items (2014, 2x 10 years ago)

Increase in health care costs

Global medical equipment

market ― approx. 363.8 billion dollars (2013) approx. 513.5 billion dollars (2020)

Insights into Social Foundations Insights into Life

million 20

15

10

5

0 1964 70 80 90 2000 2010 15

year

estimated approx.

19.74 million people


Social Issues Worthy of Particular Attention Responding to the information explosion

Responding to an aging society and decreasing workforce

Responding to the increase in greenhouse gases

Responding to intensifying extreme weather and natural disasters Instances of heavy rain of 50mm/h and over (Japan)

average 229 instances (2005-2014)

Number of landslides (Japan)

approx. 10,500 instances (in 10 years)

Cost of flood damage (Japan)

more than 5 trillion yen (in 10 years)

Crop damage due to natural disasters (Japan) approx. 23.0 billion yen

(2014)

Internet penetration rate in global population

Amount of data generated worldwide

2025 approx.

67.6% 2015 approx.

43.8%

2020 approx.

44zettabytes 2013 approx.

4.4zettabytes

Number of IoT devices connected to the internet worldwide

2020 approx.

53billion 2013 approx.

15.8billion

CO 2

CO 2

Global renewable share in power generation

Global hydrogen infrastructure market

Global investments in renewable energy

Global CO2 emissions

2012 2040

approx.

33% approx.

21% 2020 over

10trillion yen

2030 close to

40trillion yen 2040 approx.

80trillion yen

2015 approx.

286billion dollars Global warming will push over 100 million people back into poverty by 2030

2012 approx.

31.6 billion tons

billion tons

2020 approx.

34.2

Life expectancy at birth, globally

Number of people bearing burden of social security for the aging (Japan)

Global aging

2045-50 approx.

77years 2010-15 approx.

71years

2000 2050

approx.3.6 approx.1.2 Number in elderly people in the world surpasses 1 billion (2030)


Responding to the information explosion

Value to provide

• Highly integrated and highly reliable storage systems • Improved productivity that applies big data and AI • In-vehicle high-speed processing for safe

transportation • Application of AI to realize services that understand

human intent • High-speed data retrieval that can handle ever-

increasing data volume

► BiCS FLASH™

► Semiconductor manufacturing process improvements through AI

► High-performance sensing processor

► RECAIUS™, Cloud AI services capable to handle audio and visual data

► Large-scale high-speed data retrieval technology

Solution technologies

Exhibit

Exhibit

Exhibit

Exhibit

Internet penetration rate in global population

Amount of data generated worldwide

2025 approx.

67.6% 2015 approx.

43.8%

2020 approx.

44zettabytes 2013 approx.

4.4zettabytes

Number of IoT devices connected to the internet worldwide

2020 approx.

53billion 2013 approx.

15.8billion


BiCS FLASH™

Strategy 1. Innovative technologies to create superior products Toshiba’s technology strategy which realizes “Substantial Solutions”

48 layers

► Mass production of 48-layer products ► A 64-layer device that will be first in the

world to start sample shipments*

► Improve integration density per unit area through multi-layering

► Technologies to improve manufacturing yields and for further multi-layering are under development

64 layers

BiCS FLASH™ Gen.2 Gen.3 Gen.4

Layer

Drill

Embed Layered state

Cylindrical electrodes

Memory cells

* As of July 27, 2016. Toshiba survey.

Steadily establish the technology line-up that realizes the memory structure necessary for the era

Provide highly integrated storage devices


Applying Artificial Intelligence to Improve Semiconductor Manufacturing Processes

Strategy 3. Information technologies that convert data into customer value

Strategy 1. Innovative technologies to create superior products

Take advantage of artificial intelligence and analyse information using big data from Yokkaichi Operations

Support business growth by improving yields and reliability Every day, more than 1.6 billion data points, output by approximately 4,000 units of manufacturing and inspection equipment, are collected in real time

Inspection image analysis Product yield monitoring

Automatic classification of 200 thousand wafer images per month. Amount of average time required to estimate the cause of a defect reduced from 6 hours to 2 hours

