As ULVAC’s base in Taiwan, ULVAC TAIWAN INC. (UTI; Chairman: Mitsuru Motoyoshi [Director and Senior Managing Executive Officer of ULVAC, Inc.] President: Yu-Jer Tsai) has delivered more than 1,000 ULVAC systems, thereby supporting Taiwan’s electronic industry. In recent years, manufacturing in Taiwan has been decreasing, but ULVAC TAIWAN INC. is endeavoring to enhance its services, undertake unique research and development, and pursue market development. This edition’s VISITING ULVAC section has an interview with Yu-Jer Tsai (UTI President) and Stanley Wu (Vice President).

Introduction

UTI was founded in 1982 with the aim of delivering sales and service operations for vacuum equipment. Initially, its sales and service operations were for components and small research systems. Until the mid-1980s, its main products included industrial equipment such as vacuum evaporation roll coaters and vacuum heat treatment furnaces.
In the 1990s, industries in Taiwan shifted to electronic parts and semiconductors in response to increased technical cooperation with Japanese-owned businesses and the start of a foundry business.
After 1998, investment related to flat panel displays (FPDs) increased rapidly, resulting in Taiwanese industries playing an active role as the base of production for the world’s semiconductors and LCDs.
UTI not only installed ULVAC systems, but also started its own production in Taiwan. It constructed a factory in Tainan, from
which it manufactured and delivered many systems.
Recently, however, the electronics industry in Taiwan has seen an increase in the number of company mergers and business startups overseas, and domestic opportunities for manufacturing have been decreasing.
Against this backdrop, UTI has been enhancing its manufacturing and production skills and actively pursuing initiatives such as enhancing its field services, undertaking unique research and development, and developing an organization that takes full advantage of diversity.

Enhancing Our Customer Support Business

UTI cannot succeed and survive in today’s increasingly intense global competition simply by delivering conventional customer services, such as repairing broken products and selling the necessary parts. UTI not only performs any necessary repairs, but also pays due attention to the customer’s needs at all times by proposing useful improvements and enhancements for them in a variety of ways.
UTI also works in cooperation with ULTRA CLEAN PRECISION TECHNOLOGIES CORP., a group company that delivers manufacturing, cleaning, surface treatment, and customer support services for vacuum system units and their parts. As a result, UTI’s customer support business in Taiwan is now essential to the Taiwan group.

Unique Research and Development

UTI mainly conducts its business in cooperation with large companies in major industries. However, it also focuses on smallscale projects that could easily be overlooked, and keeps a close eye on various new possibilities by actively working to identify new lines of business ahead of its competitors.
In addition, UTI is aggressively developing businesses in new areas that are directly linked to our everyday lives. Its employees contribute ideas for discussion, and these are eventually raised at a
directors’ meeting. Under this system, one idea is adopted every six months as a new research and development theme.
PROLAYER, the recording technology is one of these themes.
*You can see the article “Outstanding Vinyl Record”
Wu says, “We experienced a countless number of unsuccessful trials, but successful trials —even if they are few in number—raise the morale and motivation of employees. With themes that are deeply linked to our everyday lives, we are moved by being able to experience ULVAC’s technologies directly. The most important thing is develop your sensitivity —in other words, what inspires you. It is essential to enjoy development.”
We expect new areas of business to be increasingly created through the enjoyable development that is realized by fully demonstrating your sensitivity and experiencing things through your five senses.

Inter-Group Cooperation

Taiwan is a geographically compact island, so it is easy to provide support among the various different business areas, and members of the company’s upper management can visit domestic sites easily. UTI takes full advantage of these geographical advantages. Rather than dividing its head office, business offices, factories, and group companies into different frameworks, the company prioritizes the maintaining of a close network, cooperation,
communication, and operational agility.
UTI also cooperates with ULVAC group companies in China to support its Taiwanese customers with China-based factories. It regularly provides on-site support for such customers when necessary.
Tsai says, “Even if the work is undertaken by a different company, base, or department, it will always be ULVAC for our customers. It is important for us to integrate to be One ULVAC.”

