History of Programmable
Logic
Robert Blake
Vice President, Product Planning
Copyright © 2003 Altera Corporation
Altera Founded in 1983
“The probabilities are high that someone
will produce an electrically alterable logic
array” predicted Bob Hartmann, Paul
Newhagen and Michael Magranet in the
closing chapters of their 1982 book on the
gate array industry
 They recognized limitations of ASICs and
the value of PROGRAMABILITY

Copyright © 2003 Altera Corporation
2
History of PLDs - 1984
CMOS PLD
$B
3.0

2.5

 10-MHz Performance, 20 I/O Pins
 Desktop Programming
 “Fixing Design Errors for Free”
2.0
1.5
World’s First PLD
EP300: 320 Gates, 3-µm CMOS

First Fabless Company
1.0
0.5
First
PLD
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1985 - 1987
CMOS PLD
$B
3.0

2.5


2.0
TTL Libraries (74XX) for PLD
EP1200 First High-Density PLD
EPB1400 First Embedded PLD
1.5
1.0
0.5
First
PLD
TTL LIB
EP1200
EPB1400
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1988
CMOS PLD
$B
3.0
Altera IPO March 30, 1988
Simple 
Control
Logic
 ALTR Offers 4 Million Shares
2.5
 MAX+PLUS® Software: First
Integrated EDA for PLDs
2.0
1.5
1.0
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1989
CMOS PLD
 Altera Delivers Hardware Description
$B
3.0
Language (AHDL)
Simple Control
Logic
 >50% Reduction in Design Entry Time
2.5

>5,000 Customers
2.0
1.5
1.0
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1990-1991
CMOS PLD
$B
® 7000 – Now World’s

Introduction
of
MAX
3.0
Simple Control
Complex PLD Ever!
Most
Popular
Logic
Logic
 MAX+PLUS® II: First Windows-Based
2.5
Integrated
Tools
2.0
1.5
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1992
CMOS PLD
$B
3.0
Simple Control
Complex
®
 FLEX 8000
Logic
Logic High-Density/Performance
2.5
SRAM FPGA
2.0

1.5
1.0

 >1M Transistors
 Bridging & System Logic Integration
ACCESS Program
 Industry Alliance with EDA
Manufacturers
MAX+PLUS II
Adopted ASIC
Design Methodology
MAX 7000
SM
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
FLEX 8000
ACCESS EDA
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1993-1994
CMOS PLD
$B
3.0
Simple Control
Complex
System

World’s
First
Low-Power
3.3-V CPLD
Logic
Logic
Logic
2.5
 MAX 9000 High-Density CPLD
2.0

 12,000 Gates, 150-MHz Performance
>9,000 Customers Using Products
1.5
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
7032V
MAX 9000
FLEX 8000
ACCESS EDA
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1995
CMOS PLD
$B
3.0
 World’sComplex
First FPGA
with EmbeddedSOPC
RAM
Simple Control
System
Logic
Logic 0.4 &
Logic
 100K Gates,
0.3 µm
2.5


2.0


1.5
>10M Transistors
50-100 MHz Performance
First PCI Integration
First IP Partner Program
FLEX 10K
World’s-First
FPGA with
Embedded RAM
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
7032V
MAX 9000
FLEX 8000
ACCESS EDA
FLEX 10K
IP Library
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1996-1998
CMOS PLD
$B
3.0
Simple Control
Complex
System
 Extended
FLEX
10K
Family
Logic
Logic
Logic
 250K Gates, 3.3-V & 2.5-V Cores
2.5
SOPC
 Dual-Port RAM
 First FPGA with PLLs
2.0

1.5

MAX 7000A: World’s Fastest 3.3-V CPLDs
>13,000 Customers Using Products
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
7032V
MAX 9000
FLEX 8000
ACCESS EDA
FLEX 10K FLEX 10KA
IP Library FLEX10KE
MAX 7000A
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 1999
CMOS PLD
$B
3.0
APEX™:
First FPGA
with High
Simple
Control
Complex
System
Logic  1.5M Gates,
Logic ~100M
Logic
Transistors
2.5
Speed
I/O
SOPC
 First Embedded CAMs

