There are other types of alliances, particularly what some call the closed alliances, and they deserve at least as much consideration from semiconductor makers that want to stay at the leading edge. Applied offers a comprehensive set of equipment and processes for integrating copper into high-volume manufacturing operations. Applied achieves its goal by focusing on what it believes are the best combinations of processes and equipment, and recommending these turnkey solutions to its customers. Although Applied also integrates technology from outside suppliers and partners, the cooperation is pretty much behind the scenes. The customer cannot pick and choose equipment and materials outside the range specified by Applied, and that range includes mostly Applied equipment and processes.
Open alliances sound democratic.
Strict control over as many parameters of the process as possible may not sound democratic, but it sounds like the history of success in the semiconductor industry. Control, not variety, is the spice of a process engineer's life. Applied's solutions work, apparently better than those promoted by most of their competition, regardless of open or closed philosophy. With few exceptions, it became clear to me that most open alliances are trying to meet the standards set by Applied' s approach. At press time, rumors that Novellus was considering acquiring one of its alliance partners seemed to add strength to the argument for more vertical integration.