Developing an Organization That Takes Full Advantage of Diversity

In recent years, an increasing number of women have entered Taiwan’s business society, and UTI employs many women too. Women are now playing important roles at our company, particularly in the business departments for materials and parts.
Since UTI originally focused on selling technologies, it mainly employed graduates with a science or engineering background or individuals with experience as engineers. UTI now actively employs graduates from humanities programs and persons in non technical areas as well, since they have high-level communication skills and a rich sensitivity that inspires others. UTI will continue responding to the dramatically changing business environment and diversifying customer needs by not only respecting and accepting differences, but actually making active use of them.

Deepening Communication through Recreation

To promote a sense of unity within the company, UTI is proactive in its efforts to hold a large number of events that provide an opportunity for its employees to get together. Such events include year-end parties, company trips, and CSR activities. In 2013, UTI held a sports day that boasted full attendance for the first time.
This event had been planned from scratch, but several hundred employees prepared and practiced for the holding of the event in a cooperative manner. Many employees said that this process helped to improve their sense of unity, and that the solidarity of the organization was enhanced by sharing feelings of joy and sorrow in a sympathetic environment. In March 2015, employees donated clothes to Corning Education Center, which
supports an independent lifestyle for senior citizens, low-income individuals, and people with disabilities. In return, they received a letter of appreciation.

Future Vision

I took up the post of president in 2006, so this is my tenth year in this role.
In UTI’s operations, we channel all of our energy into establishing a system for accomplishing our work as organization. Under this system, if one of the people in charge is absent, another person will support the project to ensure that the business operations continue smoothly.
To establish such a system, it is important that you support flexible activities by delegating authority and that you promote solidarity among the company’s employees. Given this, we believe that the holding of various company events and activities will also contribute to the establishment of such a system. Consequently, we will continue holding such events and activities.
We will make full use of the ULVAC group network, which covers not only Taiwan, but also the rest of the world. In doing so, we will continue creating unique groundbreaking technologies in Taiwan without sticking to conventional business frameworks. We hope that we can continue to count on the support of our stakeholders.

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On July 1, 2015, ULVAC established the Future Technology Research Laboratory in Tsukuba, Ibaraki (headed by Hirohiko Murakami) to create next-generation business. The Laboratory aims to create innovation by researching “future technology,” as its name indicates, to further leverage ULVAC’s
strengths of developing devices and researching materials.

Introduction

ULVAC was founded in 1952 with the determination to contribute to Japan’s industrial recovery with vacuum technology. Since vacuum technology was not widely used at that time, we established a vacuum technology research department ahead of other Japanese companies, starting to tackle challenges of the industry using all of our intellectual powers.
As a result, the research department has contributed to the industry representing each postwar period with our advanced technology, giving priority to research and development and cooperating with our production department. These industries include heavy industry from 1955, secondary industry, such as home electronic appliances, automobiles, and foods, from 1965, and the electronics industry, such as semiconductors, between 1975 and 1990.
Vacuum technology is now considered a promising key technology essential to the fields of information equipment related to IoT (Internet of Things), energy, and advanced medical treatment.
In recent years, it has become important to promote research and development from a long-range perspective to conduct stable and continuous corporate activities in the industry, which keeps changing and making progress. That is why the Future Technology Research Laboratory was established under our management policy of creating innovative business with an overwhelming competitive edge, or core competence.

For What Purposes Was the Laboratory Established?

The Future Technology Research Laboratory aims to create innovation that surpasses existing technology by researching “future technology,” as its name indicates.
As conditions surrounding us have changed significantly, the challenges we should solve have also become diversified and increased. In this situation, we believe that researchers need to always have challenging research themes of creating something new with the originality of creating one from zero.
It is no exaggeration to say that R&D-oriented companies, like ULVAC, are obligated to create new technology and new social value. We will keep proposing new technology leading the company’s management and business strategies to make every possible contribution to the company’s future.

