Focus Conference
The Productivity Age:
Design Alternatives Become Solutions
Sponsored by the
CAD/CAM Industry Service

December 9 and 10, 19S5
Hyatt Palo Alto
Palo Alto, California

1290 Ridder Park Drive
San Jose, California 95131-2398(408) 971-9000
Telex: 171973
Fax: (408) 971-9003

Sales/Service offices:
UNITED KINGDOMDATAQUEST UK Limited
144/146 New Bond Street
London WIY 9FD
United Kingdom(01) 409-1427
Telex: 266195
Fax: (01) 491-2790

GERMANYDATAQUEST GmbH
Rosenkavalierplatz 17
D-8000 Munich 81
West Germany(089) 91-1064
Telex: 5218070
Fax: (089) 91-2189

FRANCEDATAQUEST SARL
41, rue Ybry
92522 Neuilly-sur-Seine Cedex
France(01) 758-1240
Tfelex: 630842

JAPAN
DATAQUEST Japan, Ltd.
Azabu Heights, Suite 711
1-5-10, Roppongi, Minato-ku
Tokyo 106, Japan(03) 582-1441
Tfelex: J32768
Fax: (03) 582-7323

The content of this report represents our interpretation and analysis of information generally available to the public or released by responsible individuals inthe subject companies, but is not guaranteed as to accuracy or completeness. It
does not contain material provided to us in confidence by our clients.
This information is not furnished in connection with a sale or offer to sell
securities, or in connection with the solicitation of an offer to buy securities. Thisfirm and its parent and/or their officers, stockholders, or members of their families
may, from time to time, have a long or short position in the securities mentioned
and may sell or buy such securities.
Printed in the United States of America. All rights reserved. No part of thispublication may be reproduced, stored in retrieval systems, or transmitted, in any
form or by any means—mechanical, electronic, photocopying, duplicating,microfilming, videotape, or otherwise—without the prior written permission of
the publisher.
© 1985 Dataquest Incorporated

DataQuestn n

a company of
The Dun & Bradstreet Corporation

1985 CAD/CAM INDUSTRY FOCUS CONFERENCE
December 9 and 10, 1985
The H^rtt Palo Alto
Palo Alto, California
MONDAY, December 9
7:30 a.m. to
8:30 a.m.
8:30 a.m.

8:45 a.m.

9:30 a.m.

10:15 a.m.
10:45 a.m.

11:30 a.m.

12:15 p.m.
1:30 p.m.

2:15 p.m.

3:00 p.m.
3:15 p.m.

4:00 p.m.

4:45 p.m.

5:30 p.m. to
7:00 p.m.

Registration
Welcome and Conference Introduction
Jim Newcomb
Vice President and Group Director
Industrial Automation Group
Dataquest Incorpwated"Measuring the intangibles
B e ^ Tucker
Senior Industry Analyst
CAD/CAM Industry Service
Dataquest Incorporated
Automatic 10 Generation
Tony SpadarelIa
Research AnaIyst
CAD/CAM Industry Service
Dat»:iu^t Incorporated
Coffee Breaic
Design Center Survey
Kelly Leininger
Research Assistant
CAD/CAM Industry Service
Datequest Incorporated
Japmese Technoiogy-^The Future VV!ave
Sheridan Tatsuno
Industry Analyst
Japanese Semiconductor Industry Service
Dataquest incorporated
LiinehPCs—How Much Can They Really Do?
Terry Zimmerman
Vice President, Mariceting
FutureNet Corporation
Software: The Real 10 DesignerPeter Whyte
Vice President, Strategic Planning
E.CAD, Inc.
Coffee Bnak
Rtting in Application Accelerators
John Newkirk
Chief Executive Officer
Silicon Solutions Corporation
Linking Design and Test
Jeff Hotchkiss
General Manager
Teradyne, Inc.
The Golden Egg—Are V\te Still Chasing It?
Steven Colt
Partner
Merrill, Pickard, Anderson, & Eyre

Redwood foyer
Redwood I

Hosted Refreshments. , , . . Redwood II(over)

1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Redwood I

Redwood I

Redwood Foyer
Redwood I

Redwood I

Redwood II
Redwood I

Redwood I

Redwood Foyer
Redwood I

Redwood I

Redwood I

Telex 171973

TUESDAY, December 10
8:30 a.m.

9:15 a.m.

10:00 a.m.
10:30 a.m.

11:15 a.m.

12:00 Noon
1:30 p.m.

2:15 p.m.

3:00 p.m.
3:15 p.m.

4:00 p.m.

4:45 p.m.

The PC8 Connection
Buck Feltman
Vice President
Cadnetix Corporation
Deveioping an Open Network for 10 Design
Bruce Bourbon
General Manager
Gould/AMI
Coffee BreakUser Interfaces Impact Productivity
Dave Bailey
President
Cericor, Inc.
Where are MPUs Going?
Mel Thomsen
Associate Director
Semiconductor Industry Service
Dataquest Incorporated
Lunch
Unified Design—is It fbr Real?
Jim Solomon
President
SOA Systems
ASIC, USIC, or CSiC?
Doug Fairbairn
Vice President
VLSI Technotogy, Inc.
Cofftoe BreakThe Impact of Silicon Compilers on Productivity
Gordon Kuenster
President
Seattle Silicon Technology
The Gloliai Productivity Imperative
Aryeh Finegokj
President
Daisy Systems Incorporated
Confwence Wrap-up
Beth Tucker
Senior Industry Analyst
CAD/CAM Industry Service
Dataquest Incorporated

Redwood I

Redwood I

Redwood Foyer
Redwood I

Redwood I

Redwood II
Redwood I

Redwood I

Redwood Foyer
Redwood I

Redwood I

Redwood I

DataQuest
n n a company of
1 1J i TheDun&BradstieetCorporatu

CAD/CAM INDUSTRY FOCUS CONFERENCEEVALUATION QUESTIONNAIRE
Palo Alto, Califomla
Decmnber 9-10, 1985
Thank you for attending our CADA^M Industty Focus Conference. Would you please assist us in planning ournext conference t>y comfrieting and returning this questtonnaire?
1. Please rate each presentation on a scale of 1 to 10 (where 10 is highest in terms of your approval):
CONTENT DEUVEBY(1 to 10)
(1 to 10)

COMMENTS(Use reverse side if necessary)

IbekBT, Measuring the Intangibles
SpadaraHa, Automatk; IC Generation
Lttoiinger, £7es^ Center Survey
Ibtsuno, Japanese Terdmology: The Future
Zimmerman, PCs: How Much Can They Really Do?
Wliyte, Soft^re:

The Real IC Designer

Newkirk, Fitting in Application Accelerators
HotctHdss, L//*tf^ D e s ^ and Test

/•?

/O

'TiJiAi^MUcaSr ^/-IX^-T^ 2>fi.i^fi^

Coit, The GrMen Egg
Fettman, The PCB Connection
Bourbon, Developing Open Network tor IC Design
Bailey, User Interfxes Impact Productivity
Thomsen, Where are MRUs Gang?
Sotomon, Unified Design—Is ittorReal?
rartmlm, ASIC. USIC, or CSIC?
Kuanstw, Silicon Compilers/Productivity
FlnegoM, Global Productiwty Intperative
2. Overall meeting rating (1 to 10):
3. How would you rate the conference fecilities (1 to 10)?
Locatron

Guest Rooms

Meals

Meeting Rooms_

4. Topics that would be of interest to you for future CAD/CAM Industry Focus Conferences:(over)

1290 Bidder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

5. Comments:

6. ybUT primary interest in the CAD/CAM Industry Focus Conference is as a:
System Manager

Product PlannerEngineer

Rnancied Analyst

Otherspecify)

Name and Company (optional)

DataQuestn na^ompanyof

The Dun& Brad$treet Corporation

CAD/CAM INDUSTRY SERVICE FOCUS CONFERENCE
December 9 through 10, 1985
Palo Alto, California
List of Attendees

AWl Surface Mount Technology

Ed Bingle, Design Supervisor

Advanced Micro Devices, Inc.

J. Phillip Dotming, Vice President
Corporate Technology

Alpha Partners

Brian Grossi, General Partner

Apollo Computer, Inc.

Raymond McCann, Market Manager,
ECAD

Applied Micro Circuits Corporation

Bernie Rosenthal, CAD Marketing
ManagerArray Technology

Bill O'Neil, Vice President,
Engineering

Arthur Young & Company

Angelo Danna, Partner
Mark Nexsen, Principal

Bank of America

Don Cvietusa, Vice President
Alan Jepsen, Corporate Banking
Off icer
Sally Otton, Assistant Vice President

1290 Bidder Park Drive, San Jose, CA 95131-2398, (408) 971-9000 Telex 171973

Bank of Boston

WiIIiam Parker, Banking Officer

Bitstream, Inc.

Ann Roe-Hafer, Director, Marketing

Burr, Egan, Deleage & Company

Thomas Winter, Partner

CADAM, Inc.

Rhonda Lindsey, CAD/CAM Market
Industry Analyst

CAD/CAM Specialists, Inc.

Daniel DeWitt, Psychologist
Organizational Development
Daniel Garms, Executive Vice President
Michael McDonald, President

Cadcor Company

David Jewell, Vice President
Operations

Cadnetix Corporation

Buck Feltman, Vice President, Marketing

California Devices. Inc

James Tobias. Vice President
Design Technology

Cambridge Electronic Industries

David Cutts, Strategic Plaimer

Cericor,David Bailey, President & Chief
Executive Officer

Inc,

Cirrus Logic, Inc

Suhas Patil, Vice President
Research & Development

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Citicorp Industrial Credit

Mano Appapillai, Vice President

Daisy Systems Corporation

Aryeh Finegold, President

Data General Corporation

Boli Medappa, Competitive
Consultant
Uday Watwe, Product Manager

Dataquest Incorporated

Irene Barth, Conference AssistantGreg Chagaris, Industrial Marketing
ManagerRalph Dickroan, Industrial Marketing
Manager
Kathy Hurley, Research Analyst
John Jackson, National SalesManager
Debra Jacob, Conference Assistant
Kelly Leininger, Research AssistantEileen Barth—Lynch, Research
AnalystJames Newcorab, Vice President &Group Director, CAD/CAM Industry
ServiceJewel Peyton, Director, Corporate
Comnunications
Don Roberts, Manager, Training <Sc
Development
Tony Spadarella, Research Analyst
Lynn Stern, Conference Coordinator
Sheridan Tatsimo, Industry Analyst
Japanese Semiconductor Industry
Service
Mel Thomsen, Associate Director,
Semiconductor Industry Service
Beth Tucker, Senior Industry
AnalystPaul van Dillen, Industrial
Marketing Manager

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Digital Equipment Corporation

Fanjeev Aggarwal, CAD Strategic
Marketing Specialist

E-CAD, Inc

Bill Goerke, Senior Vice President,
Marketing & Sales
Robert Lorentzen, Product Manager
Peter Whyte, Vice President,
strategic Planning

Edge Computer Corporation

Douglas Crawford, Western Regional
ManagerEngineering Systems Products

William Fabel, Program Manager

Exar Corporation

Yukio Nishikawa, Director, Engineering

Ferranti Interdesign Inc.

John Doyle, CAD Manager

Ford Aerospace & Communications
Corporation

Clayton Showen, Manager Equipment &Engineering

FutureNet Corporation

Terry Ziiranerman, Vice President
Marketing Development

GE Venture Capital

Eric Young, Vice President

GenRad, Inc

Russel Craig, Vice President
strategic Plaiuiing

Dataquest Incorporated, A Subsidiary of A C . Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

General Electric Company

Claire Heiss, Manager, Manufacturing

Gould AMI Semiconductors

Bruce Bourbon, Vice President,
MarketingGrace Ventures Corporation

Susan Woods, Assistant Vice
President

Grove Hill Industries, Inc.

Barry Soloway, President & Chief
Executive Officer

Hewlett-Packard Company

Gene Barduson, Manager, Marketing
DivisionCurt Dowdy, Product Manager
Brad Miller, Marketing Manager
John Moss, Marketing Manager
Robert Santos, Product Marketing
ManagerNick Shain, Application Engineer
Jim Stroh, Product Marketing Manager
Mark Tolliver, Marketing Manager,
Design Systems GroupHi 1Iman Ventures, Inc.

Howard Geiger, Jr., Vice President

IBM Corporaliion

Frank Magistro
Christina Schott, Marketing
Manager, EDA

ICD Austria

Hubert Gammer, Director
Monika Pacher, Director

DataqueSt Incorporated, A Subsidiary of A C . Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IKOS Systems, Inc

William Loesch, President

Ing. C. Olivetti & C . . S.p.A.

Ugo De Riu, Distributed Data
Processing Division Manager
Carlo Ronca, Distributed Data
Processing Director

Institutional Venture Partners

Mary Jane Elmore, General Partner

Intergraph Corporation

Dennis Addidgo, District SalesManager

Integrated Logic Systems, Inc.

Jeffrey Jacobsen, Vice President
Marketing 8c SalesIntel Corporation

Doug Finke, Marketing Engineer

Intersi1, Inc.

Charles Shaw, Director, Computer Aided
DesignInterWest Partners

Flip Gianos, General Partner

J.H. Whitney & Company

Wi 11iam Harding, AssociateJohn Larson, Partner

Los Alamos National Laboratories

Bob Morrison, Staff Member

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Mayfield Fund

A. Grant Heidrich, General Partner
Michael Levinthal, General Partner
F. Gibson Myers, General Partner
Wi11 lam Unger, Partner

McDonnell Douglas, ISG

Mike Landers, Manager, Marketing
Research
William White, Product Marketing

Mead Imaging

Charles Sharp, Director Printer
Product Planning

Mentor Graphics Corporation

Dick Kaiser, Product Manager

Merrill, Pickard, Anderson & Eyre

Stephen Coit, General Partner

Mini Micro Magazine

Arlette Gaulene

Monolithic Memories, Inc.

H.T. Chua, Vice Preside'ht
Carl Hudson, Engineering Support Manager

NEC Corporation

Takayuki Yanagawa, General Manager

Oak Investment Partners

Jeffrey West, General Partner

Priam Corporation

Albert Hartman, Manager. MCAD/CAE

R&D Funding Corporation

Irv Weiman, Vice President

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Racal-Redac, Inc.

J e f f Allison, CA£ Marketing GroupRidge Computers

Mike Harrigan, Product Marketing

Rockwell International Corporation

William Pearce, Director, CAD
Development, Advanced Engineering

SDA Systems, Inc.

James Solomon, President

SOS Semiconductor Corporation

Giancarlo Ronzi, Director, Design

Scientific Calculations, Inc.

Michael Davin, Director,
International 8c North American
Sales

Seattle Silicon Technology, Inc

Gordon Kuenster, President
Diane Kuenster

Seeq Technology, Inc.

Larry Bullard, Manager CAD Sc Tooling

Siemens Data Systems

Wolfgang Gnettner, Manager, Product
Planning

Sierra Semiconductor Corporation

Lawrence Goldstein, Director
Design Automation

Silicon Design Labs, Inc

James Hammock, Chief Operating
OfficerDavid Reiser, Director, Marketing

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Silicon Solutions Corporation

John Newkirk, Chief Executive Officer

SiIvar-Lisco

Frank Lynch, Director, Marketing

Stanford University

Tom Blank, Director, CAD

Sun Microsystems, Inc.

Roberta Gray, Market Segment
Manager

Tandem Computers, Inc.

Doug Bering, Development Engineering
Manager

Tektronix, CAE Systems Division

Robert Harrison. Product Marketing
Manager
Kelly Rupp, Product Marketing
Manager
Steve Sapiro, Chief Scientist

Telesis Systems Corporation

Robert Fulks, Consultant
Douglas Hajjar, President Sc
Chief Executive Officer

Teradyne, Inc.

Jeff Hotchkiss, General Manager

The Photo-Tech Company

Robert Geissberger, President

Thomas Group, Inc.

Mike Thomas, Partner

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Union Bank

Dirk Geiger, Loan Officer

Valley Data Sciences

Keith Barnes, Director, Marketing
Robert Soto, President

VLSI Technology, I n c .

Douglas Fairbairn, Vice President

Weitek Corporation

Scott Lewis, Director, Strategic
Development
John Rizzo, D i r e c t o r , Marketing

Xilinix, Inc.

David Lautzenbeiser, Director
Technical Marketing
Kathie Priebe, Director, Software
Development

Zycad Corporation

Dave Allenbaugh, Product Marketing
Manager
Dick Ebert, Director, MarketingJohn Fahlberg, Senior Vice
President, Operations

Dataquest Incorporated, A Subsidiary of A.C Nielsen Company / 1290 Bidder Park Drive/ San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataquestn n

a company of

MMMM TheDun&BradstreetCorporation

CAD/CAM INDUSTRY SERVICE FOCUS CONFERENCE
December 9 through 10, 1985
Palo Alto, California
List of Attendees

Dennis AddidgoIntergraph Corporation

Fanjeev Aggarwal

Digital Equipment Corporation

Dave Allenbaugh

Zycad Corporation

Jeff Allison

Racal-Redac, Inc.

Mano Appapillai

Citicorp Industrial Credit

David Bailey

Cericor, Inc.

Gene Barduson

Hewlett-Packard CoEq>any

Keith Barnes

Valley Data Sciences

Irene Barth

Dataquest Incorporated

Doug Bering

Tandem Computers, Inc.

Ed Bingle

AWI Surface Mount Technology

Tom Blank

Stanford University

Bruce Bourbon

Gould AMI Semiconductors

Larry Bui lard

Seeq Technology, Inc.

Greg Chagaris

Dataquest Incorporated

H.T. Chua

Monolithic Memories, Inc.

Stephen Coit

Merrill, Pickard, Anderson & Eyre

Russel Craig

GenRad, Inc.

Douglas Crawford

Edge Computer Corporation

David Cutts

Cambridge Electronic Industries

Don Cvietusa

Bank of America

1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

Angelo Danna

Arthur Young & Company

Michael Davin

Scientific Calculations, Inc.

Ugo De Riu

Ing. C. Olivetti & C . , S.p.A.

Daniel DeWitt

CAD/CAM Specialists, Inc.

Ralph Dickman

Dataquest Incorporated

Curt Dowdy

Hewlett-Packard Company

J . Ptii 11 ip Downing

Advanced Micro Devices. Inc.

John Doyle

Ferranti Interdesign Inc.

Dick Ebert

Zycad Corporation

Mary Jane Elmore

Institutional Venture Partners

William Fabel

Engineering Systems Products

John Fahlberg

Zycad Corporation

Douglas Fairbairn

VLSI Technology. Inc.

Buck Fe1tman

Cadnetix Corporation

Aryeh Finegold

Daisv Systems Corporation

Doug Finke

Intel Corporation

Robert Fulks

Telesis Systems Corporation

Hubert Gammer

ICD Austria

Daniel Garms

CAD/CAM Specialists, Inc.

Arlette Gaulene

Mini Micro Magazine

Dirk Geiger

Union Bank

Howard Geiger, Jr.

Hi 1Iman Ventures, Inc.

Robert Geissberger

The Photo-Tech Company

Flip Gianos

InterWest Partners

Wolfgang Gnettner

Siemens Data Systems

Dataquesf Incorporated, A Subsidiary of A C . Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Bill Goerke

E-CAD, Inc.

Lawrence Goldstein

Sierra Semiconductor Corporation

Roberta Gray

Sun Microsystems, Inc.

Brian Grossi

Alpha Partners

Ann Roe-Hafer

Bitstream, Inc.

Douglas Haijar

Telesis Systems Corporation

James Hamnock

Silicon Design Labs, Inc.

William Harding

J.H. Whitney & Coi<q>any

Mike Harrigan

Ridge Coiiq>uters

Robert Harrison

Tektronix, CAE Systems Division

Albert Hartman

Priam Corporation

A. Grant Heidrich

Mayfield Fund

Claire Heiss

General Electric Company

Jeff Hotchkiss

Teradyne, Inc.

Carl Hudson

Monolithic Memories, Inc.

Kathy Hurley

Dataquest Incorporated

John Jackson

Dataquest Incorporated

Debra Jacob

Dataquest Incorporated

Jeffrey Jacobsen

Integrated Logic Systems, Inc.

Alan Jepsen

Bank of America

Dav i d J ewe 11

Cadcor Company

Dick Kaiser

Mentor Graphics Corporation

Gordon Kuenster
Diane Kuenster

Seattle Silicon Technology, Inc.

Mike Landers

McDonnell Douglas, ISG

John Larson

J.H. Whitney & Company

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

David Lautzenheiser

Xilinix, Inc.

Kelly Leininger

Dataquest Incorporated

Michael J. Levinthal

Mayfield Fund

Scott Lewis

Weitek Corporation

Rhonda Lindsey

CADAM. Inc.

Wi 11 iain Loesch

IKOS Systems, Inc.

Robert Lorentzen

E-CAD. Inc.

Eileen Barth-Lynch

Dataquest Incorporated

Frank Lynch

SiIvar-Lisco

Frank Magistro

IBK Corporation

Rajmiond McCann

Apollo Computer, Inc.

Michael McDonald

CAD/CAM Specialists. Inc.

Boli Medappa

Data General Corporation

Brad Mi H e r

Hewlett—Packard Company

Bob Morrison

Los Alamos National Laboratories

John Moss

Hewlett-Packard Company

F. Gibson Myers

Mayfield FundJ aine s Newc omb

Dataquest Incorporated

John Newkirk

Silicon Solutions Corporation

Mark Nexsen

Arthur Young 8c Company

Yukio Nishikawa

Exar Corporation

Bill ONeil

Array Technology

Sally Otton

Bank of America

Monika Pacher

ICD Austria

Wi11iam Parker

Bank of Boston

Dataquest Incorporated, A Subsidiary ot A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Suhas Patil

Cirrus Logic, I n c .

Wil1iam Pearce

Rockwell International Corporation

Jewel Peyton

Dataquest Incorporated

Kathie Priebe

Xilinix, Inc.

David Reiser

Silicon Design Labs, Inc.

John Rizzo

Weitek Corporation

Don Roberts

Dataquest Incorporated

Carlo Ronea

Ing. C. Olivetti & C . , S.p.a.

Giancarlo Ronzi

SGS Semiconductor Corporation

Bernie Rosenthal

Applied Micro Circuits Corporation

Kelly Rupp

Tektronix, CAE Systems Division

Robert Santos

Hewlett-Packard Company

Steve Sapiro

Tektronix, CAE Systems Division

Christina SchottI ^ Corporation

Nick Shain

Hewlett-Packard Company

Charles Sharp

Mead Imaging

Charles Shaw

Intersi1, Inc.

Clayton Showen

Ford Aerospace 8c Coiianimicat i o n s

Corporation
James Solomon

SDA S y s t e m s ,Inc.

Barry Soloway

Grove Hill Industries, Inc..

Robert Soto

Valley Data Sciences

Tony Spadarella

Dataquest Incorporated

Lyim Stern

Dataquest Incorporated

Jim Stroh

Hewlett-Packard Company

Sheridan Tatsuno

Dataquest Incorporated

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive/ San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Mike ThomasThomas Group, I n c .

Me 1 Thorns en

Dataquest Incorporated

James Tobias

California Devices, Inc.

Mark Tol1iver

Hewlett-Packard Company

Beth Tucker

Dataquest Incorporated

Wi IIiara Unger

Mayfield FundPaul van Di1len

Dataquest Incorporated

Uday Watwe

Data General Corporation

Irv Weiman

R&D Funding Corporation

Jeffrey WestOak Investment Partners

William White

McDonne11 Douglas, ISG

Peter Whyte

E-CAD, Inc.

Thomas WinterBurr, Egan, Deleage & ConQ>any

Susan Woods

Grace Ventures Corporation

Takayuki Yanagawa

NEC Corporation

Eric Young

GE Venture Capital

Terry Zimnerman

FutureNet Corporation

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataquest
WELCOME AND CONFERENCE INTRODUCTIONJames R. Newcomb
Vice President and Group Director
Dataquest Incorporated

Mr. Newcomb is a Vice President of Dataquest and Group Director of theIndustrial Automation Group, which encompasses the CAD/CAM Industry
Service and the Robotics Industry Service. He is responsible for thegroup's strategic direction, overall planning, operations management, andthe establishment of business platforms. Previously, he was employed at
Auto-trol Technology Corporation, where he held various positions within
the corporate marketing organization. Prior to that, he was employed in
the Reprographic Manufacturing Group of Xerox Corporation, in positions
involving strategic planning, systems integration, advanced manufacturing
engineering, and program planning. Mr. Newcomb's professional experiencehas provided him with an in-depth knowledge of design and manufacturing
automation technologies and markets involving CAD/CAM/CAE, EDA, robotics,
artificial
intelligence,andautomation
systemsdesignandimplementation. Mr. Newcomb received a B.S.M.E. degree from Rochester
Institute of Technology. He is a member of the Society of Manufacturing
Engineers, Computer Automated Systems Association, Machine Vision,
Robotics Industry Association, National Computer Graphics Association,and IEEE.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataqyest
a company of
The Dun & Bradstreet Corporation- 1 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DUN & BRADSTREET
A.C. NIELSEN COMPANYDATAQUEST INCORPORATEDMEMBERS OF DUN & BRADSTREET FAMILYOF INFORMATION COMPANIES• DUN & BRADSTREET- LARGEST BUSINESS INFORMATIONSERVICE COMPANY IN THE WORLD- 48.000 EMPLOYEES IN 25 COUNTRIES- $2.2 BILLION IN YEARLY REVENUES- 2 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

A.C. NIELSEN COMPANYDATAQUEST INCORPORATEDDATAQUEST INCORPORATED- SUBSIDIARY OF A.C. NIELSEN COMPANY
SINCE 1978
- HIGH-TECHNOLOGY RESEARCH ARM OF
A.C, NIELSEN COMPANY
A.C. NIELSEN COMPANY- WORLD'S LARGEST MARKET RESEARCHORGANIZATION- $750 MILLION COMPANY—FOUNDED 1923

- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company ; 1290 RIdder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

CAD/CAM INDUSTRY SERVICE-- 1985
THE INFORMATION PLATFORM
MARKET TURN- COMPUTERSKEY

GRAPHICSOFTWARE/
PERITERMIPHERALS SERVICESNALSAPPLICATIONMECHANICALPCBREGIONNORTHAMERICAEUROPEPRODUCTTYPEPERSONAL

STANDALONEPRICE

LESS THAN
$30K

AEC

IC

EDA

FAR EAST$30K-$90K

MAPPINGREST OFWORLD

HOST-DEPENDENT
MORE THAN$90K
SOURCE DnTnOiJEr-T- 4 1985 Dataquest Incorporated-Reproduction Prohibited
Datapues, Incorporated, A Subsidiary o. A C . Nielsen Company , 1290 Ridder ParK Drive / San Jose, CA 95131 / (408, 971-9000 / Tele. 171973

DataQuest
acompar^of
The Dun & Brad^reel CorpcxatKHi

Dataquest
MEASURING THE INTANGIBLES

Beth W. Tucker
Senior Industry Analyst
Dataquest Incorporated

Ms. Tucker is a Senior Industry Analyst for Dataquest's CAD/CAM Industry
Service. She is responsible for the management of research activities
involving all electronic CAD/CAM applications, including integrated
circuits, printed circuit boards, and electronic design automation. In
addition, she is responsible for managing the service's industry database, survey activities, and consulting projects. Prior to joining
Dataquest, Ms. Tucker
was Manager
ofMarket Planningin theMicroelectronics Division of Calma Company, a subsidiary of General
Electric. In that capacity, she was responsibile for identifying market
Opportunities and strategies for the company's electronic CAD productline. She also contributed to the development of marketing programs at
the corporate level. Earlier, she worked for Monroe Systems, where she
was responsible for market research and development of small business
ccMnputer products. Ms. Tucker received an A.A. degree in Computer
Technology fran Morris County College in New Jersey, and is doing course
work at San Jose State University.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AGENDAREVISED FORECAST
FOCUS RESEARCH GROUP HIGHLIGHTS- 1 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FORECAST CHANGE
1985 ECONOMICS
HOST-DEPENDENT IN DECLINEPERSONAL COMPUTER INCREASEFALLING ASPs"

/fS/^'^yf^Z^" ^ ^ O^/ti;?^,^ <- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ELECTRONIC CAD/CAM
MARKET BY APPLICATIONBILLIONS OF DOLLARS
2

1.5
EDA^^^
PCB
IC

0.5

1985

1984

1986

1987

^

1988

1989

Source: DATAQUESTESTIMATED EGAD MARKET(Millions of Dollars)

EDA
IC
PCB
Total

1984

1985

$ 276
157
355
$ 788

$

1986

1987

1988

1989

442 $ 701 $1,042 $1,387 $1,798
298
408
571
181
224
991
679
850
392
525
$1,015 $1,450 $2,019 $2,645 $3,360

Source:

CAGR
31%
46%
30%
34%

DATAQUEST- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 R,dder Park Dnve / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

ELECTRONIC CAD/CAM
HOST-DEPENDENT PRODUCT TYPEPERCENT CHANGE
20
10
0
-10
-20
-30
-40
-50
-60
1985
1984

'

1986

1987

1988

1989

HOST-DEPENDENT FORECAST(Revenue Percent Change)

Percent Change

1984

-1985

1986

1987

1988

1989

17

^6

-9

-19

-34

_go

Sou r ce:

DATAQUEST- 4 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ELECTRONIC CAD/CAM MARKETBY PRODUCT TYPE
BILLIONS OF DOLLARS
3
2.5
2STANDALC N E ^ ^ ^ ^1.5

1
PERSONAL C O M P U T E R N ^

0.5

0
1984

^ ^ ^ ^ ^ H O ^ T•

nFPFKinFNT/ " ' "

1985

1986

1987

1988

1989

Source: DATAQUESTESTIMATED EGAD WJiKETBY PRODITCT TYPE
(Millions of Dollars)

1984
Stcuidalone$ 361
Hos t-Dependent364
P e r s o n a l Ccnnputer
63
Total
$ 788

1985
$

521
342
152

$1,015

1986

1987

1988

1989

CAGR

873
310
267

$ 1 ,362
252
405$1 , 9 6 3168514$2 ,686
67
607

49%
-29%
57%

$1,450$2,019$2,645$3,36034%$

Source: DATAQUEST- 5 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ELECTRONIC CAD/CAM MARKETBY PRODUCT TYPE
WORKSTATION SHIPMENTS(Thousands of Units)

60
60
40

STANUALONE">

11

-^^

30
^ ^ ^ ^ ^ D C Q i t r U J A f^r\\ ini ixrn
1 'L.I ItPtrri^- o*JmT''U 11.11

20
10

1984

^HOST DEPENDENT

1985

1986

1987

1988

1989

Source: DATAQUESTESTIMATED ECAD MARKETBY PRODUCT TYPE(Workstation Shipments)

1984
Standalone
5,073
Host-Dependent
2,553
Personal Ccanputer 3,178
Total
10,805

1985

1986

1987

7,81-32,517
7,538
17,86813,322
2,421
13,81929,562

22,251 34,589
2,086
1,471
21', 399 28,112
45,737 64,171

1988

1989

CAGR

51,443626
33,282
85,341

59%
-25%
60^
51%

Source:DATAQUEST- 61985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

"PEOPLE BUY TRUCKERS $80,000
TRUCKS. YET THEY WONT SPEND AS
MUCH MONEY ON DESIGN AUTOMATION."