2.0
Fully Integrated EDA Flow in the
Quartus® Development Tools
1.5
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
7032V
MAX 9000
FLEX 8000
ACCESS EDA
FLEX 10K FLEX 10KA APEX
IP Library FLEX10KE
MAX 7000A
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 2000-2001
CMOS PLD
$B
3.0
APEX 20KC
All-Layer Copper SOPC
Simple 
Control
ComplexFirst
System
Logic
Logic
Logic
 FPGAs First Embedded FPGAs
2.5
 Mercury™: Multi GHz SERDES
 Excalibur™: ARM® Processor
 World’s First Soft-Core Microcontroller: Nios®
 >14,000 Customers Using Products
 Market Downturn
2.0
1.5
1.0
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
7032V
MAX 9000
FLEX 8000
ACCESS EDA
FLEX 10K FLEX 10KA APEX Mercury
IP Library FLEX10KE
ARM
MAX 7000A
Nios
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
History of PLDs: 2002-2003
CMOS PLD
$B
3.0

Simple Control
Logic
2.5
2.0
Completely
New 0.13-µm World-Class
Complex
System
SOPC
Logic
Logic
Products
 Stratix™ – High-Density Performance Leader
 Stratix GX – 10G Embedded Transceivers
 Cyclone™ – World’s Lowest-Cost FPGA Family
Communications
& Wireless
1.5
1.0
Storage &
Computer
MAX+PLUS II
MAX 7000
AHDL
0.5
First
PLD
TTL LIB
EP1200
EPB1400
ALTR
IPO
Consumer
Industrial
7032V
MAX 9000
FLEX 8000
ACCESS EDA
FLEX 10K FLEX 10KA APEX Mercury Stratix
IP Library FLEX10KE
ARM Transceivers
MAX 7000A
Nios
Cyclone
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
PLD Market Growth – 2003-2007
CMOS PLD
$B
7.0
~$5 Billion MOS PLD Market
in 5 Years
6.0
5.0
Quadratic Curve Fit
Y = 11.3X2-34X-4.39
4.0
3.0
2.0
1.0
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Copyright © 2003 Altera Corporation
15
Highlights

Founded in 1983
 $711 Million in
2002 Sales
 1,958 Employees
 14,000+ Worldwide
Customers
 ALTR (Nasdaq)
Copyright © 2003 Altera Corporation
16
PLD Growth
Opportunity
Jordan Plofsky
Sr. Vice President
Copyright © 2003 Altera Corporation
Why PLDs Are a Good Business to
Be in

Where Semiconductor Technology Will Take Us
 Development Costs Trends: ASSPs & ASICs
 Impact of This Trend
Copyright © 2003 Altera Corporation
18
Learning Curve Drives Moore’s Law
100
1979
1980
Traditional 68% Slope
1981
Price per Bit (Millicents)
10
1982
Post Recessionary
Price Strengthening
1983
1984
Strong Demand
Weak Supply
1985
1
1986
Excess Capacity
Price Erosion
1987
1988
1989
1990
1995
1992
1991
Excess Capacity
Price Erosion
1993 1994
Trade Agreement
1996
0.1
2000
1997
1998
2001
0.01
1
10
100
Copyright © 2003 Altera Corporation Cumulative
19
1999
1,000
10,000
Volume (Bit x 1012)
100,000
“In the Box” Advances Will Carry
Us through 65 Nanometers
Resolution Enhancement Techniques
 Optical Proximity
Correction
 Scattering Bars
 Attenuated Phase Shift
 Double-Exposure
Dipole
 Strong Phase Shift
 Low
K Dielectrics
10,000
3.0µ
2.0µ
1.0µ
Silicon Features (µm)
 Multiple
.6µ
1,000
248nm
193nm
100
436nm
Lithography Wavelength
Copyright © 2003 Altera Corporation
20
157nm
365nm
.25µ
.18µ
.130µ
10
1985
Silicon Feature Size
.35µ
1992
1998
90nm
65nm
2002
2007
1
1980
1987
1996
2000
2004
Digital ASSP Business Model
R&D Spending
R&D as % of Revenue
Revenue
Market Share
Resulting Market Size
Copyright © 2003 Altera Corporation
21
$30M
Development Cost Simulation

No Special Design Complexity
Technology
Average Gate Count*
.35µ
500K
.25µ
1.5M
.18µ
2.5M
.15µ
4.0M
.13µ
6.5M
.09µ
10M
 MXS, CAM, PLLs, Exotic I/O

Does Not Include Costs for
 Architecture Planning
 Methodology


DB Management
Version Control
 New Tools Learning
 Program Management
 Verification/Integration for
Complex IP
 IP Acquisition

