Does Our Industry Have a Future?

Transcription

1 Does Our Industry Have a Future? Opportunities for Innovation Ned Barnholt President, Chairman and CEO Agilent Technologies Ned Barnholt, Agilent Technologies - Slide 1

2 My Topics Agilent overview Industry perspectives Industry challenges Business opportunities Role of innovation Ned Barnholt, Agilent Technologies - Slide 2

3 Agilent Focus Communications Investing in innovation for growth Life Sciences Electronics Ned Barnholt, Agilent Technologies - Slide 3

4 Agilent Revenue 1H FY03 Test and Measurement Semiconductor Products Automated Test Chemical Analysis and Life Sciences $1,285M $743M $289M $562M Agilent Laboratories Ned Barnholt, Agilent Technologies - Slide 4

5 Today: Fundamental Changes In Our Industry Ned Barnholt, Agilent Technologies - Slide 5

6 Worldwide Electronic System Market Growth Rates Year-over-year growth of electronic system market Semiconductor shipments growth 15% 14% 13% 13% 50% 12% 10% 5% 9% 8% 7% 7% 6% 6% 25% 5% 5% 10% 4% 4% 4% 3% 1% 0 0-5% -10% Compound annual growth rate for electronic systems market over the last five years has been 1.6% -6% -25% -15% -14% -50% * Source: IC Insights, WSTS *Forecast Ned Barnholt, Agilent Technologies - Slide 6

7 Growth of Semiconductor Content Semiconductor sales ($B) Semiconductor content in electronics $ % $200 $175 20% 149 $ % $ $ % $ $ % $ Source: IC Insights, WSTS 0 Ned Barnholt, Agilent Technologies - Slide 7

8 Non-Memory IC ASPs $2.25 ASPs declining since the mid-990s $2.00 $1.75 $1.50 $ Source: WSTS Ned Barnholt, Agilent Technologies - Slide 8

9 Market Realities ($B) $350 Semiconductor sales Semiconductor sales now growing 5-10% ($B) $35 $300 Semiconductor equipment sales $30 $250 $25 $200 $150 17% historical growth of semiconductor sales $20 $15 $100 $10 $50 $ Source: SEMI, WSTS Ned Barnholt, Agilent Technologies - Slide 9

10 Implications? Fundamental change requires new ways to operate Partnerships are more important than ever We need to increase focus on customer intimacy and operational excellence as well as technology Innovation continues to play a key role Ned Barnholt, Agilent Technologies - Slide 10

11 Industry Challenges Take costs out Speed time to market Increase flexibility Embrace convergence of capabilities Ned Barnholt, Agilent Technologies - Slide 11

12 Mobile Appliance Video conferencing Location services Gaming Voice MP3 Digital radio Internet Short messaging M-commerce PDA Digital camera Video Ned Barnholt, Agilent Technologies - Slide 12

13 What s the Next Big Thing? Ned Barnholt, Agilent Technologies - Slide 13

14 History of Innovation 1947: Bell Labs invents the transistor 1958: Texas Instruments demonstrates the first integrated circuit 1973: Motorola introduces the cellular-radio telephone 1975: The first PC, the Altair, goes to market 1984: HP introduces the personal inkjet printer 1991: World Wide Web released by CERN, the European Organisation for Nuclear Research Ned Barnholt, Agilent Technologies - Slide 14

15 Business Opportunities Wireless data Packet networks Next-generation computers Broadband to the home Automotive electronics Life sciences Ned Barnholt, Agilent Technologies - Slide 15

16 The Key Is Pervasive Innovation We need leaps, not steps Innovation everywhere technology, processes, business models, partnerships Innovation that is market-driven and reality-based Ned Barnholt, Agilent Technologies - Slide 16

17 Does Our Industry Have a Future? Opportunities for Innovation Ned Barnholt President, Chairman and CEO Agilent Technologies Ned Barnholt, Agilent Technologies - Slide 17