Automatic classification of data on 100 kinds of failure from 300 thousand SEM* images a day. Deep Learning has boosted the automatic classification rate from 49% to 83%

* SEM: Scanning Electron Microscope

Toshiba’s technology strategy which realizes “Substantial Solutions”

Exhibit


Image Processing Technologies A 50-year history and a strong track record of application in a variety of products and fields

RECAIUS™

Big data high-speed retrieval

Product recognition POS cash registers

High-performance sensing processor

Semiconductor defect image analysis

■Currently active

Automated mail-processing systems

■Application outcome

Image translation

1967 Demonstration of post code automatic reading and sorting machine


High-Performance Sensing Processor

Strategy 3. Information technologies that convert data into customer value

Strategy 2. Technologies that create unique product solutions

Expertise in the development and implementation of accumulated image recognition technologies Towards active safety

and advanced autonomous driving

► Unique image features and recognition algorithm improve nighttime performance.

► Application of deep learning and artificial intelligence to developing advanced recognition will realize autonomous driving in collaboration with Denso Corporation.

► Solutions combined with infrastructure are also planned.

Need for active safety to suppress rise in traffic accidents. Growing market for autonomous driving.

Toshiba IT & Control Systems has commercialized an image analysis box built around the processor. It offers the functions of intrusion detection, retention analysis, and people counting while reducing the communication load on the camera network.

Sign recognition Traffic signal recognition

Cyclist detection

Auto high beam control Vehicle collision

warning (day and night)

Lane departure warning

General object detection

Pedestrian collision warning (day and night)


Exhibit


Responding to the increase in greenhouse gases

CO 2

CO 2

Global renewable share in power generation

Global hydrogen infrastructure market

Global investments in renewable energy

Global CO2 emissions

2012 2040

approx.

33% approx.

21% 2020 over

10trillion yen

2030 close to

40trillion yen 2040 approx.

80trillion yen

2015 approx.

286billion dollars Global warming will push over 100 million people back into poverty by 2030

2012 approx.

31.6 billion tons

2020 approx.

34.2 billion tons

• Stable energy supply • Realize a low-carbon society • Expand use of renewable energy

► Hydrogen solutions

► Energy management solutions

► Low-carbon energy solutions

Exhibit Separate speech

Value to provide



Responding to an aging society and decreasing workforce

Life expectancy at birth, globally

Number people bearing social security burdens from aging (Japan)

Global aging

2045-50 approx.

77years 2010-15 approx.

71years

2000 2050

approx.3.6 approx.1.2

Number in elderly people in the world surpasses 1 billion (2030)

• Active safety by advanced driving assistance • Provision of treatment measures that maintain QOL • Solutions for workforce shortages in stores and

warehouse

► High-performance sensing processor

► Heavy-ion radiotherapy systems

► Store solutions with robots

Separate speech

Exhibit

Exhibit

Exhibit

Value to provide



Heavy-ion Radiotherapy Systems Cancer treatment solutions that reduce burdens on patients

Provide treatment opportunities for many patients

‣ First in the world to use a superconducting magnet (Delivered to National Institute of Radiological Sciences in 2015*1; order received from Yamagata University Hospital)

‣ Irradiation is controlled by tracking the movement of the tumor from breathing

‣ Developed a technology that learns a position of the tumor in advance and tracks it in real time without surgically implanted body markers

Lightweight and compact, with rotating gantry

High-speed 3D scanning irradiation

Respiratory synchronization

Marker-less tumour tracking (in cooperation with QST*1)

‣ Pinpoint irradiation according to the shape of the tumor (track record*2 of application on more than 1,000 patients at National Institute of Radiological Sciences)

High-speed 3D scanning irradiation


Can irradiate through 360° in all directions

Achieves irradiation with reduced damage to normal tissue

Range shifter Scanning magnet

target

Respiratory synchronization

*1 National Institutes for Quantum and Radiological Science and Technology, National Institute of Radiological Sciences *2 National Institute of Radiological Sciences Handbook (April 11, 2016)


