Tech Marketing from Bullets to Targets

Generating Economic Profits Through Successful Technical Marketing Christopher Michaluk Presented to Brewer Science, June 2014

From Penetrators to Targets

Business has only two functions – marketing and innovation. -Milan Kundera

3. Tech Marketing: Targets A. PVD Overview B. SPAR

4. Tech Marketing: Cryopumps A. Cryopump Overview B. SPAR

5. Concluding Remarks

1. Who is this Guy? A. Background B. Career History

2. Tech Marketing: Penetrators A. Armament Technology B. SPAR

I. Situation II. Plan III. Actions IV. Results

From Bullets to Targets Agenda

Who Is This Guy? Background

• Born and Raised in Conshohocken, PA

BS Materials Engineering Drexel University

MS Materials Engineering Drexel University

MBA Marketing Villanova University

• Resided with family in Gilbertsville, PA

• Relocated to Tucson in 2007

Who Is This Guy? Career History

H.C. Starck Freeport McMoRan

SHI Cryogenics

Williams Advanced Materials

Cabot Performance

Materials US Army ARDEC

Tantalum Warhead Development and Marketing



SHI Cryogenics


Cabot Performance


Semiconductor and Thin Film Technical Marketing and Sales



SHI Cryogenics


Cabot Performance


Product Management Engineered Components



SHI Cryogenics


Cabot Performance


Product / Market Development Semi / PV / FPD Thin Film Mat’ls

Technical Marketing: Penetrators

Innovation distinguishes between a leader and a follower. - Steve Jobs

Technical Marketing: Penetrators Armament Technology

Velocity

Kinetic Energy Penetrator System Characteristics • Long Stand Off Weapon • Performance Governed by Kinetic Energy

Delivered to Target

KEP Material Properties • Density • Hardness / Deformation Mechanics

KEP Materials • Depleted Uranium (DU) • Tungsten Heavy Metal

2 km/s 4 km/s 6 km/s 8 km/s 10 km/s 12 km/s

System Characteristics • Short Stand Off Weapon • Performance Governed by Jet Tip Velocity

and Jet Length

Liner Intrinsic Material Properties • Ductility • Sound Speed of Liner Material

Liner Materials • Copper • Molybdenum • Tantalum


Velocity 12 km/s

Shape Charge

8 km/s 4 km/s 6 km/s 10 km/s


Velocity 4 km/s 12 km/s

Explosively Formed Penetrator (EFP, IED)

System Characteristics • Long Stand Off Weapon • Performance Governed by Kinetic Energy

Delivered to Target

EFP Intrinsic Material Properties • Ductility • Density

EFP Materials • Copper • Tantalum • Iron, Aluminum

6 km/s 8 km/s 10 km/s

• Advantages of EFP Systems • Enabling Technology for Fire-

and-Forget Capability • Compact, Light Weight • Versatile

• EFP Armament Systems • SADARM / SMART • TOW 2B • WAM • M303 Special Forces Demo Kit


Market Environment • Ta was not an Engineered Product

• Primary Applications: Cladding, Alloy Additive • Inhomogeneous Microstructure • Inconsistent Mechanical Properties • No history (or knowledge) of Texture Evolution

• Lack of Quality Focus by Competitor • Unacceptable Variability of Competitor

Products • Effort by Army to Discontinue Consideration of

Tantalum for Warhead Development

Extrinsic Product Requirements • Fine, Homogeneous Microstructure

• Fine Grain Size (<100µm) • Fully Recrystallized Microstructure

• Consistent and Predictable Mechanical Performance

• Warhead Performance Sensitive to Mechanical Behavior

• Narrow Distribution of Lot-to-lot Yield and Tensile Strength

• (111) Bulk Texture • Optimizes Deep-drawability of BCC Metals • Enhances Uniformity of Flow During

