Applied Materials Confidential
The 2019 Deep Tech Challenge Startup Competition
Applied Ventures LLC & Industrial Technology Investment Corporation (ITIC)
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First in Taiwan, Unprecedented Judging Roster
First ever competition held in Taiwan, with high-level judges:
q Applied Materials Senior Executiveq ITRI Presidentq 2 Fortune 500 Senior Executivesq University President
US$500K – 5M in potential venture investment and the vast resources of Applied Ventures and ITIC.
Applied Materials Confidential
Part I
Introduction to Applied Materials & Applied Ventures
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semiconductor and display equipment companyWorld’s #1
Data as of fiscal year end, October 2018
AMAT stocklisting onNASDAQ
$17.3 billionrevenue
Headquartered in California’sSilicon Valley
~21,000 employees93 locationsIn 17 countries
>12,500patents
~$2.0 billionR&D spending
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Core Businesses
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Display and Adjacent MarketsSemiconductor Systems Applied Global Services
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AMAT’s Demonstrated Long Term Commitments to Taiwan
• Applied Materials (AMAT) established its Taiwan operations (AMT) in 1993. AMT has been serving customers such as TSMC, UMC, AUO, etc. AMAT further expanded its operations in Taiwan by establishing service sites in Linkouand Taichung, manufacture center and display lab in Tainan, and Logistic Hubs for Asia in Taoyuan.
• AMAT has created >1,600 high tech jobs in Taiwan in the past four years. Among the new hires, >210 were university graduates from Taiwan universities.
• On Jun 5th 2019, AMAT opened its 2nd manufacturing facility for display equipment and a new R&D lab in the Tainan Science Technology Park, totaling NT$3 billion in investments.
Hsinchu Headquarter
AMATTainan Fab II
Tainan manufacturing
center
AMATTainan Fab III
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Semiconductor is at the Foundation of Technology
SEMI / DISPLAY EQUIPMENT
SEMI DESIGN & MANUFACTURING HARDWARE DATA SERVICES
#1
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Applied Ventures ProfileStructure LLC, wholly-owned subsidiary of AMAT
Investment Professionals 7
Fund Size Invest up to $50M/year
Assets Under Management Invested ~US$300M to date
Investment Size $3M - $5M / round (early stage)up to $10M / round (later stage)
Investment Criteria • Strategic Relevance• Financial Return
Investment Scope • Seed through growth stage• Invest globally
Collaborative Approach Lead or co-invest with leading institutional investors
Portfolio Oversight Board Seat (Observer or Director)
GovernanceMonthly Investment Committee decisionsQuarterly CEO Reviews / BOD ReportsAnnual Portfolio Review
Investment Focus AreasApplied’s Core Markets:
New & Adjacent Markets:
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Applied Ventures: Corporate Venture Capital Arm of AMAT
Semi Display
Digital Mfg
Next-GenDisplays
(incl. AR/VR)
Big Data & AI
$21B
Energy
$1.3T
$150B+
LifeSci
$45B+
$200B+
$# = TAM ~2021
$42B WFE $13B DFE
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Disruptions Driven by Materials Engineering
MATERIALS ENGINEERING POSSIBILITIES
• 3D device architectures
• Compound semi / power electronics
• Advanced packaging
• Advanced deposition, etch, & patterning
• Logic & advanced processors
• New computing architectures
• Advanced packaging
• High-fidelity manufacturing technologies
• In-situ metrology
• Design software
• AR/VR• High-mobility
TFTs• High-resolution
OLED • Advanced
encapsulation
• High energydensity batteries
• High-speed imaging
• Nano-fabrication / Lab-on-a-chip
INFLECTION Big Data & IoT
Artificial Intelligence
3DPrinting
Advanced Displays
Energy Storage
Personalized Medicine
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+Investors and partners network that spans multiple geographies
and industry sectors
17 countries, 90 locations,18,400 employees
ItalyMontana
Massachusetts
Texas
Germany
India
IsraelCalifornia
Singapore
Taiwan
Principal LocationsData as of 10/25/15
Corporate co-investors
Financialco-investors
Limited partner of funds in
various sectors
APPLIED MATERIALS WORLDWIDE
Korea
China
Applied Ventures: Our ecosystem of VC partners
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Applied Ventures Portfolio* (>80 Companies, 35 Exits)
11 *selected exited and active portfolio companies
IPO
IPO
Big Data & AI
IPO
IPOIPO
IPO
PLAYNITRIDE
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CASE STUDY | Adesto Technologies
AV’s Ser A investment in 2007IPO – Oct 2015
Leveraged Applied’s state-of-the-art R&D fab
Accelerated High Volume Manufacturing and successful commercialization
AV invested from Ser A through IPO. Brought in Key Syndicate Partners
Model replicated with other investments/ partnerships
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Collaboration with Applied Ventures (in addition to VC Financing)
Includes seed and university spin-outsMarket guidance and customer introductionsCollaboration: proof-of-concept
EARLY STAGE IPO
MID STAGE
GROWTHSTAGE
Access to Maydan Technology Center, META center and engineering expertiseCollaboration: JDAs, In-kind investment
IPO
Access to Maydan Technology Center, META, engineering expertise and product integrationCollaboration: JDAs, Commercial agreements
Applied Materials Confidential
Part II
Introduction to The Industrial Technology Investment Corporation (ITIC)
ITRI: The Cradle for Nurturing Hi-tech Start-ups
Page 4 ITRI labs
ITRI
ITIC
PublicSector
SuccessfulCorporations Startups
Universities&
Incubators
Investors&
Mentors
OtherSecurities
AccountingMarket intel
1979Year founded
$6m – 250mEvergreen Fund
~300Investment made
$750mAsset Under Mgmt.