Source; Focus Group Participant- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 RIdder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

ELECTRONIC CAD/CAM
ESTIMATED AVERAGE SYSTEMSSELLING PRICE
THOUSANDS OF DOLLARS
/U
60
60
40
30
20
10

n

1984

1986

1985

1987

1988

1989

Source: DATAQUESTESTIMATED ECAD MARKETAVERAGE SELLING PRICE(Thousand of Dollars)

ASP

1984

1985

1986

1987

1988

1989

CAGR

$69

$

$

$

$

$ 29

-16%

50

40

34

31

Sou r ce:

DATAQUEST- 8 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest incorporated, A Subsidiary of A.C. Nielsen.Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ELECTRONIC CAD/CAM MARKETBY PRICE-PER-SEAT SEGMENTSPERCENT OF SYSTEMS REVENUE
100

1987
1988
1989
n LESS THAN $51,000

1984
1985
1986
MORE THAN $61,000

Source: DATAQUESTESTIMATED EGAD MARKET'm AVERAGE PRICE PER SEAT
(Percent of Revenue)

Less Than $51,000
Greater Than $51,000

1984

1985

1986

1987

1988

1989

10
90

43
57

56
44

74
26

87
13

89
11

Source:DATAQUEST- 9 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C, Nielsen Company I 1290 Bidder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ELECTRONIC CAD/CAM MARKETBY PRICE-PER-SEAT SEGMENTSPERCENT OF SYSTEMS REVENUE

13 >$80K
E3 $51-80K
D $20-51K• <$20K

1989

1984

Source: DATAQUESTESTIMATED EGAD MARKETBY AVERAGE PRICE PER SEAT SEGMENT(Percent of Revenue)

Price Per Seat
Less Than $20,000$20,000-51,000$51,000-80,000
Greater Than $80,000

1984

1985

1986

1987

1988

1989

3
7
46
44

15
28
39
18

21
35
32
12

23
51
19
7

21
66
10
3

19
70
10
1

Sour ce:

DATAQUEST- 10 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FOCUS GROUP HIGHLIGHTS• VENDOR/CUSTOMER RELATIONSHIP• CHANGING GROUND RULES• CREATIVITY• SERVICE AND SUPPORT• GOALS OF PRODUCTIVE SYSTEMS- 11 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

"BECAUSE THE INDIVIDUAL VENDORSTHAT ARE VERY STRONG IN ONE AREA
MIGHT BE WEAK IN OTHERS. YOU
CANT AFFORD TO GO WITH THEM
ACROSS THE BOARD."

Source: Focus Group Participant- 12 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Parl< Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

TUCKER'S CAD/CAM LAW
THE CAD VENDOR/CUSTOMERRELATIONSHIP IS NOT A MARRIAGE;
IT IS AN AFFAIR- SOMETHING FLASHIER. FASTER.
BETTER, AND CHEAPER WILLALWAYS COME ALONG- 13 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ELECTRONIC CAD/CAM VENDORSCUMULATIVE NUMBER OF COMPANIES
bU

50
40
30
20
10
n

46 66 66 76 77 78 79 80 81 82 83 84 85
YEAR STARTED
Source: DATAQUEST

Bcecr/^o/^/c /f^^^ ^^ny^pvs/A/(^^/^^^fz^- 14 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 15 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

"IF THE BIG GUYS WERE LAGGING,
THEN THERE WOULD BE OPPORTUNITY.
AND THE LITTLE GUYS WOULD SPRINGUP AGAIN. AND THEY'D SATISFY
THE DEMAND."

Source: Focus Croup Participant- 16 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRESENTBIG GUYSAVIS'
LITTLE GUYS

- 17 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

CHANGING GROUND RULES• DATA BASE
• INTEGRATION• SUPPORT• FUNCTIONALITY• PERFORMANCE• PRICE MUST BE A GIVEN- 18 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRESENT

FUTUREBIG GUYSLITTLE GUYSAVIS"BIG GUYSLITTLE GUYS

AVIS'

- 19 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

'IT'S THE ART THAT'S VALUABLE,NOT THE iVIECHANICS."
Source: Focus Group Participant- 20 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED ANNUAL IC DESIGN STARTS
THOUSANDS OF DESIGN STARTS
160

100

50 -{

1984

1986

1985

1987

1989

1988

Source: DATAOUESTESTIMATED ANNUAL IC DESIGN STARTS(Thousands of Designs)

Design Starts

1984

1985

1986

1987

1988

1989

CAGR

54

62

72

82

97

115

17%

Source:DATAQUEST- 21 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

"IN OUR COMPANY,WE ARE NOT INTERESTED IN
BEING CUSTOMER SUPPORT."^^^^^^i^^^^^^^^^^^^^^^^^^BBl^^^^^^^^^^^^^^B^Hl^^^^^^^^H^^^^^^^^MHP

Source: Focus Group Participant- 22 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A C . Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ECAD SERVICE REVENUEMILLIONS O F DOLLARS
400
300
200
100
:

•

n
1984

1986

1985

1987

1989

1988

ESTIMATED ECAD SERVICE REVENUE(Millions of Dollars)Service Revenue

1984

1985

1986

1987

1988

1989

CAGR

$

$102 $ 145

$ 204

$ 264

$ 336

32%

84

Sou r ce:

DATAQUEST- 23 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCT JUSTIFICATIONROIDESIGNS PER ENGINEERCOMPLEXITY
TIME
REWORKSSUCCESS RATIO- 2A 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Parl< Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCT JUSTIFICATIONIS AN ITERATIVE PROCESS AND
MUST COMPARE ACTUALS VERSUSESTIMATESIS BASED ON COMMON SENSE- 25 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCTIVITY ISSUESGOAL:MEET DEADLINESSTRATEGY:• INTEGRATION• ACCELERATORS• SIMULATORS• PERSONAL COMPUTERS- 26 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCTIVITY ISSUESGOALSTRATEGY:MEET DEADLINES AND GETIT RIGHT THE FIRST TIMESIMULATIONTEST GENERATIONCORRECT BY CONSTRUCTIONCOMPILATIONDATA BASE MANAGEMENT
AND CONTROL- 27 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SUMMARY
CHANGING GROUND RULES
LIVE WITH COMPETITION
INCREASED AUTOMATION MEANS
INCREASED SUPPORT- 28 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

"PRODUCTIVITYEQUALSDOLLARS"
Source: Focus Group Participant- 29 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen .Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

^i^/^^/>p^sT^r^/^^^^^^^^/f^/^t- ZZ^^^ y/^ ;^^f^^ 7/f^^i^C^vZ^.3,i^^^^<J^/<^y^ /^y^CJ'^^^^^^

Li.:i^i)s::^Dataquest
AUTOMATIC IC GENERATION

Tony Spadarella
Research Analyst
Dataquest Incorporated

Mr. Spadarella is a Research Analyst for Dataquest's CAD/CAM Industry
Service. He is responsible for research and analysis of the integrated
circuit, printed circuit board, and electronic design automation CAD/CAM
segments. He also supports general research activities. Before coming
to Dataquest Mr. Spadarella was on the technical staff of Calma Company's
Research and Development division, documenting the company's electronic
design products, operating systems, and communications products. He also
researched a u t m i a t e d technical publications systems. Prior to that, he
was with Singer-Link's Advanced Products organization, where he designed
visual data bases and analyzed training requirements for flight
simulation applications.
Mr. Spadarella received a B.A. degree inEnglish from Georgetown University in Washington D.C. and an M.A. degree
in English from the University of Southern California in Los Angeles. He
has done additional post graduate studies in marketing and advertising at
Golden Gate University in San Francisco. He also teaches courses intechnical writing at San Jose State University.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCTIVITY =CHANGE- 1 1985 Dataquest Incorporated-Reproduction P r o h i b i t e dDataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

CHANGES IN:
ICs
IC DESIGN TOOLSIC DESIGN METHODOLOGY- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AGENDAASIC MARKET
AUTO IC LAYOUTIC CAD FORECAST- 3 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated. A Subsidiaryof A.C. Nielsen Company /1290 RIdder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

ASICsAPPLICATIONS PECIFICI NTEGRATEDCIRCUITS_ 4 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ASICsSEMICUSTOMCUSTOM

PLAs Gate Arrays

Standard Cells Full Custom
Source: OATAQUEST- 5 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen CoiTipany /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ASIC IMPLEMENTATION ALTERNATIVES

COST

STANDARD
PRODUCTS

DAYS

WEEKS

MONTHS

Source: DATAQUEST- 6 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AVERAGE GATE COUNT
1985
2.500

1987
4.000

8.000

13.000- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nie.sen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

TURNAROUNDTIME
DESIGNCOMPLEXITY

TIME
Source: DATAQUEST- 8 1985 Dataquest Incorporated-Keproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ESTIMATED TOTALWORLDWIDE ASIC MARKET
BILLIONS OF DOLLARS
20

1984

1989
SouFca: OATAOUESTTOTAL flOKLONIOE ASIC MARKET(Billions of Dollars)

ASIC

1984

1989

CAGR

$5.9

$l€.l

22%

Sou r ce:

DATAQUEST- 9 1985 Dataquest Incorporated-Reproduction Prohibited
1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /ASIC MARKET
1984

1989 (est.)

3JX

D GATE ARRAY
D PLA• STANDARD CELLD FULL CUSTOM

Source: DATAQUESTASIC MARKET(Millions of Dollars)

PLA
Gate Airray
Standard C e l l
F u l l Custom

1984

1989

CAGR

$251.0737.6
122.9
2230.9$ 910.5
2932.72401.93950.0

29.4%
31.8%
81.2%
12.1%

Source;DATAQUEST- 10 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

TRADITIONAL APPROACH- 11 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ASIC DESIGN PROCESSGATE ARRAYS/STANDARD CELLSSCHEMATICCAPTUREMANUALLAYOUTAUTO
LAYOUT

BACK
ANNOTATIONSIMULATIONANALYSIS

Source: OATAOUEST- 12 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest incorporated, A Subsidiaryof A.C. Nielsen Company /1290 Ridder ParK Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AUTO IC LAYOUTQUICKER TURNAROUNDLOWER NRE COSTSPROJECT CONTROLBETTER DESIGNSSECURITY- 13 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SCHEMATIC CAPTURE
TIME INTENSIVEINDEPENDENT OF DESIGN RULE CHECKING
POTENTIAL SOURCE OF ERRORSCOMPLICATES LAYOUT PROCESS-u1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AUTOMATED IC DESIGNINTEGRATED SOLUTIONLOGICALDESIGNPHYSICALLAYOUT- 15 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary o. A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IDEAL INTEGRATED SOLUTION:• "WHAT IF" ANALYSIS• DATA BASE MANAGEMENT• COMMON INTERFACE• AUTOMATIC LAYOUT• AUTOMATIC TEST GENERATION• DESIGN DOCUMENTATION• DESIGN VERIFICATION AND
RULE CHECKING- 16 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (406) 971-9000 / Telex 171973

AUTOMATED IC DESIGNTWO APPROACHES:• EVOLUTIONARY• REVOLUTIONARY- 17 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest incorporated. A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AUTO IC DESIGNEVOLUTIONARY APPROACH
CURRENTDESIGNTOOLSSILICONCOMPILATIONTECHNIQUES- 18 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest

incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

EVOLUTIONARY APPROACH- 19 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

AUTO IC DESIGNREVOLUTIONARY APPROACH"TRUE" OR FULL
SILICON COMPILATION- 20 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Connpany /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

REVOLUTIONARY APPROACH•kO

l^g:rP°
43="
a a c

1-Da

1

- 21 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

TRUE SILICON COMPILATIONARCHITECTURAL SPECIFICATION—^HIGH-LEVEL DESCRIPTIONDESIGNINFORMATIONSILICON COMPILER
PROGRAMS

MASKS

TESTS

DOCUMENTATION
Source: DATAQUEST- 22 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SILICON COMPILER PROGRAMSAUTOMATED:• DETAIL DESIGN• DESIGN VERIFICATION• PHYSICAL DESIGN• BACK-END VERIFICATIGN/DRC• MASK GENERATION- 23 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SILICON COMPILATIONA DESIGN TECHNIQUE
SILICON CGMPILER—
A CAD PRODUCT- 2U ~
1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

QUESTION:
WHAT DO SILICON COMPILERS PRODUCE?
GATE ARRAYS?
STANDARD CELLS?
FULL CUSTOM ICs?

- 25 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

ANSWER:YES -- 26 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive , San Jose, CA 95131 / (408) 971-9000 / Tele. 171973

GATE ARRAYS WITH WIRE CHANNELEXPANSION
STANDARD CELLS MIXED WITHCOMPILED BLOCKSFULL CUSTOM ACHIEVED BYBLOCK-LEVEL DESIGN TECHNIQUES- 27 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Parl< Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SILICON COMPILATIONBENEFITS:• CREATIVITY TOOL• DATA BASE MANAGEMENT• STANDARD DESIGN PRACTICE• REDUCED TURNAROUND TIME
• AUTOMATIC LAYOUT- 28 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SILICON COMPILERS
NEEDS:• AUTOMATED TEST GENERATION• MORE PARAMETRIC MODELS• HIGHER COMFORT LEVEL- 29 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC CAD WORLDWIDE FORECASTMILLIONS OF DOLLARS
600

1984

1985

1986

1987

1988

1989
Source: OATAOUESTIC CAD ITORLDfnDE FORECAST(Millions of Dollars)

IC CAD

1984

1985

1986

1987

1988

1989

CAGR

$157

$181

$224

$298

$408

$571

29.5%

Sou r ce:

DATAQUEST- 30 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company / 1 2 ^ Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC CAD WORKSTATION SHIPMENTS
UNITS
1984

1989 (Est.)

1.211

8.751
Source: DATAQUEST- 31 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC CAD WORKSTATIONSESTIMATED PERCENT CHANGE

1984

1986

1987

1986

1988

1989

Source: DATAQUESTIC CAD WORKSTATIONS(Percent Change)

Compilers
Hcmd-Crafted
Place cmd Routers
Total

1984

1985

1986

1987

1988

1989

1
89
10
100

6
70
24
100

10
55
35
100

18
40
42
100

36
28
36
100

63
10
27
100

Sou r ce:

DATAQUEST- 32 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Coaipany /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC WORKSTATIONSESTIMATED SHIPMENTS
UNITS
6.000

1989

1988

1985

Source: DATAQUEST

IC ffOKKSTATI(»«S ESTIMATED irai]mENTS(Units)1984
Compilers
Hand-Crafted
Place and Routiers
Total

1985

1986

1987

1988

1989

CACR

1975
1536
W75
5486

5513

241%

875

-4%
80%
49%

12

99

228

629

1075

1155

1255

124

396

798

1211

1650

228L-

1397
1467
3493

2363
8751

Source:- 33 1985 D a t a q u e s t I n c o r p o r a t e d - R e p r o d u c t i o n

DATAQIJEST

Prohibited

Dataquest incorporated, A Subsidiary ot A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SUMMARY
SILICON COMPILATION IS A
REPLACEMENT TECHNOLOGY- 34 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Pari* Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SUMMARY
SILICON COMPILATION IS A
REPLACEMENT TECHNOLOGYTHIRD-PARTY AGREEMENTS- 35 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

SUMMARY
SILICON COMPILATION IS A
REPLACEMENT TECHNOLOGYTHIRD-PARTY AGREEMENTS
DESIGN SERVICE AND TRAINING- 36 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SUMMARY
SILICON COMPILATION IS A
REPLACEMENT TECHNOLOGYTHIRD-PARTY AGREEMENTS
DESIGN SERVICE AND TRAINING
COOPERATION WITH ASIC HOUSESAND IC MANUFACTURERS- 37 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Coinpany /1290 Bidder Park Drive / San Jose, CA 96131 / (408) 971-9000 / Telex 171973

CONCLUSION:
AUTOMATED IC DESIGNSILICON COMPILER REVOLUTIONLEADING AN EVOLUTION
CAD VENDORS DRIVE THIS MARKET- 38 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataquest

DESIGN CENTER SURVEY

Kelly Leininger
Research AssistantDataquest Incorporated

Ms. Leininger is a Research Assistant for the CAD/CAM Industry Service.
She is responsible for research assistance in the electronic CAD/CAM
segments, company profile research, data base support, and survey
research.
Ms. Leininger is doing degree work at San Jose State
University.

Dataquest incorporated
DESIGN AUTOMATION FOCOS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DEMOGRAPHICS
DESIGN ENVIRONMENTUSAGE
FUTURE PLANS
BOTTLENECKS- 1 1985 Dataquest Incorporated-Reproduction P r o h i b i t e dDataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEYRESPONSE RATE-''>*^,s.
^V

nZJ RETURNEDH NOT RETURNEDSURVEYS SENT OUT - 146
SURVEYS RETURNED = 73
RESPONSE RATE = 50%

Source: DATAQUEST- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
DISTRIBUTION OF RESPONSESBY COMPANY TYPE
D SEMICONDUCTOR VENDORAFFILIATED• DISTRIBUTOR FINANCED
a UNAFFILIATED
Ei OTHER

Source: OATAQUEST- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 R.dder

DESIGN CENTER SURVEY
D GATE ARRAYS
m STANDARD CELLS• MANUALLY EDITEDO PLDAVERAGE NUMBER OF GATES: 4.900
Source: DATAQUEST- 4 -:985 Dataquest Incorporated-Raproduction Prohibited, „ . , p o . , e . . . S „ « » , a . o, . C. M,«». C „ ™ . n , n 3 » . « - . - p a r - , . . , S,„ . o » , C. « , 3 , M«»./.V^OOO, T e , .
Dataquest

DESIGNENVIRONMENT- 5 1985 Dataquest Incorporated-Reproduction Prohibited
Da.aquesnncorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder ParK Drive , San Jose, CA 95131 , (408,971-9000 / Teiex 171973

DESIGN CENTER SURVEY
DISTRIBUTION OF INSTALLED BASE
BY COMPANY TYPE
Average Workstations Per Site
10

,3

8

^

^

6

H

4
2
0

^9A

%

.v'.x'-V'r/J/i'.--1^^^ Semiconductor Vendor AffiliatedZ2Z2 Unaffiliated

LuJ Distributor Affiliatednn
Other
Source: DATAQUESTDISTRIBOTION OF INSTALLED BASE
BY COfPANY TYPE
(Average Workstaticms Per Site)

Saniconductor Vendor Affiliated 10
Unaffiliated7
Distributor Affiliated
3
Other
7

Source:DATAQUEST- 6 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
CAD/CAM INSTALLED BASE
Percent of Workstationsou

Total W<>rkstations - 367

50
40
30
20
*

10

1

0
Daisy

Mentor1

1

1

Futurenet Calma
Vendor

Other

Valid

Source: DATAQUESTCAD/CAM INSTALLED BASE
(Percent of Wbrkstations)

Daisy
MentorFutureNet
Calma
Valid
Other

53

Source:DATAQUEST

26^

1

^

1 / pjlter vemlcr^i;- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Parl^ Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
NON-CAD/CAM INSTALLED BASE
Percent of Workstations

IBM

ApolloDigitalTektronix

Vendor
Source: DATAQUESTNON-CAD/CAM INSTALLED BASE
(Percent of workstations)

IBM
ApolloDigitalTektronix

36
33
17
14

Source: DATAQUEST- 81985 Dataquest Incorporated-Reproduction Prohibited
Dataquesi Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEYTESTING TOOLS
Percent
60
50^M Don't Use
d t Equipment
O l Software Program/Interface

40
30
20

•

1

10
Logic
Analyzer

K^-

•

-

• •% ^ ;

^ ^'

^'

V.

^;

^A;V
-•it.f:--.'

m:

PhysicalModeling

ATE

Source: DATAQUESTTESTING TOOLS(Percent)

Logic Analyzer
ATE
P h y s i c a l ModelingD o n ' t Use

Equipment

Software Program/Interface

26
17
23

32
43
21

18
23
30

Source:DATAQUEST- 9 :985 Dataquest Incorporated-Reproduction Prohibited
Dataquest,„co,po,a,.. A S.».,-.-v o, ..C. N.,se„ Co.pan,, , » 0 R » . . P a . 0 . « • San . o „ . CA S . , 3 , , , « , . 7 , - , 0 » , T . „ . , = . 3

DESIGN CENTER SURVEY
SOFTWARE ANALYSIS TOOLSINSTALLED BASE
CAE VENDOR
Logic
Simulation
TimingVerification
Circuit
Simulation
DRC
ERC
Layout vs.
Schematic
Fault Simulation
IP

20
30
40
Percent of Installations

60

60

Soures: DATAQUESTSOFTt«AKE ANALYSIS TOOLSINSTALLED BASE
CAE VENDOR(Percent of Installations)

Logic Simulation
Timing Verification
Circuit Simulation
DRC
ERC
Layout vs. Schematic
Fault Simulation

Source:

59
49
40
40
32
27
26

DATAQUEST- 10 1985 Dataquest I n c o r p o r a t e d - R e p r o d u c t i o n

Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
SOFTWARE ANALYSIS TOOLSINSTALLED BASE
THIRD PARTY
Circuit
Simulation
Layout vs.
ScliematieLo^ic
Simulation
Fault Simulation
ERC
DRC
TimingVerification
10

20
Percent of Installations

30

40
Source: DATAQUESTSOFTNAKE MUUIiTSlS TOOLSINSTALLED BASE
THIRD PARTY(Percent of Installations)

Circuit Sinulation
Layout vs. Schematic
Logic Sinulation
Fault Sinulation

ERC
DRC
Tining Verification

Source:

34
29
26
26
25
23
21

DATAQt]EST- 11 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
SOFTWARE ANALYSIS TOOLSINSTALLED BASE
DEVELOPED IN-HOUSE
Layout vs.
Schematic
ERC
DRC
Logic
Simulation
TimingVerification
Circuit
Simulation
Fault Simulation
10

20
30
Percent of Installations

40

60

Source: DATAQUESTSOFTWAKE ANALYSIS TOOLSINSTALLED BASE
DEVELOPED IN-HOUSE(Percent of Installations)

Layout vs. Schematic
EBC
DRC
Logic Simulation
Timing Verification
Circuit Simulation
Fault Simulation

Source:

48
47
44
42
40
35
34

DATAQt]EST- 121985 Dataquest Incorporated-Reproduction Prohibited

Dataquest

incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
NUMBER OF ENGINEERS: 503
ENGINEERS PER DESIGN CENTER: 7
DESIGN STARTS: 3.259
DESIGN STARTS PER ENGINEER: 7- 13 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

USAGE- 14 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquesi Incorporated, A Subsidiary of A.C. Nielsen Company , 1290 Bidder ParK Drive / San Jose. CA 95131 ; (408) 971-9000 / Tele. 171973

DESIGN CENTER SURVEY
WHO DOES THE DESIGN?
D IN-HOUSE ENGINEER
E2 COMBINATION OF
IN-HOUSE ENGINEER
AND CUSTOMER ENGINEERm CUSTOMER ENGINEER

Source: DATAQUEST- 15 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen

Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
WHO DOES SIMULATION?
D DESIGN CENTERQ CUSTOMER• HEADQUARTERS

Source: DATAQUEST- 16 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 ; (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEYSIMULATION SYSTEM TYPE
D WORKSTATION
m MAINFRAME/MINI
B ACCELERATOR

Source: DATAQUEST- 17 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
AVERAGE DISTRIBUTION OF TIMEPER DESIGN PHASED SIMULATION
m LOGIC CREATION
B3 LAYOUT• TEST

Source: DATAQUEST- 18 1985 Dataquest Incorporated-l^eproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
TURNAROUND TIMES
Weeks

Definition

DesignStages of Design Cycle

Prototype

Source: DATAQUESTTURNAROIIND TIMES(Stages of Design Cycle)

Definition
3 weeks
Design6 Weeks
Manufactured For Protype 6 Weeks

Source: DATAQUEST- 19 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEYUSE OF PERSONAL COMPUTERSOFTWARE TOOLS
Word Processing
Spreadsheet
Documentation
Pro[ect Management
General-purpose
ProgramCommunications
Schematic Capture
Job Entry
Simulation
Test
Manual Layout
0
Low

2

3

Frequency of Use

5High

Source: DATAQUESTUSE OF PERSONAL CCMPOTER
SOFTWARE TOOI.S(Frequency of Use)

Word Processing
Spreadsheet
Documentation
Project Management
General-Purpose Program
Ccomnications
Schematic Capture
Job Entry
Simulation
Test
Manual Layout

4.08
3.57
3.50
3.38
3.32
3.15
3.00
2.62
2.30
2.03
1.63

Source: DATAQt]EST- 20 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FUTURE PLANS- 21 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
AVERAGE BUDGET PER COMPANY TYPE
Thousands of Dollars
600

E3 Distributor AffiliatedB Other Budget
B Semiconductor
Vendor Affiliated
CH All Average
O Unaffiliated

500
400

$392
S334

300

Jii^i\\\^''.^'^J^l^i\\^'.^''.^''.^'.

0$309\\\\\\\\

rr-r-rr-rT-rr

200
100

$318

y.'^j^^M .^i\yj.;j. y^^^w...

"••'••> L " J - > ^ ^ - • ^ i ' ^ i • l • . . • • • • ^ < '•v\\\\\\\
s\\\\\\\
s\\\\\\\
s\\\\\\\
v\\\\\\\'yXWWWs\\\\\\\^\\\\\\\
v\\\\\\\
v\\\\\\\
s\\\\\\\$199. X . N X N X V N 'Source: DATAQUEST- 22 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
WORKSTATION PURCHASE PLANS
BY COMPANY TYPE
Average Workstations Per Site
10P I M I I 1 I I L J .

iT^A-

\''-y

•«. • > * " ' . i . ' ^ im^ Distributor Affiliatedt?77i Unaffiliated-I

E ^ Semiconductor Vendor Affiliated
Other
Source: DATAQUESTNORKSTATI(»I PUBCHASE PLANSBY OWPANY TOPE
(Average Workstations Per Sitie)

Semiconductor Vendor Affiliated 5
Distributor Affiliated6
Unaffiliated
e
Other
10

Source; DATAQUEST- 23 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
PURCHASE PLANS BY PRODUCT TYPED STANDALONE
E3 PC BASEDm HOST DEPENDENT

Source: DATAQUEST_ 24 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
WORKSTATION PURCHASE PLANSBY VENDORD MENTOR
0 DAISY
0 FUTURENET
0 CALMAQ VALID

731

i-9X'--"X'.n??

V::i:':i:i:":':i45r>::;o •I'M

• , - , - ' . - ^ - L ::14X"'•*'"i

>>:

/18X<

>'•;

!*''!
• : • : •Source: DATAQUEST- 25 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
PLANS TO PURCHASE ANALYSIS TOOLS
^^mat

^^^"

Loqic
Simulation
Circuit
Simulation
TimingVerification1.-.;.•.•.•.'.-.'.•.•.•.•.•.•:•:':•!•>;•:';-;-;-^-^-,-,-,-,

1J']']-!' V:^i

Fault Simulation
DRC

1

1

':>::j::o:::::::::::::::::::::o::::::::::x-:j:;ix:-:-:'::r>:v::::::>;->»>:'»:M'^::;:':;:;

ERC•:•:•:•:•w^ 1

1i^Mifi^1'>;•:•:-:'\'r\-'>M';';';':'>;'M'".;'>X'!.-:"!'!'-:-^>'-•'•-;•••

Layout vs.
Schematic^ p ^ _^^^
40
Percent of Responses
M Will Not Buy

20
D Will Buy

80

60

Source: DATAQUESTPLANS TO PURCHASE ANALYSIS TOOLS(Percent of Resp<»ises)

Logic Simulation
Circuit Simulation
Timing Verification
Fault Simulation
DRC
ERC
Layout vs. SchematicWill Buy

Will Not Buy

79
41
59
66
45
48
45

21
59
41
34
55
58
55

Source:DATAQUEST- 26 1985 Dataquest Incorporated-Reproduction Prohibited
Datacues, Incorporated, A Subsidiary o, A.C. Nielsen Company , 1290 Bidder ParK Drive / San Jose, CA 95131 / (408, 971-9000 / Tele. 171973

DESIGN CENTER SURVEY
DISTRIBUTION OF SYSTEM ARCHITECTURE
D WORKSTATIONm HOSTQ ACCELERATOR

Source: DATAQUEST- 27 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Rldder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

BOTTLENECKS- 28 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN CENTER SURVEY
BOTTLENECKS•SIMULATION AND
VERIFICATIONED CONVERSIONPROGRAMS
Ea LAYOUT

Source: DATAQUEST- 29 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

CAE
VENDORDESIGNCENTERDESIGNCENTERCUSTOMER- 30 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SUMMARYPERSONAL COMPUTERCUSTOMER/VENDOR RELATIONSHIPTOOLS DEVELOPED IN-HOUSE
TUCKERS CAD/CAM LAW
ACCELERATORS- 31 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 RIdder Park Drive
San Jose, California 95131

408/971-9000 / Telex 171973
JAPANESE TEaniOLOGy~THE FUTURE WAVE

Sheridan M. Tatsuno
Industry Analyst

Japanese SemiccHiductor Industry Service
Dataquest Incorporated

Mr. Tatsuno is an Industry Analyst for Dataquest's Japanese Semiconductor
Industry Service. He is responsible for analyzing trends in Japanese
government policies and financial markets. He is also responsible foranalyzing technology trends within the industry, and specifically tracks
R&D
spending, patentapplications,eind newproduct
developments
quarterly.
He has seven years of experience in market research,planning, aaid international finance with Bechtel and Woodward-Clyde
C(»isultants. Mr. Tatsuno has a B.A. degree in Political Science fromYale University and a Master's degree in planning and Policy Analysis
from Harvard University's Kennedy School of Government.
In addition tothese credentials, Mr. Tatsuno is fluent in Japanese, French, andSpanish, and has authored a book called The Technopolis Vision: Japan's
High-Tech Strategy for the 1990's and Beyond.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

- 1 1985 Dataquest Incorporated-Reproduction ProhibitedI}ataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 9S131 / (408) 971-9000 / Telex 171973

OVERVIEWLEADING-EDGE ICs
JOINT R&D PROJECTS
NEXT-GENERATION ICs
NEXT-GENERATION COMPUTERSMARKET OPPORTUNITIES
Source: DATAQUEST- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

JAPANESE SEMICONDUCTOR TECHNOLOGY
1984
Percent of Announcements

30

26 27

Em Technology DeveIopments
E 3 N«w Products

25
21

20
15
10
5

21

21

V.
12

1
Memory

18

i

I
•

MPU/
MCU

ASICs

8

J.

OptoGaAs
electronics

^

1
£^^3.