Deformation

Technical Marketing: Penetrators Market Situation

New Product for a New Market

Technical Marketing: Penetrators Marketing Plan

Product • Learn

Technology and Develop Engineered Products

• ONLY Internal Funding of R&D

• Quantify Consistency of Properties

Price • Cost Plus • Target Margins

of 35-45%

Placement • Direct Sales to

Defense Contractors, Military Services, National Labs, and SBIR Firms

Promotion • Technical

Exchanges with All Stakeholders

• Publications in Trade Journals

• Participation in Conferences

• Develop Thermomechanical Process to Optimize Microstructure Uniformity

• Quantify Effect of Grain Size on Mechanical Properties Published Data Used to

Create Grain Size Specification for Tantalum

Warheads

Technical Marketing: Penetrators Actions: Microstructural Uniformity

Ref: C.A. Michaluk et.al., Semi. Int., 23 (8), 2000 Ref: C.A. Michaluk, Tungsten and Refractory Metals 2, MPIF 1995

• Establish and Publish Process Capability Data

• In Conjunction with Los Alamos, Develop Material Models Using Company Product

Published Mechanical Property Statistics Used to

Create Strength Specification for Tantalum

Warheads

Algorithms in Computer Codes for Designing

Warheads were Calibrated for Company Product

Technical Marketing: Penetrators Actions: Mechanical Properties

Ref: C.A. Michaluk, Tantalum, TMS, 1996

Ref: S.R. Chen and G.T. Grey III, , Tungsten and Refractory Metals 2, MPIF, 1995

• The Basic Unit of Atomic Arrangement is termed a Unit Cell

• Expanding a Unit Cell in 3 Dimensions Creates a Crystal

• Atomic Planes Designated Using Miller Indices

Technical Marketing: Penetrators What is Texture?

Face Center Cubic (FCC) Unit Cell

Body Center Cubic (BCC) Unit Cell

• A Polycrystalline Material has Multiple Orientations

• A Wrought Polycrystalline Metal Typically Exhibits a Preferred Orientation [Texture]


• Conventionally, Texture is Measured on Thin Gauge Sheet Metal by X-Ray Diffraction

• Stereographic Projection of Specific Atomic Planes Presented as a Pole Figure

• Distribution of All Atomic Planes Presented in an Orientation Distribution Function (ODF)


Image Courtesy of Lambda Research


Inverse Pole Figure Representation of Texture

• Issues with XRD Texture Analysis of Ta Warheads

• Poor Penetration of X-Rays Due to Density of Ta

• Heavy-Gauge Ta Plate Exhibited a Texture Gradient

• Primary (100) Texture at Surface

• Primary (111) Within Plate

Technical Marketing: Penetrators Actions: Texture

Surface

Center Line

Ref: Wright et..al, Mat. Sci. Forum, 157-162, 1994

• Innovations for Quantifying Bulk Texture of Ta Warheads

• Measure Pole Figures from Transverse Composite Samples

• Work with ODF Software Developers (Clausthal TU and LANL) to Create Algorithms to Transpose Date into Conventional (Normal Direction) Coordinates

• Develop Thermomechanical Processes to Optimize Bulk (111) Texture

• Continually Collaborate with Subject-Matter Experts and Publish Papers in Trade Journals

Technical Marketing: Penetrators Actions: Texture

Ref: C.A. Michaluk, Tantalum, TMS, 1996

• Established Company at the Technical Leader of Ta Warheads

• Differentiated Product Offering as Engineered for “Demanding Applications”

• Innovated Texture Analysis • “Wrote” Material Specification and

Computer Codes to Company Product • Confirmed Interrelationship Between

Microstructure, Mechanical Properties, and Texture

Technical Marketing: Penetrators Results

Ref: S.M. Cardonne et.al., Adv. Mat. Proc. 142 (3), 1992

• Established Sole-Source Supply Position for Key Armament Systems

• Tow-2B (24 Year Production) • SADARM, SMART (Low-Rate Production) • MK-50 (Pre-Production) • M303 (Development)