AllStages invested
90+Portfolio Exits
We invest across all sectors, but especially the following:
Electronics/Semi-conductor
PrecisionMachinery
Opto-Electronics
Biotech/Health
Automotive/Mobility
Materials CreativeIndustry
We’ve helped nurture companies with combined market cap in the hundreds of billions.
1980s 1990s 2000s-
利憶科技
BTMU
ITRI
Taiwan Company ACustom motor
IC designsolutions
ITIC
MUCAP
ITRI GreenEnergy LabSupport motor
IC design
ITICManagement,
finance & other support
Japan Company A
Sells 70% of the world’s
motors
OtherInvestors
Golden Asia Fund
*Seeking motor IC design house
*Seeking Japan Channel
Revenue Jump:2013: NT$186m2017: NT$600m2019: IPO*Product mix change improved gross margin
*Japan Company A contributed around NT$200million
BTMU
ITRI
Taiwan Company ACustom motor
IC designsolutions
ITIC
MUCAP
ITRI GreenEnergy LabSupport motor
IC design
ITICManagement,
finance & other support
Japan Company A
Sells 70% of the world’s
motors
OtherInvestors
Golden Asia Fund
Applied Materials Confidential
Part III
Competition Details:Rules, Timeline, Selection, etc.
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Competition: Target Sectors
MATERIALS ENGINEERING POSSIBILITIES
• 3D device architectures
• Compound semi / power electronics
• Advanced packaging
• Advanced deposition, etch, & patterning
• Logic & advanced processors
• New computing architectures
• Advanced packaging
• High-fidelity manufacturing technologies
• In-situ metrology
• Design software
• AR/VR• High-mobility
TFTs• High-resolution
OLED • Advanced
encapsulation
• High energydensity batteries
• High-speed imaging
• Nano-fabrication / Lab-on-a-chip
INFLECTION Big Data & IoT
Artificial Intelligence
3DPrinting
Advanced Displays
Energy Storage
LifeSciences
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Competition: Eligibility
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You must meet the legal age requirement for starting a company in Taiwan.
You must not be a current ITIC/AV portfolio company.
You must be preparing to launch your startup in the next 3-6 months, or have already done so, and be ready to receive investment.
You must work in one of the sectors: semiconductors, AI, autonomous vehicles, display technologies, 3D additive printing, and life sciences.
You must be either based in Taiwan, or have significant collaboration with Taiwan, or have plans to do so in the near future.
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Competition: Value for Winning Startups
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Interface with experts & decision-makers
Vast resources from AV & ITIC
Cash Prize Potential Venture Investment
Personalized coaching (for finalists)
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Competition: Timeline
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OCT 11 Application closes
OCT 25 Up to 10 Finalists announced
NOV 5 Coaching for finalists
NOV 12 Final Competition
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Competition: Materials to Submit
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1 Business Plan (Deck format ok)
2 Video (strongly encouraged)
3 Other
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Competition: Business Plan Content
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CompanyBackground
Basic company background, country of incorporation基本公司背景、註冊國家
Date founded公司/團隊組成日期
Market Analysis
Market need/problem市場缺口/問題
Total addressable market size整體市場規模
Serviceable addressable market (after excluding big players)有效市場規模(減去大廠之市佔率後,市場還有多大?)
KEY POINT
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Competition: Business Plan Content
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Core Tech / Competence
Key technology (Basic concept, how does it compare to current standards?)關鍵技術(基本概念,與產業標準相比)
Proof points, data or results佐證的資訊、數據、或成果
Product or Solution or Proof of concept主要產品/解決方案或概念驗證
3-5 Year Product roadmap三到五年產品開發計畫
Competitive advantages relative to incumbents and/or emerging competitors競爭優勢(與市場上現有競爭對手與新的競爭對手相比)
SUPER KEY
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Competition: Business Plan Content
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Core TechContinued
Entry barrier對競爭對手的進入門檻
Potential technical and commercial synergy with Applied Materials or ITRI與應用材料及工研院的潛在技術及商業綜效
Business Model
Revenue stream – how do you bring in revenue?如何創造營收
Pricing & cost structure定價及成本結構
Burn rate每月開銷
KEY POINT
SUPER KEY
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Competition: Business Plan Content
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Sales & Marketing
How to expand and grow customers業務開發計畫
Distribution channels & margins販售管道和利潤
Strategic partners & marketing strategy策略夥伴與行銷策略 (若與其他公司有商業合作實際經驗或規劃,請註明)
Team Key members' positions and CV主要成員職稱和履歷
Prior experience working together團隊成員先前合作歷史
Key advisors重要顧問
KEY POINT
KEY POINT
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Competition: Business Plan Content
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Financials Next 3-5 years’ financial projections未來3-5年財務計畫
FundingRequirements
Use of funding如何運用募到的資金
Cap table資本結構表
| Applied Materials Confidential
Thanks
Q&A
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