212288 the company mission statement: “ to implement quantum mechanics in the world of...
TRANSCRIPT
212288
The Company
• Mission Statement:
“To implement Quantum Mechanics in the world of Semiconductor Fabrication & Information
Technology”• Has exclusive rights to a patented new way to design computer
chips• To overcome the limitations of existing technology
• Ownership:– Caltech- JPL/NASA - 30%– Quantumatics Llc - 70%
212288
212288
What is the problem that semiconductor chip manufacturing is about to face?
212288
The Challenges
• Miniaturization will push optical lithography to sub 57 nanometer resolution by 2005– Using existing techniques for such design needs
is cost prohibitive
• Advancements in chip design and material science by themselves, may not be sufficient
Lithography is a process to transfer circuit images onto substrates
212288
212288
What is our answer to the problem?
212288
The Technology
• Miniaturization depends on the distance between the trough and the peak
• By “entangling” multiple photons, Quantumatics will be able to reduce distance between the trough and the peak
To achieve the same degree of miniaturization, existing technology will have to use ultra-small wavelength laser systems that are very costly
Existing Technology
QuantumaticsTM’ Technology
212288
212288
How does our technology provide a compelling solution?
212288
The Value Proposition
• Quantumatics proposes a technology to overcome the barrier in such a manner that the– Chip makers will be able to:
• Make more powerful chips from the same wafer
• Save capital equipment costs
• Make more chips
• Reduce production costs
• Our solution is to retrofit existing equipments and make them ready for the next technology node– Cost saving of ~ $60 M per fab plant per year
212288
212288
Quantumatics has exclusive rights to quantum lithography - a breakthrough and patented technique to make powerful computer chips for tomorrow’s Information Technology needs.
We will now define our target market...
212288
The Market
Quantumatics plans to target:– Lithography Equipment & Process
• Stepper / Scanner machines
• Reticle manufacturing machines
• Reticle / mask
– Semiconductor products • Microprocessors & Microcontrollers
• Optoelectronics & Flash memories
• Programmable Logic Devices
• Digital Signal Processors
These are the two main types of machines that deal with patterning
Masks or reticles are used to transfer the image of the chip’s design onto the wafer. This process is called patterning
212288
212288
Let us now explore the market potential…Segment Size & Growth
212288
Stepper / Scanner Market Segment
• World market size - Sales – $3.8 B in 2000, $9.3 B in 2010
• Growth – Dataquest - 41.0% in 2001,
– VLSI Research -14.3% CAGR* 2000 - 2005
– Our estimate -12.0% CAGR 2000 - 2011
*CAGR: Compounded Annual Growth Rate
212288
212288
Reticle Market Segment
• Reticle making equipment– World market size - Sales
• $373 M in 2000, $1.3 B in 2011
– Growth • 17% CAGR - MSDW* & our analysis
*MSDW: Morgan Stanley Dean Witter
• Reticle– World market size - Sales
• $2.2 B in 2002, $6.1 B in 2011
– Growth• 14% CAGR - MSDW & our analysis
212288
212288
Semiconductor Products Segment: 2000 - 2008
• Microprocessor
• Microcontroller
• Programmable Logic Devs
• Digital Signal Processors
• Flash Memories
– $37.1 B - $77.3 B, 10% CAGR
– $13.3 B - $77.9 B, 25% CAGR
– $ 5.0 B - $26.9 B, 23% CAGR
– $ 5.9 B - $44.6 B, 29% CAGR
– $10.0 B - $65.9 B, 27% CAGR
Source: Needham & Co. 212288
212288
Who is the customer for this technology?
212288
The Target Customer
• Primary: – Scanner/Stepper Manufacturers
• Nikon, ASM Lithography & Canon
– Reticle Equipment makers• AMAT (acquired ETEC), Hitachi & JEOL
• Secondary: – Semiconductor chip makers
• Intel, AMD, IBM, Texas Instruments, NEC, ST, etc
– Reticle makers• DuPont, Photronics, DNP, Toppan, Align-Rite etc
212288
212288
Who will compete with us?
212288
The Competition
• Competition will come from:– Existing technologies
• Optical Lithography - Extreme Ultra Violet– The consortium of Intel, Motorola, AMD, IBM, etc
– Emerging technologies• Stimulation Emission Depletion• Scanning Near Field Optical Lithography
• Existing customers are investing to advance Optical Lithography
• The emerging technologies are theories waiting to be worked on
212288
212288
What is our execution strategy?
212288
Business Model
• Partner with the equipment makers to design and develop Quantumlithography modules
– R&D licenses / agreements for Prototype Development
• Sell the modules to the equipment makers who will use the technology to make the machines
– Product licenses / agreements for Manufacturing
• Join hands with the sales force of the equipment maker
• Develop core competency in quantum-optics
212288
Proof of Concept Prototyping Manufacturing Selling
Us Equipment Maker
212288
How do we make money?