Linear/New
Analog Functions
Source: DATAQUEST- 4 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest incorporated, A Subsidiary of A C . Nielsen Company /1290 Bidder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

FORECAST OF NTT RESEARCH PAPERS
1985

1987

1986

DYNAMIC RAMs

4 Mb

16 Mb

ROMs

4 Mb

16 Mb

GATE ARRAYS/STANDARD
CELLS

1988

AUTOMATICCADPLACEMENT • SOFTWARE& ROUTING

GaAs SRAMs

16 Kb

64 Kb

256 KbJOSEPHSON
JUNCTIONS

4 Kb

16 Kb

64 Kb

Source: DATAQUEST- 5 1985 Dataquest Incorporated-Reproduction P r o h i b i t e dDataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

MEGABIT DYNAMIC RAM TRENDSDESIGN RULE
Year

DeviceStart

End

Technology

1983
1985
1990
1995

1Mb
4Mb
16Mb
64Mb

1.26
0.80
0.50
0.25

0.80
0.50
0.30
0.08

1998
2000+

256Mb
1Gb

0.10
0.05

0.05
0.01

Steppers (5x, 1x)
Steppers (5x. 1x)
Synchrotron X-ray
Synchrotron radiation
E-beam overexposure
Bias exposure photoiitho
Synchrotron radiation
Bioelectronics
Source: DATAQUEST_ 6 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Cooipany /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DRAM MARKET FORECAST
Billions of Dollars

1986 1987 1988 1989 1990 1991 1992 1993 1994

Source: OATAQUEST- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

WORLDWIDE EPROM MARKET SHARE
Rank

64K

128K

256K

512K

1
2
3
4
5

Hitachi
Mitsubishi
FujitsuIntel
Tl

HitachiIntel
Mitsubishi
AMD
FujitsuIntel
AMD
HitachiToshiba
FujitsuIntel
AMD
HitachiFujitsuJapanese
Share:

68%

79%

41%

2%

1984 Avg.

68%

56%

18%

0

1985 Market
Size:

$286M

$249M

$189M

$23M

Source: DATAQUEST- 8 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder ParK Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SMART CARDS--THE NEXT PC MARKET?
Group Leader

start

Application

Banking andShopping
March 1985 Seibu Bank
Medical
Shopping
Sumitomo Bank
May 1985
Toyo Trust Bank Financial
July 1985
Management
Aug. 1985 Dai-lchi Kangyo Banking
Shopping
Oct. 1985 Sanwa Bank
Oct. 1985 Fuji Bank
Corporate
Banking
Shopping
Oct. 1985
Daiwa Bank
Oct. 1985
Toshiba
Point-of-Sale
Dec. 1984

Mitsui BankIC Device
64K EPROM with
8-bit MPU
16K EEPROM with CPU
64K EEPROM with CPU
64K EPROM with CPU
64K EPROM with CPU
64K EEPROM with CPU
16K EEPROM with CPU
16K EEPROM with CPU
64K EEPROM with CPU
Source: DATAQUEST- 9 1985 Dataquest Incorporated-Reproduction P r o h i b i t e dDataques, Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

JAPANESE EPROMs/EEPROMs. .»Company

EPROM

Fujitsu
Hitachi
Mitsubishi
NEC
Oki
Ricoh
Suwa Seikosha
Toshiba

256K CMOS
256K/1Mb CMOS
1Mb NMOS
256K/1Mb CMOS
64K NMOS
266K CMOS
64K/128K CMOS
256K CMOSEEPROM
64K CMOS
64K CMOS
256K CMOS—

16K CMOS (Exel)——

64K "Flash' CMOS
Source: DATAQUEST- 10 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

THE SHIFT TO STANDARD CELLS
1Mb TO 2Mb
ROM OR
DRAM

16-BIT MCU"SUPERCHIP"

I/O AND PERIPHERALS

Source: DATAQUEST- 11 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

DESIGN BOUTIQUE" STRATEGYASIAN COMPANYWAFER FABASSEMBLY AND TEST

U.S. COMPANY

DESIGNSALES
AND MARKETING

Source: DATAQUEST- 12 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

JAPANESE 32-BIT MICROPROCESSORS
Year

Company

1986 NEC1987
1986 Hitachi
1986

Fujitsu

1986 Oki
1987
1987

Mitsubishi
Toshiba

Product LineTies

V60 (first generation)
V70 (second generation)
68000—Compatible CMOSIRON Project80286 ( 1 6 - / 3 2 - b i t MPU)
Proprietary MPU
IRON Project
Proprietary MPU

Sony and Zilog(V20/V30)
Motorola
Tokyo University
Intel
Tokyo University
Zilog (Z8000)

Source: DATAQUEST- 13 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- lA 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

JAPANESE ICDEVELOPMENT CYCLE
1975

1985

1980
VLSI PROJECT^Technical Papers & Patents
Samp es

DEVICES^fc^
Mass Production

CAD TOOLSAND PROCESSEQUIPMENTTechnica Papers & Patents
Samples-^^
Mass Production

Source: DATAQUEST- 15 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiaryof A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

MITI JOINT R&D PROJECTS
1980

1990

1985
Optcelectronies (1979-1^68)
Supercompule(1981-1990)

Fifth-generation Com)uter ( 1 9 7 9 - 1 9 9 1 )Future Electron Devices ( 1 9 8 1 - 1 9 9 0 )Biochips ( 1 9 8 6 - 1 9 9 0 )Fine Ceramics ( 1 9 8 1 - 1 9 9 0 )Speech Syntttesis/Recognition ( 1 9 8 3 - 1 9 8 8 )SIGMA Software ( 1 9 8 5 - 1 9 9 2 )New Diamond ( 1 9 8 7 - ? )Biocomputer ( 1 9 8 5 - 1 9 9 5 )Source: DATAQUEST- 16 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder ParK Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

OTHER GOVERNMENT-SPONSORED
R&D PROJECTS

AgencyProject

Time Frame

NTT
STA
STA
STA
STA

INS computer
Perfect QaAs crystals
Amorphous compounds
Nanomechanisms
Solid-state surfaces

1984-1990
1981-1986
1981-1986
1985-1990
1985-1990

Source: DATAQUEST- 17 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive tSan Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 18 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

OPTOELECTRONICS:
THE NEXT GENERATION

1st
Vacuum
Tubes

1940

1950

1960

1970

1
1980

1
1990

1
20OO

1
2O1O

1
2O2O 2030

Source: DATAQUEST- 19 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

GaAs RESEARCH ( 1 9 8 5 )Device4K SRAMaOOO-gate logic
MESFET
Gate arrays

HEMT

Company

Speed

Fujitsu
HitachiNEC
NECOki
Toshiba(2.000 gates)Oki(1.000 gates)
Fujitsu

1.7 ns2.2 ns
2.4 ns30.0 ps
14.7 ps
42.0 ps390.O ps
O.9 ns

Source: DATAQUEST- 20 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

JOSEPHSON JUNCTIONS
Company

DeviceSpeed

HitachiControl terminal transistor

20 ps

NEC

4 X 4-bit parallel multiplierwith 249 logic gates

350 psNEC

4 X 4-blt multiplier

280 ps
Source: DATAQUEST- 21 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FUTURE ELECTRON DEVICES PROJECT
ThemesSuperlattices
(SL)

81

82

83

84

85

87

86

88

89

90

PHASE 1PHASE 2

PHASE 3

Basic SL Structure

Basic Devices

Integration

PHASE 2

PHASE 3

New Material System
ThreeDimensional ICs( 3 - D ICs)PHASE 1
Multilayer Structure
Process Technology
PHASE 1

Hardened ICs

Test Element Group Functional 3-D IC;
Basic Tectinology
Device Design
System Design

PHASE 2T esting Technique Test Device

PHASE 3Integration

Device, Process Modification

Source: DATAQUEST- 22 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquesi fncorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FIVE-LEVEL 3-D IC
HIGHER DENSITIES/ / / / / / / / / / ^ ^SCrm/fmf/fffi A/D CONVERTERMULTIPLE
FUNCTIONS/mmTTTm///////////////OPTICAL SENSORMEMORYCPU
D/A CONVERTER

Source: [3ATAQUEST- 23 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

MEGABIT MEMORIES--THE SHIFT
TO 3 - D ICs

3-D

2-D
4Mb X 1

16Mb X 1

Source: DATAQUEST- 21* 1985 Dataquest Incorporated-Reproduction Prohibited• Dataquest .ncorpora.ed, A Subsidiary of A.C. Nielsen Company , 1290 Ridder ParK Drive / San Jose, CA 95131 / (408,971-9000 / Telex 171973

SUPERLATTICES(All~^y1 U
AI

VS.

Al

(5

*"
A.

]AI

All
A.

TAI)

Ai)

^^^^^&d

Z ^ 5 J ftLJKLJi?!'(M^.*-. Aa A. L*0*" AJ A* AI A. AI

€E
Tjii

'A.

S

AI

AI

^

^

AlA.

AI

Gis A> 'J . A . '
^

MAi

AlT

AJ [

**jT *° ^si^
fit

AIA>

C.

b

AI
A.

[All

^

fe

Source: DATAQUEST- 25 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

BIOCHIP RESEARCHRESEARCH FOCUS

COMPANYASAHI CHEMICALDOJIN CHEMICALFUJITSUHITACHIKURARAYMill
MATSUSHITAMITSUBISHI
NEC
SHARP
TOSHIBA

LIGHT-SENSITIVE ORGANIC SEMICONDUCTOR
THIN-FILM BIOCHIP SUBSTRATE
BIOSENSORS. THIN-FILMS. BIOCHIPS
BIOCHIPS. ARTIFICIAL INTELLIGENCEIMPLANTABLE BIOSENSORSORGANIC SUPERCONDUCTORSWATER-SOLUBLE PHOTORESISTENZYME BIOSENSORSMEDICAL BIOSENSORS
BIOCHIPS. BtOCOMPUTERSMULTI-ION BIOSENSORS
Source: DATAQUEST- It 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 27 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

JAPAN'S NEXT-GENERATION COMPUTERS
Al/EXPERT SYSTEMSTELECOMFIBER OPTICS_l

FifthGeneration
ComputerK ,PARALLEL
PROCESSING

c&c

INS Computer

Op(o-Computer

Bto-Computer—•(
Supercomputer /LASERSGaAs.
HEMT

BIOELECTRONICS
ELECTRONICS

BIOTECHNOLOGY

Source: DATAQUEST- 28 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Mill SUPERCOMPUTER PROJECT(1981-1989)
Fujitsu Hitachi Mitsubishi NEC Oki Toshiba
Semiconductors
Josephson Junction
GaAs Digital ICs
HEMT
ECL Logic
Systems
Architecture
Large-Capacity Storage
Parallel Processors
Software

X

X
X

X
X

K

X

X
X

X

X
X
X

X

X

X
Source: DATAQUEST- 29 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FUTURE SUPERCOMPUTER CAD TOOLSSupercomputer

MiniSupercomputer

3-D CAD
Software

FUTURE ICs
Megabit DRAMs
Intelligent MPUs
3-D ICs
Superlattices
Biochips

Source: DATAQUEST- 30 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Mill FIFTH-GENERATION COMPUTER CHIPS(1979-1991)
FUNCTiON

DEVICE REQUIREDNatural language processing

Voice recognition and synthesis cfiips
Megabit DRAMs and ROMs
D/A and A / D converters

image processing

Graphics chips
Optoelectronic ICs (OEICs)
Semiconductor lasers
CCD knage sensors

Parallel processors

32~bit microprocessors (MPUs)'Intelligent' MPUs with lasers (Si/GaAs)

Inference machines anddata flow

GaAs and other lll-V devices
Josephson junctions
High-electron mobility transistors (HEMT)VLSI architecture

VLSI CAD tools
VLSI testing equipment

Source: DATAQUEST- 31 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

CONCEPT OF INS COMPUTER
Informallon processing nodes/
center iac'llly

r- CPU
PrssanI•ysl«meontlgurailc nCommunication
processing equipmen I

• \

1 1

1 1
Swllctiing% - ^ ^ orocasiina^ ^^Knowiedga
m
bau
C "5

Subsysti 4n«/#nCommunication
processing

equipment

hiefgent hlertoce
jnteHlgenl
procasslng

1
1:Advanced communication
management;

Large scaledar« bass
management

htetgont kilertoce^

InteiBent htsrfaca^M^^

InTormaiian

M

Informallon
processing

M

Switching processing
Corresponding equipment in present system

Source: DATAQUEST- 32 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC RESEARCH FOR INS COMPUTERMEGABIT MEMORY PROCESSING(4/16/64Mb)—E-BEAM FOR SUBMICRON,SYNCHROTRON OPTICAL RADIATION FOR
SUB-HALF-MICRONHIGH SPEED LOGIC—GaAs ICs. JOSEPHSON
JUNCTIONS. BALLISTIC TRANSISTORSOPTICAL TRANSMISSION—SEMICONDUCTORLASERS AND OPTOELECTRONIC ICs (OEICs)- 33 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorpprated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC RESEARCH FOR INS COMPUTER• MOBILE AND SATELLITE TRANSMISSION—
GaAs MICROWAVE• ELECTRONIC SWITCHING AND DIPSCOMPUTER—• 16-BIT AND 32-BIT MPUs
• VIDEO PROCESSING~CCD SENSORS.
WAFER SCALE VIDEO CHIPS• DIGITAL SUBSCRIBER LOOPS—AUDIOAND VIDEO CODES• TELEPHONE CIRCUITS—SUBSCRIBER
LINE INTERFACE CIRCUITS (SLICs)
AND ONE-CHIP TELEPHONE LSIs

- 3A 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

THE SIXTH-GENERATION COMPUTERMITI'S BIO-COMPUTER PROJECT• $40 MILLION FUNDING (1985-1995)• MIMICS HUMAN BRAIN FUNCTIONS (PATTERN
RECOGNITION. REASONING. AND LEARNING)• FOUR RESEARCH AREAS:- NEW COMPUTER ARCHITECTURE- BIOCHIP DEVELOPMENT- NEURAL SYSTEMS OF LOWER ANIMALS- NONDESTRUCTIVE. NONCONTACT METHODSFOR MEASURING HUMAN BRAIN ACTIVITY- 35 1985 Dataquest Incorporated-Reproduction Prohibited
Dalaquest Incorporated. A Subsidiary o. A.C. Nielsen Company /1290 Bidder Park Drive , San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 36 1985 Dataquest Incorporated-Reproduction Prohibited
Oataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

WORLDWIDE SEMICONDUCTOR REVENUES(Millions of Dollars)

1984

1985

PERCENTCHANGE

U.S.A.

13.3339.729(27.0)

10.513

8.1

JAPAN

8.687

8.186

( 5.8)

9.172

12.0

EUROPE

4.805

4.700

( 2.2)

5.454

16.0

ROW

2.073

1.433

(30.9)

1.612

12.5

28.89824.048(16.8)

26.751

11.2

TOTAL

1986

PERCENTCHANGE

Source; DATAQUEST- 37 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

REGIONAL MARKET SHIFTSTOTAL SEMICONDUCTORSPERCENT
70
UNITED STATES

1980

1981

1982

1983

1984

1985

1986

Source: DATAQUEST- 38 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Parit Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

REGIONAL MARKET SHIFTREGIONAL MANUFACTURERS' SHARE OF
TOTAL SEMICONDUCTORS(Percent)
1980 1981 1982 1983 1984 1985 1986
WORLD

100

100

100

100

100

100

100

UNITED STATES

61

55

54

63

51

48

47

JAPAN

26

34

34

37

39

42

43

EUROPE

13

11

11

9

9

9

9

ROW

0

0

1

1

1

1

1

Source: DATAQUEST- 39 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

CAPITAL SPENDING BY JAPANESESEMICONDUCTOR COMPANIES(Millions of Dollars)
CAPITAL EXPENDITURES

NECHITACHITOSHIBA
FUJITSUMATSUSHITAMITSUBISHI
SHARP
SANYO
OKI
TOTAL

1984
591
548
624
527
401
295
118
148
118
3.370

1985 (Est.)
420
297
480
280
340
224
160
184
100
2.485

PERCENT OFSEMICONDUCTOR SALESPERCENTCHANGE(28.9)(45.8)(23.1)(46.9)(15.2)(24.1)
35.6
24.3(15.3)(26.3)

1985 (Est.)
23
20
35
38
39
28
47
37
34
301

Source: DATAQUEST- 40 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

STRATEGIC ALLIANCES ( 1 9 8 5 )U.S. FIRM

JAPANESE FIRMRESEARCH FOCUS

Hewlett-Packard
LSI Logic
Westinghouse.
General Electric
Tektronix

Toshiba
Toshiba
Mitsubishi

VLSI technology exchange'Sea of Gates' development
Diodes, power transistors

Sony

Veeco

Kanematsu
Semiconductor
NMB SemiconductorNEC

MPU development support
system for NEC series
Ion implanters

Vitelic
Tektronix.
Digital Research.
HP (Yokogawa)

CMOS 1Mb DRAM
MPU development support
system for NEC V series

Source; DATAQUEST- 41 1985 D a t a q u e s t I n c o r p o r a t e d - R e p r o d u c t i o n

Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

NTT RESEARCH AND DEVELOPMENTSYSTEM
START R&D ANALYSISTECHNICALDOCUMENTBASIC
RESEARCH

DEVEL DPMENT

LIMITED
SPECS

GENERALSPECS

ECLTRACK HIATRACK IIITRIAL
ENGIN EERINGMANUFACTURINGBUFEAUFIELD TESTTRACK IITRACK IIACOMMERCIALTESTTRACK I

Source: OATAQUEST- 42 1985 Dataquest Incorporated-Reproduction Prohibited
Oataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

JOINT R&D WITH NTT
U.S. COMPANYRESEARCH FOCUS
LINK-UP OF IBM'S SYSTEM NETWORKARCHITECTURE WITH NTT NETWORKJOINT VAN DEVELOPMENT AND MARKETINGJOINT DEVELOPMENT OF OXYGENION I^^LANTERS

IBM
AT&T
EATON
MOTOROLATEXAS INSTRUMENTS
ENERGY CONVERSION
DEVICES (ECD)

JOINT IC RESEARCH FOR INS COMPUTERJOINT IC RESEARCH FOR INS COMPUTERJOINT DEVELOPMENT OF AMORPHOUS
MEMORIES
Source: DATAQUEST

-

43 -

1985 Dataquest Incorporated-Reproduction

Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408)971-9000 / Telex 171973

Dataquest
n ojJtwrh^inyal
tumpjnyalitlc Dun & BtodUmL C a p o n l n n

A semimonthly report on Japanese and Asian High-Technology Industries

I.e. ASIA
Compiled by DATAQUEST's
Japanese Semiconductor Industry Service

12/04/85
I.e. ASIA 1985-30

KESS^TliJiJin D a t a q u e S t\y^)I.e. ASIA is a news digest published semimonthly by
DATAQUEST's Japanese Semiconductor Industry Service(JSIS). To order a one-year subscription(22 issues), mail your checK or money order for3430 to:I.e. ASIA
12 90 Ridder Park Drive, M.S. 2-305
San Jose, CA 95131-2398
MAJOR EVENTS

Subscription
Information on
BacK Page

SEMICONDUCTOR MAKERS REVISE PLANS FOR FY85, Pg. 2
YAMAGUCHI NIPPON PLANS TO PRODUCE iNb DRAM, Pg. 4
SEIKO EPSON TO BEGIN 256K SRAM PRODUCTION, Pg. 5
TOSHIBA REVISES GATE ARRAY SALES PLAN, Pg. 6
The exchange rate used in this issue is 3f206/US$.

Each month I.e. Asia presents indicators on thele industry in Asia. This set covers exports ofintegrated circuits from Japan to the ten largest
countries of destination. The data shown below
cover only finished goods at export value.
EXPORTS OF INTEGRATED CIRCUITS FROM JAPAN*SEPTEMBER 1985
SoptMbor I S K

Ranking
Sap. Aug.
1
2
3
4
5
6
7
8
9
ie

Country

25.964
11.67524,57321.47421.226
6.645
2.395
1.296
3,195
1.236

11.874
4.641
3.923
3.321
3,666
1.628
885
542
465
377

Subtotal (top 16)

121.761

29.524

Total (163 eountrio*)

139.292

31.713

93R

KK

1
2
3
5
4
6
7
B
•
12

United S t o t m
Wttt Gtntony
Hong Kong
Toimn
KorM
Singapore
Unitod Kingdom
Braii1China
Italy

Top 19 0* 0 paroontog* of t o t a l

Total (Jon .-S*p

Vo ue
Cnongo
f ran
Volu*
VbliM
iMIIIien*;Mi 11 ion* Sop •84
unit*
unit*
of Y*n)of Y*n)(Thouoondt)(X) (Thoiwand*)6ex

285.866
126.4Se
296,762
192,786
185.79397.33923.46212.42826.2S7
16.5631,251.736

364.247-em

1.337.614

396.135

94X

93(

-6aR
-JITJE
-51%

-9C
- 1 «

-ecR
-^3X
ZX
230!

176,61152,53245.23728.56628.76714.381
16.397
6,371
3,863
4.218

1965)
Volue
' Changef rcn
Jan.-Sap. '64
(X)
-31X
14X
-2R
13K
1«C
-2eR
-29!

-tx

332X
6K

••m

•ExeludM hybrids
Sourco:Page 1

Japan*** Minittry of FInonc*
OATMUST© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

••••I

I.e. ASIA

INDUSTRY
64K DRAMS and
128K EPROMs
i n Stiort S u p p l y

There have been stiortages of 64K DRAMs and
128K EPROMs recently due to makers' rapid
reductions in production. Major makers' 64K DRAM
production, which reached 10 million units per monthlate last year, has declined to 1 million to
2 million units monthly. Some manufacturers havestopped production altogether. Inventories of
64K DRAMs are down sharply, and it is expected thatttie shortage of supply will become critical toward
the end of this year.

Semiconductor
Makers Revise
Plans for FYS5

Major semiconductor manufacturers have announced
ttieir financial statements for the first half offiscal 1985, which started in April. Since theirsales during the period decreased dramatically fromthe year before, sales and capital expenditure plans
for fiscal 1985 have been revised downward. Major
makers' revised production and investment plans areshown in the following table.
MAJOR JAPANESE SEMICONDUCTOR MANUFACTURERS'REVISED FISCAL 1985 PLANS(Billions of Yen)

NtC
HitachiToshiba
Pujitsu
Matsuehica
Eieccconics(Year-end:
Deceobec}
Mitsubishi
EUectrlc
lOKyo Sanyo(Yeac-end: rtoveabec)
QKi E l e c t r i c
lotal

(d

tirmai

Initial
Plan

First
Halt
Production

Production
Cnange
tion
First
Half
pyU4

tevised
Plan

6S0
540
500
340
300

236
215
10 5
lOS
N/A

{19»»
(2U«)
(iO»)
(20%)
N/A

510
430
385
220
220

(14%)
(20»)
(ill)
(17»)

270
140

74
N/A

(38»)
N/A

165
US

lOO

37

(lot)

81

(5»)

32

25

(311)

2,840

N/A

N/A

2.126

(14%)

728

577

(28%)

C4pJ t d i
Changefrom
FY84

bFvnditurp
Changett om

InitialPlan

tevised
Plan

14 0

o

120
10 O
90

120
90
100
68
70

(20-30%)

(30»)
5k

70
46

58
46

(13*)
46%

uo

FY 8 4
(H»)
(311)
(32%)
(48%)

^DCe: Fu]itsu's capital expenditure i s tor a l l electronic devices; appcoxinately 90 percent will be spent^on sen!conductor investnent. NEC's production includes overseas value added. Qki's production is an
estimate.
N/A • Not AvaiiaDle.
Denpa Stiiabun

256K ORAM Price
Down to3f350 perPage 2ttoit

The lowball 256K DRAM price for large users in theTokyo market declined to 5f350 ($1.70) per unit thefirst week of November, down 23.6 percent from amonth ago. There is a strong probability that the
average price of the 256K DRAM will drop further to
5f200 ($0.97) by the end of the year. Keen sales
competition has led to the continuing oversupply.

© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

••••I

I.e. ASIA

Semiconductor
Spot Prices
PlungeSpot market semiconductor prices, which had been
rising since last spring, have plunged again due todecreasing exports and prolonged sluggish domestic
demand. Steep drops have occurred in DRAMs and
EPROMs. Prices of 64K DRAMs are less than 5f90($0.44) per unit and 256K DRAMs are selling for¥260 to ¥280 ($1.26 to $1.36) per unit. The
128K EPROM price has decreased by 5 to 10 percent
from a month ago; it is currently ¥320 ($1.55) per
unit.

8-Bit MPU
Price Down

Prices of 8-bit microprocessors have decreased in
the Toltyo market, due mainly to sluggish demand for
OA equipment. The average wholesale price for large
users is ¥210 ($1.02) per unit or less for the 8085A
model as well as for the Z80A. This is a 10 to
15 percent decline from last summer's price. The
80C49 price has also declined by 10 percent to ¥500($2.43) per unit or lower.

Semiconductor
Price
Information
SEMICONDUCTOR PRICES IN TOKYOAS OF NOVEMBER 12, 1985*
Price(Collars)

Price
(Yen)

Part
Logic
4001
4007
7400
7404

5fl8-!f20!fl8-^20
Jfl8-if20
Sfl9-*20

30.09-SO.lO
30.09-30.10
30.09-30.10
30.09-30.10

Micro D e v i c e s
8085A
8086 (5MHz)
68000 (8MHz)

ifl90-3f230
Sfl,050-Sf 1 , 2 5 0
y2,200-¥2,400

30.92-31.12
35.10-36.07
310.68-311.65

Memory64K DRAM
256K ORAM
16K SRAM (CMOS)
64K SRAM (CMOS)
64K EPROM
128K EPROM
256K EPROM

yl20-yl4 05f350-¥450
iri80-y2io¥380-^460¥230-¥270
Sf370-*470¥600-^680

30.58-30.68$1.70-32.18
30.87-31.02$1.84-32.23
31.12-31.31$1.80-32.28
32.91-33.30

Exchange rate ° ¥206/US$l*Yen wholesale price for large users, 90- to 120-day
promissory notes.

Source:Page 3

Japan Economic Journal© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

!•••••••

I.e. ASIA

COMPANY

Asatii Glass
Signs Contract
witti VTI

Asatii Glass Co., Ltd., has signed a sales agency
contract witti VLSI Tectinology, Inc., (VTI) of theUnited States and tias begun selling the U.S.
company's products, including semicustom LSIs, inttie Japanese market. Sales of the VTI products in
the initial year are targeted at jrl billion($4.9 million).

Matsustiita
Completes
Submicron VLSI
Researcti Building

Matsustiita Electric Industrial Co., Ltd., held aceremony on October 28 to mark the completion of its
Submicron VLSI Research Building within thecompany's Semiconductor Research Center, which was
set up last year. The six-story building, with
17,000 square meters of floor space, has been
furnished with the most advanced equipment for VLSI
research and development. Investment in thebuilding totaled approximately 5f20 billion($97 million).

Mitsubistii
AnnouncesHalf-YearF i n a n c i a l Report

Mitsubishi Electric Corporation has announced its
financial statement for the first half of fiscal
1985, which started in April. Sales during theperiod totaled ¥882.543 billion ($4.3 billion), up
0.9 percent over the year before. Operating
profits and net profits of the term registered¥28,275 billion ($137 million) and ¥12.275 billion($60 million), down 19.4 percent and 14.7 percent,respectively.

NBC Controls
64K DRAM
Production

t4EC Corporation has stopped fabrication of
6 4K DRAMS, in an effort to reduce inventory
rapidly. Assembly and test of the 10 to 15 million
units on hand will be continued. At present, thecompany assembles and tests 2 million to 3 million
6 4K DRAMS per month. This will be reduced to
1 million units by March 1986. NEC will maintain aportion of its 64K DRAM fabrication facilities sothat production can be reopened at a later date.

Yeunaguctii Nippon
Plans t o Produce
IHb DRAM

Yamaguchi Nippon Denlti, a subsidiary of NEC
Corporation, held a ceremony for completion of its
headquarters factory in Yamaguchi prefecture on
November 13. Construction of the first line of thisadvanced VLSI factory was completed in April and theplant is now producing 4 million units per month.
KOji KObayashi, chairman of NEC Corporation, andAtsuyoshi Ouchi, NEC vice chairman, held a press
interview at the opening. They said that NEC plans
to make Yamaguchi Nippon Denki a main production
factory for 1Mb DRAMs. In the second phase ofPage 4© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
construction, the 256K RAM production line will bestrengthened so that 256K static RAMs can beproduced in the future. When the second part of theconstruction worK has been completed, VLSI
production will be doubled to 8 million units permontti.
NBC Officers
Discuss
Semiconductor
Business

A. Ouchi, vice ctiairman of NEC Corporation, andT. Matsumura, senior vice president of the cc^pany,
talked about the company's semiconductor business inthe current fiscal year at a press interview on
October 30. Among the points they covered in thediscussion were;•

Production of semiconductors and other electronic
components will total 5f660 billion($3,204 million), down 6 percent from the year
before:•Although capital expenditure plans have been
lowered, research and development investment in
the Silicon Research Center in Sagamihara will be
doubled to ¥19 billion ($92 million).

•

Semiconductor exports will total ¥86 billion($417 million), down 39 percent from the year
before.

•Sample shipment of 1Mb DRAMs is scheduled to
begin late ttiis year or early next year.

NMB
to Introduce
Tectinology from
U.S. Firms

NMB Semiconductor Co., Ltd., has signed atechnology agreement with two U.S. companies underwhich it will begin production of 64K SRAMs and
1Mb DRAMs late this year or early in 1986. The
U.S. firm that is licensing 64K SRAM technology to
MIB has not yet been disclosed, but ttie devices tobe produced will be 35-, 45-, and 55-nanosecond CMOS
models. Monthly production will initially be
500,000 units. The 1Mb DRAM technology has been
licensed by Vitelic Corp. Production will begin
in January or February 1986 at a monthly rate of
500,000 units. Fifty percent of the products will
be supplied to Vitelic on a foundry basis.

Seiko Epson
to Begin 256R
SRAM Production

Seiko Epson Corporation has disclosed that it will
begin volume production of 256K SRAMs at its Fujimi
Factory in Nagano prefecture in July 1986. The
company established the 256K SRAM production line in
Fujimi Factory in April of this year, but it has notbeen brought up yet due to the sluggish
semiconductor demand. The 256K SRAM production
capacity at Fujimi is 20 million units per year.
Sample shipnent is scheduled to begin late this year.

Page 5© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Bidder Parl< Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
Tostiiba Sales
Gain 9 Percent
in First Halfof FYS5

Tostiiba Corporation announced its financial
statement for the first tialf of fiscal 1985, whichbegan in April. Sales during the period totaled¥1,323.5 billion (36.4 billion), up 9 percent over
the year before. Operating profits decreased by
9 percent to ¥62.034 billion (3301 million), and net
profits of the term registered ¥38.134 billion($185 million), up 11 percent. The company expects
that total sales and profits during the current
fiscal year will be as follows:•

Sales: ¥2,620 billion ($12 billion), up
4 percent over the previous year•

Operating profits: ¥117 billion ($568 million),
down 19 percent from the previous year•

Net Profits: ¥38.1 billion ($185 million), down
4 percent from the previous year

Tostiiba, SGS
Strengttien
Relationstiip

Tostiiba Corporation has agreed with
SGS Microelettronica SpA of Italy on a joint
development and mutual second-source supply of
telecommunication LSIs. The two firms signed acontract in 1982 regarding CMOS fine-process
technology.

Tostiiba Revises
Gate Array
Sales Plan

Tostiiba Corporation has revised its gate arraysales plan for fiscal 1985, which will end in
March 1986, to ¥15 billion ($73 million), up
25 percent over the previous year. The initial planwas ¥20 billion ($97 million). The revision is dueto the continuing decline in prices; actual demand
for gate arrays has still been brisk.

IMC Reports

United Microelectronics Corp. (UMC) of Taiwan hasreported revenue of NT$949 million and profits of
NT$89 million in the first three quarters of 1985.
Vice President John Hsuan expects business to be up
20 percent in 1986.

Financials

Liton Introduces
New Products

Page 6

Taiwan Liton Electronics Co. has recently
announced several new products. One is an infrared
photocoupler for use in both industrial control
devices and consumer electronic remote control
devices. The company has also developed amicrocontroller-equipped pedometer that can be
attached to sport shoes to keep track of mileage.

© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
Rectron Ltd.
fieports
Financials

Rectron Ltd*r a Taiwanese rectifier and diodemanufacturer, recorded NT$482 million in revenues
for ttie first nine months of 1985, a 40 percent
decline from the same period last year. Total
revenues for the year are expected to be
NT$600 million, with profits of NT$60 million.

PROIMJCT
Hitactii Announces
Higti-End Model
Of 6305 S e r i e s

Hit:act)i Ltd. has developed a new model of the6305 series of CMOS 8-bit microcontrollers, theZTAT, and will begin sample shipment on
December 20. The new device, numbered the HD63705Z,
is the highest-end model of the 6305 series, and tias
a built-in A/D converter of 8-bit x 8 channels and adual-port RAM. It is available in three clock
frequencies; 1 MHz, 1.5 MHz, and 2 MHz. Sample
prices are ¥3,200 ($15.53) to ¥3,600 ($17.48) per
unit.

NBC Develops
CMOS 8 - B i t MCU

NEC Corporation has developed a CMOS 8-bit,
single-chip microcontroller, the uPD78312, and will
put it on the market in December. The newly
developed device is equipped witti a 16-bit ALU and aregister. The production plan is 50,000 units
monthly in early 1986, reactiing a total of
200,000 units in fiscal 1986. It will be priced at¥2,000 ($9.71) per unit for 10,000-unit orders.

NBC to Stiip
V40 and V50 MPUs

NBC Corporation has announced development of theV40 and V50 MPUS, which are included in thecompany's V series of original CMOS micro devices.
Sample shipment will begin in December. Sample
prices are ¥8,000 ($38.83) per unit for the V40 and¥10,000 (348.54) per unit for ttie V50. Monthly
production will initially be 50,000 units, and will
be increased to 100,000 units during 1986.

Tokyo Sanyo
Develops
Ultrasmall
Hybrid iCs

lOkyo Sanyo Electric Co., Ltd., has developed
ttiree models of ultrasmall car audio hybrid ICs.
The models are the STK3400A and 3400B, which are
multiplex stereo decoders equipped with FM noise
cancellers, and the STK 3600, a 5-band graphic
equalizer. Monthly production is targeted at
500,000 units up to the end of 1986. Sample
shipment began in November. The STD 3400A/B ispriced at ¥600 ($2.91) per unit and the STK 3600
at ¥300 ($1.46) per unit.

Page 7© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
Tostiiba to Market
CMOS LSIs forMultibus II

Tostiiba Corporation has begun marketing two models
Of CMOS LSIS for Multibus II interface. Toshiba hascommercialized the LSIs under a second-source
contract with Intel Corp. of the Uiited States.
The models are the BAC84110 for bus control and the
MIC84120 for interruption control. Both models arefor parallel systems. Sample price is ¥30,000($14 6) per kit. Production is planned at several
hundred thousand units per month during 1986.

EQUIPMENT AND
MATERIALS
Semiconductor
Manufacturing
Equipment Makers
Face Tough 1986

While semiconductor demand is expected to recoverin early 1986, the severe situation for
semiconductor manufacturing equipment makers will
likely continue through late next year or into
1987. Since major semiconductor manufacturers havedecided to shrink their capital expenditure plans
for the current fiscal year by close to 30 percent,semiconductor manufacturing equipment makers arereceiving 30 percent to 40 percent fewer orders thanlast year. Even if semiconductor demand recovers as
expected, orders for manufacturing equipment are not
likely to come until late 1986 or early 1987. Thismeans that the first half of the next year will be
the most difficult time for semiconductor
manufacturing equipment makers.

implied Materials
President
Meets witti
ttie Press

James C. Morgan, president of Applied Materials
Inc. of the United States, recently held a press
interview in Tokyo. He stated that:

Page 8•

Applied Materials Japan's sales in the previous
fiscal year, which ended in October, totaled
5fl2.959 billion ($63 million), up 4 percent over
the year before.