Increased Skilled Engineers
* Normalized to Approx 8 mm x 8 mm Die Size
60% Routing Utilization, Artisan Library
Copyright © 2003 Altera Corporation
22
Development Costs
per Engineering Man Year (Fully Loaded)
Labor – Increased Skill Set
Compute Power
Increased File Size Storage
Test Coverage
3D Extraction
IP Integration/Reuse
Signal Integrity
Power Drop
$150K
$160K
$170K
$180K
1997
.35µ
1998
.25µ
1999
.18µ
2000
.15µ
Copyright © 2003 Altera Corporation
23
$190K
2001
.13µ
2002
.13µ
$200K
2003
.09µ
$225K
2005
.065µ
Rising Cost of Development
Technology
RTL Gates
Qtr./Person
0.35 µ
0.25 µ
0.18 µ
0.15 µ
0.13 µ
0.09 µ
30K
36K
50K
75K
110K
150K
15K
18K
25K
38K
55K
75K
Technology
Engineering Costs ($Ms)
0.35 µ
0.25 µ
0.18 µ
0.15 µ
0.13 µ
0.09 µ
2
5
6.4
7.3
8.8
10.4
Copyright © 2003 Altera Corporation
24
Verification
Qtr./Person
Synthesis + P&R
Qtr./Person
Engineering
Man Years
14
30
38
41
46
52
125K
300K
500K
750K
1.0M
1.25M
Masks & Wafers ($)
80K
160K
400K
600K
900K
1.3M
ASSP Development Cost at 90nm
Function
Man
Years
$K/Year
Architecture
3
250
.75
Logic Design
50
200
10.0
I/O Design
6
225
1.35
Product Engineering
20
175
3.5
Test Engineering
12
175
2.1
Software
40
200
8.0
Apps
5
200
1.0
Masks
2 Sets
2.4
Wafers
3 Lots
.30
Boards
Total Millions
* FSA, IBS Development Cost Projection
Copyright © 2003 Altera Corporation
25
Cost $M
.50
29.9
What VC’s Are Saying

Raza Foundries
 $50M in Funding
 Spectacular Team
 Needs to Generate $500M over 4 Years