What are the Research Themes of the Laboratory?

We started our operations with the Surface Treatment Development Center and three research fields (next-generation energy, electronics, and
materials). With a basic policy of “open innovation and an open research laboratory,” we will search for valuable research themes leading to inhouse
ventures together with other R&D departments and work on such themes.
Our research themes, unlike those of university and public research laboratories, will focus not only on academic contributions of accumulating scientific knowledge, but also on contributions to creating future business and core competence.

What Social Contributions Does the Laboratory Make?

Energy is an important global issue. We wish to bring a sustainable future to society and companies by developing technology that can explore the energy frontier.
To achieve this goal, we find it effective to research ultimate storage batteries for expanded use of renewable energy and energy harvesting, which reuses waste heat as energy. We will put extra focus on next-generation secondary batteries, which use CNT (carbon nanotubes) and are one of the materials we have researched, for electrodes.

What is the Research Policy of the Laboratory?

A department whose performance directly influences the company’s performance needs to create business models with the selection and concentration of its operations because failure is unacceptable. On the other hand, a research laboratory should conduct free-minded and flexible activities without the selection and concentration of its operations. In fact, failure can be considered a role of a research laboratory. Failure is classified into two types: mere failure and failure opening the way to the future. Many failures in research activities are achievements opening the way to the future.
To make failures in research activities useful ones, it is important to realize the visions and concepts of research themes one by one. For this reason, I believe that we should not easily reject proposed research themes only because they seem difficult or unacceptable. I hope that each researcher has enough vitality to take the initiative and leadership in his research theme.

What are the Necessary Qualifications of Researchers?

I believe that innovations emerge from interdisciplinary exchanges.
It is generally not difficult to find an opportunity to participate in such exchanges, but to be able to come up with new ideas also requires you to incorporate the knowledge of different disciplines. Merely gathering to socialize and sip on beverages may foster exchange of information, such as research topics, among organizations, but will never lead to breakthroughs.
A good example of exploring different fields is how Watson and Crick discovered the double helix structure of DNA in 1953. They found a clue to this discovery in X-ray diffraction used to analyze crystallographic structures. When they analyzed the structure of DNA with this technique, they found that DNA has a double helix structure.
In this example, biological experts began a new phase of science by applying a physiological technique. This is the type of interaction among different fields that I want to see in the Laboratory.
At the Future Technology Research Laboratory, one of the qualities we look for in a researcher is a daring attitude. We aim to train researchers who not only have such an attitude but also show spirit in competing with other researchers and pioneering in new fields. We welcome those who aspire to be such researchers.

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With a more than 90% share of the market for cryopumps in the flat panel display (FPD) field, ULVAC CRYOGENICS INCORPORATED (UCI) has—since its foundation in 1981—established itself as the leading player in the Asian cryopump market and continues to this day to provide support for the industry. Recently, though, UCI has begun proactively developing potential core businesses for the future by, for example, entering the cryocooler business in 2009 and took over the manufacturing and selling of cryogenic equipment from the Cryogenic Equipment Department of the Engineering Division at Iwatani Industrial Gases Corpration in 2014. In this issue’s “Visiting ULVAC”, we interviewed Mr. Masahiko Ishiguro, president of UCI, about the company’s current position and his vision for the future.