•

The company will begin production of CVD
equipment at its technology center in Japan inlate January 1986.

•

New models of CMOS epitaxial growth equipment and
CVD equipment will be shipped in 1986.

© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
Ttie company previously announced tliat each year, oneof its four board meetings will be held in Japan.
The first meeting in Japan will be in December ofthis year.
Tokyo Electron'sProfits Expectedto l^op by Half

Due to the sluggish demand for semiconductor
manufacturing equipment, Tokyo Electron Ltd.'s
sales and profits in the current fiscal year, which
will end in September 1986, are expected to show adecline. Operating profits in the year are
anticipated to total IflO billion ($49 million) ,nearly 50 percent lower than what was expected in
the previous year. The company's total sales are
estimated to total some yi30 billion ($63 million),
down 10 percent from the original plan.

Sunitomo Electiric
Develops New IC
Package Substrate

Sumitomo Electric Industries, Ltd. has developed anitride aluminum ceramic to be used as a package
substrate material for ICs. The thermal
conductivity of the newly developed ceramic is
10 times higher than that of alumina and the thermal
expansivity is about the same as that of silicon.
Therefore, a large-size silicon chip can be placed
directly on the substrate. The new material is
expected to accelerate the develojanent ofsupercomputers. Sample shipment of the ceramic will
begin in spring of 1986.

Sumitomo Metal
to Market
Semiconductor
Manufacturing
Equipment

Sumitomo Metal Mining Co., Ltd., recently
developed a semiconductor manufacturing machine
capable of 4Mb DRAM production, and placed it on themarket on November 1. The equipment can draw
0.2-micron circuit patterns by employing electron
cyclotiron resonauice (ECR) technology. The company
hopes to sell about 100 units annually in three
years.

XMR Diffusion
Equipment
to be Marketedin Japan

XMR Corp. Of the United States has developed
diffusion equipment for semiconductor production
using excimer lasers. The company has made anagreement with Mil:sui & Co., Ltd., to market tihe
equipment in Japan st:arting in March 1986. Mitsui's
sales target of 2{MR products in the initial year is
srlOO million ($485,000), which will be increased to
3fl billion ($4.85 million) in three years.

Page 9© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIATECHNOLOGY
Gallium Arsenide
Activities in
Japan

The following table shows the activities of the main
Japanese companies in the gallium arsenide area.
ACTIVITIES OF MAJOR JAPANESE COMPANIESIN GaAs TECHNOLOGIESCompany

Materials

Fuj i t s u
HitachiMatsushita
Mitsubishi
NEC
NTT
Sharp
Sony
Sumitomo
Toshiba

Xes

Yea

IC
Devices

GHz
Systems

Lasers

les
Xes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes

n*

Yes
Yes
Yes
Yes

OpticalProcessors
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
yee

Source:Hitachi Shelves
Trench-iype
Capacitor
for 1Mb DRAM

Fiberoptic
LANs

Yes

DATAQUEST
December 1985

Hitachi Ltd. has decided not to employ trench-type
capacitor structure in 1Mb DRAMs for the time
being. The company believes that conventional
planar capacitors are superior to the trench type inregard to production efficiency. Hitachi's decision
leaves NEC Corporation as the only 1Mb DRAM makerthat uses t:he trench capacitor. Hitachi plans tobegin sample shipment of its 1Mb DRAM this month.

OTHERS
Personal Computer
Demand Decreases

Page 10

Demand for personal computers has been declining
rapidly. Domestic (Japanese) shipments in fiscal
1985, which will end in March 1986, are expected tototal ¥370 billion ($1.8 billion), ¥70 billion($340 million) lower than the initial forecast by
the Japan Electronic Industry Development
Association (JEIDA). The decrease in demand for
personal computers is largely due to the rapid
spread of low-price word processors. Word processor
production in Japan in the current fiscal year is
expected to reach 750,000 units, four times as manyas that in fiscal 1984. On the other hand,
shipments of 8-bit personal computers for home use
have dropped 20 percent compared with the year
before.

© 1984 Dataquest Incorporated, A Subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
ComputerLand
Names New
Japan President

ComputerLand Japan Ltd. tias appointed Kris Tamaki
as new president as of November 5. Mr. Tamaki, aSansei (third-generation Japanese-American), wasdispatched to Japan by ComputerLand's U.S.
Headquarters in September 1984. Stioichi Yokoyama,
former president, has retired and will act as anadviser to ttie company.

BIAJ Compiles
Soutt>east AsianElectronics
Industry Report

Ttie Electronics Industries Association of Japan(EIAJ) has compiled a research report by the 1985
Souttieast Asia Electronics Industry ResearchMission. It was the eightti research mission
dispatched to the Southeast Asian area. The report
says that the electronics industry in the area is
not as advanced as was expected. Details include:
1985 PRODUCTION FORECAST(Thousands of Units)
Singapore

Hong Kong

TaiwanSouth Korea

-

1,380

4,100

3,840

900

2,000

4,400

VTR

-

-

384

1,100

Audio

18,70019,90018,80019,000

Telephone

1,020

6,300

1,680

5,000

P e r s o n a l Computer

2,900

2,580

2,500

2,800

Calculator

-

6,120

18,000

2,400

Watch

-

10,900-5,000

T e l e v i s i o n Game

-

1,200

-

500

Microwave Oven

9«0

T e l e v i s i o n (Blackand White)
Color

Television

30

2,000
Source:EIAJFORECAST OF EACH COUNTRY'S ELECTRONIC
INDUSTRY PRODUCTION INDEX(1984 » 100)
Singapore
June 1985
19 85 T o t a l
1966 ft>recast

80
80
85

Hong Kong

Taiwan

70
65
60

78
75
70

South Korea
85
85

100

Source:Page 11

EIAJ© 1984 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company

1290 Ridder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
BIAJ Forecasts
FYS9 Industrial
Electronics
Production

The EIAJ recently compiled a forecast of theindustrial electronics business in Japan. It
reports ttiat the business is expected to reach¥11,341.3 billion ($55 billion) in fiscal 1989. The
average annual increase is forecast at
12.4 percent. The details of the forecast are:
FORECAST INDUSTRIAL ELECTRONICS PRODUCTION IN JAPAN

Industrial Electronics
Wired Teleconununication
Equipment
W i r e l e s s Telecommunication
Equipment
B r o a d c a s t i n g Equipment
W i r e l e s s Telecom Unit
W i r e l e s s Applied U i i t
E l e c t r o n i c s Applied
Equipment
Computer and D e l a t e d
Equipment
Except ComputerE l e c t r o n i c Measuring
Instrument
B u s i n e s s Machine
Word P r o c e s s o r

1989

Percent
Growtn
from
1988

Total
Percent
Growthfrom1984-1989

1984-1989^11,341.3

11.7%

80%

12.4%

i 1,798.9

6.6%

50%

8.5%

912.7
89.5
542.7
280.5

9.5%
7.8%
9.5%
10.0%

49%
50%
47%
54%

8.3%
8.5%
8.0%
9.0%

y 6,975.3

13.4%

95%

14.3%

y 6,000.0
975.3
if

14.1%
9.2%

100%
68%

14.9%
11.0%

975.7
678.7
252.0

12.8%
10.1%
14.5%

78%
76%
177%

12.2%
11.9%
22.6%

V
y
IF
K

IF

»
1

CAGR

EIAJ

Update on ttie 1986 JSIS Conference in Hakone,
Japan, April 13-15; Featured speakers will include
Dr. Tsugio Makimoto, Deputy General Manager, Hitaclii
Ltd.; and Don Brooks, President of Fairchild Camera
and Instrument. Call (408) 971-9010 for more
information.

Page 12© 1984 Dataquest Incorporated, A Subsidiary of A C . Nielsen Company
1290 Bidder Park Drive, MS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

I.e. ASIA
I.e. ASIA is a news digest published semimonthly
by DATAQUEST's Japanese Semiconductor Industry
Service (JSIS). To order a one-year subscription(22 issues), mail your check or money order for3430 to:I.e. ASIA
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San Jose, CA 95131-2398
Major credit cards are also accepted.
With each subscription you will also receive the
JSIS semiconductor factory map and prefecture table.
These give you the locations of more than 145 semiconductor plants in Japan.
Comprehensive, in-depth analysis of the Japanese
semiconductor industry is available to clients ofthe complete Japanese Semiconductor Industry Service,
JSIS clients receive two detailed data base notebooks, personal consulting, conference attendance,
and topical analyses on the Japanese semiconductor
manufacturers' technological trends, markets,
patents, and products. For more information on
JSIS, contact DATAQUEST at (408) 971-0910.

This news digest is for the exclusive use of our
subscribers. The content of this report represents
our interpretation and analysis of information
generally available to the public or released byresponsible individuals in the subject companies,
but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in
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Signature:© 1984 Dataquest Incorporated, A Subsidiary of A.C Nielsen Company
1290 Ridder Park Drive, IVIS-2-305 / San Jose, CA 95131 / (408) 971-0910 / Telex 171973

A semimonthly report on American high-technology industries

iBBBBV^i^HPia
r

zca
m
AM

^B
H...

IWITH

Compiled by DATAQUEST's

Japanese Semiconductor Industry Service

11/22/85
I.e. USA 1985-7

I.e. USA is a news digest published semimonthly by
DATAQUEST's Japanese Semiconductoc Industry Service(JSIS). It focuses on venture capital funding,semiconductor start-up companies, new technologies,
joint ventures, and legislation in Washington, D.C.
To order a one-year subscription (22 issues), mailyour check or money order for $430 to:
I.e. USA1290 Ridder Park Drive, M.S. 2-305
San Jose, CA 95131-2398

INDOSIRY
U.S. Capital
Spending
Declines

DATAQUBST believes that capital spending by
U.S. semiconductor firms will decline 23.8 percent
in 1985. The table below shows our estimates forthe major U.S. companies.

SPENDING BY
MAJOR U.S. SEMICONIXJCTOR MANUFACTURERS
CAPITAL

1984

ConpanyMAD
AMI
FairchildIntel
MostekMotorola
National
Signetics
Texas I n s t r u m e n t s
Others

Total

$

237
38
195
388
123
412
300
133
472
753

$3,0 51

1985

Change1984-1985

198
30
170
275
62
330
242
65
348
604

(16.5%)(20.0%)(12.8%)(29.1%)(50.0%)(20.0%)(19.3%)(51.1%)(26.3%)(19.8%)$2,324(23.8%)

Source:DATAQUEST$

Page 1© 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
Motiorola andIntel in
DRAM Stiakeout

Intel has withdrawn from ttie DRAM marIcet
completely and Motorola has announced that it willstop making 64K DRAeos. ^ i s news came only one week
after Texas Instruments set a distributor pricefloor Of 90 cents for 64K DRAMs. Prices havegenerally been 60 to 70 cents since last summer.
Motorola and Intel have botti reported losses
recently. Intel's second quarter, $23 million
operating loss was its first in 15 years. The
question: Will TI follow Intel and Motorola's leadand get out of the DRAM market?

Senators WantMore Accessto JapaneseTechnology

U.S. Senate menders want itoerican firms to haveregular access to Japanese scientific and tectinicalinforaiation. Ttiey want the amount currently
available to be expanded. Oitiey liave called for ttie
Commerce Department to spend $1 million forcollection and translation of documents and tocoordinate dissemination of ttie information.
Ttie proposed Commerce Department group would:•

Prepare annual reports on important Japanese
tectinical developments•

Assist professional societies and private
business groups to gather, translate, anddistribute the technical literature•

Publish an annual directory of private andgovernment collection/translation services

The legislation is sponsored by Senators
Jay Riockefeller of West Virginia and Max Baucusof Montana.
SRC Hay Itee
Capitial Reserves

The Semiconductor Research Corp. (SRC) uses funding
from 35 member companies to support cooperative
researcti projects. However, income has been cut asmember companies' sales and purctiases have declined
due to ttie slump. Ninety percent of the SRC's
income is devoted to supporting university-levelsemiconductor researcti. To avoid cutting researchfunds, ttie SRC may dip into its capital reserves
next year. Ttie SRC is supporting projects in
0.25-micron CMOS, GaAs, semiconductor design, andsemiconductor manufacturing.

Page 2© 1985 Dalaquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
FROM CAPITOL HILL
U.S.-Japan
SectoralDiscussions

A report summarizing the status of the bilateralmarket-oriented, sector-specific (MOSS) talks has
been jointly issued by the United States and Japan.
Ttiese talks cover several electronics sectors,
including telecoimnunications and medical equipment.
Ttie joint statement claimed "important progress,"but the U.S. electronics industry is highly
skeptical of this claim—especially on the further
liberalization of various telecommunications markets,

EPRQM Dumping
Case Passes
First Hurdle

The EPR(^ dumping case filed by AMD, Intel, andNational Semiconductor against eight Japanese
EPRCM producers has passed its first hurdle. Ttie
International Trade Commission made a preliminary
finding that the U.S. EPRCM producers are being
injured by Japanese imports. This is the first stepin the sequence, which ultimately could lead todumping duties being imposed on the Japanesecompanies. The action next shifts over to theCommerce Department for its preliminary evaluationof the extent of dumping. The American companies
allege that the Japanese have been selling
256K BPRQMs for $4, while it costs them more than
$6 to build them.

I s Ttiece a
U.S. EPRQM
Industry?

At the International Trade Commission hearing on
EPRQMs, the lawyers for the Japanese side claimed
that because U.S. firms assemble EPROMs outside theOhited States, there is no U.S. EPROM industry.
Japanese companies also allege that U.S. firms sell
product in Japan at less than production cost. Bothclaims are likely to fall on deaf ears in Washington.
The first argument is seen as a legal ploy tocircumvent U.S. trade laws. The second allegation
has not been supported by any evidence.

Administration
Will I n i t i a t e

For the first time, the U.S. administration will
self-initiate a dumping case, probably covering
all high-density DRAMS. With the initiation of thiscase, essentially all DRAMs would come under adumping investigation. The administration expects
this action to yield a number of benefits. First,
it would demonstrate to Congress that the administration's newly created trade "strike force" istaking substantive actions to deal with unfair tradeactions. Second, it is expected to pressure theJapanese into dealing effectively with the 301 case.
The Japanese have recently initiated a proposed

256K DRAM

Dumping Case

Page 3© 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USAsettlement directly with the affected U.S. companies.
DATAQUEST believes, tiowever, t:hat ttie U.S. companies
will hold out for wtiat they perceive as badly needed
U.S. government action.

"Strike Force"
May Cause
Friction

One factor that could adversely influence ttie
U.S. administration's effectiveness in dealing
with semiconductor trade issues is the growing
friction between the Office of the Special Trade
Representative and ttie Department of Commerce.
Ttiis problem surfaced wtien President Reagan gave
Secretary of Commerce Malcolmfialdridgethe
responsibility of overseeing ttie administration's
trade strike force. As DATAQOES'S anticipated, thefriction is growing as ttie strike force's recommendations begin to take shape and the U.S. trade
representative sees its turf getting infringed
upon. Ttie new 256K dumping case will give ttie
Commerce Deparlunent a substantive role in any
negotiations on semiconductors, but the U.S. trade
representative actually objected to tihe initiationof the case, anticipating the problems it would
create. Ttie U.S. trade representative tias sougtit
to keep the two cases separate.

DATAQUESl?
Reviews
Dumping
Procedure

Because several semiconductor dumping cases havebeen initiated, and with the potential for more intitle future, DATAQUSST is reviewing the procedure.
There are two separate parts to a dumping investigation; a determination of injury and a determinationon the extent of dumping, if any. The International
Trade Commission makes the injury determination,
while the Coimnerce Department handles the determination Of dumping margins. The schedule for thesecases is fairly tightly dictated by U.S. law. Most
cases take 290 days to complete, with delays granted
for extraordinary circumstances if a case is complex.
The ITC first makes a preliminary injury determination 45 days after a complaint is filed. If afavorable determination is made, ttie Commerce
Department ttien takes several months to estimate thepreliminary dumping margins. The matter then enters
the last phase, with the final determination of
dumping margins by the Commerce Depart:ment and a
final determination by ttie International Trade
Commission on injury. The dumping law and its past
applications do not fit well wit:ti the fast-paced
nature of titie semiconductor industry. DATAQUEST
expects ttiat ttie U.S. semiconductor industry may
soon seek changes in the law.

Page 4S) 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USACOMPANY
National,
Linear Tecti
Patent Suit
May be Split

National Semiconductor Corp. will ask the
U.S. District Court to split a nine-patent suit into
two cases, with National's patent infringement
ctiarges to be tieard first. Linear Teclinology's
countersuit charging patent misuse and antitrust
violations would wait until ttie validity of ttie
patents is determined. National claims that attiird-party expert determined that Linear was using
National trade secrets. Linear claims ttiat thelicense fee and royalty requested for use of thepatented tectinology was "discriminatory andanticc»npetitive."

General EXectcic
Licenses Silicon
CoB^ilers System

General Electric's Custom Integrated Circuit (CIC)
departunent has agreed to use Silicon CcM^ilers
Inc.'s Genesil system in its design centers in
San Jose, California, and Researcti Triangle Park,
North Carolina. General Electric's CIC department
is concerned witti application-specific ICs. SiliconCompilers tias agreed to similar arrangements with
Gould AMI Semiconductors, International
Microelectronics Products, NCR, and VLSI
Tectinology, Inc.

Silicon Compilers
Signs witti
General Dynamics

Silicon Compilers has signed a $1 million,
three-year tectinical assistance agreement with
General Dynamics for the application of siliconcompilation to ttie design of VLSI semiconductors for
General Dynamics' military and aerospace programs.
In return. General Dynamics will assist SiliconCompilers in furthering its knowledge of Departmentof Defense IC design requirements and defense
contracts. In addition. General Dynamics invested$4.2 million in Silicon Compilers, obtaining a
5 percent interest in the company.

Gould AMI
Signs Pact
witti
Seattle Silicon

Gould AMI Semiconductors has signed an agreement
witih Seattle Silicon Technology to provide systems
manufacturers with a simplified means of designing
ASICs and transferring final design data to Gould
AMI for fabrication. By the agreement, Gould AMI
has provided Seattle Silicon with its proprietarygeometric design rules and the performance characteristics Of selected fabrication processes.
Seattle Silicon has incorporated the data into its
Concorde VLSI compiler software system for use on
a variety of CAD workstations.

Page 5© 1985 Dataquest Incorporated, a subsidiary of A C. Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

i.e. USA
Cirrus Logic andAMD t o Exchange
S i l i c o n Compiler
Tectuiology

Cirrus Logic and Advanced Micro Devices havesigned an agreement to exctiange information on
silicon compiler tectinology. Under the agreement.
Cirrus Logic will design a CMOS evaluation device
for AMD in exchange for 1.6-micron double metal
CMOS wafers. Cirrus plans to complete the designfor ttie Am29C10 microcontroller by the end of thisyear. AMD will evaluate Cirrus Logic's compiler
tectinology with the Am2 9C10. Cirrus Logic will
Obtain ttie rigtits to sell the controller as a module
within more complex logic ASIC products.

NCR Expands
Sliandard C e l lCapabilities

NCR has enlisted two independent design centers to
expand its standard cell IC capabilities. Micronix
Integrated Systems of Laguna Hills, California,
covers ttie Souttiern California region, andElectronic Technology of Cedar Rapids, Iowa, willserve ttie midwest. NCR tias enlarged its standard
cell program to include production of military andottier hi-rel ICs. Ttie firm will offer its devices
over the military temperature range witti
MIL-STD-883C, Class B, Mettiod 5004 screening.

ZyMOS C a p i t a l
Purcliase Offer
Wittidrawh

Penn Central Corp. and aaM>rectit & Quist will
not purchase Interraedics' 47 percent share of
ZyMOS Corporation of San Jose, California. The
investment would have brought needed capital into
ZyMOS and into £xel Microelectronics, which
Penn Central and H&Q were reportedly negotiating toacquire along with the stake in ZyMOS. £3cel said
the withdrawal has had a serious effect, and layoffs
have since been announced. ZyMOS said that its
make-or-break crisis passed with last spring's
30 percent staff reduction, and the deal's collapse
will not have serious consequences. ZyMOS wasplanning to acquire Gxel to add GBPROM cells to its
library and introduce IBM PC AT-compatible standard
product circuits.

Seeq and Ataiel
i n Lawsuit;
Seeq Objections
Uptield

A Superior Court judge has upheld an objection
raised by Seeq Tectmology Corp. and removed someparts of Atunel Corp. *s lawsuit charging wiretapping and invasion of privacy. Seeq did not
succeed in having a paragraph removed from the suitcharging it with "bad faith." The suits started
last spring when Seeq charged Atmel's founder withtheft of trade secrets and employees when he left
Seeq. The two companies also disagree over which
trade secrets should be kept sealed during thetrial. General Instrui^nts (61), which provided

Page 6C-) 1985 Dafaquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
Atmel witti seed raOney and facilities in Chandler,
Arizona, is planning to take an active role in thesuit. Seeq does not want GI to have access tocertain documents.

Toshiba andSun Microsystems
Agree onWorksliations

Sun Microsystems of Mountain View, California,
will supply workstations to Toshiba Corp. of Japanover the next five years. The contract is valued at$5 million. The workstations will be used formectianical and electrical CAD. Toshiba may also
configure Sun workstations for OEM production. Sun
has also signed a tectxnology-sharing agreement withTostiiba and will tiave access to a Japanese version
Of UNIX.

Siltec Wafer
Tectinology
Licensed toLuckySiltec Corp. of Menlo Park, California, haslicensed wafer tectinology to Lucky Advanced
Materials Inc., a subsidiary of the Korean
Lucky-Goldstar group. L-G is one of South Korea's
largest industrial conglomerates and tias recently
become involved in the worldwide semiconductorbusiness. Siltec will receive $4 million in cash
and royalties based on future sales volume. A
Korean site for a facility handling 6-inch wafers
and producing 20 million square inches a year will
be announced soon. The plant is expected to beOperational witiiin 12 months. Lucky-Goldstar will
not be part of a joint venture or take an equity
position in Siltec, which has licensed technology to
Rhone-Poulenc (Prance) and Toyo Soda (Japan).

Texet
Semiconductor
Bankrupt

Texet Semiconductor of Allen, Texas, has filed for
Cliapter 11 protection. Most operations have beensuspended for two weeks. A cash squeeze from slow
sales leaves Texet with $3.3 million in assets and$12 million in liabilities. The company said it isdiscussing additional funding with several venture
capital groups.

Kodenstii
ProvidesCast! t o ABM

ABM Semiconductor of San Jose, California, hasreceived an unspecified amount of capital from
Kodenshi Corp. of Japan. Kodenshi is now
represented on ABM's board of directors bypresident Hirokazu ttekajima. ABM will market theroughly 200 optoelectronics products produced by theJapanese company. These standard products willcomplement ABM's custom work.

Page 7© 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
CoB^panies
Hard Hit
by Industry
Recession

As a result of ttie prolonged industry downturn,many semiconductor manufacturers are posting losses,
some, like AMD and Intel, for ttie first time inmany years. Siliconix, a participant in ttie
nonvolatile, steadily growing industrial linear
IC market, and VLSI Tectinology, Inc., a maker of
ASICs, are two bright spots on an otherwise bleak
scene.

QUARTERLY REVENUES OF SELECTEDSQIIOONOUCTOR COMPANIES(Millions of Dollars)

Salea

Wt
Earninqa

Net
ft:o«itMarginS 128.100$ 311.741
3
6.200$1,380,000$ 423.400$
26.300$20.049«7.027($15,275)($ 3 . 6 0 0 )($ 7 . 3 0 0 )($37,000)($53,500)$ 2.300$ 0.022($11,113)( 11.9%)( 1.2%)(117.7%)( 2.8%)( 12.6%)8.7%
0.1%(158.1%)

Source:I3ATAQDBST

Host
MBCVsib

More Layoffs
and Stiutdowns
Announced

Company

QuarterM(0Intel
Micronftctinology
Motorola
Matimial
Siliconix
VLSI Tecttnology
Xicor

2
3
4
3
1
3
3
3

(9/30)(9/30)(8/31)(9/30)(9/20)(9/15)(9/30)(9/12)

Ttie table below stiows recently announced
semiconductor-related pay cuts, layoffs, andstiutdowns.
Company

Pay C u t

Layoff

10 days a t
Christmas
6 days a t
Ctiristmas

AMD

Intel

4 to

MotorolaS£H M i e r i c a
Ultratecti Stepper

5 t o 10%8%
150-200
185
75
Source :F^irctiild to Sell
Headquarters andPlants Ccnnplex

Shutdown

DATAQUEST

Fairchild Camera & Insl:rument Corp. has decided tosell its entire 546,000-square-foot, four-building
headquarters and manufacturing complex in
Mountain View, California. The asking price is
not yet available. Faircnild, a subsidiary of
Sctilumberger, recently announced ttiat it was moving
its headquarters from tlie Mountain View site to a
55,000-square-foot facility in Cupertino, California.

Page 8© 1985 DataquesI Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Pari( Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USAPRODUCTS"Transputer'from Inmos

Inmos is beginning a push into microprocessors
witti its new, reduced instruction set, theModel IMS T414 Transputer, whicti uses its Occam
operating system. Ttie transputer has been underbeta testing for some time. The IMS T414 integrates
a 10 MIPS 32-bit microprocessor, four interprocessor
links, 2 Kbytes of static RAM, 32-bit menmry
interface, and memory controller. It is made withdouble-metal, twin-well CMOS, witti 1.5-micron
ctiannel widtlis. Boards, available immediately, have
64-Kbyte, 1-Mbyte, or 4-Mbyte menrary. The price of
the T414 is $500 in 100-unit quantities.

Fairctiild
Introduces•Clipper"Fairctiild Camera & Instrument has introduced its
Clipper CMOS 32-bit RISC as a three-chip UNIXsupervisory module. General samples of the $2,541
chip set are expected by June. Speed is 5 MIPS forthe double-metal, 2-micron CMOS chips.

IJpdate on
Chips &
Tectmologies

Bounded in January 1985, Chips & Tectmologies ofMilpitas, California, provides integrated semiconductor solutions for microcomputer companies,
initially focusing on the PC AT. Integrated chip
sets allow quicIc addition of graphics, LANs, andmicroperipheral systems logic. The ASIC-standard
CHIPSet is 100 percent compatible with IBM'senhanced graphics adapter (EGA) card. C&T is working on additional 80286-based and next-generation
80386 CHIPSets. The PC AT CHIPSet replaces 25 ICs
with four devices. Video 7, Inc. of Milpitas hasdeveloped an all-in-one IBM PC graphics card using
C&T's EGA kit. The $599 card would replace$1,500 worth Of separate boards. C&T is subcontracting with Toshiba and Fujitsu for the CMOS andbipolar arrays used in its ASIC solutions.

New Rayttieon
Semicustom
Linear O f f e r i n g

Raytheon has developed a semicustom analog IC toreplace entire PCBs. The RLA 120 replaces networksof resistors, transistors, and differential gain
blocks configured as op amps and comparators. The
user specifies interconnections. The RLA120 isfabricated using a proprietary dual-metal bipolar
process. The bottom layer incorporates architectural and structural components and power buses.
The top layer is factory-customized to the desiredconfiguration. Completed circuits can be made in
24-pin DIPS or leadless chip carrier packages.
Turnaround time is six to eight weeks with $17,000
to $24,000 charged for nonrecurring engineering,t^it prices range from $8 to $12.

Page 9© 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

i.e. USAVTI Introduces
CMOS PLOs

VLSI Tectinology Inc. tias introduced a low-cost,higti-speed, mask-prograntmable HCMOS logic ctiip. The
devices—ttie VP16RP8M and VP16RP8M-25—are compatible
with 20-pin HAL and PAL devices. Ttie ctiips tiave
25ns propagation times and use just one-quarter oftiie power of a standard bipolar ctiip. The ctiip is asemicustom logic array using custom metal mask
programming. Pricing in quantities of more than
5,000 ranges from $1.90 to $2.50.

VTI iUmounces
Digital Signal
Processors

VLSI ^Technology Inc. has announced two CMOS
16 X 16-bit parallel multiplier-accumulators. The
VL2010 is a CMOS pin-compatible replacement for ttie
AMD 29501 and TRW TDCIOIOJ. Ttie VL2044 is identical
except title preload function is eliminated. Ttie
ctiips are fabricated witti 2-micron CMOS tectinology.
Samples in a 64-pin C£RDIP are available. Plastic
DIP and PLCC packages will be available next year.

ZyMOS Adds
Cell toAnalog Library

ZyMOS Corp. has added a ttiird linear cell kit
part, Zy40117, to its analog library, offering adual-supply A-D converter, single-supply comparator,
single- and dual-supply DACs, and single-supply op
amp in one package. Ttie Zy40117 is available as a
4 0-pin DIP prototyping tool.

CMOS Filters
Announced byLinear Tectmology

Linear Ttectmology Corp. of Milpitas, California,
is offering CMOS universal switched-capacitor filtersin single, dual, and triple versions. Center
frequency is tunable up to 40 kHz. "Hie LTC10 59,
LTC106G, and LTC1061 have center frequency accuracyof ^ 0.8 percent and Q accurate to 5 percent. "A"versions take accuracy to +_ 0.3 percent and3 percent on Q. Prices range from $3.25 to $8.25
in 100-lot quantities.

LSI Logic Corp.
Introduces New
Logic Arrays

LSI Logic Corp. of Milpitas, California, hasbrougtit ttie company's dual-layer HCMOS down to
1.5-micron features with the LL9000 series of logic
arrays. Software support is available immediately
for ttie eight new chips at ten design centersworldwide. The company says ttiat there is a
30 percent premium over 2-micron prices, with a
25 percent performance gain. Pin counts up to
224 are available in plastic and ceramic packages.

Page 10
S5 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
Maxim Adds t ol}p/Oown Counter
Feimily

Maxim Integrated Products of Sunnyvale, California,
now has four presettable 4-<iigit up-down counterswith LED drivers. All versions contain a comparison
value latcti, 4-digit magnitude comparator with equal
output, zero detector, counter preset circuit, anddisplay latcti. Signals up to 5 MHz can be counted.
Versions are available for common anode LEDs (300mA}
and common cattiode LEDs (5 0mA).

D-to-A Converter
from Analog
Devices

Analog Devices Inc. of Norwood, Massachusetts, has
introduced a CMOS quad 8-bit DAC witti separate
reference inputs for eacti DAC, and a triple 8-bit
DAC witti three on-board video converters and BCL RAM
look-up tables. The AD 7225 24-pin DAC operates
with dual (+11.4V to +16.5V) or single (14.25V to
15.75V) power supplies. Applications are: sine/
cosine generation, digital word multiplication,
AC signal attenuation, filtering, and summing
polynomial terms. The HDL3805/3806 triple DAC ismade for raster scan graphics, television video
reconstruction, digital VCOs, analytical
instrumentation, and other critical applications.

Mitsubistii
Announces
Gate Arrays

Mitisubisbi Electronics America of Sunnyvale,
California, has entered the semicustom market with
2- and 3-micron CMOS gate arrays. Up to 4,800 gatesare available in 3-micron, and up to 8,000 in
2-micron. The gates are made using a double-metal,
poly-gate process. The M300 series consists of ten
3^nicron array packages. The first two 2-micronfamilies, the M60018/19, will be available innine-package types within two months. Daisy,
Mentor, and Valid workstations provide support.

Intel
Introduces
New Ctiip

Intel has introduced a new 32-bit microprocessor,
the 80386 or iAPX386, which can process about twice
as much information as the current one and work withmore than 4 billion bits of information or about
2,000 typewritten pages. However, at this point,
few tasks actually require the power of the newchip, SO the market may be slow to take off. Last
year, only $1 million worth of 32-bit MPUs were
sold. DATAQUEST has predicted sales of only
$10 million this year. Nevertheless, the market is
expected to grow to $200 million by 1990, withrelated 32-bit microperipheral and microcontroller
chips adding up to $1 billion to that figure.