Technical Marketing: Penetrators Results

Estimated Market Share: >95% Cumulative Revenue: >$30MM

Images Courtesy of Aerojet

Technical Marketing: Targets

That great poets imitate and improve, whereas small ones steal and spoil. - Alfred Tennyson

• Sputtering is conducted in a vacuum chamber

• A plasma is generated by an electric field between the source material (sputtering target) and substrate

• A magnetic field generated behind the sputtering target increases the plasma density (to increase deposition rate)

• Energetic Ar+ ions strike the sputtering target

• A atom is ejected from the surface of the target and deposit on the substrate

Technical Marketing: Targets Overview of Physical Vapor Deposition (PVD)

Market Environment • Company Already Sole-Source Supplier

of Ta Targets for HP • Next Generation Semiconductor Devises

to Transition to Copper Interconnects and Tantalum Barriers

• Increasing Interest from Top Semiconductor Sputtering Target Suppliers

• Honeywell Electronic Materials (HEM) • Tosoh SMD • Praxair Electronics • (Unable to Sell to Japan Energy due to

Contract with Cabot-Showa)

Extrinsic Product Requirements • Fine, Homogeneous Microstructure

• Fine Grain Size (<100µm) • Homogeneous, Recrystallized

Microstructure • High Purity

• Desired 4N purity or Greater • < 1ppm Uranium, Thorium

• In-Control Manufacturing Process • SPC Verification of Key Process Variables

• Texture (?)

Technical Marketing: Targets Market Situation

Existing Product (?) for a New Market

Technical Marketing: Targets Marketing Plan

Product • Differentiated

Product and Service Offering

• Control Value: Develop to Market (not to Customers)

• “Patent Everything”

Price • Command 20%

Brand Equity • 4N5 and 5N Pure

Ta at 25-50% Premium

Placement • Direct Sales to

Sputtering Target Suppliers

• Maintain Parity Among Customers

Promotion • Technical

Exchanges with Customers, End-Users, and OEMs

• Publications in Trade Journals

• Participation in Conferences

• Print Advertising in Trade Journals

• Standardize Market to 4N Purity and 50 µm Grain Size • Enhanced Purity Achieved without Additional Cost of Process

Changes • Promote Advantage of Company’s 3EB Melting Process • Competitor Faced Difficulty Meeting New Semiconductor

Target Standard • Rely on Recycled to Supplement Raw Material Supply • Difficulty Obtaining High-Purity Feed from German Parent • Use of VAR Melting Inhibited Ability to Meet Grain Size Requirement

• Exploit Expertise of Microstructure and Texture from Warheads to Sputtering Targets

Technical Marketing: Targets Actions

• Exploit Expertise of Texture to Quantify Differentiated Quality of Product


System Factors S = Sputter Yield m1 = mass of ion m2 = mass of target atom E = energy of incident atom U = binding energy of surface atom α = mass ratio function

Per AMAT

REF: G.D. Magnuson and C.E. Carlston, J.Appl.Phys., (1963)

Per Researchers P(hkl) = Orientation Factor

• Role of Crystal Orientation on Sputtering Yeild


• Effect of Crystal Orientation on Sputtering Performance



Ref: Michaluk and Field, U.S. Patent 6,462,339

Field and Michaluk, J. Mat. Proc. Tech., Special Issue CD-ROM, 117/3 (2001), Section G4

Wrght et.al., Mat. Sci. Forum, 408-412 (2002), pp.107

Technical Marketing: Targets Results: Ta Target Texture Certification

• Technical Leadership Secured Though Numerous Patents • C.A. Michaluk, L.E. Huber, Jr., M.N. Kawchak, and J. D. Maguire,

“High Purity Tantalum, Products Containing the Same, and Methods of Making the Same”, U.S. Patent 6,348,113 B1, Issued February 19, 2002

• C.A. Michaluk and D.P. Field, “Method for Quantifying the Texture Homogeneity of a Polycrystalline Material”, U.S. Patent 6,462,339 B1, Issued October 8, 2002.