Introduction

Founded in 1981 as a joint venture company based on joint investment and technical agreements between ULVAC (then ULVAC Japan, Ltd.) and the US company BROOKS AUTOMATION INC. (then the CTI Division of Helix Technology Corporation), UCI started out by renting office space in ULVAC’s head office in Chigasaki City. Four years later in 1985, UCI realized a long-cherished dream when construction of its Chigasaki Head Office/Plant was completed in what is now Yabata, Chigasaki City, allowing the company to further expand its operations.
UCI has amassed more than 30 years’ experience in selling semiconductor production equipment for LSIs; FPD production equipment for smartphones, PCs, LCD televisions and other such devices; optical film production equipment for glasses and digital cameras; and cryopumps for use in vacuum equipment such as a space chamber, which simulates the conditions of outer space.
UCI has been able to capture more than 90% of the FPD market in Asia thanks to the outstanding exhaust performance and low vibration of its products. Another of UCI’s areas of strength is its range of large cryopumps with a length of 16 inches or more. UCI has a more than 90% share of this market, too.
UCI went on to found ULVAC CRYOGENICS KOREA INCORPORATED (UCK) in 2004, and stayed ahead of the competition by founding ULVAC CRYOGENICS (NINGBO) INCORPORATED (UCN) in 2005. Being the first company to establish sales channels and a service network for this line of business in China helped UCI to gain customers’ trust.
As of June 2014, UCI had 79 employees working for it and the consolidated net sales for the ULVAC CRYOGENICS Group amounted to 4.5 billion yen.

Targeting Further Growth in the Cryogenic Equipment Field

In 2009, UCI entered into the business of cryocoolers used in the fields of superconductivity, medical equipment, measuring instrument, and laboratory cryostat by leveraging its cryogenic technology, a core technology platform for the manufacture of cryopumps.
In 2014, UCI began selling cryogenic equipment, after UCI took over the manufacturing and selling of cryogenic equipment from Cryogenic Equipment Department of Engineering Division from Iwatani Industrial Gases Corporation.
The technologies used by Iwatani Industrial Gases to manufacture its cryogenic equipment were highly regarded, particularly those found in the cryogenic chillers (cryostats) and refrigerators used for research and development. The synergy between these technologies and conventional cryopump technologies has allowed UCI to proactively pursue even greater technological innovation. Going forward, these technologies are expected to help UCI enter new markets, including the rapidly growing field of high-temperature superconductors and the medical field. (For further details, refer to page 21 of ULVAC News.)

Based on its “Salespersons Wearing Work Uniforms” Strategy, UCI’s Unique Sales System Allows Client Requests to be Dealt with Quickly

UCI has a unique overseas sales strategy.
UCI does not have an independent department dedicated to overseas sales. Instead, such work is handled by the company’s Service Technology Department, which is also responsible for quickly dealing with customer requests and consistently providing services from delivery and repairs through to maintenance.
President Ishiguro, UCI’s president, refers to employees in the Service Technology Department that are responsible for overseas sales as “salespersons wearing work uniforms.”
Another of UCI’s distinctive features is its standardization of machine tools between Korea, China, and Japan. This allows the company to deliver the same level of quality in all three countries. UCI also provides its engineers in these three countries with rigorous training so that they can exchange personnel to meet workload requirements.

Facilitating Company Events for Smoother Communication by Attending Encouraging all Employees to

UCI has hosted annual barbecues at its plant over the last few years, and these events have been attended by all of its employees.
The company makes an effort to host such events in order to facilitate smoother communication between its employees and create a “family feel” in the workplace. Mr. Ishiguro says that they are close to realizing this goal because, having participated in a number of events now, almost all of the employees and their family members have gotten to know each other.
UCI is also proactive in interacting with other companies in the ULVAC Group. It has, for example, rented a fishing boat with ULVAC TECHNO, Ltd. (which is also headquartered in Chigasaki City) to hold a fishing event.

Greater Collaboration and Close Cooperation with Group Companies in Korea and China

Having positioned Asia, which is currently undergoing dramatic industrial development, as its priority region, UCI is working to realize even greater service integration through cooperation with ULVAC KOREA, Ltd. and UCK in Korea together with ULVAC (Shanghai) Trading Co., Ltd. and UCN in China.
UCI’s efforts are particularly focused on increasing sales of cryopumps—one of their core businesses—over the next five years in the semiconductor market and the market for organic electroluminescence (EL) products, an area that has received a lot of attention in recent years. To establish its cryogenic device business as another of its core businesses, the entire UCI group is also committed to further developing its range of cryogenic equipment with a view to boosting sales of these products to the same level as those of cryopumps.