Page 11© 1985 Dataquest Incorporated, a subsidiary of A C. Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
5-MIPS
Multiprocessor
Family fromIntelIntel Corp. tias extended its 80286 MPU line with a
new laultipcocessor family at 5 MIPS. The family
is based on a new 286/310 AP series, a single
processor using the 8-^4flz 80286 r wtiicti offers up to
80 percent more performance than ttie old 6-MHz
version. Ttie f^pex multiprocessor supports up to
four 8-MHz 286 MPOs within tlie chassis, and up to
16 users. The system holds up to 9MB of memory,
40 or 140MB of disk storage, 60MB of tape backup,
80287 numeric coprocessor, 320KB diskette and 2 to
18 serial I/O channels. Ttie entry-level, 8-user
system is priced at $11,200 eacti for 50 or more
OEM units. An upgrade for ttie earlier 286/310
costs $4,995.

Zilog Supers
Microcontroller
Released

Zilog's new higti-performance, 8-bit, Super8
microcontroller was recently released and is basedon ttie Z8 MCU. Clock rate is 12 MHz, witti an
increase to 20 MHz expected. Ttie Super8 has an
onchip DMA controller, more UART functions, more
instructions, and doubled register file, tteerdefined special macrocode functions take advantage
Of ttie fOrth language. Super8 arctiitecture is said
to reduce code by as much as 30 percent over the8051. The chip is a 2-micron NMOS part made by titie
Z4 process. Later versions will appear in CMOS.
Ttie first cliip in the Super8 family is priced at$10 eacti in quantities of 10,000 or more, and is a
ROM-less, plastic 48-pin DIP ctiip.

AMD Introduces
New Processor

Advanced Micro Devices is now producing theAm7970 CCITT Group 3/facsimile-standard compression/
expansion processor in volume. It can handle
bit-mapped graptiics, drawings, sketches, foreignalphabets, and Ctiinese and Kanji characters.
Througtiput is 2 to 8 Mbps. DMA is on-chip; there
is a local document store bus and a CPU bus for
8086 tie-in. One hundred-lot quantities of 68-pin
ceramic LCC are currently available at $245 each.

TECHNOLOGYDSP Compiler
Developed at
University of
Edinburgh

A research team at the lAiiversity of Gdinburgh in
Scotland has developed a silicon ccmipiler thatallows digital signal processingraultichipVLSI
systems to be designed automatically in less than amonth. The new silicon compiler, FIRST (Fast
Implementation of Realtime Signal Transforms)
compiler system, automatically synthesizes complex
silicon systems from high-level functional

Page 12
5? 1985 Dataquest Incorporated, a subsidiary of A C Nielsen Company
1290 Ridder Parl< Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
specifications. The multichip VLSI systems tiave
applications in fifth-generation computing systems
involving speecti, vision, graphics, telecommunications, radar, and sonar. Ttie new compiler is anextension of the team's work on silicon compilers
for gate array chips, whicti led to a spin-off
commercial company. Lattice Logic, in Edinburgh.

Current Logic
Load O u t s t r i p s
Today's
CAE Tools

The manager of IBM's System Technology division,Peter Bottorff, warns ttiat ttie logic design ofcurrent automated design tools is barely adequate
for today's design tasks, despite the increase intitle number and type of workstations. Immense
package densities demand tools with more power.
CAE workstations and PCs lack the storage needed forthe 500,000-plus elements typical today. He isconcerned at>out interface problems between current
workstations and large computers. He also warned
buyers ttiat it may take as long as two years fordesign software to be debugged.

New BiCHOS
P r o c e s s e s from
Motusrola and
Hitactii

Motorola and Hitactii each addressed fiiCMOS
processes at the recent IEEE International Conference
on Computer Design. Motorola says it can make
1.5-micron BiCMOS processes yield 6,000-gate logic
arrays comparable to dense CMOS. Hitachi claims totiave a BiCMOS 64K SRAM with 15ns address time. The
approach is expected to become popular for very
higti-speed VLSI. BiCMOS circuits are effective
high-current output drivers, and can be usedinternally to enhance VLSI. CMOS circuits are
buffered from loading and GCL compatibility iseasier. The 1.5-micron process requires 14 masks.
Hitachi has added the speed from bipolar to highdensity, low-power CMOS SRAMs. The technology will
also be applied to GCL interface RAMs to reduce
power consumption.

Mark your calendar now for ttie 1986 Japanese
Semiconductor Industry Conference, J^ril 13-15, att:tie beautiful Hakone Prince Hotel in Hakone, Japan.

Page 13© 1985 Dataquest Incorporated, a subsidiary of A C . Nielsen Company
1290 Ridder Park Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Telex 171973

I.e. USA
I.e. USA is a news digest publistied semimonttily
by DATAQUEST's Japanese Semiconductor Industry
Service (JSIS). 1X3 order a one-year subscription(22 issues), mail your ctieck or nraney order for$430 to:I.e. USA1290 Ridder Park Drive, M.S. 2-305
San jose, CA 95131-2398
Major credit cards are also accepted.
Compretiensive, in-deptti analysis of ttie Japanese
semiconductor industry is available to clients oft:tie complete Japanese Semiconductor Industry
Service. JSIS clients receive two detailed database notebooks, personal consulting, conference
attendance, and topical analyses on ttie Japanese
semiconductor manufacturers' tectinological trends,
markets, patents, and products. £t7r more information on JSIS, contact DATAQUEST at (408) 971-0910.
Ttiis news digest is for ttie exclusive use of our
subscribers. Ttie content of this report represents
our interpretation and analysis of information
generally available to l:tie public or released byresponsible individuals in ttie subject companies,
but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in
confidence by our clients. All rights reserved.
Reproduction in any form is strictly prohibited.

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Signature:i'- 1985 Dataquest incorporated, a subsidiary of A C . Nieisen Company
1290 Ridder Parl< Drive, MS 2-305, San Jose, CA 95131 (408) 971-0910, Teiex 171973

THIS PRESENTATION WAS NOT AVAILABLE
IN TIiME FOR PUBLICATION.
A COPY WILL BE MAILED TO YOU WHENDATAQUEST RECEIVES IT FROM THE SPEAKER.

: ^ ( ^ Dataquest

Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Bidder Parl< Drive
San Jose, California 95131

408/971-9000 / Telex 171973

PCs~HOW MUCH CAN THEY REALLY DO?

T e r r y A. Zimmerman
Vice P r e s i d e n t of Marketing
FutureNet Corporation

Mr. Zimmerman i s V i c e P r e s i d e n t o f M a r k e t i n g a t F u t u r e N e t C o r p o r a t i o n ,vrtiere h e i s r e s p o n s i b l e f o r p r o d u c t and c o r p o r a t e s t r a t e g i c m a r k e t i n g .
He h a s more t h a n 20 y e a r s o f i n d u s t r y e x p e r i e n c e and p r e v i o u s l y h e l dd o m e s t i c and i n t e r n a t i o n a l m a r k e t i n g p o s t s w i t h s e v e r a l c o m p u t e r andhigh-technology
firms
includingGeneralSignalCorporation,
PertecComputer C o r p o r a t i o n , L i t t o n I n d u s t r i e s ,and N o r t h American R o c k w e l l
Corporation.
Mr. Zimmerman r e c e i v e d a B . S . E . E . d e g r e e from C a l i f o r n i a
S t a t e P o l y t e c h n i c U n i v e r s i t y and h a s done g r a d u a t e work i n M a r k e t i n g andBusiness Administration.

4

7io/Kfi^cll

-^

l^/^

y^
^/^yi^^^''sM/hiT

ca/^Q^:^^/^^^<^<^^ CU'S/^^^^^^
7Z> ^fi^/'/l^^^S.

'i^J^''^ ^ ^ ^^^r-e>c/e^<^y/^y/;^

sysn^

'^

3 9fry»3^'H^r'

Dataquest Incorporated
DESIGN AUTCMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

THIS PRESENTATION WAS NOT AVAILABLE
IN TIiME FOR PUBLICATION.
A COPY WILL BE MAILED TO YOU WHENDATAQUEST RECEIVES IT FROM THE SPEAKER

DataQuestn n

a company of

MMMM The Dun & Bradstreet Corporation

SOFTWARE:

THE REAL IC DESIGNERPeter Whyte
Vice President of Strategic Development
E-<:AD Incorporated

Mr.
Whyte is Vice President of Strategic Development
for E-CAD
Incorporated.
He was a founder and President of SIMON Software Inc.
prior to tihe merger of E-CAD and SIMON in February 1985. Both companies
are authors eind marketers of application software for IC design.
Previously, Mr. Whyte was Vice President of New Product Development at
Atari, Inc., and head of mergers and acquisitions at Wells Fargo Bank.
He has also served at the board level for Staveley Industries in the
United Kingdom, and was responsible for Staveley's United Statesinterests. Mr. Whyte received a B.S. degree from Leeds University in
England and an M.A. degree in Business Administration, also from Leeds
University.

/^/a/f-L Le L^/-j-\^an

TBcrMf^(^/c?/^/7^/^^ /^^>^/~2> i^^B^A^^^^ •*^"^-^ /%?/2- y^^/fzitL^T^/h^Ci. Dl^J"

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000 Telex 171973

e c/fT:) sys/?^ J/h^V'^yl.

o/s'^'^-yo/f^/S'^

5~o %SOFTWRRE THE RgflL t.C T^.^T^NSi
P e t ^ i - wnx?jt., ECRD, I n c .

:jr

Dut-inc************r******

Si_IDE

1*** >i*************H****-****-)ir**¥^it*<¥r**

5_IDE

2

****

11 K.e t oaccomp i i s h

t.nis

talK

I

wonic

)t*.

tf*******n********

twothings:woi.i'i c
1 i kecernonstate
that
to
keep
up
wit'-.
t £ EvI
inci-easmg
i-ieec f o r increasec s i z e and conipiex i t y i n i'.C,
1-.' • 1
we'iave
no a l t e r v i a t i ve but t o IOOK
io^tware f o r the p-....^if i.ifict l o n a l i t y we •neec
fine
along
the
way
I
woLiJo l i k e t o mar<.e a case f o r t n e ci crd^.terecoLinit i o nof t h e c o n t r i b u t i o n o ffipiplication
S o f t w a i e co:, ,:..ar. :.eit o trie contiriued ceveiopnient of E l e c t r o n i c CPiD.
*
Right
at
Design Dilernma,

thebeginingI
would 1 i K.e t o br iisg t o youv atter.-: : c.n t-.&which w i l l come up at v a r i o u s p o i n t s i n t h e t a l K .

****«*****•)(****•»*

*
will

For
the
be u s i n g ,sa^eofstarting

CO^iP POWER Si_IDE

clarity,Iw i t h E^HD.

******************

Si_IDEwould****************

1 i k(

cefirie2

son.e oftheteri.;SI**********************
Somepeople use t h e name ECfiD t o c e s c r i D e e l e c t r o n i c
Inc.
we
like
to
encourage
that
line
of
thought, understand why.
*SotnroughoLit t h e t a l K I w i l l be using
rnark.et and ECfiD t o r e f e r t o t h e company.

Cf^D, e.v.c ct EXP-D
you c^.i. p' o::JT:u.y

Ei.ectroni.c_CP.D t o

refE-ttZ' tnE-•*•
I would a l s o l i k e t o a v o i c any d i s t i r i c t iorrs between Electroi-iic: CKD arid
Electronic
CfiE
.
For
the
purposes
of
tnis
talk
I
am
coiric t o use
Eiect,r:on,±.c
£B2
't'-'
r e f e i - t o t h e corn22.ste_de5iyn_aMd_yerj!^ficat i.oi;;;.:_2£.£'i;sB =i n c l u d i n g a l l t h e s t e p s betweeri concept arid masn..
*
Kosv
of
althouc"tr.ey
mar<ets.

t n e remarKS refer- t o t h e custQrn_ajjd_5e[!ii~custon;i I.C.
nisfnet,o b v i o u s l y t i e i n t o c o n s i c e r a t lOfiS i n t n e .syat_eiV._aijC_P^Ci_D.

******************

S_IDE

5

*********************

•
Next,
a
c e f 1 f l i t iorio f fiL:£'ductiy_i t y .
Thiscorifererice
1 =quest loviof p r o d u c t i v i t y anc maybe Dy t h e er\t o f t h e sessions we i^,-1=1. _ iunderstar-id
what
it
means
m
our i n d u s t r y . I c o n ' t want t o =Bc.-jr.r
anybodyancsoI •" mgome
t o c o n c e n t r a t e on a fair:;.y riarrow cs^ -'-..t lort,that
nevertnelessismeaningful
i n t h e p a r t o f t n e i n c u i i t r y i.i iv ^c-i ^B

operate.

BEQU=^Qll^lll-l^~E:Qidl'^i^i^l-lQ-siJQ::<i^::il:::^-l^^'^~.A'^..^'^:

Dataquesf Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

•*
""lis
c e f iv"iit lOfi
o f procLtct 1 V 11y i s froro t n e p o i r i t o f view cif
w-iC'
iso b v i o u s l y s/Bvy iriipoi"-t a n t . i-ioweve' t h e i e i s anotQer;_way o'sroouc'; i v i t ywhicri i s iriiport ar,t t o CHD v e n c o r s , arid by i r n p i i c a - i 'tr,e cuEtorr.er".
***r****¥:it*i>*^*****

S;_IDEhaurig'sLaw* • * * * • * * : * • * ¥ : * *^i-.S'Z Mie
1 i'l w roc-Lice yoLi bo Dr- £Z;El:ilJiiI.ii_i=£;i:i" ' r u e s o f t w a r e ^t '_'•::. M.-c L . .; ; yf-.E
sumo f t h e met-OGoiog l e s ariC t h e s o f t w a r e o v e r t r . e rnac. .•-! i r.e c_vc:-f;.
Tnis
iVitrc'C'.icest.~e
E:2D£SciS. '^Z. £::!L!i=Li.Sil:Si.iiii
liito•c-~i='
i-i£-^ . . B
procuct1VIty.

*
Finally,inter.msofcefmitions,
I wou.j.ci l i r - e -co cor.'.r.;e, c£2!l!SXiti:ii.§:§^2fi.ti2ilM
i>''
tnis
content.
Clearly
wearetalKiii:
proyra'iis
thatcoiiiDi'ie
s><5sr£il!l!2tii.^£.3g'-'f
t h e p r o c e s s e s irrvC'lw J. t e x c e l ieviceinsoftwareenciinesr ^ng.
These f a c t o r s are comoi liiiei ,ca^ y. ft;
cCPiiJ,
for
example,a l m o s t a i l o u r cevelopmerit s t a f f nave a bac-.. '_ ^.if .u illt h e E l e c t v ^ o n i c s i n c u s t r y f i r s t , arid i n s o f t w a r e e n g i n e e r i n g secoric.

*•)(••«• •»•»•>«**•)»*•«•*-if*••»(••»•»

Si_IDE IC o e s + soft eng •*••«••»(••)•«:••
I wonderet.: what level t o pitch this talk a t , and I asked
their
ODinion.
Tney
saic
well
triere s.rs
coinz
t o beDatacuest forQ B 2 v;enc.or5^

I:_S^^ED£i'.SI2Sa
vent,ure_ca5ital.ists_and_fi.nanci.ai_anal
in the aucience, £ipretty mixec
sunch, so why ooi'i't you pitch
it at a level t;-at we at
Dataquest
will
understand ? Right tnere I stopped talking, because 1 kriew
that whatever
I said next would
be misconstrued.
So its somewhat
general.
\, 1 1*£2Dli£srabl.ellssgailEQ
Ll9i::iili^§Lli
^3.^
been
put
into
some
of
conclusions
reachedhere,
and i f any o f y o u would l i k e t o d i s c u s s ariy i - fthem i n g r e a t e r d e t a i l I w i l l be happy t o co so a f t e r t h e p r e s e n t at l o - i .

**-it*'^*-*****¥t*****-*•*•

Coming t o

the

first

SLIDE

subject.

£: REPEAT

Software****•»••)«•*•»•»«••»•)<*•«

productivity:

*
In
the
past,
softwarehas
been t o o o'^ten r e c a r d e c as ar!_ac_^_on_t o
dsSlZ^biHimThis
next
slide
Demonstrates
theway
t h a t sor.it? peo.r'l.e haveviewec s o f t w a r e .

***-****^********r-¥r**
However,by
B i Z S E S i l — ^ s y 't'-' l o o i - ' .

Si_IDE

5a

LIFEBELT •«**•)«••»••«•*••>(••)(••«•

t h e e n d o f my t a l k h e r e I h o o e t o c o n v i n c e y o u t :a t i t i s as shown o n t h e riext s l i c e ,here....

-ie- 2 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

******«r-iir*-**-¥rif*****

Si_IDE

5b

USS

E.\~ERPRISE

*****

*
Wnen XiiiH says that
9 0 % ofits p;-ofit5 m the 90's will come f; c ;software, &riC Dai.5i; operis out its arcri it ect ur-e to outside harc'wa; e, anc.
the majority of the addec value of every system sold is in the software,then maybe the time_ha5_comg_for_us_to_taKe_tQis_thina...ser••<•
To Dataquest's credit
they arewrestlingwith the very difficult
problems of definition, for example how to deal with applications
software bundled
on a workstation, «nd we are delighted
to be ofassistance in helpinci them to comie up with a Q]£i;g_EgE!2esentat i,ve_Ei.cture.
*
The reason I bring this up is that this increaBing part of the market,
thatis Applications
Software,is in our opu'iiot'i, abfiolutley th^ place:where the areat.e5t_aGvances_in_Electronic_CPD_groduc^are goiv.j; ic-> tit/made,and, mostinterest irigly, it is alfco the leasit captive pai t C'f ti'is;;system andgetting
more so mvery
cay. This, has got very iti^oi f i.ij.A.>imarketing ramifications for us all.
*In particular it raises some interesting queis-tionc about how iftric wr'it'.e;
the end user
is going to buy the software, e.g. i» thei & s tr^iic.; -t^woiH::
one sto2 shogBin£_and_a_comgi_et_e_sol_ut_i.on, or is the most recerit trerd infact
in the other direction, whereby customers &re assembling a Sj:ili.e_i.f
t22l5_from_vari_ous_sources that best match their needs,?
*
I -(.now thatsome of you in the audience are wondering hSIiJ-tlisl-lLS
these S2Sii.££l.i'2!25_E££ti:i£lI§_£2!i:2§l!li§S- '^'-'W far can they go and hew oiig Coi'i
they
grow? H S I hope to snow the answers to these are a long way ar,c a lot
bigger t.han they are now.
*•*•**•*•*•*•*****•****•**

SLIDE

7

KEY

SOFT

CO

CDNSIDS*•*
Now,
lookifig at the Electronic CAD market
througn the exei_of_al'2f.Liis!IE_E£[!]2£!lil9 the things which are ime2i;tsll:t c^^^e:Design t*!ethodology
Computational Complexity
Compatibi1ity
Harware platforms* Looking now at eacn of these in turn:******************

S_IDE

8

KETHCDCLDGIL.!J**x**)i*
WETt-KjDG-QGY - Pli
important. There are certain comeonertt_si._coLi;ii2'l;D_ti£
several, or al_l_ the ^esi_cn_n2et hocol_o£i,es where algorithmic brea^ t "ir O'...::' ia're needed to advance design productivity.
*
For example on of the biggest needs of current si.ii.con_com2i.l.ers is fir
an efficienu._com3actor, able to handle a variety of shases ar-.d sizes. Sue",a co.-iiZ'actor would
also be of great benefit to automatec layo.i
circuits anc to cell generation for use m semi-custom desig.-i.
-

3 -Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

*
Sirrilarly all
met hocoloc ies nesd
anenswe:- to the ->'roolB:r. .:•'
vect_2r;; cenevation in particuia-r, and to testabj^l_i_t_;^ m cenersl.

z--"-

*•
P.t ECfiD webelieve tne
solution will
come fro.-n SDIvir.z, t s _^i:z_t
c i_f f i_c,u.it_
coriiDonent.
2£!l£.S'-'^^hep r o b l e m i . n c e 2 5 n c e n t 1_;^, arid -co ::-\ • : : , , - =co.-h^a-1 j l e
Mioculestnat
thedesigner
can
Lise
to
designir.
zoc.^:_,'s.
errv i r o n r r e v i t ,
not
iri
some
m y t h i c a l e n v i r o n m i e r - , t o f t o m o r r o w . T h e t ;.c i ^t ; torr:orrow
will
come
from
solvir.gthese difficult,f u n d a m e n t a l CIT. z:^ e; • t- i - c bleriir;
sxio
lG!k§.LL;^i.il-iS
tlZLg s o l u t . i . o n s.i.nt.oslreacy
e><i.s^^r,ib H i -.^D.
in5'^ocol_o'-_i_cB^
Triep>-"ODl e.''::
isnotamenabletoaninstar;~' c::'. : ^ £ I E
s c 1 u t 10:". •'.
Nzirdoesit
makesei'iset o t r y a'r\c. c n a n ^ e t h e w a y c e E i _ . ; S i ' E
d e s i z,-..
*" ' " h e r e s.re c e r t a i r i m a r K e t d y n a m i c s a t w o r n t h a t££=:;iiL]liSI2£
who know w h a t t h e y ' r e d o i n g a r e t h e o n e s
Q2=t!22£2l2£il_§vent aaii_y_become5_comi_(2ant..

s u c j r e s t t ~ e ei^&^^Sijcec.
w'-o w i l l 9.et_err-_,2:,L:£_'L:l:.l.

*
Ivs
CO
n o t s u b s c r i b e t o t h e t h e o r y o f t h e ghsnt£L!l_f;i;!i:^_'2^_ii!':k'2i.ii'2l--« •-•'''
wasit
500,000
noits
400,000s y s t e m D e s i g n e r s b e i n g t n e niajor- mar -:.s'^mfluerice.
T.->eyw i l l e f . c u p b e i n g a m a j o r m a r k e t , b u t t . n e i n f l u e n c e r s a:.:..
the£Lst§i:i§il
i.2
tti^
iii!i!l:l!l:£° S = i£!l!
[l]^i.!2S£.2i2aii:=.
•'•^^
with
the
30:. 0e x s e r i e n c e c IC d e s i g n e r s .
-»Toc , i v e a n e x a m p l e , I u n c e r s t a n d f r o m py^of. R o h r e r a t C a r n e g i e f ' ^ e l l o r ithattrer^earebetween£000
a n d _ 3 0 0 0 _ y a > < _ 7 a o _ o r _ e g u i y a j , e n t s _ e r i c a L : e d o; ic_ircui_tsi^muiation
atany
yiverit i m e . T h o s e d e s i g n e r - s a r e n o t c,Liir.c t o&ive
i.ip a l l t h a t f u n i n f a v o r o f a o i f f e r e n t d e s i c . 4 n m e t h o c o l o r y urit :.. 1 -c'.Syknow i t w o r k s .
*f^et . " e c o l o g yancSometi.mes
onisano n e way o f e x p r e s s i Y - , g*******-*********ih*coii!2i:i!tat i . o n a l .
comsiSiiiiy
oftevjgon&ric
i-.
a t t e m p t t o c i r c u m v e n t t h e o t h e r . Tne r.ext s - i i c comiputat i o n a lcomplexity.

S;_IDE

3

TRIftNGwE

CO^.^-s.r.:::,.
=.-.iv-.:;

CQ^^r^^LX-X'*
CGI^P^TfiT IONAL
CD^iPLEXITY - T r , e r - e a s o n t ~ e r e a r e n o o n e s t e z . s o : . ..re i o r . s
IS
that
Deforeariyautomiatedcesigns y s t e m c a r . w o r k t - i e r e re:;;a:.Vi s o ; , . s*k^D£smentai_com2utationai_BroDle[!]s_to be s o l v e d .
•
Tost
of
tnese
relatet o s h e e r n u m b e r s , ft d e s i g n t h a t r e p r e & e . - i t s 5 ;>modulesor£00
olockswill
eriu
up
r e p r e s e n t iriCj
E: m i l l i o n p o l . v i o r . s .
•Handling£00
Diocv.si s b e y o n d t h e a b i l i t y o f m o s t a u t o r f i a t e c s y s u e / , = riOvN,
avid
h^Vjd2..inc|£[Ciiiion£'£'l.y,gonBi.ri a n y t h i r i g b u t t . ~ e m o s t s c r ._ic t u.r e c ofs t r u c t u r e d ai'r^ays i s _ a _ 3 i 2 e d r ; e a i r i .
*ihea r e a s w h e r e t h e c o m p u t a t i o n a l c o m . p i e x i t y h i t s h a i ^ c e s t a r e c_i.rcu^;
si.[!].uist i_o!In£.E!21!l§ti2I:2f,f^ii.i.t
tElt
X^£L£II1
a n d ^ g s i _ c . n _ v e r i f,i.c§.t_i.oi_;
Dther
areas
that
s t i l l a w a i t new o r i m p r o v e d a l g o r i t h m s a r e s t i C K l a ^ o v .
systems,a u t o m a t i c r o u t i n g o f a r i y h e i g h t a n y w i c t h c e l l s , c o m p a c t i oii <.•> designs,
anc
automaticc o m p a r i s o n ai-rc t r a r i & i a t i o n b e t w e e n v a r ; . ....••..i..-.
i&vL.
of cesign h i e r a r c h y .

-

4

-

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 RIdder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

**********ih*-¥r-*h****BL-IDE

10

CDI^'PfiTIBIwITY

*****

*
Cj"<PftTIBI^ITY
B..._Bf:e3ieoiWnat
is
tnere
reallytosay
BDC::Z
cor.iipat 1 Di 1 i t y ?
I suppose I snoulc say t h a t nios~ o f t h e prourair.s we piC'Cuceat
ECHD
spea-^-. t o each other-, and t n a t Oi'ice or- t w i c e we have evt=':"r g !•! t^---jpieces o f harcware t o t a l K t o each otner'
sort of.
*^r, t a l K i n z asout cornpat i Pi 11 t y I would ]i!-<e t o exterid t h a t t :• coi^£ti_nn_
sysi.glj.lforarr,i fiuteand
Ir.a--.s.- Si-i c-PaRi vatiC'Vi i.;ji'..'v,t how re.'^-j^.y •:. ., f 't- \.,fror,wnat
wereac
a'i'iC,-iear.
RT
ECP-.D w£? .have
aoou'ctwo"i.n.r.r ec:
installationsofour s o f t w a r e on rnan'if r-a.-ne-B or s..i3srrr;i n i =,, ai'ic: •;-.<r\. aigiV-^or
more
on worKst at l o r i s ,we a o n ' t s e l l or. - 3 ' s . Of o.ir CJ.= : : : ; =•-E W~O
haveachoice,SSlS'CS. lI'yDDiD£_y[l!S..-iD_Ergfei":^r!t?i:_t2_i-iil'i.ii. ~ne rfia^or, I
raise
t"is
is
to
iliusti-atethatc e v e l o : : e r s o f a i l nines ng-r;, - o t.a-^eaccountofw i a t thear- custofiiei s are ooin-r;., v.ow »r,c what t - e i r rec .-.leNierics
are i f they are t o be s u c c e s s f u l .
*HfiRD/yflRE
PLRTFuRl^lS- Exarnining now t h e r e l a t i o n s h i p between harcware
anc
so-^tware.
Ing e n e r a l i t may appear t h a t t:^L£tS3L!i_12Il'I;:i;i.ii§f^_2i;2iLS; = i:i.l:ii
2ower
arc
software
ElI£vi_des_aD2liEsti£!2_§2SElfi£_§£;ljiil£:!llli' '•"'-'WtivL-i , t-Kd i v i d i n g l i n e i s ri2£._§ltisilS_tQs£_£lS§L •********************

Si_IDE

11

COI^.P POWER REPEft"•«•
Reme'Tiber inc
now
thei.!!!i£12S£S^
ill!
^ESSd. p r o v i c e dElectv-onic
CPD
user
by
tl£fld.i:l2llS_££l!i;£!l!EMl over t h e l a s tshows t h a t t h e SDeed has i n c r e a s e d by a f a c t o r o f about 4.

totheaveracef i v e yesr:-:, ";hiE

*
There
have
d u r i n g t n i s t i m e been improvements i n cost e f f ect i v eriess,
which
are
very
important,
but
the
net
r e s u l t i s t n a t improveiiients i n
hardwarepower
have not__done_mucl2 t o advance t h e cause o f more pv-ocuctive
E l e c t r o n i c C(^D.
*
Now
I
would
l i k e t o c o n t i r a s t t h i s wit.h t h efrom t h e development o f a 5 g l . i c a t i.ons_5oftware.

irnproverrints t n a t

have coriie*
Het^e I have t o a p o l o g i z e f o r being fisrochi.al, and r e f e r r i n g t o EZH'J Inc.
data.
I
cid
asK our con]2et.itors_for._com3arariye_data t o use i n t ~ i E tal->'.
but f o r some reason t h e y seemed r e l u c t a n t t o p r o v i d e i t .

*******************The
increasec

S_IDE

IE

DRftC 5PPEED INC

***

graph
shows
that
in
a
periodo f j u s t over two_year_2 we r.ave
thespeed o f D r a c u l a by £ver_E:50_t_i.mes compared t o t h e s o l u t i o nverificationthat
was available before Dracula cskW:s a!
;o ces.,~ave dorie this by a -pr^ogra.^ of coristarit algoritnmic aevelopfiier,t start ii
witn Dracula I, then Dracula II ano, would you believe Dracula 111.
ceveloprner^t
is significant
becauseit is a ^^^'_±i"hesol'. kon, and the development o"^ more hiev-arc.-. i cal sol ut ic>'-**•. \acvance of Electronic CflD.

*

^C;

\

- 5 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

*MM*ih*-»***-M***m-^i**

Bi_IDS

15

SJYD:v

V

£-•'.

.t.

• » « • * • * -fc •**H..S'ri- lewS
looK at Ssice, a v e n e r a b l e prGC,rarn m w i d e use, .:ivr-.'i-.
hatec" iri aDOut ecjual amounts. Over t n e the last 15 y e a r s since i.C E s firstlaunchect h e program, the total Sjeed_uo_bii_hardware mea: :.; £-.,-,:..
to Igss tnan
iQ>< if you discountsupercomputers,
anc tnac •^•,^^ vc e £v e c t o r . zEw aric parallelversions,
wnic.h 3.rereallysoftware: ;- •:.
coil oi nat 1 c r 5.
•*•
however, i r- t h e !li^:S_d i.Ciital_cori;.3i.n, wni ch is w~iere t n e bul.-. o^ f:*L-:£:"E tocay,
it is not neccessary
to spevic ha.'f a ri-ill;on or ^ :._'.
collars
05'i h a r d w a r e
to run spice. Thei e a r e a riu.'-nber o'^ new s _ r-'i ^e-:notbaser.; on t.ne traditional
spice
al cor 11 hi-,B, that car-; pe. '':: sfaster ai'id in a rriore cost e f f e c t i v e manner.
* fizjam rry a p o l o g i e s for being, p a r o c h i a l , I promise to zive epua. ;.. r
to &r.y c o m p e t i t o r s
who will send m e their benchrnar-Ks. T h e crar.;h o' E
SSg^'li acainst
spice
shows
a sneed
U:D of Lip to 50y_i:''^i circ'.ii'':^ i-,£ c 5. r
coi-i-pare. .\ow I h a s t e n to acd tnis is not on all cn'cuivtr l , ' - . 'I*However, their a r e two imsortarit points h e r e ; first if y o u viA; re toon a vax you c a n run a 5Qj_000_t_ran5i£tor_ci_rcui_t in t h e tine it USE:ta-'.e to run a 1000 t r a n s i s t o r circuit, secondly t h e increase ir. t"e r u Ti
ti'ne o-^ this t y p e of algorithm is approximately linear, wnereas s.-.jic e 1 -•atleast a s q u a r e law, t h e r e f o r e t h e poteritials to simulate huge O D ' C u 1 1 rior
5 11ev-i-iat 1 velyto o2t.i.mi.re the ££si.£n by repeated iteratior; bC'^;." n o w
e K 1 E t.

