OptimalEnterprise at Qualcommit

PAGE 1 QUALCOMM CONFIDENTIAL AND PROPRIETARY

QUALCOMM CONFIDENTIAL AND PROPRIETARY qctconnect.com

OptimalEnterprise at

Qualcomm

Octavio Martinez September 2011


QUALCOMM Incorporated

• NASDAQ symbol: QCOM

• Founded in 1985

• $10.99 billion FY10 revenues

• More than 15,000 employees in 51

worldwide locations

• ~11,600 US Patents (issued &

pending)

• ~54,100 foreign patents (18,500

issued, 35,600 pending)

• Investing ~23% in R&D

• Member of the S&P 500 Index

• "100 Best Managed Companies" -

Industry Week

• "100 Best Companies to Work for in

America" – FORTUNE

• Global leader in developing and delivering innovative digital wireless communications solutions based on CDMA, OFDMA, and other advanced technologies.

• Partners with wireless operators, device manufacturers, independent software vendors, distribution suppliers and Fortune 1000-class corporations to drive adoption mobility solutions

based on third-generation (3G) CDMA and other digital technologies.

#1 Fabless Company

#1 Wireless Company

#1 RF IC Company

# 10 Semiconductor Company FY2010

Execution - Innovation - Partnerships

Qualcomm


Note : 3G includes CDMA2000, WCDMA and TD-SCDMA

Source: Wireless Intelligence estimates as of July 19, 2010 for the quarter ending June 30, 2010; number of unique wireless connections.

CDG and Global Mobile Suppliers Association as of April 2010

3G Countries Non 3G Countries

The mobile phone has become the biggest

platform in the history of mankind

5 Billion total Subscribers >1B 3G Subscribers Today

Expected to be ~2.8B by 2014 World Pop ~6.93 B



A New Mobile Computing Experience More functionality…

Always-On Connectivity

All-Day Battery Life

Instant On (NO standby/sleepstates)

Location Aware

SmartPhone at the center of your life

Communication, Computer, Health monitor, Wallet, Cable Box / Entertainment,

Navigation, Gaming, Camera, Augmented Reality, Remote Control, etc…


Connecting the Smart Grid, Smart Home, Smart Device

Networking the Digital Home

Connecting the Home to the Smart Grid

Connectivity solutions that will enable “the internet of things”


Semiconductor industry evolution

250 nm

180 nm

130 nm

90 nm

65 nm

45 nm

28 nm

Greater processing speed

Lower power => lower cost and longer standby time

Easy migration for OEMs: design reuse

Providing OEMs with low cost path to smaller footprint

Average phone thickness

drops below 14mm.

Still Following Moore’s Law!


PU

SH

PU

LL

FAB & Probe (Multiple Suppliers) Assembly & Test

(Multiple Suppliers)

QCTAP

Singapore

Die Bank

Multi-purpose Die

Finished Goods

QCT’s “Integrated Fabless Manufacturer” Model

Foundries SATs


Quarterly MSM Shipments

6568

7985 86 86

6369

9491 92 93

103

111

118 118

0

20

40

60

80

100

120

FY07Q3

FY07Q4

FY08Q1

FY08Q2

FY08Q3

FY08Q4

FY09Q1

FY09Q2

FY09Q3

FY09Q4

FY10Q1

FY10Q2

FY10Q3

FY10Q4

FY11Q1

FY11Q2

Quarterly MSM Shipments (M)CDMA WCDMA LTE 4 Qtr Moving Avg

Quarterly Rate

FY11

118M

FY10

100M

FY09

79M

FY08

84M

FY07

63M

FY06

52M

FY05

38M

FY11 4Q

Guidance:

120M – 125M

FY11

Q3

120

120M

Typical Numbers:

15 MSMs shipped per second…~1.33M per day

45 devices (MSM, RF, PMIC) shipped per sec…~3.8M per day

EVERY MILI-SECOND

COUNTS!!!!!


What did Qualcomm need?

Better way to manage our complex supply chain

Better visibility of the virtual factory

Better tools to improve yields

Better tool to improve operational efficiency

Better tools to drive down test time

Next Generation TTR (adaptive test)

Traditional TTR

Better tool to help manage our scalable supply chain.


