Product evolution vs. product revolution maximizing continuous improvement while minimizing risk

Semiconductor capital equipment suppliers have historically pursued the development of revolutionary equipment as a means of obtaining an advantage over the competition. This approach generally appeals to the interests of development organizations, which thrive on the excitement and challenges of a major product research and development effort, and management teams, which anticipate large financial returns. Unfortunately, this approach often carries with it enormous risks, not only for equipment suppliers, but for their customers as well. Semiconductor manufacturers are stake holders in the new product development decisions made by equipment suppliers and contribute directly to successful development and qualification of new products. Additionally, they must assume tremendous risks in their own product development programs to remain profitable in the fiercely competitive semiconductor industry. By implementing a product evolution development strategy rather than a product revolution strategy, equipment suppliers can continue to provide next-generation products while minimizing the unsolicited risks transferred too semiconductor manufacturers. Most semiconductor processing equipment is comprised of subsystems that support two primary functions: wafer handling and wafer processing. An effective strategy has been implemented which takes advantage of this functional division to produce evolutionary products that meet next-generation processing requirements. This paper presents this strategy, identifies examples, reviews the benefits of this approach to both equipment suppliers and their customers, and contrasts this method with other equipment development strategies.<>