•*•.
Bo it see.viS that,.ill'_£llg_E§lI.i=^^ least in two a r e a s , picci.-.cit iV i .. yacvar:ces
fr-orn s o f t w a r e
have
totally oyer-snaoowed_tnat_frorr;_harc;i:^_L e . 1
would
now like to turri to the_futurg: ai'Ic look at w.'isc w e mignt expect f , o;.ifrom currer.t d e v e l o p m e n t s in both h a r c w a r e and software.
*First, a restatement of t n e proDlem. Curi^eritly we a r e pushiri^ a rnil ± l o r itransistors
on a chip.
Data
cuest
is forecastinglZ-..[!J±.iii£'.l! ty 1 9 9 0 .
There will
be c e r t a i n highly structured d e s i g n s w:-iere c o m o u t e power wor.t
be a proijletii. However
there
is a l w a y s goirig to oe a part o :^ t~E.- ms r k e c'thatis pusnirig
for more functionality, hig,-er c e n s i t i e s aric rcoi e S3 e e c .
In general this part will be at t h e forefront of c e v e l o p m e n t .
************-)t***-***

we

S_IDE 18b RELATIVE CDXP NEEDS *nis
s l i c e r i v e s us somed c i n ' t c o s o f i - e t h i n i r aDou'.t'he'^earet! 'eeareas,

i c e a o f j u s t how g r e a t t n e a r o c l e ; . - c r u l cit.
b 2 i : i _ £ . £ _ t i £ _ = ; £ : l ! i l S _ t h l = _.2I12HiSLL.' '^'wr . c herecurrer.tly"-ew d e s - c r i m e t . n o d o l o g l e s
E r u t e "^orcs i t t ' l r o u g n
harcwareD e v e l o p n e w a i g o r i t-ir,,;.- f o r e x l s t l t - i c

CBZ.I

receiving

v.'-i

ge-

acteritnipt'- 6 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

•!!;§•:•—£g§iaD__r!;'et^odoioii.e&§r:e__ioi.r!i_ _ t oSi:£'V.ipe_.gorr,g_re;igf, 5,.-,:. ecc--.j.
siliconcof.:r.aier5
will
reallly
wor.-<. ar,cwii:
a l l o w t:-ie c e s i u / , c--' •-,;.;: =c i r c u i t s . _Stjincar-c
ceHilsar,c£ate
a r r a y s s e e m t o b e hav-rr.L a muc^ ruori
ir.-;r!-eciate iv.Hiact i n t h e niar-Ket p l a c e .
*'"•ereS-.OU..C acci ihat at t.Cc^J we? try to be ince£;erjcr;^1^_c._;!v;ethocoioc.ie
we sellthroughpretty we-11 allof the. w-i ..."t. r e^ : >cc vpa; .les, o .>r custo.r.er base splits cown about 50/50 between, ES;,arc'ul] custori:, . aric we number 3 SIIICC'M compiler compa.rii E v ;cllents*
have

U;hich_:to_ be

ever
t_ied

w a y we l o o . ' , a t i t how£'>'»: , 11'l c F r r i p r a l nE«:J_[^i:it_onSii§ 2 f t i ! i § " l l § _ ^ ? Y § l 2 2 [ ! H i l l z i ^'"'^ ^''^-''' ^ cor..^'.

because of the sheer size

1 i. !r." i A ^ ;: J O W C •:t.he increases.

*
Con-.ing to hardware,
there hasbeen a lot ^^f intG- e-: i r-ece; .1 .. y -.v,
accelerators,
rise macnines and parallel processors. Qrty ECP.D we.tc-evH, in
the audience will be glad to know that t.nis has not escape^! our c'ttention.
In fact,
for some time we have been running_bench[!]§lZhS witn a variety of
hardware to try to establish what the practical possibilities are.

»
For obvious reasons I h*vff to Masfitftiri e&rif leiai'it i p i i t-y op r •, i = ^ ;;...., ^twouldlike to share with you some of our findings as they relate to t~egroductiv_i_ty_increases possible through the various h£!!2^i!iS!l^_££til=l!ll5*•
I should
stress that
we are dealing
with r?^i_QB5_2!I2£lI^!i;^» ^''^'^
academicbenchmarks, and that the equipment conQerned is cost effective insuch
a way as to present a viable alternative to the Electrc^nic CP:D use,-. (no Cray II's)*******)ni*-n*mk* itnn

• The options we considered

E^IDC

15

H,Af<DWftRii OPTIONS **Ars;

Super-mini
Microprocessor
Clustered super-minis
Rise Engines
Parallei microprocessors
Parallel rise engines
VectOY-' processing
Super-computers
Solutions on Silicon* CoiY.ing to t.he re5ul.t£ of our irivest i gat iC'riS:*******************
The
hardwarecangetlater, on

SLIDE 1&

SPEED L;P GEN PuRPS *graph shows tne results. Tnis first_£ra2D_il_f£!2_£§!li^il£:.±._£i=;L2£:2=speec ups in Electronic CPiD. Tnere are a couple of areas w.-.ere we:greater speed ups C'f limited probler.-; sets and I'll cor,-;e t i. t-.:=:£
the second grapn.

*^'r^.e horizontal axis of the graph represents lime, expressed as tne next
five years, and the vertical axis represents corjigut i.nc_2ower, exDressecmirlPS. These are mineral B!:i'C2'2se MIPS,
equivalent
to those we bei.eve- 7 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

tjecpleperwill

second.

•X.
Gn-^-o..;oec:

actually
For

tfiS

see,

corr.car i s o r i ,feraphti".ere

not
a

are

special

Vax

7S0

is

p u r iDOfeS' ^'11-w

C-'r

takivi'ijj.'-'"'*"' «^ -

a*;

o^'ic

t_Ql_6;e_d2.i;..t _j_vict__ai_e;£:,^,

u^ .^ I •• -<-'• ^->'i ^ ; M c h• '" = . =P - " «'• •'•-1^

tr.e

it;',

\ ~

•'• • r-"v'fi i'^i t.

Gi'ie, in the ftr-ea of iS to £0 r.IPs crovided by a cc ;:.•:.-.^^. ;^.i...
o f ^sI22.=..iHl._i.i.Eb. eriC.irie£.
""wo,
in
the
i;i.Ei2£:2L:=:£ES§2Ll=:jareaof
5 t o 10 r - I P s ,provicec ty^i_s.-^s-.^=ii:.!2£.%§_Ci=£.-lil:iL,l.nE=;_'2i;_Eil:t5i.§12S=^._?.iLiu.L^''Tni ec,mthe areao r _ [ i i c r o p r o c e s s o r 5.

of

£

to

4

I>':1P'B,

provxdedzy

l:l-:....£:._.Qj::^i;.

*"iC
Ii:£!.ili. j.'.i;L:J
H111H£
l=.'.i!_Si5£Ssl.JIii5 f o r p r a c t i c a l p u r o o s s = : i/^C:-<.\^C z.?.' ^ L.i-'^.rL
evji^j^n^'
5—SEE —^'siil£ j : . . i . ^ i .
i=!Lii=!E^M^;^il 1 0 ' p s r ; a c i riCj i r* \^r"i€i i-'ariZje A^:ii=rii: iL^^—^-'"i.^C'fthefactorst n a " ; w i l l c e t e r r r i i r i e j u s t whe;"e t ~ e f i g u r e w i l l:!•£ a. £ t - . s
powero-'
the
basic
rise
erigirie,ther i u r n b e i - o f p r o c e a s o i ' s t.~:5,-; c~r. DSusefully
appliedinpai-"allsl,&rtt
the
proportionoft h e a o . j l ^ c s t i !• •E O " ^ t w a r s t n a t c a r i t a K e a d v a r i t a i e o f e i t h e r r i s e o r p a r a l l e i i s,,,.
*•fls
a n e><£rj]o_l_e l e t roe g o t n r " o u c , . " i h o w I a . - r i v e at; t - e l c - 2 0 f i c u i e :
This
IS
basec
ori
t h e a s s u i n p t i o i n t n a t we a r e g e t t i n g a s p e e c o f a o o u t
g!I!2E1f r o i i - i t h e b e s t r i s e e r . y i n e s r u n n i n g o n t h e rr.OEt s u i t a b l e p r o r j r a r u s . T r i e :wefind t-at
i n a program l i k e BH^Eiilis, w n i c h i s i n b s r e n t i.y_yei_y_2ara^_le^,
about
SO/^
of
t n e code i s a p o l i c a o l e t o processing i n p a r - a l l e l , ofcoursehastrieeffecto f d i c t a t i n c t . n a t e v e n i f w e r e c u c e t ~ e t i r n e t o r .•,',-, t n i s %t c i 2 s r o t " e p r o ^ r a r . i w i l l s p e e d u p a LlJ3>ii.[i!^[i!_i:£_£.§L'_!ki[!JES*•r . o w e v e r , i r. t n e l i e a l . _ w o r i _ d w e a ! " e n o t g o i n ^ , t o b e a o l e t o r e c - i c s I T . t ozero.
Byexperiment
we f i v i c t n a T t n e 0 2 t i j a i U i v i _ n u i i j c e i _ _ o f _ O i _ o c e 5 i o ^ f ,i =• i .t,-ie
ranL^e4t_o
5.
fiddmuj
rr.orep r o c e s s o r s a ~ t e r - S c o e s n o t n-.arc-i i £.. 1 yincrease run speed.
*
Knowinj;t - i s we c a n c e r i y e _ a n _ e c i u a t i.on t n a w w i l lg i v e us t.ne e K p e c t e c
c e c r e a s e m r u n t i r n e , o r a l t e r n a t i v e l y t n e e x p e c t e d i n c r e a s e i n 1^1 P 5 .
*T h i s i s t h a t t h e t o t a l r u n t i r r . e i s r e d u c e d t o 1 0 / ^ _ o f _ t Q e _ o r i.c l_•r.5i__^i.^^|:
SO/.
£ivi.dec
bytiie
HiiEkei;£ f _ S ! 2 £ £ l s s o r s 4 _ a l l o f t h e s e c o r . d h a . - " o-^ t - : ee q u a t i o n f u r t h e r d i v i c e d by t h e i n c r e a s e d power o f e a c n r i s eprocessor.
*
I n f i c L i r e s t h i s m e a n s t h a t a r L i n t h a t o r i g i n a l l y t o o k . 1.00_riii_n;^t&;^ o n ayax
2i;2''"-'^
taw.es6[!]il!i]iLi.E§
SlitQft
E!12EE§l'2I25i'-'^ 5 _ r i ] i _ n ; i l § . ^ . _ w i t h _ ^5il'i:Esssors.
Int e r m s o f I ^ I E S t h i s g i v e s l £ _ w i _ t _ h _ 4 _ g r o c e s s o r s o r i:;0._wi_u_h_|^
2ilSE§ssors.
Pill
of
this
t a - ( . e s rio a c c o u n t o f l o s s e s i n c u n e c m c o u : . . ,^ 11'.;.theprocessors.
*
This for a hig.'ly 5oeciaii^ec_giece_of_harcwaretnat
p r - o j i a o i > ca.'u.C'C c oanytnin^
else
b^.it
run
s p e c i f i c pieces of a p p l i c a t i o n software..
Zorrpar-e
tnis
with
a
Vax
BSOO,
w h i c h a~ 4 m i p s i s a m i i l 1 1 — u s e r ,g e r i e i - ^ i - ~'ur i-oi^smachine.
Itniakess o m e o f t h e s e g e n e r a l p u r p o s e r i i a c h i n e s n o t l o o , - . =.i za.cL
after all I*
tne

Now w i t : - i • c o t a i . l y
w o r d co i t m i g n t

n e w s o f - : w a r e , s t r u c t u r g i _ f ^ i ; _ 2 g r g i i e i _ - . r : r , £ e ^ . i ^ ^ ^ i ^ _ r ro:.be p o s s i z i l e t o b g a i ; _ t n e =e _ f i 5 2 - L e 3 .
P u t t ' l e rfj-f.. " i - . . : . • : c;

- 8 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IC c e s i : , r - . e r 5 h a v e a j c o t i
ai'iC \,'.ByIE
ricoi i--.ezr:3i~,
toc-iszo
CO 11; riow, sc' for- a . i p r a c t i C a - . p u r p o s e s , t n e s s-J.:':!<.
t o i^"iic~ Kt Cc.i'i e K p e c " r:e_p l^rorr. har-c^rvare i n l i i c r e a s
i n c J.ec^ r"*C'Ti 1 c L-1-:I.,'.
*•
N.i.w, t ~ ; e r e
a r e sorue s , 2 e c i a l . _ g u r 2 0 s e _ £ o J . u t i o . n s ^t n e s e ir, t - . e n e x t c - a y n :**^h^n**)h*-K**i>r***->i*-

IBD

iZ

SPZCIH.-

aridt-'.ee:: o:'£-.c
1 i -.' c s. a r

I' 1

SPELD

•*• V e c t o r p r o c e s s i riz,, s u p e r c o i n p u t e r s ar.c &0I i..t AOI'I» OJ'. &iij.ccj.i •."••;•;
creepso;^_r^a^rrit_uce. .Koweve.', f o r vario:..;-;:. reaivOi-s rtor.e C'f tr-it.-,- t e ;_EOj^ut.iont; T ."on'; a n a D p i i c a t i o n s s o f t w a r e p o i r i ; o rr ^ e c u i r e s e x t e r i s i v e r,;OG 1 * i c a t iC'; 1 t'_i t la s c - ^ i w a c,
JT O C e S S i 'r'll
ve-ct o r
anc it seems to have reacnec somewhat
a p J. a " e a .•. a £=ce inite vici-no,
as current Electj^onic CP)D prosr-ams go.

*
Euper cor.:puters, while obvioi.isly
ef-"ect iveness attached to theiii.
*that

effective

nave CiugHi.'t-2LH_'.if_£i:lj

Solutionso n s i l i c o n r e q u i r e t h a t t h e si£9iC.i.t,ti!i'=_!:\5§i_t'e_s2ai;;JL^e, a n c
t h e niimtrEt2_'2f_Eili[!22S.iil§^ u s e e i s m a n a c e a o l e .

*Solutioi'is ori silicon, I nearly said silico'n solutions, see-r. 'co ce t'• emostinterest 1 r.gof these, andI believe ilohn !i!ewki.r;i from E-iiicor.
Soilutions will be talKinc; aoout tnis next.
•*•one

So this means t.-iat har-cin^sr-e
orcer

of

[!22i!l.ii.l:i£.£-solutions are

Triis

of

ace£uat.e for theincreasem
circuit size anc complex ituy.

coursecomputecoing to oe liuiite^: ^o a.; o.'.rc
wil!i.

power

just

!l!'i5._i-l?_i!2_§;':Ji:'._(;:i£;.i:.

neeoed by tne. increaf.;e inThis just won-c cut the mustard when compared against
either tne nee^^shemarket.
orthe£50x
historicallyfv^om
sof-cware,aric
it wiii no- ZIG.
ornearly adequate to co the JOD.
******************

S_IDE # ? SGL.UTIONS TO CGirP GAP RE-

Now
I woulc line to look at the tnird aresi in wnicri we r,.uE';.: loo
improvements, namely tne cevelopment o f S o f t w a r e Ci-iD tC'O^^s.
•I-*
hi'2^-.s^kl-^"L'M^E '-'f e l e c t r o n i c
f r o m f .11 u r e c e v e ii c< c rr; e r. t .

.- -cCi^D w i l l*-»*-»t**-********-)«-*** S l - I D E

ISc

benefit,or

CO!V:P NiEEDS REP

v.eec

t-

-

- > •

***-»t*Tne front er,c,schematic capture etc., Qoesnl.t_rea^l..£_.[_;£j^c_|.
commute
22wer
BUebieivi, a n d i t i s p o s s i c l e t f f a t ofie Oi c = :" c fmacnituce will suffice..

-

9 -Dataquest Incorporated, A Subsidiary of A.C, Nielsen Coinpany /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

£I-£5lliI£ ;•• 1 i c c ' i ' i
w i t h anc"he^••••'^ a r e p a r t 5 * l * y aiiH'M ,.;«:5i. t? t •.:• * f + A c i;;;.:.. • •. . „ : ^ , ; .
aec:aaseoftheloirv n L i f . i b e r o f p r i i , - ; i t i v = s - - - e ^ . c
t n e r e l a t i v e s t a r ^ i l i t y o f t n e a i ^ o r i t nrr.s.

bacK

of t.he process, circuit simulation a-c .a.j

end

ver-1-f 1 c a t 1 o nhaveaisilZiil:£!=.'L!J.21:iii.S
5C22kE.lil
si£i^ — §Lj.:^.'l:_.'.
orcerso£_[L'B£L'iS.k'£=_iIJ9i-S_£'Ili.[!Ji.iLJ:.i:!S= ^'-' Q e a l w i t " ar'r'i. a B
suojec'cofr a p i d a l g o r i t "irnic c e v e l o p i n e n t .
T h e y a ' t r^c". .
cerieral atiienaole t o f i x e c i n s i l i c o r ;solutions.
•*-

i^ha;

tnis

a

corip..iteii^Prnearis
'-''

is

cnat

iri

tr.e

W'Orstpr^i^oleins^reB.swea* ecoi; c~i"i.!i^o_SL'£i_[D=i^.2§_!kliL^SE_!K:il&§C§_QX_iJJs.£ll'iI-i;i£'.s'.

*
Per v e r s e - y ,i . L i £ i l £ = l S i L : a _ ^ i - i . £ i i ! s J L i o n o f t 'le c e s i g , : - p i - o c e b ^ s i s l j o _ : _ i ^ :t.otij^il
S.2i.!Ii=iS
ikE''£i.EL^'^w^
Are
t.i irikint;,of
pucciri-^a:i>r- < y::a r t i f i c i a l
m t e l 1i cencei n t h e r e , t n e r i we are
more ceperjcer.i; tnar, eve;n e w a l z,or i t n r i i s .

•»Tneharc;war-e
E l e c t r o n i c Cf.D u s e r

l i m i t a ' c i o f i h a s sorrie v e r y i m s o r t a n t _ c o i r i n o t a r s o n s ;t h a t co be;j;^onc_[nere_s2eec.

t-,eFirs-ly,totakeacvantageoft h e iniprovernerits offer-ec,
iv
essential
that
e><i,st.i.n£
coce
c a n _ b e _ r u . n o n t h e s y s t e n . s V'J1--I
f e w e r r.ioc i f i c a t i o n s a s p o s s i b l e ,pr-efer'aDly none.

isasSecoric Ly,tnesystemsm t e c r a t o r s haci b e t t e r c o a . l t n e y c ^ ^c-•riia<esur"etne
specialpurposehardwaret rariSDarevit•; otneuser .

.-irc.y,procucts

if t ware
prooucers
to mari-<.et by the;'Uld make sure they oe!
er t - e1 r
best means possible, w r. 1 c " ri I e a r"i 5imar.ketiriDthrouchchannels.

anumberof

Tnese

pointss.rB
importantbecausetrier eAreal o t ofscitoo^sou^_tnere_aj^rgac^,
ar'ic u s e r s a r e rjC't j u s ; y o i r ^ i ; zctheir,
away.
Tnis
incicates
that
thesucessfultools
arecoir,^l!^£i.k^ii.21Jslilila!l*i.!lisrtnan
l i e y o l . u t i,onisr;^j_ a n c t n a t w . i i e n e v e i " wa.> wf• ^-v a I c.~ rC"f,at it we are cepencent on application software cevelopment.
•» • t t - • * * * it » • » • « **•>(••»« ••(•*•>*••>«••)(B^IDLI

r.P.Ut\E' w-St

H * * H K * * *•)!: k * ^ . ii.

'ar
we
nave
concentt"atecons p e e c . \ o w , r e r e r r i i i ; r'Sc_aw,
Iw o u l d 1 1 K.e t o e x a n i i n e s o n i e o f t n e a r e a s o r f . u r , c t "~ur;c-; l o r . a l i t y
ar.t:
speec
a r e o f c o u r s e t i e c t o or.e a n o t h e r ,a / i c a:.;,:i.:;:thesoftwareportiorio f t n e Law.
ftlso
t i e d i n w i t n f u n c t l o r i a 1 i v y i-. t.
sc'lutiofis
atcomporierit
leve*,
mei'it l o v i e ceariie-. i
whichi i i c i «ct--i:m e t n o G o l Ci^^>- .:;ai t •r:.f tht;- fc;.,.J«.^t j '-iS.
P-;r tr a s

w ,"1 e. e

L &v e.

att he? corr; p o i ier, t

ut 1. I r 1 i c V & ..

t

t

t-v ;

- 10 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

res-.j._ t E
CO i. i'i i o 1.,

ie-i'ief:, -i'cr.B.zwi ^ i1:.~ e T .1^ .L j. o w.

•»•><•»;• •»•)<•)*»* X X >;•»; X >.-K » X !( XThie^

nur.oet"'

C_ID£

cO

D£V P I D••y*- ' ^ a c e ' . B.-i'i, aviC ro-j.z ir^cSy-.- ;DC' 1 ."t c cori'iDa.c:t i o nP;'.iofi.a11 •:: la>• otit
E y s t er..z. B'-=-''c v e c t ' O i " ^ e i ' j e r a " 1 Oil^ixec
iiioce £ir,'iLila.':oi'sHi'ia...c<^ a e . ^ c i L: 11 a i c:...rcui. "c s i rnii 1 a t i ovi
T r a i ' i S 1 a i j.Oi'1 p v o c , vari'is b e t w e e i ' i ~2era.""C i i e s
D n e c a t a b a s e h i e r a r e n i c a l &yE,'ce;r,s
Corr.-.at 1 w-le i i - i t e r f a c e s b e t w e e r i ;;:.r o i . - a i r , =;*fi*i,-)i**-)i*.ii*ini.*k-*ii-*

«
is

S—IDZ

£

RLi!-'iilP; 1

TPi..Xr\,ow I w o u l o 1 i KE t o t u r ri b r i e f l y t o true s e c o r . c jt h e p r o p e r r e c o i ; n i t iiori C'f P : p p i i c a t i o n s o f t w a r e

SLJLJ**•)()(

s u b ^ . e c t ITI t - i ecorii^aries.

t a l -.,

-j,.-|.^;^*
Dve.'all,wer\avB
t o d e v e l o p arts^2£U^Zi^Si^iQi\_of_^2^^i.£s:2j:.jkL:^'=^'-'l'^'^':^i^'corngarjies,
botn
in
lOur owri n i a r k e t p l a c e a n d i n t n e a r e a s of t : a > ; a i x•.:•;•; &•'-.•::tne
f i n a n c i a l comriiurii t l e s . N o w a c a y s i t s e e r r i s f ' - i s t e v e r y - . - ; i r i c h a s t :;. i S v e asynonyii',tO'
rna.^^ei t c a t c h y , ai'iC s o I t h o u c u w I w o a l c c o m e uD w.it 'i o. & f o ithis:• « • * ) * X •>»•** -x-» * •*: K •)(*•»( -x * X

O _£3flC3

J. 1^' L-* n* *.** V:******

WF.'

lot

.«£ a

C^

more of tnese in the Electronic CfiD market place.

*
I tnougnt of lots of ways of trying to convi.nce_the_auc i,er;c,e 1 Cl' 1
software corr:3anies are for real, and I final iy carue up wit:"i a w.v>
it. That is to show yoi.i some of the cost_s of running one o r ic"e=.c*********************

S^IDE

Eli

SOriwA'^E

CDSTS

i cv cc

*m»x

~

C

•:- i"•*•
l i s n e x t c h a r t s n o w s sotiit:? o• f t h e Ovtjvi taj 1 c:oii^.t o r 4ft p^frcii, I-1-p. •.ifllliiig.
^sy-''-'^'^'''
5"^** iMtiii'iteviiiirice s i c t o u v . t E , t o r a w
ove;j;
its
gi-ea:E Z I : '-''' " S l l c o s ' c s o v e r t n e l i f e C'f t n e s o f t w a r - e .
I h a v e t^-iC ccj,.:u. =r : I \.' ^
oi"i
tnaw,
o)-',e1wis"
i t w a s n ' t t r - L i e , ai'ic t w o I w i s . ' i we c o u ! . c c ' l i . : i f " - eco.stomer
1 1 Ketnai;.
w h o o p s , w ! " i a t e v e r h a p p e n e c t o t r . e i c e a t ~ i a ; s .-• " c :^3.r e
was f r e e
a f t e r you had o e v e l o p e cit.

*-¥***^*^.*-K**-K¥.•****

CD^;'^^DN£\T

Si_Ii

-

S Y S COST

*

11 -

Dataquest Incorporated, A Subsidiary of A C . Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

•*
"o
c:.v&
y-ou
an
icea
of wnat I rnear;, l e t s taKe a loor< a t a t y - i - c sElectroKiiC
CPD"sy&t em".
Sirrol i s t i c a l ly
I would a l l o c a t e tr.e cOi,:::c. ^err-;
into!::i:}f^i:iWH^-i.i_D»2,:<j_;;i2;Qkl^.li,-:^^^Q.li!:ibi<ki...Sii>i^,.b:2L:i^l^Bll.Q.i^. '-•^ .
theapD)-OKimate p r o p o r t i o n s 407-, 10"/., and 50"/.. A n y h a r w a r e v e n c o r s -eit-"'
don'twant t o get into a c i s c u s s i o n o f h o w a c c u r a t e t h e s e proportior.s Are.
exceptto s a y that a niajority of t h e price of an e l e c t r o n i c CAD sys-E:,: i;
cor-icerr,ec with appl icat iori s p e c i f i c s o f t w a r e .

* * * ^ * ^ )k***.**••».•)••-***nSL.IDE£3

RbLfiTIVE£ Y b CCSTSf-«\ow lets looi-'. what is ha^zjening t o t.he rel.at i ve_,cost s_,of _Eof5 wai. E_i.n_£'.
systemj.
By golly look az t h a t , not only is it CjBttir.g more experis^ivt
but
there
is going t o be m o r e o f i t . m a y b e w e had b e t t e r start tanirig t h i s
stuff seriously.
•••
I n summari^, w.iat a r e t n e ir!]2l.iEs^i.£DS d f ail t n i s for p r o d u c t i v i t yElectroni.c_CQD? Well they at^e t n e s e :•»•»•**»•)«••»••»•»••«•»*•«••«•*•><••»•»

SLIDE

£ 4

iri

•»•»••»•»•«••»**•»*•»••»•»•«•**•»

Rtt h e toB_desi.sn_l.eyel IC d e s i g n e r s a r e going t o a s s e m b l e t n e i rown
suiteso f _ £ r o 3 r a m s . T o get p r o d u c t i v i t y tney will crioose t n e
best
best
c o m p o n e n t s . T h e r e is n o o n e s t o p shop they c a n get all
they need from o n e s o u r c e .
Productivity
will c o m e from cnoosing t h e best_corii2onent sol..;tior:£
at eac.-i level in t h e c e s i g n hierarchy.
There
will
be a h i e r a r c h yof h»i:d.t:§il£» *^'° ^^^ they s o f t w a r e
tools
had betterbe preparedt o r u n at all levels, subject t ophysical c a p a c i t i e s .

Software

will

be

cost.
( I linem i c r o v a x II.

athatbi.flgera ! 2 a _ b i s 3 e r _ E r o 2 o r t i.on o f t n e s y s t e r r ;o n e ) . This!!!§iDtenance_wil.i._become_a_bi.sger_gart

isalreacy

apparent

on t n eo f t n e s o f t w a r e cost.

Successfi.il
softwarewill
be that whicn w i n s first t h e a c e e ^ s n c eoft.hB 3 0 0 0 ,and t n e easiest w a y t o c o that is t o allc^w tn<;:i. touse D e s i g n m e t h o d o l o g i e s they a r e c o m f o r t a b l e witn.
certainamountof encr^2ti.onof al.£or i.th[_.£_ori_Wewill s e e
wit.n
ri.sc
and
ESUsiiei.
arcn
itect
ures,
but tr,e m' = si i icon, axoni
increases
in- !=.iectronic CfiD p r o d u c t i v i t y will c o m e f rom_new_ai.i;.or 3^^£.hn..s_anc
sof t.ware_c.eye^02!i!§rt..
*
Finally,
I would
liketo sharewithy o u t h e somewhat
conclusiori
wecame
t o durirru
t h e loo!<. wt: took
*t t h earcnitect ur es.
Y o u will remeriiber w e looked at

s'carLlinL^
cifrerer.z- 12 Dataquest Incorporated, A Subsidiary ot A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

U6111 >Oi91 / 0006-I.Z6 (BOfr) / iei-S6 VO 'asop ues / eAIJQ V^d JapPIU OSZL / Aucdujoo uasieiN OV io XjSjpIsqns v 'pa»Biodjoou| tsenbetea- ei -***********************

3<J1~S*****************

ST»«*^.*-»*j<-»**»*».^ySuSyST

HCI~S

U 0 T S n - 3 U 0 3 aL,'.

*•*•»*-***•»»5«--»****•*•»*

DataQuestn naacompany_of
company of
The Dun & Bradstreet Corporation

FITTING IN APPLICATION ACCELERATORSJohn Newkirk
Chief Executive Officer
Silicon Solutions Corporation

Mr. Newkirk is Chief Executive Officer and founder of Silicon Solutions
Corporation. Before founding Silicon Solutions, he was an Assistcuit
Professor of Electrical Engineering at Stanford University, where he andVice President of Engineering Robert Mathews established and taught thegraduate VLSI design course. Prior to that, he did consulting work forseveral high-technology companies including Hewlett-Packard and Xerox
Corporation. Mr. Newkirk received M.S. and Ph.D. degrees in ElectricalEngineering from Stanford University and a B.S.E.E. degree from the
Massachusetts Institute of Technology. He is the author of numerous
technical papers.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

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SOLUfiOr'lS'What is your key bottleneck in IC Design?'
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25+
10-25

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Spice L:
(GaA&lSpiCQ[Linear]Sinn Spd^(DML}1^iiMr^i

Sim spd Sim Spci» Sim Spd:^tDMtJ 0i Sim SpdKr

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Sim ^dmSimiSpdisM Sim^pd^tiU': Sim^pdj
Data^iSpdiiCompl^pdpSim^spd^f ^:fi:"f;;: (Zycad):*?^::E-Beam:*

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Source: Sttategic, inc Survey^^i

SimSpd: -

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25-50
Size of Design (000s of transistors)

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-Graphics-based CAD system plus mainframe

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Source: Industry Data

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. VIRTUES OF GENERAL-PURPOSE MACHINES:-Multiple applications-Programmable-Upgradeable and portable-Timesiiared/many users. APPLICATION ACCELERATORS EMPHASIZE:- Performance- Low cost per equivalent CPU cycle

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- Pre and post-processing tijue- Computational intensity- Gate, Fault, Behavioral, Modeler mix- I/O intensity

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OataQuest
n n a company of
J u J f The Dun &Brad$tFeet Corporation

LINKING DESIGN IN TEST

Jeff Hotchkiss
Manager, Design and Test Automation Group
Teradyne Incorporated

Mr. Hotchkiss is Manager of the Design and Test Automation Group at
Teradyne Incorporated.
The Design and Test Automation Group is a new
business unit that he vaa
instrumental in starting in early 1984.
Previously, he worked in a variety of sales and marketing positions at
Teradyne. Mr. Hotchkiss received a B.S. degree from Bucknell University
in Pennsylvamia and an M.S.A. degree fr(»n the Sloan School of the
Massachusetts Institute of Technology.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

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THIS PRESENTATION WAS NOT AVAILABLE
IN TIME FOR PUBLICATION.
A COPY WILL BE MAILED TO YOU WHENDATAQUEST RECEIVES IT FROM THE SPEAKER.

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Dataquest

THE GOLDEN EGG—ARE WE STILL CHASING IT?

Stephen E. Coit
General Partner
Merrill, Pickard, Anderson & Eyre

Mr. Coit is a General Partner of Merrill, Pickard, Anderson, & Eyre, aventure capital partnership located in Palo Alto, California. He waspreviously Vice President of Marketing at Raster Technologies, Inc.
Earlier, Mr. Coit was Director of International Market Development at
Prime Ccmputer, Inc., and a Product Manager at Hewlett-Packard. He iscurrently a director of Graphics
Software Systems
and RasterTechnologies, Inc.
Mr. Coit received an A.B. degree in Applied
Mathematics from Harvard University, and an M.B.A. from Harvard Business
School.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Bidder Parl< Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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d/^ C/P^y TrTfTPoA^^^t^sn" ^ ^ ^ y a ^ /[THIS PRESENTATION WAS NOT AVAILABLE
IN TIIME FOR PUBLICATION.
A COPY WILL BE MAILED TO YOU WHENDATAQUEST RECEIVES IT FROM THE SPEAKER.

sMERRILL
PICKARD
ANDERSON
EYRE
C633W.26

MERRILL, PICKARD, ANDERSON & EYRETWO PALO ALTO SQUARESUITE 425
PALO ALTO, CALIFORNIA 94306
TELEPHONE: (415)856-8880

THE GOLDEN EGG—ARE HE STILL CHASING IT?