Goals for the OT solution

Desired End Result ( ROI Justification)

Higher Yield

Faster Yield Learning and NPI Ramp

Lower Cost of Test

Better Quality

Clearer Supply Chain Visibility

Goals

Receiving timely and actionable data

Ensuring data accuracy and consistency across suppliers and platforms

Finding the needle in the haystack too much data to analyze manually

Reducing test time and costs

Managing a widely distributed supply chain

Focusing on core competence prefer to buy rather than build

Scalable and robust data management solution


Deployment History…

Three-month pilot in late 2008

Deployment of all final test sites – H2/2010

Deployment of all wafer sort sites – H1/2011

OptimalEnterprise has been deployed at Qualcomm for:

• Early detection

• Test time reduction (TTR)

Milestones:


Deployed Solutions

Central Database

Early Detection

Supply Chain Management

Test Time Reduction (TTR)

Qualcomm Engineers

Data Collection


Data Collection – Challenges

Multiple suppliers in different locations

Huge data volumes (4 TB per quarter)

Inconsistent environments

Tester application models

Mode of operation

Connectivity to Manufacturing Execution Systems (MES), other systems

Data security requirements

Data consistency – field mapping across products, OSATs

Wafer sort data routed via foundries


Data Collection – Achievements

Final Test suppliers fully deployed

Wafer Sort suppliers deployed this year

High level of data quality and consistency

Actionable data available fast (within minutes)

Software and methodology mature and reliable – new OSAT deployments completed in a short time

Deployment scale

Dozens of OSAT sites around the world

Hundreds of testers

Multiple testing platforms and versions

The Qualcomm / OptimalTest partnership helped Qualcomm bring

our vision of a Semiconductor Information Highway into a reality


Lessons Learned

IT Involvement

Having IT involved from day one created a robust solution

Data Quality

Data Quality was achieved not just by collecting good data from testers – augmentation of data from other existing sources greatly improved the tools

Work out secure data path mechanism right from start. Specially as you deal w/ more than 1 party to get data. (SAT Foundry QCOM)

Management Commitment

Managerial exposure to the tools and the derived ROI is driving adoption throughout the organization

Managers have access to dashboards measuring their organization’s success vis-à-vis Key Performance Indicators (KPI’s)

Subcon Deployments

Subcon deployments required considerable effort and upfront planning. While early deployments took a long time to complete, current deployments are quick and efficient


Who is Using It?

Product and Test Engineers

Yield Engineers

Operations

Management & Planning


Who is Using It? Product and Test Engineers

Analyze

Data

Create Rules

Receive Alerts



OT-Portal highlighted a situation where test conditions needed to be changed to increase yield

Wafers from one foundry showing much higher fallout of a specific test than wafers from another foundry (though testing was performed at the same test house)

Issue was addressed. Yield was optimized.

BEFORE:

Failure rate is over 1.1%

at one foundry and less

than 0.5% at the other

AFTER:

Failure rate down to just

over 0.6% at second

foundry



OT-Portal highlights poor test time performance

Easy to track how configuration changes or upgrades to testers impact test time

Example 1: Test time impacted by BIOS configuration after tester workstation upgrades. Resolved by changing settings.

Example 2: Test time slower on testers running older instruments (to support older parts). Resolved by moving parts to other testers.


Who is Using It? Product and Test Engineers – TTR

Advanced analysis algorithms and simulation tools

Preparing rules for adaptive TTR

Finding opportunities for “classical” TTR

Full-loop infrastructure for rule publication

Automated targeted publication to OSAT

Automatic acknowledgement when rules are activated / deactivated

TTR results feedback loaded into database and available in reports

Same methodology used to sample longer-running tests such as FMAX or IDDQ

Well defined Standard Operating Procedures (SOP) defined and implemented

Correlation / Validation

Papers from Teradyne and Verigy User Group meetings on TTR available on the TUG and VOICE web sites


Who is Using It? Yield Engineers

Wafermap visualization

Cumulative yield maps (yield across multiple wafers and lots)

Composite bin maps (retest data overlaid on first pass data for online or offline retest)

Hard Bin / Soft Bin distributions

Parametric tests


Who is Using It? Yield Engineers

Data Feed Backward

When Unit Level Traceability (ULT) is available, OT-Portal enables engineers to see material or process issues based solely on final test data

Process issue identified

by placing cumulative

FT yield on a wafer map


Who is Using It? Operations

OT-Portal used for supply chain management

Customized dashboard views compare supplier performance

“OT-Portal software enabled

near-real time monitoring of

yields, test times, volumes,

and re-test rates of high

volume products at various

suppliers.”


Who is Using It? Operations

Test Program Checksum validation – prevent accidental TP changes in production

Checksum calculated before and after testing

Any change in the checksum forces an alert

Alerts also displayed in OT-Control Room


Who is Using It? Management & Planning

System interfaces with corporate Key Performance Indicators (KPI’s)

Monthly KPI data loaded automatically from a Qualcomm business intelligence database

Dashboard view provides managers with detailed performance data

Engineers also use this system to drill down to root causes

“[OptimalTest tools] lead to

rapid identification of non-

conforming lots, malfunctioning

test equipment, opportunities for

test and yield optimization and

facilitated performance

comparison between vendors.”


Ecosystem – Equipment Suppliers

Shared roadmaps and vision

Early validation of new tester platforms


Summary:

The fabless industry is a volatile and growing business

Yield , cost and production efficiency are critical to successful business development.

Production efficiency and Production optimization via automated tools such as OT are critical to optimize margins

Yield improvements can be found in probe test, sockets, wafers, etc …if the information is easily available

Technology

OptimalEnterprise at Qualcommit