• R.B. Ford and C.A. Michaluk, “Hollow Cathode Target and Method of Making Same”, U.S. Patent 6,887,356 B2, Issued May 3, 2005.

Technical Marketing: Targets Results

• At Time of IBM Announcement on Copper Damascene Process, Company was Sole-Source Supplier to All Domestic Semiconductor Sputtering Target Companies

• Sputtering Target Revenues Expanded From $2 MM to over $10 MM in 3-Year Period.

• Invited Speaker at Numerous Fabs, ASM San Jose Chapter, and BAM International EBSD Conference.



Technical Marketing: Cryopumps

Innovation comes from the producer – not from the customer. - W. Edwards Deming

Technical Marketing: Cryopumps Overview

Performance Factors • Minimum Temperature ~15ºK • Pumping Speeds Dependent on

Geometry • Most Gases Freeze on Shields • He, H, Adsorbed on Charcoal

• Pump is Vented to Remove Frozen Gases (Regeneration)

• Vacuum Level ~10-12 Torr • Applications

• Deposition Chambers • Ion Implanters

• Wear Parts are Seals in the Displacer

Market Environment • ADP (Sumitomo SHI) was the Inventor of

the Cryopump • Market Dominated by One Player (CTI) • Secondary Players Competed Primarily

on Price • 8” Cryopump Prices w/ Compressor • Others: ~$10,000 • Sumitomo: ~$12,000 • CTI: ~$21,000 ($25,000 w/ Controller)

Technical Marketing: Cryopumps Market Situation

Existing Product for an Existing Market Cryopump Market Share

CTI / Brooks

Sumitomo / ADP

Others

Technical Marketing: Cryopumps Market Situation

Cryopump Market Share

CTI / Brooks

Sumitomo / ADP

Others

CTI / Brooks

• Direct Sales Major OEMs • Agents for Small Accounts • Global Service: Replacement • Differentiation: Automation

• Direct Sales Major OEM • Agents for All Other Accounts • Global Service: On-Call Tech • Differentiation: None

• Agents for All Accounts • Global Service: None • Differentiation: None

Technical Marketing: Cryopumps Marketing Plan Product

• Standardize Offerings

• New Automated Controller Option

• Differentiate Lower Cost-of-Ownership of Service Model

Price • Increase Price

<20% to be ~15% Lower Than Major Competitor

Placement • Network of

Global Sales Agents

• Roll-out to Small OEM’s and AKT

Promotion • Revise Product

Literature • Train Sales

Agents on Selling Value

• Promote Directly to Market at Trade Shows

• Establish Brand Image: Quality and Ease-of-Service

Technical Marketing: Cryopumps Actions

Ref: SVC Innovator’s Showcase, 2006

• Standardizing Port Configurations Eliminated Prime Cause for Rework and Reduced Manufacturing Costs by 10%

• Price Increases Raised Profits by 30% Without a Reduction in Unit Sales

• Training and Supporting Global Sales Network and Establishing Brand Identity Invigorated Sales Agents

• RFQ’s Increased 300% Over 18-Month Period • Landed Production Contracts with AKT

Technical Marketing: Cryopumps Results

Concluding Remarks

Success has many fathers... - English Proverb

• Hard Skills Can Be Learned – Soft Skills Must Be Developed • Differentiate Between Market Wants And Their Needs

• Ask Questions, Then Ask More Questions • Know the Costs of Building New Bridges

• Collaborate With All Stakeholders (Internal And External) And Any Experts

• Keep Accelerating Forward - Drive the Market, Keeping the Competition Behind You

• Publish, Publish, Publish! • If It’s Something New or Improved, Then Patent It.

Concluding Remarks The Key to My Success

“…Business is as much about relationships as it is about technology” - Dennis Haggard

Family and Fun

Documents

Tech Marketing from Bullets to Targets