212288
Revenue Model
Licensing based revenue model
– Primary customers will license the technology to make quantum scanners & reticle making machines• Quantumatics will get 10% of the sales revenue
– Secondary customers will pay royalties for the use of Quantumatics’ technology• Quantumatics will get 1% of the sales revenue
212288
212288
Who will run the company...
212288
Management Team
• CEO: Giovanni A. della Rossa– Successfully started two technology companies in Italy:
• Eidos Spa - computer graphics company
• Quantum Image - multimedia presentations co.
• Chief Financial Officer– MBA from the Anderson School-UCLA
– or from Stanford University
• Chief Technology Officer– An expert from the semiconductor industry
• To direct the development & acceptance of quantum tech.
212288
212288
Who will advise us...
212288
Technical Advisors
• Scientists from the Jet Propulsion Lab / NASA - Caltech
• Scientific Advisory Board– Comprising of scientists from academia
– Industry experts
212288
212288
What is our project plan and what are some of the milestones?
212288
Planned Timeline & Milestones
FH’05 Quantum Optics Technology Center setup
SH’ 05 Proof-of-concept established; Second stage financing
FH’ 06 First stage stepper prototype; First stage reticle equipment prototype
SH’ 06 Stepper & reticle equipment prototypes ready for manufacturing
FH’ 07 Manufacturing partners identified and first units rolled out
SH’ 07 Manufacturing problems resolved – Products ready for installation
2008 First full year of licensing revenues from equipment sales
2009 First full year of licensing revenues from IC product sales
2010 The payback year
2011 We start reaping the fruits of our hard work
212288
What does the plan imply financially?
212288
Sales Forecast - StepperStepper Sales Drive All Revenues
Sales Forecast - Stepper
01020304050607080
2007
2008
2009
2010
2011
Un
its
So
ld
• Machine Sales occur due to:– New Fabs
– Fab Upgrades
• Every Quarter:– 10 new fabs
– 15 fabs upgrade
• Average order size for a new fab is 11 latest generation scanners
• Average order size for upgrading a fab is 4 latest generation scanners
Sales Forecast Assumption:By 2011, 32% of all latest machines sold by an equipment maker will be quantum
Source: S G Cowen & Company Analysis
212288
Financial Projections
• The business is expected to start generating revenue after 2 years of securing the financing
• The business is expected to start making profit from fourth year of operation
• Gross Margins: 70% -200000
20000400006000080000
100000120000
$'000
2005 2008 2011
Revenue Gross Profit
Net Income
212288
Cash Flow Projections
• The business is extremely cash rich
• Not much cash tied-up in non-productive assets
• Capital requirements:– $2.7 MM 1st year
– $5.4 MM 2nd year
• Payback period: 5 years
-10.000
0
10.000
20.000
30.000
40.000
50.000
60.000
'06 '08 '10
$' 000
212288
How do we succeed?
212288
Keys To Success & Uncertainty
• Successful proof-of-concept– Technology center to be setup by year end
• Successful prototyping for manufacturing• Strategic Alliance with at least one of Nikon,
Canon, ASM Lithography for steppers & AMAT, Hitachi and JEOL for reticle making machines
• Semiconductor Industry Assoc. support and recognition in the SIA Roadmap
2122881 - 1.9 2 - 2.9 3 - 3.9Uncertainty Score out of 5
212288
How much money do we need to make this plan a success?
212288
Capital Requirements
2.7
5.4
0
1
2
3
4
5
6
First Second
R ounds of Financing
$'M
Second Round after 12 months
212288
Why Should You Invest ?
• First company to patent quantum lithography
• Quantum lithography is one of the first commercial applications of quantum technology - the one that will give birth to new paradigms in computing
• You will be credited for the next big wave in the semiconductor industry after the development of the IC*
$100
$1978
Amounts in real dollars
2002 2011
Your money will grow at 53% annual rate†
† It assumes that no other cash disbursements occur to the investor prior to the exit & investor owns 10% of the equity* IC stands for integrated circuit
212288
May we address your concern about the gestation period?
– What is the minimum that you can make in this deal and how soon?
212288
Can You Exit Earlier?
• ABSOLUTELY!• Several technology leaders have started to invest
in advancing quantum technology– Quantum lithography will offer a strategic fit &
– Provide them with a competitive advantage
• Hence, it may be possible to sell your share of the equity to a company interested in our technology
• We expect the valuation to at least double by the end of the initial phase
212288
No wonder the Press all around the world is excited....
212288
Media Coverage
• American Institute of Physics• Chicago Tribune• CNN• Daily Post (London)• Daily Telegraph (London)• Nature• The New York Times• The Times of India• USA Today