Stephen E. Coit
General Partner
Merrill, Pickard, Anderson & Eyre

Mr. Coit is a General Partner of Merrill, PicIcard, Anderson, & Eyre, aventure capital partnership located in Palo Alto, California. He waspreviously Vice President of Marketing at Raster Technologies, Inc.
Earlier, Mr. Coit was Director of International Market Development at
Prime Computer, Inc., amd a Product Manager at Hewlett-Packard. He iscurrently a director of Graphics Software Systems and RasterTechnologies, Inc.
Mr. Coit received an A.B. degree in Applied
Mathematics from Harvard University, and an M.B.A, from Harvard Business
School.

The Venture Cycle - The Boom
Strong Growth Projections
High Valuations
More Capital
New Resources in People & Technology
Innovation
Better Price/Performance
Positive Market Response
C633W28

MERRILL
PICKARD
ANDERSONcV;: E Y R E

The Venture Cycle - The Bust
Risks Materialize
User Disappointments
Caution Among Buyers
Difficulty for New Entrants
Price Erosion
Lower Margins
Reduced Capital
C633W.29

Less Room for Error

MERRILL
PICKARD
ANDERSON& E YRECase A: The Full Line Supplier^ ^ ^ ^ ^ ^ ^I ^ B ^ ^ S ^ S

IB)~

C633W09

MERRILL
PICKARD
ANDERSON& E YRECase B: The Integrator•••••••••ll^HML.
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ANDERSON& E YRECase C: The User Interfacer

MERRILL
PICKARD
ANDERSON& E Y RE
C633W.11

Case D: The Reseller

ON SALE NOWMERRILL
PICKARD/\NDERSON& E Y RE
C633W12

CAE Market Maturity

SingleSingleSingleFunction Component PC Board

Board
Set or
Box

Full
Mixed
System Systems andDesignNetworks

DesignIntegration
MERRILL
PICKARD
ANDERSON& E Y RE
C633W:;18

CAE Market Maturity
Organizational
Integration
MultiDivisional
Integration
All Functional
Areas.
Lintirc
Company or

Divisit)n:
All Functioniil

Areas

Multiple
Project
Teamii:

All R&D and
Manufacturing

DesignIntegration
Engineering

Project
Team

C633W.24

Complete
Project
Team:
Engineering

Manufacturing
SingleEngineer

MERRILL
PICKARD
ANDERSON& E YREOrganizational
Integration

DesignIntegration
MERRILL
PICKARD
ANDERSON& EYRE
C633W.25

Common Pitfalls• Underestimating Competitive andEconomic Barriers to Entry• Focusing on Technologies and Products,
Not Markets
Misdefining a "Market"
MERRILL
PICKARD
ANDERSON& E YRE
C633W,30

Identifying New Venture Opportunities in "The Productivity Age"

One-Upmanship Is the Riskiest
Game of All
There is No Substitute for Familiarity
with a Specific Market
Always Consider Exploiting New
Technologies as a User
MERRILL
PICKARD
ANDERSON& EYRE
C633W 27

MERRILL
PICKARD
ANDERSON
EYRE
C633W.26

: ^ ( ^ Dataquest

Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive
San Jose, California 95131
408/971-9000 / Telex 171973

THE PCB CONNECTION

Buck Feltman
Vice President of Marketing
Cadnetix Corporation

Mr. Feltunan joined Cadnetix as vice President of Marketing in October
1983.
Prior to joining Cadnetix, Mr. Feltunan was employed by Texas
Instruments, Inc., «diere he was Marketing Manager for the Semicustom
Integrated Circuits Division and Manager of New Business Development.
Mr. Feltman received a B.S. degree in Electrical Engineering from AuburnCollege and an M.B.A. degree from Rollins College in Florida.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10^ 1985
Palo Alto, California

Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Ridder Parl< Drive
San Jose, California 95131

408/971-9000 / Telex 171973

DEVELOPING AN OPEN NETWORK FOR IC DESIGN

Bruce R. Bourbon
Vice President of Marketing
Gould AMI Semiconductors

Mr. Bourbon is Vice President of Marketing for Gould AMI Semiconductors.
He is responsible for all strategic, tactical, and military marketing
activities related to both standard products and application-specificintegrated circuits (ASICs) , as well as silicon foundry services. Before
joining Gould, he was employed by Rockwell International's Electronics
Group, v^ere he held various manangement positions. Prior to that, heworked for Macrodata Corporation as Director of Software Engineering.
Mr. Bourbon received a B.S.E.E. degree from California Polytechnic State
University in Pomona and an M.S.E.E. degree from the University ofCalifornia at Los Angeles.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

DEVELOPING AN OPEN NETWORK FOR ASIC DESIGNBRUCE R. BOURBON, VICE PRESIDENT - MARKETING
GOULD AMI SEMICONDUCTORS(SLIDE 1)I WOULD LIKE T O EXPRESS MY APPRECIATION AT BEING INVITED TOADDRESS SUCH A DISTINGUISHED AUDIENCE.
REASONS:I SAY THAT FOR TWOFIRST, I HAVE HAD THE OPPORTUNITY TO WORK WITH SOME OF

YOU INDIVIDUALLY AS OUR COMPANIES HAVE FORGED AGREEMENTS, AND SO
I PERSONALLY KNOW OF YOUR ACCOMPLISHMENTS IN PLACING IC DESIGNTOOLS WITHIN REACH OF VIRTUALLY EVERY SYSTEMS DESIGNER.

SECOND,I AM PLEASED BECAUSE IT IS YOUR AREA OF BUSINESS THAT IS LEADINGALL O F US INTO THE FUTURE.

BY THE WAY, I HOPE THOSE PURISTS IN

THE AUDIENCE WILL BEAR WITH ME WHEN I USE THE GENERIC TERM "CAD"—

IT'S A LOT EASIER TO SAY THAN CAE & CAD VENDORS!

(SLIDE 2)
NO DOUBT, AS WE SIT HERE TODAY, IN MANY WAYS IT'S A GLOOMYSCENARIO.

THE PAST 12 MONTHS HAVE BEEN TOUGH WITH EACH DAY(SLIDE 2A) SEEMING TO OPEN WITH A FEW MORE DARK CLOUDS ON THE
HORIZON.

THERE HAVE BEEN MANY COMPARISONS BETWEEN THIS YEAR'S

DOWNTURN AND THE LAST SLUMP IN 1981.

ONE COMMENT THAT HAS BEEN

MADE OFTEN BY SOME INDUSTRY FORTUNE TELLERS IS THAT, WHILE
BUSINESS WAS DEAD IN 1981, (SLIDE 2B) IC MANUFACTURERS COULD
STILL SEE THE PROVERBIAL GLOW ON THE HORIZON.

- 1 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 2C) THAT IS, THEY COULD PREDICT THE SPECIFIC PRODUCTS THATWOULD O N C E AGAIN BRING ABOUT HIGH DEMAND FOR CHIPS AND FUEL THE
RESURGENCE OF SALES.

(SLIDE 2D) THIS TIME —THE AUGURS SAY—

THERE ARE NO PRODUCTS ON THE HORIZON TO LEAD US ALL OUT OF THISSLUMP.

THIS APPARENT REDUCTION IN ELECTRONIC PRODUCT INNOVATIONALONG WITH INTENSE PRESSURE FROM JAPAN, CERTAINLY HAS PUT ADAMPER O N SPIRITS, NOT TO MENTION SALES DOLLARS.

IN JULY, WE

LOOKED TO SEPTEMBER AND THE HOPE OF SOME ASTOUNDING NEW
ELECTRONIC CHRISTMAS PRODUCT.

(SLIDE 2E) UNFORTUNATELY, IT LOOKSLIKE CABBAGE PATCH KIDS AND OTHER DOLLS ARE STILL IN VOGUE —AND,

THERE ARE NO CHIPS IN THEIR STUFFING.

(SLIDE 2F) WELL, DESPITE ALL OF THE DOOM AND GLOOM PREDICTED BY
INDUSTRY FORTUNE TELLERS WHO SAY THIS DOWNTURN IS THE ULTIMATE
PIT WITH NO PRODUCTS ON THE HORIZON TO LEAD US OUT OF THE SLUMP,WE AT GOULD AMI TAKE EXCEPTION TO THAT PICTURE.
SEVERE —BUT IT IS DIFFERENT.

THE DOWNTURN IS(SLIDE 2G) WHILE MAJOR END

PRODUCT INNOVATIONS OR NEW IC PRODUCTS MAY NOT LEAD US OUT,
THERE'S ONE DRAMATIC EVOLUTION TAKING PLACE WHICH WILL DO THAT.

- 2 )ataquesf Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

WHAT WILL LEAD US OUT IS NOT A STANDARD PRODUCT —LIKEMICROPROCESSORS, 1-MEGABIT DRAMs, GRAPHICS CONTROLLER CHIPS, OR
EVEN DIGITAL SIGNAL PROCESSORS —(SLIDE 2H) BUT RATHER THE

TECHNOLOGY PRODUCTS THAT YOU AS CAD VENDORS HAVE BEEN INVENTING,PRODUCING AND ENHANCING ALONE AND IN CONJUNCTION WITH
APPLICATION-SPECIFIC IC- OR ASIC VENDORS.

IN FACT, IN MANY WAYS, LOOKING AT OUR ASIC AND CAE SEGMENT,PERHAPS WE ARE NOT EVEN SO MUCH IN A DOWNTURN.

(SLIDE 3) THE

GROWTH WE SEE HERE WOULD CERTAINLY TEND TO INDICATE THIS.
4)

AND BY 1990, WE SEE CONTINUED GREAT OPPORTUNITIES.

(SLIDEPERHAPSWE ARE REALLY IN A PERIOD OF MAJOR TRANSITION WHEN MANYTECHNOLOGIES ARE EMERGING WHICH (SLIDE 5) WILL RESHAPE THE ENTIREIC INDUSTRY AND THE WAY THAT CONCEPTS BECOME CHIPS.

AND YOURINDUSTRY IS ONE OF THE MAJOR FORCES SCULPTING THE SHAPE OF THINGSTO COME.

- 3 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder ParK Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

WHAT SPECIFIC AREAS ARE SHAPING THE CHANGES?

AS STATED,(SLIDE

6A) CAD HARDWARE AND SOFTWARE TOOLS; (SLIDE 6B) NETWORKS SUCH AS
ETHERNET THAT LINK A MYRIAD OF HARDWARE TOOLS PERFORMING THE
SAME, SIMILAR AND DIFFERENT FUNCTIONS LIKE PIECES IN A JIGSAWPUZZLE; (SLIDE 6C) INTERFACE STANDARDS LIKE EDIF (ELECTRONICDESIGN INTERFACE FORMAT) THAT BLEND SOFTWARE CAPABILITIESDEVELOPED BY COMPANIES INTERNALLY AND THOSE PURCHASEDCOMMERCIALLY; (SLIDE 6D) AND ASICs THAT CAN CONSOLIDATE BOARDS OFCHIPS INTO ONE SMALL, NEAT PACKAGE.

THE IC INDUSTRY HAS ALWAYS HAD AS ITS UNWRITTEN MOTTO, (SLIDE 7A)"FASTER, (SLIDE 7B) CHEAPER, (SLIDE 7C) SMALLER."

THOSE OF US IN

ASIC HAVE TAKEN THAT MOTTO LITERALLY AND DEVELOPED CHIPS THATREFLECT SYSTEM USE RATHER THAN INDIVIDDAL COMPONENT FUNCTION.
(SLIDE 8) WHILE STANDARD PRODUCT MANUFACTURERS ARE FOCUSING ON
DEVELOPING COMPLEX MICROPROCESSOR CHIPS, WE ARE SHRINKING THEM TOSINGLE CELLS THAT ARE ONLY ONE PART OF ONE CHIP.

AND YOU ARE AN

INTEGRAL FORCE IN THAT CAPABILITY BECAUSE YOU HAVE OBVIOUSLYADHERED TO THE SAME MOTTO.

IN LESS THAN A DECADE, (SLIDE 9A)Y0U

HAVE TAKEN IC DESIGN TECHNOLOGY FROM HUGE MAINFRAMES TO(SLIDE

9B) DESKTOP PCs.

-

A -Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Parl< Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

YOU HAVE FORGED THE TECHNOLOGY TO PUT SOPHISTICATED DESIGN TOOLSO N THE DESKS OF ALL SYSTEMS ENGINEERS IN WHAT WE AT GOULD AMIREFER T O AS "DESKTOP IC DESIGN."

AND YOU HAVE DEVELOPED THE

SYSTEMS THAT ARE THE TOOLS FOR OUR ENGINEERS TO SHRINK CHIPS TOCELLS.

BECAUSE OF YOUR ACHIEVEMENTS, WE FOUNDRIES CAN PROVIDETHE C O M P O N E N T S AND DEVELOP THE FABRICATION TECHNOLOGY TO LEAD
SYSTEM MANUFACTURERS INTO THE FUTURE.

FROM THAT MORE GLOBAL PERSPECTIVE, LET'S

TAKE A LOOK AT THE

PRESENT SCENARIO AND HOW ONE ASIC FOUNDRY SEES CAD VENDORSSHAPING THE FUTURE WITH TODAY'S TOOLS.

TODAY, WE ARE SEEING SEVERAL EFFECTS OF CUSTOMER DEMANDS FOR NEW
PRODUCTS.

FOR EXAMPLE, (SLIDE 10A) SYSTEM COMPANIES ARE FACED

WITH EVER DECLINING SYSTEM LIFE CYCLES, (SLIDE 10B) COUPLED WITH
THE CONTINUING PRESSURE TO INCREASE THE PACE OF NEW PRODUCTINTRODUCTION (SLIDE 11). THIS SITUATION, IN TURN, (SLIDE 10C)
PRESSURES COMPANIES TO REDUCE SYSTEM DEVELOPMENT SPAN TIME,THATIS, THE TIME WHEN A MANUFACTURER IDENTIFIES A MARKET NEED TO
THE ACTUAL MARKET INTRODUCTION OF A NEW PRODUCT.

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 10D) AS SYSTEM DEVELOPMENT SPAN TIMES DECLINE, THEN SO DO
THE SPAN TIMES THAT CAN BE ALLOWED FOR DEVELOPMENT OF THE SYSTEMCOMPONENTS.

THIS CONSTANT URGENCY TO INTRODUCE NEW PRODUCTS

RAPIDLY WAS ITSELF CONVERTED BY THE CAD INDUSTRY INTO A NEW
MARKET OPPORTUNITY.

YOU HAVE CREATED THE DESIGN TOOLS WHICH

INCREASE PRODUCTIVITY AND WHICH ALLOW DESIGN TASKS TO BE DONE IN
SHORTER AND SHORTER SPAN TIMES —THUS ENABLING SYSTEM COMPANIEST O MEET THE PRESSURES OF CUSTOMER DEMAND AND COMPETITION WITHOUT
HAVING T O DEPEND SOLELY ON THE EXPENSIVE

AND SPACE-CONSUMINGPROCESS OF USING MULTIPLE STANDARD PRODUCTS TO PERFORM FUNCTIONS .
WHICH COULD BE DESIGNED INTO A SINGLE CHIP.

(SLIDE 12) A SECOND FACTOR PRESSURING SYSTEMS COMPANIES IS THE
COMPETITION OF COST.

TO BE A LEADER REQUIRES BOTH UNPARALLELEDSYSTEM CAPABILITY AS WELL AS COMPETITIVE PRICING.

SYSTEM

COMPANIES HAVE, THEREFORE, ALWAYS TURNED TO HIGHER LEVELS OF
INTEGRATION TO REDUCE SYSTEM PART COUNTS.

JUST AS THE CAD

BUSINESS T O O K THE PROBLEM OF DECREASING LIFE CYCLES AND TURNED IT
INTO A MARKET OPPORTUNITY, SO TOO HAVE WE IN THE COMPONENTS
BUSINESS TAKEN THE NEED FOR GREATER LEVELS OF INTEGRATION AND
PROVIDED CUSTOMIZED CIRCUITS THAT USE VLSI TECHNOLOGY TO PROVIDETHESE BENEFITS TO CUSTOMERS.

- 6 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 13) THE USE OF ASICs AS SOLUTIONS TO SYSTEM PROBLEMS HAS
SEVERAL KEY ADVANTAGES WHEN COMPARED WITH STANDARD PRODUCT IC
SOLUTIONS. THESE ADVANTAGES HELP CUSTOMERS WITH THEIR MARKETNEEDS WHILE COMPLEMENTING AND EXPLOITING THE BENEFITS OF CAD
DEVELOPMENTS.

(SLIDE 14) FIRST, ASICs ARE OBVIOUSLY JUST THAT:SYSTEMS SOLUTIONS RATHER THAN COMPONENT-FUNCTION SOLUTIONS.

(SLIDE 15) NEXT, TODAY'S ASIC DEVICES ALLOW HIGH LEVELS OF
INTEGRATION AS MEASURED IN TERMS OF GATE EQUIVALENTS.

TODAY'SPRODUCTION 2u CMOS DOUBLE-LAYER METAL PROCESSES ALLOW THE
IMPLEMENTATION OF MORE THAN 10,000 GATES IN A GATE ARRAY —MORE

IN A STANDARD CELL CIRCUIT.

- 7 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 16) THE USE OF ASICs IS BEING PROPELLED BY GREATLY REDUCEDDESIGN COSTS AND SPANS FOR IMPLEMENTING DESIGN IDEAS AS
CUSTOMIZED ICs.

THESE REDUCED COSTS AND SPANS ARE PRIMARILY THE

RESULT O F IMPROVED CAD SOFTWARE SYSTEMS THAT GUARANTEE ACCURATECOMPUTER SIMULATION OF THE DESIGN AND ENSURE THAT THE ASIC MASKDESIGN CREATES A CIRCUIT WHOSE SILICON BEHAVIOR EXACTLY MATCHESCOMPUTER SIMULATION OF THE DESIGN.

IN OTHER WORDS/ YOU HAVE

GIVEN ENGINEERS THE TOOLS TO DO THEIR BREADBOARDING ON A COMPUTERRATHER THAN SITTING AT A BENCH AND LITERALLY HANDWIRINGCOMPONENTS TO A WIREWRAP BOARD AND THEN TESTING IT.

(SLIDE 17)

THE CONCEPT OF USING COMPUTER SIMULATION TO VALIDATE A DESIGN AND'
THEN USING THE VERIFIED DESIGN DESCRIPTION TO CREATE THE MASKDESIGN IS OFTEN CALLED "CORRECT-BY-CONSTRUCTION," BECAUSE IT
ENSURES THAT IF THE LOGIC DESIGN IS DONE CORRECTLY, THE SILICONWILL WORK THE FIRST TIME.

AND IT IS A CAPABILITY AVAILABLE NOW.

(SLIDE 18) ANOTHER MAJOR FACTOR THAT IS CAUSING THE USE OF ASIC
DEVICES T O G R O W IS THE TREMENDOUS EXPANSION OF THE INSTALLED BASE
OF ENGINEERING WORKSTATIONS.

YOU CAD VENDORS HAVE PLACED ASIC

DESIGN WITHIN THE REACH OF SYSTEMS DESIGNERS.

(AS AN ASIDE, I'LL

SAY THAT WE IC VENDORS APPLAUD THAT BECAUSE WHEN THE CAD TOOLSARE IN THE HANDS OF SYSTEMS DESIGNERS, THEN SO TOO ARE ASICs..
AND WE CAN USE OUR RESOURCES FOR FABRICATION, WHICH IS OUR
BUSINESS, AND USE OUR ENGINEERING RESOURCES TO CREATE NEWCOMPONENTS FOR LIBRARIES ACCESSIBLE BY ALL, NOT JUST ONE
CUSTOMER.)- 8 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 flidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 19) IT IS ALSO IMPORTANT TO NOTE THAT THE INCREASEDPROPRIETARY PROTECTION AFFORDED BY ASIC DEVICES ALSO FUELS THEIRPOPULARITY.

A DESIGN WHICH IS CONTAINED IN AN ASIC DEVICE IS

MORE DIFFICULT TO COPY THAN THE SOFTWARE IN A STANDARD
PRODUCT-BASED MICRO P/C-BASED SYSTEM SOLUTION.

THUS, SYSTEMSCOMPANIES GAIN ANOTHER COMPETITIVE EDGE.

(SLIDE 20) FINALLY, THE TREND TOWARD ASIC IS GATHERING MOMENTUM
BECAUSE OF THE EXPLOSION IN THE USE OP PC-BASED DESIGN TOOLS.
COMPANIES LIKE FUTURENET, P-CAD, VIEWLOGIC AND OTHERS AGAIN SHOWH O W A NEW MARKET SEGMENT WAS CREATED BY EXPLOITING A GIVENSITUATION.

THE PERVASIVE PC's, USED AS OFFICE TOOLS TO REPLACETYPEWRITERS AND CALCULATORS, HAVE BECOME PERSONAL ENGINEERINGWORKSTATIONS FOR DOCUMENTATION, COMMUNICATION, AS WELL AS
ENGINEERING TASKS SUCH AS PC BOARD DESIGN AND SOPHISTICATED IC
DESIGN.

JUST THINK, THREE YEARS AGO CUSTOMIZED ICs WERE THE

SEMICONDUCTORS OF THE KNOWLEDGEABLE FEW.

TODAY, THEY CAN BEOBTAINED BY ANYONE WHO HAS A PC AT HIS DESK.

- 9 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

IT IS CLEAR THAT SHORTENING SYSTEM DESIGN TIMES AND LIFE CYCLESWILL INCREASINGLY CAUSE FOCUS ON REDUCING SYSTEM DEVELOPMENT SPANTIMES, AND THE TREND TOWARD THE USE OF ASICs WILL CONTINUE TO
CREATE DEMAND FOR CAD CAPABILITY THAT IS COMPLETE IN TERMS OF THE
DESIGN FUNCTIONS SUPPORTED AND FAST IN TERMS OF THE TIME IT TAKEST O PERFORM A GIVEN SET OF FUNCTIONS.

(SLIDE 22) AT ANY POINT IN TIME/ THE MOST COMPLICATED ASIC
DEVICES REQUIRE LEADING-EDGE COMPUTING POWER TO KEEP DEVELOPMENTSPANS WITHIN REASON.

TODAY'S MOST COMPLICATED CHIPS ARE BEINGDESIGNED FOR USE IN TOMORROW'S MOST COMPLICATED SYSTEMS.

AND

THIS IS A NEVER-ENDING CYCLE.

OUR WORLD TODAY: (SLIDE 23A) SHORT SYSTEM LIFE CYCLES, (SLIDE
23B) SHORT DESIGN TIMES, (SLIDE 23C) HIGHER LEVELS OF
INTEGRATION, (SLIDE 23D) GROWTH OF THE ASIC MARKET, (SLIDE 23E)
PERVASIVENESS OF WORKSTATIONS AND PCs, (SLIDE 23F) INCREASEDPROPRIETARY IC DESIGN THROUGH USE OF CUSTOMER DESIGNED ASICs,(SLIDE 23G) REDUCED COSTS OVERALL —ALL OF THESE FACTORS HAVEEITHER BEEN CREATED OR EXPLOITED BY YOU TO THE BENEFIT OF SYSTEMCOMPANY CUSTOMERS AND THE IC INDUSTRY.

- 10 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

WITH PROGRESS, HOWEVER, ALSO COMES CHALLENGE.

AND TODAY YOU

COLLECTIVELY FACE A NUMBER OF SIGNIFICANT CHALLENGES.

THE FIRST

CHALLENGE YOU MUST MEET IS OF YOUR OWN MAKING, (SLIDE 24) DUE TO
COMPETITION AND A DESIRE TO DISTINGUISH ONESELF FROM THE
COMPETITION, YOU

HAVE COLLECTIVELY OVERSOLD WORKSTATIONCAPABILITY.! WILL REFER TO THIS CHALLENGE BY USING THE
EUPHEMISTIC TERM, "THE GREAT PROMISES OF CAD MARKETING."
CIVIL TERM FOR "THE BIG LIES."NOW DON'T CRINGE —A MOREYOU'RECERTAINLY NOT ALONE IN THIS PHENOMENON AS THE IC INDUSTRY ITSELF
HAS, UPON OCCASION(REALISTICALLY MORE OFTEN THAN NOT), OVERSOLDBOTH CAPABILITY AND AVAILABILITY.

AND WE, TOO, HAVE HAD TO PAY

THE PRICE.

SOME OF THE

GREAT PROMISES ARE THESE:(SLIDE 25)

O"WE HAVE A FULLY INTEGRATED SYSTEM WITH A COMMONO"WITH A PC ON YOUR DESK, YOUR DESIGN PROBLEMS AREo"OUR WORKSTATION SOFTWARE CAPABILITIES AREDATABASE."(SLIDE 26)
OVER."(SLIDE 27)

VIRTUALLY UNLIMITED."

AND..."IF YOU DON'T SEE IT NOW, WE'LL HAVEIT IN THE NEXT SYSTEM RELEASE, MAYBE NEXT QUARTER."- U Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 28)

O

AND THEN THERE'S THE "OPEN ARCHITECTURE" PROMISE"SO Y O U WANT T O USE YOUR IN-HOUSE SOFTWARE FOR SOME FUNCTIONS—NO PROBLEM."O"OUR SILICON COMPILER ALLOWS YOU TO GO DIRECTLYFROM A HIGH-LEVEL HARDWARE DESCRIPTION LANGUAGE TO A TOOLING
TAPE, WHICH WILL —OF COURSE —PRODUCE WORKING FIRST SILICON IN

THE FOUNDRY OF YOUR CHOICE."(SLIDE 29)

O"OUR SYSTEM IS SO USER FRIENDLY THAT TRAINING IS

SUPERFLUOUS."WE'VE ALL HEARD THESE PROMISES, AND WE ALL KNOW THAT NONE OF THEM
IS COMPLETELY TRUE.

THE CHALLENGE THEN IS TO MAKE THESE PROMISESA REALITY AND THEN RAPIDLY FORGE AHEAD WITH NEW ADVANCES SO THATUSERS CAN CONTINUE TO INCREASE THEIR CAPABILITY AND MEET THE
EXPECTATIONS WHICH HAVE BEEN LAID OUT FOR THEM.

(SLIDE 30) THE SECOND CHALLENGE IS TO ELIMINATE VERTICAL FOCUS;THAT IS, CONCENTRATING SO HEAVILY ON YOUR OWN PRODUCT MIGRATION
PLANS THAT YOU FORGET THAT CUSTOMERS DRIVE EACH OF US TOWARDSIMPLICITY AND OPEN SYSTEMS CAPABILITY.

AFTER ALL, IT WAS THE

CUSTOMER'S NEEDS IN THE FIRST PLACE THAT HAVE DRIVEN US TO THE
PRESENT PROMISING OPPORTUNITY.

- 12 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

THIS CUSTOMER-DRIVEN INFLUENCE IS MOST OBVIOUS IN THE TREMENDOUS
INTEREST IN THE (SLIDE 31) CONCEPT OF SILICON COMPILATION.

WEALL KNOW THAT SILICON COMPILATION IS IN ITS INFANCY AND PROBABLY
STILL A FEW YEARS OFF AS AN ACROSS-THE-BOARD ALTERNATIVE IN ASIC
DESIGN.

THE CURRENT INTEREST IN SILICON COMPILATION IS SO GREATTHAT IC VENDORS HAVE ESTABLISHED RELATIONSHIPS WITH THE SILICONCOMPILATION COMPANIES FOR FOUNDRY SERVICES NOW —EVEN THOUGH THE

ACTUAL NUMBER OF CIRCUITS IN PRODUCTION THAT HAVE BEEN DEVELOPEDTHROUGH THIS METHOD IS MINUTE COMPARED TO TOTAL ASIC PRODUCTION.

(SLIDE 32) THIS INTEREST IN SILICON COMPILATION IS BECAUSESYSTEMS ENGINEERS ARE MUCH LIKE CONSUMERS IN THEIR ATTITUDETOWARDS DESIGN TOOLS.

JUST AS APPLE, IBM AND OTHERS HAVE LEARNED

THAT CONSUMERS DO NOT WANT TO BE QUASI-PROGRAMMERS IN ORDER TO
USE A PC, SO ARE ENGINEERS TELLING US THAT THEY DO NOT WANT TO
BECOME IC DESIGNERS IN ORDER TO DESIGN ASICs FOR THEIR SYSTEMS.
THEY WANT THE BENEFITS OF CUSTOMIZED CHIPS WITHOUT THE
COMPLEXITY, HIGH COST, LONG DEVELOPMENT TIMES, INTENSEENGINEERING EFFORT, AND PLAIN HASSLE.

-

13

-

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Tetex 171973

(SLIDE 33) THE ASIC DESIGNER WANTS SIMPLICITY AND A FULLYAUTOMATED DESIGN SYSTEM WHERE COMPUTING POWER CAN BE MATCHED TO
THE PROBLEM TO (SLIDE 34) OBTAIN THE SPAN TIME REQUIRED BY THE
DEMANDS OF THE MARKET.

IF THE USE OF ASIC DEVICES IS TO CONTINUEITS MUSHROOMING GROWTH, (SLIDE 35) THE CAD SYSTEMS AVAILABLE NOWMUST BE EASILY INTERCONNECTED, (SLIDE 36) CHEAP ENOUGH SO ALL OF
THE ENGINEERS IN A COMPANY HAVE INDIVIDUAL ACCESS TO THEM,(SLIDE
37) AUTOMATED FOR LOW COST SO DEVELOPMENT SPANS ARE COMPETITIVEWITH THE READY AVAILABILITY OF STANDARD PRODUCTS AND ELECTRICALLYPROGRAMMABLE LOGIC DEVICES.

AND THIS WILL HAPPEN, BECAUSE COR

CUSTOMERS DEMAND IT AND, TOGETHER, YOU CAD VENDORS AND WE ASIC
FOUNDRIES HAVE THE TECHNOLOGY TO MAKE IT WORK.

THAT KNOWLEDGE IS

THE BASIS FOR OUR MOVE INTO THE FUTURE. YOUR ROLE IN BRINGING ITABOUT WILL BE EVEN GREATER THAN OURS.

LET'S SEE HOW I BELIEVE THE FUTURE SCENARIO WILL UNFOLD.

(SLIDE

39A) WE ALL KNOW THAT FULL-SERVICE ASIC VENDORS AND SYSTEMMANUFACTURERS WHO

ARE CURRENTLY DESIGNING ASIC DEVICES BOTH

REQUIRE A CAD DESIGN ENVIRONMENT CONTAINING (SLIDES 39B - F)
VARIOUS LEVELS OF COMPUTE CAPABILITY.

THE DESIGNER MUST HAVE THE

CAPABILITY T O MATCH THE POWER TO HIS PROBLEM; THAT IS, TO USE
THAT FUNCTIONAL CAPABILITY AND ASSOCIATED COMPUTE POWER WHICH
WILL PROVIDE THE NECESSARY CONTROL IN THE REQUIRED SPAN TIME FOR
A PARTICULAR TASK.

- 14 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

N O W THE CAD INDUSTRY HAS ALREADY CREATED THE ASIC DESIGN PRODUCTS
THAT LAY THE GROUNDWORK FOR AN IDEAL DESIGN ENVIRONMENT.
THERE IS A MISSING LINK.

BUT

IF YOU REMEMBER THE BIG LIES, OR

MARKETING PROMISES, YOU WILL RECALL THAT WE SAID (SLIDE 49A) PCs
O N EVERYONE'S DESK (SLIDE 49B), FULLY INTEGRATED SYSTEMS (SLIDE49C), OPEN ARCHITECTURES (SLIDE 49D), UNLIMITED WORKSTATIONCAPABILITY (SLIDE 49E), AND USER FRIENDLINESS —PURCHASING AGENTS WOULD DIE FOR —ALL O F THE CUSTOMERS' PROBLEMS.
HALF O F THEM.

ALL AT A COST

WERE HERE ALREADY AND SOLVED

THEY DON'T.

THEY ONLY SOLVE

BECAUSE THOSE PROMISES ADDRESS THE PROBLEMS OF

INDIVIDUAL DESIGNERS DOING WORK INDIVIDUALLY (SLIDE 50A). AND
SYSTEMS DESIGN IS THE RESULT OF TWO TEAM EFFORTS:A TEAM OF

ENGINEERS AT A SYSTEM MANUFACTURER WORKING IN CONCERT WITH A TEAMOF ENGINEERS AT THE FOUNDRY.

(SLIDE 51) THE MISSING LINK TO THE

IDEAL ASIC DESIGN ENVIRONMENT THAT CAD WILL SHAPE IS... (SLIDE
52) NETWORK TECHNOLOGY SUPPORTED BY AN OPEN SYSTEMS CONCEPT.

NETWORK TECHNOLOGY IS THE ANSWER AND IT'S AVAILABLE NOW —VENDORS C H O O S E TO TAKE ADVANTAGE OF IT.

