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

Who Is This Guy?
Career History
H.C. Starck
Freeport
McMoRan
SHI
Cryogenics
Williams
Advanced
Materials
Cabot
Performance
Materials
US Army
ARDEC
Semiconductor and Thin Film
Technical Marketing and Sales

Who Is This Guy?
Career History
H.C. Starck
Freeport
McMoRan
SHI
Cryogenics
Williams
Advanced
Materials
Cabot
Performance
Materials
US Army
ARDEC
Product Management
Engineered Components

Who Is This Guy?
Career History
H.C. Starck
Freeport
McMoRan
SHI
Cryogenics
Williams
Advanced
Materials
Cabot
Performance
Materials
US Army
ARDEC
Product / Market Development
Semi / PV / FPD Thin Film Mat’ls

Technical Marketing: Penetrators
Innovation distinguishes between a leader and a
follower.
- Steve Jobs

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
Armament Technology
Velocity
12 km/s
Shape Charge
8 km/s4 km/s 6 km/s 10 km/s

Armament Technology
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
Armament Technology

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
Market Situation
New Product for a New Market

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
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
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
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]
What is 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)
What is Texture?
Image Courtesy of Lambda Research

What is Texture?
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
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
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
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)
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
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 (?)
Market Situation
Existing Product (?) for a New Market

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
Actions

• Exploit Expertise of Texture to Quantify Differentiated
Quality of Product
Actions
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
Actions

• Effect of Crystal Orientation on Sputtering Performance
Actions

Actions
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

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.
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.
Results

Results

Technical Marketing: Cryopumps
Innovation comes from the producer – not from the
customer.
- W. Edwards Deming

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)
Market Situation
Existing Product for an Existing Market
Cryopump Market Share
CTI / Brooks
Sumitomo / ADP
Others

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

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

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
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

Tech Marketing from Bullets to Targets

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