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As key areas of ULVAC operations, North America and the emerging Latin America territories comprise a diverse set of markets that align with ULVAC’s broad spectrum of vacuum-based technologies. These markets include next-generation memory and logic devices, TFB, PV applications, biomedical applications, MEMS devices, LED, EC glass, automotive, refrigeration/air conditioning, and many others. Within each of these markets there is a manufacturing sequence that ranges from R&D, to pilot production, to HVM (High Volume Manufacturing) in most cases. UTECH’s mission is to evaluate the needs of these markets, and introduce the customers to the advantages of ULVAC products, both imported and domestically manufactured.

An Introduction to ULVAC Technologies

When you think about it, if you consider the number of ULVAC manufacturing divisions, multiplied by the products of each, we are left with a wide matrix of product offerings and the challenge becomes, how do we support such a spectrum? The answer is that we are fortunate to have a workforce with many, long-term employees that possess a wide-range of product knowledge. At one point in time, UTECH employed 130 people. After the unfortunate events of 9/11/01, we were faced with a significant business downturn and as a result, reduced the size of our workforce by > 50%. However, today as a 55 employee company, we find ourselves leaner but more versatile and efficient than ever. Much like the 2013 World Series Champion Boston Red Sox, our success is built on a diverse, dedicated workforce willing to “play” multiple positions within the company as needs arise. I am proud to say that our teamwork has been and will continue to be vital to our success!
In our interview with the President Wayne Anderson, this issue of “Visiting ULVAC” will provide you with insight into the UTECH history, markets served, business philosophy and a brief look into the future.

A Brief History Lesson

ULVAC Technologies, Inc. (UTECH) was established on March 31, 1992 in Andover, Massachusetts in response to ULVAC, Japan’s desire to globalize and create a Western Operations. However, ULVAC’s roots in the United States pre-date this event in (2) locations: 1) At ULVAC North America Corporation based in Kennebunk, Maine which served as a distribution center for ULVAC products and a low volume/custom equipment manufacturer and 2) as part of a joint venture with BTU Engineering, Inc. in Billerica, Massachusetts; whereby diffusion furnace products/technologies (BTU) were exchanged with selective tungsten deposition systems (ULVAC ERA-1000). These (2) entities were dissolved upon the establishment of UTECH.
Prior to the establishment of UTECH in the 1980’s, ULVAC acquired today’s ENVIRO-based ashing technology from Emergent Technologies based in Connecticut. This company was owned by our old friend Dick Bersin. After the acquisition, process and product development continued in Japan for several years under the direction of Dick. These efforts ultimately lead to the introduction of the UNA-model ashing system, which was installed primarily, in Japan.
This product was eventually transferred to UTECH and became the basis for our local manufacturing operation. Local manufacturing of the UNA transitioned from the initial “knock-down kit” approach, to 100% domestic sourced parts; whereby the product name was changed to “Phoenix”. The product name has since been changed to “ENVIRO”, to leverage its environmentally friendly solvent-free processing capability.
Market acceptance of our new product began to take hold in the mid-1990’s, which created the need for UTECH to move to a facility that was more conducive to semiconductor equipment manufacturing.
As a result, in 1997, UTECH engaged a construction firm to design and build a new 42,000 ft2 semiconductor-grade facility that is our home today in Methuen, Massachusetts. Our facility offers a Class- 10/100 demonstration laboratory to support ashing and etching technologies along with Class-1000/10,000 clean manufacturing space.
Over the years, our certified business operations at UTECH have grown to be quite widespread and offer a challenging work environment for our (55) member team, including a:
1) Center for sales and service for Import Products including systems and components into the North American and Latin American markets.
2) Center for the ENVIRO ashing product line including R&D, manufacturing, sales and service.
3) Center for ULVAC’s etch technology penetration into the North American market.

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