Strategy 4. Technologies for multifaceted deployment of core competencies

Exhibit


Responding to intensifying extreme weather and natural disasters

Instances of heavy rain of 50mm/h and over (Japan) average 229 instances

(2005-2014)

Number of landslides (Japan)

approx. 10,500 instances (in 10 years)

Cost of flood damage (Japan)

more than 5 trillion yen (in 10 years)

Crop damage due to natural disasters (Japan)

approx. 23.0 billion yen (2014)

• Predict increasingly frequent, sudden, localized rain downpours

• Issue pinpoint accurate advisories

► Weather and disaster prevention solutions

Exhibit

Value to provide



Weather and Disaster Prevention Solutions Cooperate with social infrastructure to provide a solutions base for

disaster prevention Aim to reduce disasters caused by sudden torrential rain, etc.

Conventional

Toshiba’s cutting-edge technology

5 minutes needed for a simple observation

Phased array weather radar

Parabolic type weather radar

Large spatial and temporal gap Difficult to predict localized heavy rain



Strategy 2. Technologies that create unique product solutions

High-density observation possible

in just 30 seconds

Approx. 10 rotations to change angle of elevation

One rotation captures approx. 100 elevation angles

simultaneously

Note: Part of the outcome of phased array weather radar is from joint research with Osaka University and Toshiba, by commissioned research project “Research and development on next-generation Doppler radar technology” from National Institute of Information and Communications Technology. Note: The field test is being carried out as a part of “Research and development on forecast technology of torrential rain and tornado”, in Cross-ministerial Strategic Innovation Promotion (SIP) Program’s Project “Strengthening functionality of disaster prevention and mitigation”. SIP is led by Council for Science, Technology and Innovation, Cabinet Office, Government of Japan.

Possible to observe growth of raindrops in the clouds Predicts local heavy rain in the near future (10s of minutes) Supports issues of warnings, Protects lives and property

Traffic control

Local broad- casting station

River manage-

ment office

Urban transport

Hospitals Municipal warning issuance

Pumping station

Sewage works

Pump station, surveillance

facility

Monitoring room

Pumping station

Radar information Data analysis

Exhibit


Cutting-edge technologies that solve emerging social issues

► Magnetoresistive Random Access Memory (MRAM)

► Quantum cryptography communication (UK)

► Self-amplifying reporter DNA

► Knowledge base construction "DeepDive" (US)


A Commitment to Developing Advanced Technologies Magnetoresistive Random Access Memory (MRAM)

Achieve low power consumption computing

Memory that has the high speed performance of SRAM and the non-volatility of NAND-type Flash Memory.

Demonstrates high speed and low power operation in 1Xnm size elements*1. Cross-section view of MTJ

(Transmission electron microscope photograph)

16nm

*1 This work includes results from the "Normally-off Computing" project funded by Japan's NEDO (New Energy and Industrial Technology Development Organization). *2 The work was partly supported by the Commissioned Research of National Institute of Information and Communications Technology (NICT), Japan.

Quantum cryptography communication (UK)

Robust protection of personal information and transaction information, etc.

Research at Toshiba’s Cambridge Research Laboratory has achieved the world’s highest performance and is being developed towards practical use*2.

Toshiba has begun to show future applications in the banking industry, in collaboration with the UK’s BT Group plc.

Self-amplifying reporter DNA

Instantaneous discovery of diseased cells at very early stage

Joint research with the Nara Institute of Science and Technology on development of an agent that identifies changes in genomic information.

First realization of highly sensitive reading of genome information changes in live cells.

Knowledge base construction "DeepDive" (US)

Discover "awareness" hidden in large amounts of text

Joint research with Stanford University. Automatic extraction of relationships between words in text through machine-based learning from rough examples. Reduce the cost of constructing knowledge bases.

Documents Web

Knowledge base

MTJ: Magnetic Tunnel Junction


Conclusion

Toshiba’s Technology

Solves diversifying social issues by providing substantial solutions

and aims to grow and develop along with society.