BEFORE THE INTEGRATED CIRCUIT

INDUSTRY FOCUS

The Semiconductor Industry Companies profiled in this PowerPoint design and manufacturing the capacitor, transistor and eventually the Integrated circuit What companies were there?

Texas Instruments, FairChild Semiconductor, Intel Then and now they compete for size/scale, power/performance and on cost/production time through their chip manufacturing

PAST LEADERS
December William

23rd 1947

Shockley, Walter Brattain and John Bardeen successfully created the point contact transistor one clip of metal created the semiconductor revolution improved the design and they replaced vacuum tubes in computers

This

ATT/Bell

PAST LEADERS
Gordon

Teal of Texas Instruments created the silicon-based junction transistor utilized the invention to produce the first transistor radio new components simplicity allowed the price to drop, allowing for the first time its use in many commercial products

TI

The

PAST LEADERS
1955

-ATT/Bell Labs Instruments

Texas

Fairchild

Camera and Instrument Corp.

The

TRADIC shown here was developed by ATT&T Bell Labs. It was the first fully transistorized computer and used only 1/20th the power of vacuum tube computers

PAST LEADERS
Jean

Hoernis Planar process was invented by Fairchild Camera and Instrument Corp later re-created as Fairchild Semiconductor allowed printing directly on the surface of the transistor Noyce took this and invented the integrated circuit and eventually with Moore founded Intel

This

Robert

THE PRESENT COMPETITION

Fairchild

Camera and Instrument Corp produced the widely distributed NPN transistor and become an industry standard workhorse. in 1956 Gordon Moore and Robert Noyce ran away from the company to found Intel later on.

Previously,

DIFFERENTIATION: TI

Texas Instruments#1 Producer of Digital Signal Processor #2 Supplier of Cellular Handset Chips #4 Manufacture of semiconductors after Intel, Samsung and Toshiba

Focus- Sensors, RFID, IC, Micro Controllers

DIFFERENTIATION: FAIRCHILD

FairChild Semiconductor2nd Largest MOSFET supplier in the World

Integrated Power Solutions Transistors Diodes

There significance continues today with 1.18 billion in revenue (2009), 124.3 million shares outstanding and 8563 employees

FAIRCHILD REBORN AS INTEL

Intel

Fairchild Semiconductor eventually spun two leaders off to create Intel, Intels founders Robert Noyce and Gordon Moore worked for Fairchild.

35.127 billion in revenue (2008) 4.369 billion net income (2008) 41.70 billion in equity (2008)

PRODUCTS THEN AND NOW

TI
Junction Single Single Single

FairChild and Intel

Silicon

transistor

transistor circuitry

chip processor

MOSFET

chip LPC synthesizer source for digital Light Processors (Radio Tags)

Diodes/Transistors Intel Microprocessors

RFID ICs

and Micro Controllers

CONCEPTS AND THEORIES: TEXAS INSTRUMENTS

Customers as Innovators

Wanted cheap circuits for a new wave of mass produced 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 container shipping

CONCEPTS AND THEORIES: FAIRCHILD

Customers as Innovators

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

Design

Interconnected thin film deposit

Disruptive Innovation

Invented integrated circuit

Blue Ocean

Intel- Moore and Noyce created first commercially available microprocessor

SUPERVISE, SPECIALIZE AND SYSTEMISE

Both Texas Instruments and FairChild Semiconductor were founded or started by groups of highly skilled, visionary groups of engineers These engineers when on to instill their doing things first and right ideals to their recruits culled from the best engineering schools in the country Many of the orginal engineers and their protg when on to found still other breakthrough companies such as Intel They led by example- through see one, do one, teach one They lead by research and through sweat, trial and error

CORE COMPETENCIES
Value test and Rarity test

TI

Intel

Major world supplier of DSPs and cell phone processorsbecause of their market domination in these categories, market entry would be difficult and dominance allows for higher price point per chip

Number one supplier of computer chips in the worldBecause of their market domination in PC processors, they can set prices and work with other component suppliers to keep with standardized products

OPPORTUNITIES AND THREATS

TI
Continued

Intel

expansion into mobile markets competencies in differentiated/ specialized chips allows penetration into niche markets which are growing could include players such as Motorola, MIPS

Core

Continued domination of computer market, laptops, netbooks, home servers, corporate servers Core competencies in creating new powerful CPUs and System Buses can be used as levers into Digital TVs, Telecommunications, Automobiles Threats could include

Threats

MARKET CHANGE AND THE FUTURE

TI
As

INTEL
As

long as TI continues to create highly specialized types of chips and expand the variety of them they will continue to succeed over such companies as Motorola and Samsung

long as they solve miniaturization issues as they seek to design and develop new more powerful processors, they will continue to dominate the market of CPUs over Advance Micro

THE RUDDER

In the end what lead to the dominance of Intel and not Texas Instruments or FairChild Semiconductor can be traced to one point in history

The fact that the industry that they were in preferred FairChilds IC due to its simplicity and durability. Robert Noyce (who invented the IC) then founded Intel Moore and Noyce used the process to produce wafer/layered Microchips

QUESTIONS

How do you think customers drive the design process for new processors?

Think: Computers, Cell Phones, XBOX 360?

What do you think were the key personality traits Noyce, Moore, and Teal had that made the companies profiled so successful?

How did they change the world we live in today?

END