IF CADAND YOU MUST UTILIZE IT

IP YOU ARE T O MAKE GOOD YOUR PROMISE OF AN OPEN SYSTEMARCHITECTURE.

-

15 -

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

NETWORKING TECHNOLOGY WILL EVOLVE IN TWO WAYS.

(SLIDE 53) THE

FIRST IS BY USING THE CONCEPT OF OPEN ARCHITECTURE TO ITS FULLESTMEANING.

ASIC DESIGNERS CAN CREATE A NETWORK TAILORED TO THEIRNEEDS IN THE FOLLOWING MANNER:

FIRST, THEY CAN SELECT THE

COMMERCIALLY AVAILABLE CAD SYSTEMS NECESSARY TO MEET THEIRPARTICULAR NEEDS.

THIS CAN BE A MIX OF PCs, WORKSTATIONS,SILICON COMPILER SYSTEMS AND OTHER DESIGN SYSTEMS ALREADY IN
PLACE.

(SLIDE 54) NEXT THEY CAN INTEGRATE THEIR INTERNALLY

DEVELOPED SOFTWARE WITH THESE SYSTEMS.

(SLIDE 55) THE RESULT IS

AN OUTPUT OF DESIGN DATA THAT INTERFACES WITH THE COMPANY'SUNIQUE MANUFACTURING AND TESTING REQUIREMENTS.

(SLIDE 56) OPEN

SYSTEMS ARE A KEYSTONE TO ENSURE THAT DATA CAN BE PASSED AMONGDISSIMILAR COMPUTERS RUNNING DIFFERENT APPLICATION SOFTWARE UNDERDIFFERENT OPERATING SYSTEMS.

SOME OF THE SOFTWARE WILL

NECESSARILY BE COMMERCIALLY DEVELOPED AND SOME OF IT WILL
NECESSARILY BE DEVELOPED INTERNALLY —AS THE DESIGN TASKSDICTATE.

- 16 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

THE OPPORTUNITY IS GREATAND SO ARE THE EXPECTATIONS!

USERSWILL TIRE OF PROMISES NOT KEPT AND INFLATED PERFORMANCE CLAIMS.
IF THE CAD INDUSTRY DOES NOT CREATE AN OPEN SYSTEMS ENVIRONMENT,USERS WILL EVENTUALLY FORCE THE SITUATION BY CREATING THESE
NETWORKS THEMSELVES.

AND THEN YOU WILL HAVE THE SAME SCENARIO I

DESCRIBED AT THE BEGINNING OF MY SPEECH:NEW TECHNOLOGY BEING

DRIVEN BY CUSTOMER PRESSURES RATHER THAN YOUR INDUSTRY SHAPINGCUSTOMER ADVANCEMENTS.

(SLIDE 57A) THE SUCCESSFUL CAD VENDOR

DOES NOT GIVE LIP SERVICE TO THE NEED FOR OPEN SYSTEMS DESIGNENVIRONMENT, BUT PROVIDES ASIC DESIGN CAPABILITIES WHICH CAN BE
EASILY INTEGRATED INTO SUCH A DESIGN ENVIRONMENT.

(SLIDE 57B) YOU MUST ALSO PROVIDE THE HARDWARE INTERCONNECTIONCAPABILITY TO SUPPORT THE MAJOR NETWORKING PROTOCOLS SUCH AS
ETHERNET AND THE TOKEN-PASSING BUS AND RING STANDARDS.

(SLIDE

57C) IN ADDITION, YOU MUST DRIVE THE CREATION OF DATA FORMATINTERCHANGE STANDARD SUCH AS EDIF IN ORDER TO ENSURE THAT FILESCAN BE READILY PASSED ACROSS THE NETWORK.

- 17 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 58) AS FOR THE ASIC VENDORS, WE MUST BE PREPARED TOSUPPORT THE STANDARD DATA INTERCHANGE FORMATS TO ENSURE THATDESIGN DATA CREATED IN THE DESIGN NETWORK ENVIRONMENT CAN BE
READILY TRANSFERRED TO OUR FOUNDRIES FOR SILICON FABRICATION.

(SLIDE 59) TO CREATE A TRUE OPEN SYSTEMS NETWORK, EVERY CAD
VENDOR MUST RECOGNIZE THAT IT ALONE IS NOT LIKELY TO CREATE THE
GALACTIC ASIC DESIGN ENVIRONMENT.

(SLIDE 60) THE BREADTH OF

DESIGN TASKS AND THE TAILORING OF THE DESIGN EFFORT TO SPECIFICIC MANUFACTURING AND TEST CAPABILITY MAKE IT UNLIKELY THAT ANY
SINGLE VENDOR CAN ENTIRELY SOLVE THE PROBLEM.

CO-EXISTENCE WITH

OTHER VENDORS AND WITH USER SOFTWARE IS REALISTIC AND ESSENTIAL... AFTER ALL, THE LEVELS OF COST, CAPABILITY AND APPLICATIONAMONG SYSTEMS COMPANIES WILL ALWAYS DIFFER SIGNIFICANTLY ENOUGH,
so THE COMPLEMENTARY USAGE OF TOOLS IS THE IDEAL.

-

18 -

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

(SLIDE 61A) THE TIME HAS COME TO TAKE THE BUILDING BLOCKS OF AN
ASIC DESIGN ENVIRONMENT AS CREATED BY THE COMMERCIAL CAD VENDORS(SLIDE 61B), COUPLE THEM WITH TODAY'S NETVJORK TECHNOLOGY AND
EMERGING STANDARDS FOR DATA INTERCHANGE. AND CREATE THE IDEAL
ASIC DESIGN ENVIRONMENT (SLIDE 62). ONLY THROUGH REALIZINGPROMISES MADE BY THE CAD INDUSTRY WILL THE INDUSTRY CONTINUE TO
GROW.

THESE PROMISES CANNOT BE KEPT IN A CLOSED SYSTEMENVIRONMENT.

WE ASIC VENDORS LOOK NOT TO A STANDARD PRODUCT FOR

OUR FUTURE GROWTH, BUT TO YOUR CONTINUED SUCCESS IN CREATINGPROGRESS THROUGH CAPABILITY.

(SLIDE 63) ASIC IS OUR RISING SUN.

- 19 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 27 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder ParK Drive / San Jose, CA 95131 /(408) 971-9000 / Telex 171973

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- 30 Oataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 17,1973

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- 31 Oataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 32 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 33 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 34 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 35 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 36 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder ParK Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 51 Dataquest Incorporated, A Subsidiary of A.C Nielsen Cotnpany / 1290 Ridder Park Drive/ San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 53 Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 56 Dataquest incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive/ San Jose, CA 95131 / (408)971-9000 / Telex 171973

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- 60 Dataquest Incorporated. A Subsidiary of A C . Nielsen Company / 1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 . Telex 171973

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- 71 Dalaquesf Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

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- 74 Dataquest Incorporated. A Subsidiary of A C Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

- 75
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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- 77 Dataquest Incorporated. A Subsidiary of A C . Nielsen Company / 1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

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DataQuest
n n a company of
MiJO The Dijn&Bradstreet Corporation

USER INTERFACES IMPACT PRODUCTIVITYDavid L. Bailey
President and Chief Executive Officer
Cericor Incorporated

Mr. Bailey is President and Chief Executive Officer of Cericor
Incorporated. Before joining Cericor, he was founder. President, andChief Executive Officer of ICKIEGA, a multimillion dollar computercompany. There he was responsible for funding, hiring key personnel,
managing product development, and establishing marketing strategies for
the United States and Europe. Prior to that, Mr. Bailey was with IBM for
15 years at various management levels with a wide variety of computer
products.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

THIS PRESENTATION WAS NOT AVAILABLE
IN TI.ME FOR PUBLICATION.
A COPY WILL BE MAILED TO YOU WHENDATAQUEST RECEIVES IT FROM THE SPEAKER.

Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive
San Jose, California 95131
408/971-9000 / Telex 171973

WHERE ARE HPU'S GOING?

Mel Thcmpsen
Associate Director
Semiconductor Industry Service
Semiconductor Application Markets Service
Dataquest Incorporated

Mr. Thcmpsen is Associate Director of Dataquest's Semiconductor Industry
Service and the Semiconductor Application Markets Service.
He is
responsible for analyzing the market environment and future technology
trends for microprocessors, microcontrollers, and microperipherals.
Previously, he held positions as Field Applications Engineer and later as
Product Marketing Manager for zilog. Inc. There he had marketing
respcMisibility
for microcomputer
boards, memory
components, andmicroperipheral components. Mr. Thompsen was also a Product Marketing
Manager for Aehr Test Systems and was responsible for marketing dynamic
burn-in systems used for reliability testing of digital integrated
circuits. He has also held positions as a Senior Design Engineer at
Heathkit, and as a Design Engineer at Magnavox, Inc. and at Sylvania
Systems Division. Mr. Thompsen received a B.S.E.E. degree from the
University of Michigan and an M.S.E.E. degree from Purdue University.

Dataquest Incorporated
DESIGN AUTCMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

NEW DIRECTIONSIN SILICON
Semiconductor Industry Service
Dataquest incorporated-1-

1985 Dataquest Incorporated-Reproduction P r o h i b i t e dDataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

TWO DRIVING FORCES IN THE SEMICONDUCTOR
INDUSTRY HAVE BEEN THE ABILITY TO PUT
EVER-INCREASING NUMBERS OF TRANSISTORSON A SINGLE DIE AND THE ABILITY TO
MANUFACTURE THOSE DICE FOR LOWER
AND LOWER COSTS.

- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PHYSICAL PARAMETER CHANGESFROM 1959 TO 1975
PARAMETERCHANGEFEATURE SIZE

11% DECREASE PER YEARCOMPONENTS/UNIT AREA

INCREASE 8.7 TIMES PER
DECADEDIE AREA

9% INCREASE PER YEAR

INCREASE 6.7 TIMES PER
DECADETHE NUMBER OF COMPONENTS PER CHIP HAS INCREASEDBY A FACTOR OF 49 EACH DECADE.
COMPONENTS/CHIP

Source: DATAQUEST- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

NUMBER OF TRANSISTOR FUNCTIONS
4M BIT,'1M BITi
256K BIT I

10^
10^-!

MEMORIES (RAM)10^-64K BIT 4
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1960

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Very-large-scale
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1970
1975
1980
Year of Introduction

-

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1990

Source: Siemens

A -1985 Dataquest Incorporated-Reproduction Prohibited
Dataquesl Incorporated, A Subsidiary ot A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

SCIENTISTS HAVE PREDICTEDTHAT BY 1999. THE INDUSTRYWILL BE ABLE TO PUT A
BILLION TRANSISTORS ON A CHIP.

- 5 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

A BILLION TRANSISTORS REQUIRESTRANSISTORS WITH 0.3 TO 0.4u
CHANNEL LENGTHS.
TRANSISTORS WITH 0.5u CHANNELLENGTHS ARE ALREADY WORKINGIN THE LABORATORIES.

- 6 1985 Dataquest Incorporated-Reproducticn Prohibited
Dataquest IncorporateIJ, A Subsidiary of A.C. Nielsen Company /1290 RidIJer Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

A BILLION TRANSISTORS IS:• 64 TO 125 MEGABYTES OF ROM• 32 MEGABYTES OF DRAM
• 8 MEGABYTES OF SRAM

- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 RIdder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

5 TO 10 MILLION LOGIC GATES
100K GATES - 1 CPU
A BILLION TRANSISTORS IS
A FEW MAINFRAMES PER CHIP

- 8 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

4.00068020 MICROPROCESSORS

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200

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100

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Source: DATAQUEST- 9 1985 ^)ataquest Incorporated-Reproduction Prohibited0.,«„es, . » , „ , , . , « , . S „ . . » . „ o, A.C. H,..». Con,„.„,, 1 « R««- <^ 0.,.e, S.n . o » . CA »,31,,«». S71-9000, T.,„ , 7 „ n

FUTURE INTEGRATED CIRCUITS• REDUNDANCY• SELF TEST AND DIAGNOSTIC• ADAPTIVE CIRCUITS• SELF REPAIR?

- 10 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Coinpany /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

FUTURE WORKSTATIONSPRODUCTIVITYMASSIVE CELLSEXPERT SYSTEMSHUMAN INTERFACESIMULATION- 11 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

NEW DIRECTIONSIN SILICONMEMORYMICROPROCESSORSGALLIUM ARSENIDE- 12 1985 Dataquest Incorporated-Reproduction Prohibited

Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

NEW DIRECTIONSIN SILICONMEMORYMICROPROCESSORSGALLIUM ARSENIDE- 13 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

NEW DIRECTIONSIN SILICONMEMORYMICROPROCESSORSGALLIUM ARSENIDE- 14 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

32-BIT MICROPROCESSORSNATIONAL SEMICONDUCTOR
MOTOROLA
AT&T
TEXAS INSTRUMENTS
FAIRCHILD
INMOS
INTEL
ZILOG

32032. 32332
68020
32100. 32200
32032
CLIPPER
TRANSPUTER
80386
Z80000Source: DATAQUEST- 15 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Dataquestn n

a company of
The Dun & Bradstreet Corporation

UNIFIED DESIGN—IS IT FOR REAL?

James E. Solomon
P r e s i d e n t and Chief Executive Officer
SDA Systems

Mr. Solomon is President, Chief Executive Officer, and founder of SDA
Systems. Prior to founding SDA, he was responsible for the developmentof several major product families at National Semiconductor Corporation.
These
includeddigitalsignalprocessing,data
acquisition,
telecommunications, Bi-Fet, and other analog product families. Mr.
SolcMnon received a B.A. degree and a Master's degree in ElectricalEngineering from the University of California at Berkeley. He is an IEEE
Fellow and holds 23 patents in various electronic areas.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000 Telex 171973

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Outline
1. Tomorrow's ASIC

2. The Productivity Issue
3. Super-Chip Design Methods
4. Unified Design
5. How Big is the Business?
6. Where is the Business Going?

What Is Tomorrow's ASIC?
The State-of-the-Art:
1.5 Micron CMOS, $500 wafers
Today: 500,000 Transistors/Chip
COST/CHIP = $50

Super-Chip from View ofBoard Designer:
w Economics are Overwtielming- Cost, Size, Performancet But Needs Quick Turn-Around,
Low Risk

The ASIC Productivity Issue
For a 1,000,000 Transistor Chip:• Can No Longer Design 4 Transistors/Day-1000 Man-Years/Chip• Gate Array and Standard Cell Break Down
• Need New Design Method

The Essence of Super-Chip Design:• Let Designer Work at High Level- Work with Large Well Understood Blocks- Details Handled Automatically

The Super-Chip Design Method: Macro-Cell
The Key Tools:• Block Compilier• Block Placeand Route• Functional Simulate

What Does a Macro-Ceil
System Loolc Like?
For the System Designer:• Schematics and Simuiation• ALL Details of IC Design Hidden- He Won't Pay Today's Prices for Mask Details- The System Is 1 to 2 Years Away

The Macro-Cell CAD System
for the Foundry• Library Development System• Automatic Generation of Layout• lUlodeiing and Simulation

CAD System Company Y - Japan

CAD System Company X - USA

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Does it Really
IVIatter if the System is Unified?

For Automated Million Transistor
Design, Unification is
Huge Data Bases
Fast Data Row Between Tools
Unified Human Interface
The Designer is Completely Reliant
on Design System

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PCB Focus

Macro-Ceil
Standard Cell

Narrow Technology
Weak Library Tools

Worldwide Revenues for ASIC Design
Systems Capacity Calculation
For:
Chip Revenues 1986-88: $17 Billion
45K Designs
5 Man-Mo/Design$ 60K ASP per System
Total 3-Year Design System Revenues:$ 754 Million

Worldwide Revenues for ASIC Design Systems
Based on Design Capacity to Support Chip Revenues
Revenuesk
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A Big Question:
What Exactly Will the System
Designer's Workstation Include?

This
or

Summary• System Needs & ASIC Technology a f t
Driving Large ASiC's• l^rge ASIC's Force New Design Styles• Current Foundry Tools mm Inadequaiefor Big Chips• Initial ASIC CAD Opportunity: Foundries• System Houses Buy Simplified Versiofiof Foundry System

DataQuestn n

a company of

MMMM The Dun &Bradstreet Corporation

ASIC, USIC, or CSIC?

Douglas G. Fairbairn
Vice President of Design Technology
VLSI Technology Incorporated

Mr. Fairbairn is the Vice President of Design Technology at VLSITechnology Incorporated (VTI). He was a founder of VTI in 1980, and iscurrently responsible for all IC design tool development, marketing, andsupport.
Before fowding VTI, he was fomder and publisher of VLSIPes ign Magaz ine, trtiich was sold to CMP Publications in 1983.
Mr.
Fairbairn was with Xerox Palo Alto Reserach Center from 1972 until 1980.
While at Xerox, he served as Architect Project Manager for thedevelopment of the first 16-bit portable ccanputer and for an advanced
office terminal system.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California
1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000

Telex 171973

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THE AGE OF PRODUCTIVITY. . .
DESIGN ALTERNATIVES BECOME SOLUTIONS
Dataquest Focus Conference

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THE ASIC AND CAE REVOLUTIONS:THE FIVE YEAR MILESTONEDOUGLAS G. FAIRBAIRNVLSI TECHNOLOGY. INC.
DECEMBER 10, 1 9 6 3

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A SHORT HISTORY...
>a. MAJOR ASIC AND CAE COMPANIES ESTABLISHED
5 YEARS AGO.

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ESTABLISHED SEMICONDUCTOR AND CAD COMPANIESENTERED MARKET IN 1 9 8 3 - 8 5Tla

SOME PRODUCTS HAVE ALREADY BEGUN TO LOOK LIKECOMMODITIESO>FIRST ROUND OF DROP OUTS AND CONSOLIDATION COMPLETE

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• ESTABLISHED COMPANIES ADDED MICROPROCESSORS TOCOMPLEMENT PRODUCT LINES; FEW HAVE BEEN SUCCESSFUL

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CHALLENGES: PHYSICAL DESIGN AND TEST>o

WHAT METHODOLOGIES WILL DOMINATE?
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• WHAT WILL BE THE RELATIONSHIP BETWEEN CAE AND
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• CLOSEST TIE TO PROCESS TECHNOLOGY• STRONG DESIGN SKILLS• GUARANTEES TO USERS

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Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Ridder Park Drive
San Jose, California 95131
408/971-9000 / Telex 171973

THE IMPACT OF SILICON COMPILERS ON PRODUCTIVITY

Gordon Kuenster
President
Seattle Silicon Technology

Mr. Kuenster is President of Seattle Silicon Technology, v^ich was formedin April 1983. Before joining Seattle Silicon, he was involved inseveral venture capital
investments
in northwest high-technology
companies. Prior to that, he was President of Advanced Technology
Laboratories. After ATL's acquisition by Squibb Corporation, he became
President of Squibb MediccQ. Systems Group and a Director of the parent
corporation. Mr. Kuenster received a B.S.E.E. degree from Illinois
Institute of Technology and serves on the Boards of Directors of Opcon,
Quantum Medical Systems, Pacific Science Center, and Washington
Technology Center.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

THE IMPACT OF SILICON COMPILERS ON PRODUCTIVITY
Gordon Kuenster
PtBsident
Seattle Silicon Tectinology
12356 Northup Way
Bell0vue,WA
98005
The advent of Integrated circuits some twerrty years ago caused an industrial revolution of thesame order as many of the major inventtore of the last century. These circuits and their impact on
the computer irKiustry have fostered Increasingly rapid advances in diverse fields from aerospace
to medicine whk:h would not have othenvise t>een poss%>le. Generally these circuits have been
applied as mass produced standard parts in aggregation to build computers, controllers,
telecommunication devices and all other electronic devices. More efficient custom circuits havebeen developed for those applications where the production volume and high development
expense have justified their use. Recently, however, it has been possible to quickly design very
specific draiits for lower vohjme applications through the use of structured arrays, gate arrays andstandard cells. These methods tend to break down however, when larger or more diverse
circuits are required. The recent introduction of more advanced design tools called SiliconCompilers is allowing the designer to take advarttage at the productivtty oi very sp^ifk; integrated
circuits for soph'istk:ated applk:ations, even at veiy low prockK^tion vokjmes.
Silicon Compilers represent a new design methodotogy for Apptteatton Spec'ifk; Integrated
Circuits (ASICs). This new design methodotogy enables designers to achieve densities andcomplexities conparable toftjUcustom usirig techniques simUar to gate arrays and standard cells.
The result is that a high-level design can be quiddy implemented and evaluated without requiring
detailed IC design knowledge.
As the typical size of the Applicatton Specific Integrated Circuits (ASIC'S) surpassesi 0,000
gates, conventnnal design methods break down. Just as it is almost impossible to count to
10,000 without making an error, it te also very cumt}ersome to design and document a design
with a detail gate level descri(Aion of 10,000 gates or more. These detail design descriptions can

The E-Mu Systems Inc. 50,(X)0 device digital sound emulator ch^ was originallycompiled for a Sfi, single metal process. Midway into ffie muting phase of thedesign, orw of the potentialfoundriesannounced the avaBability of a 2^ double
metal process. Tfie designer was atle to switch technologies in the middle ofthe design, a possix'lity avaHable only to those worthing with silicon compilation.
_ iF'igure 1
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

occupy more than one hundred pages of schematic description, compared to a one or two page
description of a compiled circuit. As in the case of conventional word processors, making adesign change with a silicon compiler is simple and can be accomplished without having torecheck the entire circuit. As designs progress to the 50,000 gate level and up, high level
design methods become mandatory (see figure 1).
With more conventtonal methods of geometry layout, a skilled integrated circuit designer can lay
down approximately ten transistors on an average day. Using the currently available Silicon
Conpilers, a novice can lay down thousartds of transistors per iKHir. These transistors can also
be assured of being design-rule con'ect by constructton. This very rapid geometry construction
pennits the integrated circuit designer to try many alternatives, comparing the performance andecortomk: parameters.
Experiments with the Seattle Silicon compilers have demonstrated repeated decreases in siliconarea from repeated trials. Experiments have shown that three or four trials usually achieve
optimum results. In the experiments, the optimum archttecture or layout was 30 to 40 per-centsmaller than the initial trial (see figure 2). In fact, user gratifk:ation was so high, it was shown thatengineers did not want to stop experimenting with designs until subsequent trials actually
resulted in layouts that were larger than the prevkMJS trials. Given the capability of siliconcompilers, it may be necessary for engineering management to impose more (fiscipline in thedesign process to cause the bitegrated circuit designers to stc^ designing when the resultant
layout '& adequate, corektering performance and design co^ trade-offs.

nLayout 1
25,600 SO. MILS

iDnr
Layout 2
12.800 SQ. MILSDB
Layout 39.700 SQ. MILS

These figures Uus^ate how ades^ner using silicon conpHatton csm (^Xinuze
diip size through gffdiHeciural experUnentation. In the above exampte a single
designer spera ^ree days to t^imize a mulffunction automobile light controller
chip

Figure 2
Although the productivity improvements for skWed designers are impressive, the more importantcapability of silken compilers may be the extension of this capability to lessor skilled engineers.
Given that there are some 3 to 5 thousand integrated circuit designers in the workJ, theextension of this capability to a large new group of engineers makes custom integrated circuits
available to a much larger group of users. The extensk>n of low cost custom integrated circuits to
new groups altows small companies and those companies who may have been low-tech to leap
into a competitive position with the larger or nrtore advanced companies who have always
conskjered custom integrated drcuits for appropriate appKcations. In a real sense, siliconcompilers increase the competitiveness of a very large number of electronics companies. This
increased competiveness will certainly have a benefk:ial impact on consumers who will now have agreater group of suppliers to choose from. This increased competiveness will certainly create anarray of products that will be unprecedented. Product life cycles will shrink and the performanceand economk: advantages of much more productive designs will be generally available. Allcompanies will be compelled to use these more productive tools to remain competitive. It shoukj
be pointed out that these tools are improving and gaining capability at a rapkJ pace. Therefore it
can be expected that these effects will be even more dramatk: in the future.
- 2 Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

Another impact that could be expected te the creation of new start-up companies with relatively
little capital. A new start-up could consist of only a few engineers capable of creating very
sophisticated electronic equipment without teams of technicians or draftsmen. Computerverification is rapidly replacing breadboard testing permitting the creation of new companies with amininum of capttai.
When breadboarding is called for, these tools allow brea(fix>arding in silicon instead of wire-wrap
or muhi-layer boards. This has cost advantages as well as performance advantages, partknjlady
when high speed operaalon te required. In many cases, silicon breacttx>arding is less expensive
than conventional methods and also is capable of higher performance operation (see figure 3).

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Sigma Research devetoped the above cihip as an implemertaltion of a Residue
Number System for Ngh-speed cXgited signal processing. 771 parts offeredno dear drcuit design models. Therefore, the des^ner conH^ned PLAs andadders of various ^^and codings, then corr^'led and sinwlated the trial
designs. This 'silicon breatSxarding" led to a di^ whid) incorporates six PLAs
and five 5-M adders.

Figure 3
The most productive aspect of silicon compilers, however, may be the increased capability fordesigners to put an entire system (including memory and analog) or major part of a system on asingle chip. Reducing a system to a single chip improves (Mrformance, reliability arxj size, andlowers cost. Incorporating all of the various circuit elements on the single silicon chip also
eliminates the need for many of the package pins. Because the presence of the pins and therequired buffers inherently degrades performance, elimination of the requirement automatically
improves the circuit capability. Increased functionality, shorter design cycles and lower costs are
all benefits of Silicon Compilation, the new ASIC design methodology.

- 3 Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose. CA 95131 / (408) 971-9000 / Telex 171973

TT^'^^'^^^^'^'TS""•Lh-LiiilL-..::; ' / " • «Dataquest
Dataquest Incorporated
A Subsidiary of A.C. Nielsen Company
1290 Bidder Park Drive
San Jose, California 95131

408/971-9000 / Telex 171973

THE GLOBAL PRODUCTIVITY IMPERATIVE

Aryeh Finegold
President
Daisy Systems Corporation

Mr. Finegold is a founder of Daisy Systems Corporation, and has served, as
President and Chief Executive Officer of the firm since its incorporationin August 1980. Before founding Daisy Systems, he spent four years invarious engineering management positions at Intel Corporation. Prior tothat, he spent six years at Elbit Ccnnputers Ltd., v^ere he held several
engineering positions. Mr. Finegold received a B.S. degree from Technion
Institute—Israel Institute of Technology.

Dataquest Incorporated
DESIGN AUTOMATION FOCUS CONFERENCE
December 9 and 10, 1985
Palo Alto, California

DAISY SYSTEMS

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Delivering Innovative Solutions
To Increase Engineering Productivity

CAE: A CHANGING MARKET« CAE Recognized as Competitive Necessity• Purchase Decisions Made at Corporate Level• Complete CAE Environment Required
Complete Application Spectrum NeededINCRI=ASED PRODUCTIVITY USINGCOMPLETE APPUCATION SPECTRUM
Architecture
DigitalAnaIog
Packaging/Styling
PCB

SeImlcustom IC
F u l l Custom IC

Test

STSRiQ msrm

CONCEPT.

• Modular Building Blocks• "Create" Your Own System

APPLIES TO CAE• Low Cost PC-Based Design Station• Fastest Accelerators• Most Interactive Layout• General Purpose Computing Platform• Access to Corporate Mainframe

THE IDEAL CORPORATE CAE
ENVIRONMENT

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UysUJ

Improved FVtiductivty through• Same User Irrlerface• Svre Software (Same Resuhs)• Same CDmniuiilcatlorvlMslrltiiJtIBd Hie System

PERSONAL LOGICIAN (DNIX)• IBM PC AT +Daisy Graphics• UNIX Operating
System• Remote
Execution
Capability

THE DESIGNER'S DREAM...
THE CORPORATE CAE SOLUTION• Logician VX

THE MegaLOGllCIAN• General Purpose Design Autoinatton
Accelerator- Logic Simulation- Timing Verification- Fault Simulation- Placement and Routing• Network Resource

ROIE OF MAINFRAI^ .^e Batch Proc^stng• Oaiatiase Manag^niM

DESrON MANAGER• DectreyJcDJlabaBP
mem tar Lvqe
• Chanqe Itonagemeirta>eck<liit.O«ck4n Contiol• Frees and Release Control• "niree LwHs of Pratedten-Oita, Com^iaon, ACCC99

DAISY'S OPEN SOLUTION
M a l n r i i m t DEC'IBMoo

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LOGICIANiLO'ilCIAN
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• Accoa hi CMVCAUOE a i * M m• r mil inraiiiir^r-Trr"—'

OeaiviDiiitaMllM^aartfDDII)DAISY IS OPEN SYSTEMS• Solhrarv Portsbflrty• Terminal Emulartion• Heinote Execakion• Opan OatabBS*

KEY TO FUTURE SURVIVALGLOBAL PRODUCTIVnY• Integrated CAE
Environment• Complete
Application
Solution

ANNUAL REVENUE GROWTHSlStS{In yi*om>

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$691

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PRODUCTIVITY ALTERNATIVES:DESIGN ALTERNATIVESBECOME SOLUTIONSSi^H^^^^^^^^^I^H^^^^^^^H^H^H^^^^^^H^^H^^H^n^^^^^HH^^^^Bi^^^^^MH^H

CONFERENCE WRAP-UP- 1 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex 171973

PRODUCTIVITY ALTERNATIVESHARDWARE• COMPUTATIONAL ALIGNMENT• PCs•I APPLICATION ACCELERATORS• DECREASING PRICES/INCREASINGPENETRATION- 2 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Bidder Park Drive / San Jose, CA 95131 / (408) 971-9000 / Telex I7i973

PRODUCTIVITY ALTERNATIVESSOFTWARE
•
•
•
•
•
•

HIGHER-LEVEL DESIGNSANALYSIS
OFFICE AUTOMATIONDATA BASES
USER INTERFACE
ATG- 3 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C Nielsen Company / 1290 R.doer Park Drive / San Jose. CA 95i3i - (408) 971-9000 Telex i7i97;^

PRODUCTIVITY ALTERNATIVESMETHODOLOGY• AUTOMATIC ROUTING• SILICON COMPILATION• SYSTEMS LEVEL DESIGN• DISTRIBUTED PROCESSING- A 1985 Dataquest Incorporated-Reproduction Prohibited
Dataques, incorporated. A Subsidiary of A C . Nielsen Corr^pany /1290 R.dder Park Dr.ve / San Jose. CA 95131 / (408) 971-9000

Te,e. 171973

1986 CAD/CAM
RESEARCH PROJECTS- 5 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated. A Subsidiary of A.C, Nielsen Company /1290 Bidder Park Dnve / San Jose. CA 95131 / (408) 971-9000 / Telex i7i973

1986 CAD/CAM
RESEARCH PLANSFORECASTS:• QUANTIFY SIMULATION MARKET• QUANTIFY APPLICATION ACCELERATOR
MARKET• PUBLISH 1985 ACTUALS AND REVISEDFORECAST THROUGH 1990

- 6 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C, Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 ; Teiex I7i973

1986 CAD/CAM
RESEARCH PLANSAPPLICATION SURVEYSEDA END USERPRINTED CIRCUIT BOARD- END USER
- SURFACE-MOUNTED DEVICES- HYBRIDS
ELECTROMECHANICAL STUDYQUARTERLY FOCUS RESEARCH GROUPS- 7 1985 Dataquest Incorporated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company /1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000 - Teiey -t7ff73

..,,.,•

1986 CAD/CAM
RESEARCH PLANSNON-U.S. MARKETSEUROPEAN MARKET SHARES ANDFORECASTS
JAPAN END-USER SURVEY
TAIWAN. KOREA. AND SINGAPORE FAR
EAST MARKETS

1985 Dataquest Incorpofated-Reproduction Prohibited
Dataquest Incorporated, A Subsidiary of A.C. Nielsen Company / 1290 Ridder Park Drive / San Jose, CA 95131 / (408) 971-9000

Telex 171973

f ^ 1 9 8 6 CAD/CAM-RESEARCH PLANS:. - GENERAL BUSINESSCHANNELS Of5 DISTRIBUTION;STUpY^
QUARTERLY CAD/^CAM MARkETi#V!EWS
DEMOGRAPHicjs; ^'^7',.:;,-»t"..,,^^I;.",T .,"". "^-*»'-^, / t

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- 9 1985 Dataquest Incorporated-Re,prpduction Prohibited ^^Oatacues, Incorpo.ated, A Subs.lary o, A.C Nielsen Co.pan,/1290 Ri..e. P a . Dr,ve / San .pse, CA 95131 / ,.08. 971-9000, Tele. 1^97?