Tallwood
 $25M at .13m
 $40M at .09m
Copyright © 2003 Altera Corporation
26
Digital ASSP Business Model
R&D Spending
R&D as % of Revenue
$30M
20%
Revenue
$150M
Copyright © 2003 Altera Corporation
27
Digital ASSP Business Model
R&D Spending
R&D as % of Revenue
$30M
20%
Revenue
Market Share
$150M
10%
Resulting Market Size
$1.5B
Copyright © 2003 Altera Corporation
28
Sizing It Up
ASP ($)
R&D Spending
R&D as % of Revenue
$30M
20%
Revenue
Market Share
$150M
10%
Resulting Market Size
$1.5B
Units
(M)
10
150
20
75
50
30
100
15
500
3
1,000
1.5
The Market Must be Really Big -or You Have to Own It!
Copyright © 2003 Altera Corporation
29
90nm, 300mm
Die Size Normalized to 4M Gates, 4 Mbits Memory
Process
Wafer Diameter
Die Size
0.35m
0.25m
0.18m
0.13m
0.09m
150 mm
200 mm
200 mm
200 mm
300 mm
20.8 x 20.8
14.8 x 14.8
10.7 x 10.7
8.7 x 8.7
5.9 x 5.9
9
68
175
450
1820
225
1,700
4,375
11,250
45,500
NDPW @ .2 DD
One Wafer Boat (25)
12-inch, 300mm Wafer
90 nm
8-inch, 200mm Wafer
0.25 µm
7.5x
Copyright © 2003 Altera Corporation
30
200x
Costs to Amortize over Unit Volume
$500.00
$455.99
Fully Amortized Die Cost
Total Cost/Die
$450.00
$400.00
$350.00
$300.00
$250.00
$200.00
$154.74
$150.00
$100.00
$49.30
$50.00
$0.00
100K
300K
1M
$15.22
$8.62
$5.62
3M
10M
30M
Unit Volumes
$30M Development Cost – 15% Hurdle, 5 Yr Return, $7500 300mm Wafer Cost
4M Gate, 4Mb Design 5.7mm x 5.7mm Die
Copyright © 2003 Altera Corporation
31
Let’s Look at the Semi Content in
End Markets
Communications
$30.6B
Computer
Storage
Peripherals
$ 92.9B
Consumer
$24.1B
Industrial
Automotive
Mil/Aero
$26B
2003 Projected Total: $173.6 B
Source: Gartner, SIA, Semico, IDC, Altera Estimates
Copyright © 2003 Altera Corporation
32
Semis by Function
Logic
$37.7B
Memory
$37.2B
Analog
Discrete
Opto
Processors
$46.5B
$ 52.2 B
2003 Projected Total: $173.6 B
Source: Gartner, SIA, Semico, IDC, Altera Estimates
Copyright © 2003 Altera Corporation
33
Logic Is
21.8%
of Total
Communications - $30.6 Billion
Communications
Digital Cellular
Semi Content
($ per Unit)
Total Semi Content
($ Millions)
400,500
41
16,423
674
3,700
2,496
102,000
14
1428
22,800
48
1100
2,400
385
940
10/100 Modular
20,000
41
813
1 Gig Ethernet
6,000
132
792
45,900
17
779
40
16,036
641
10,900
40
435
OC12 Ports
60
5.566
333
OC48 Ports
80
3,357
268
Routers – Service Provider
16
15,963
262
10,500
24
248
OC3 Ports
60
2,272
136
Cable Modem Headend
11
1,119
12
Mobile Infrastructure
10/100 Fixed
DSL CPE
Routers - Enterprise
Digital Cordless
OC192 Ports
Cable Modem CPE
802.11b
Copyright © 2003 Altera Corporation
34
K Units
Total Billions
27.1
Consumer - $24.1 Billion
Consumer
Semi Content
($ per Unit)
Total Semi Content
($ Ms)
50,613
105
5,314
136,833
29
3,968
DVDs
46,800
49
2,293
Digital Set Top Boxes
38,707
58
2,245
Digital Still Cameras
27,426
81
2,221
VCRs
50,170
26
1,304
106,491
12
1,277
Digital Camcorders
7,900
141
1,113
Digital Televisions
2,534
183
463
Mini-Disk Players
16,400
17
278
Video Game Devices
Color Televisions
CD Players
Total Billions
Copyright © 2003 Altera Corporation
35
K Units
20.5
Industrial, Automotive,
Military/Aero - $26.1 Billion
Industrial
Automotive
Military
K Units
Semi Content
($ per Unit)
Total Semi Content
($ Millions)
Engine Control Units
55,398
49
2,714
Security/Energy
Management
26,000
80
2,080
Medical Equipment
23,100
72
1,633
Airbags
80,460
17
1,367
Antilock Braking System
41,233
28
1,154
GPS Navigation Systems
7,990
135
1,078
66,162
13
860
Auto Stereo
Total Billions
Copyright © 2003 Altera Corporation
36
10,886
Computer, Storage, Peripherals
$92.9 Billion
Consumer
K Units
Semi Content $ per
Unit
114,197
279
31,860
32,012
328
10,499
199,719
22
4,393
68,630
39
2,676
609
3,757
2,288
Work Stations
1,456
893
1,300
Entry-Level Servers
4,196
300
1,258
14,023
36
504
2,372
50
118
Desktop PCs
Notebook PCs
Rigid Disk Drives
Graphic Cards
Midrange Computers
Handheld Computers
Tape Storage
Total Billions
Copyright © 2003 Altera Corporation
37
Total Semi Content
$ Millions
54.8
Summary
Market Segment
$B
$B
Communications
30.6
18.9
11.7
Consumer
24.1
16.0
8.1
Industrial, Automotive,
Military/Aerospace
26.1
6.4
19.7
Computer, Storage
92.9
51.7
41.2
173.6
93.0
80.7
Total
Copyright © 2003 Altera Corporation
38
Total Market ($B)
Diverging Development Costs &
Revenues in Mobile BTS Equipment
Development Costs
Outpace End-Market Growth
10.00
ASIC/ASSP Logic
Normalized Growth
9.00
8.00
7.00
6.00
5.00
Mobile BTS
4.00
3.00
2.00
1.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Compared Growth Rates 1997 Index = 1.00
Copyright © 2003 Altera Corporation
39
Diverging Development Costs &
Revenues in Networking
Development Costs
Outpace End-Market Growth
10.00
ASIC/ASSP Logic
Normalized Growth
9.00
8.00
7.00
Networking
6.00
5.00
4.00
3.00
2.00
1.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Compared Growth Rates 1997 Index = 1.00
Copyright © 2003 Altera Corporation
40
Diverging Development Costs &
Revenues in Digital Consumer
Development Costs
Outpace End-Market Growth
10.00
ASIC/ASSP Logic
Normalized Growth
9.00
8.00
7.00
6.00
Next-Generation Digital
Consumer
5.00
4.00
3.00
2.00
1.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Compared Growth Rates 1997 Index = 1.00
Copyright © 2003 Altera Corporation
41
Diverging Development Costs &
Revenues in Industrial
Normalized Growth Rate
3.00
Development Costs
Outpace End-Market Growth
ASIC/ASSP Logic
2.50
2.00
1.50
Industrial
1.00
0.50
0.00
1997
1998
1999
2000
2001
2002
2003
2004
Compared Growth Rates 1997 Index = 1.00
Copyright © 2003 Altera Corporation
42
2005