External Use

Flexible Electronics

Near-Term and Future Opportunities

IESA CXO Conclave

Om Nalamasu, PhD

CTO, Applied Materials

President, Applied Ventures, LLC

March 22nd 2016

External Use2

Company Profile

Electronics & Display Industries Flexible Technologies

Global Inflections

Ou

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External Use

Summary

External Use

APPLIED MATERIALS INC

Market Cap: $23.4billion

Fiscal 2015 Revenue: $9.7 billion

Fiscal 2015 R&D: $1.5 billion

Founded: November 10, 1967

Headquarters: Santa Clara, California

Global Presence:81 locations in 18 countries

Fortune 500 Ranking: 350

RD&E and/or Manufacturing Centers:

China, Germany, India, Israel, Italy, Singapore, Taiwan, United States

Employees: ~14,600 worldwide

Patents: ~10,200 issued

*Including RFTs, contractors & associates

APPLIED MATERIALS INDIA PVT LTD

Founded: July, 2003

Headquarters: Bangalore,

India Presence:Bangalore, Chennai, Delhi, Mumbai

Lab Space: > 25,600 sq. ft.

University Spend: > INR 75 CR

Employees: ~ 2300

Applied Materials Global Strength

1

Data as of fiscal year end, October 25, 2015

External Use

Global Scale and Reach

4

Taiwan

China

Italy

Singapore

Israel

California

Texas

Montana

Massachusetts India

81 WORLDWIDE LOCATIONS, 18 COUNTRIES

Mfg Locations

Data as of fiscal year end, October 25, 2015

Germany

External Use

Applied Materials Business Segments

5 External Use

External Use6

Company Profile

Electronics & Display Industries Flexible Technologies

Global Inflections

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Summary

External Use

We are Living in Exciting Times

7

Next Gen Displays

3D Printing

Personalized

Medicine EV and Energy Storage

RoboticsGenomics Drones

How can we

enable these

inflections with

Materials

Engineering?

Internet of Things

External Use

The future is bright with large opportunities

8

Next Gen Displays

3D Printing

Personalized

Medicine EV and Energy Storage

RoboticsGenomics Drones

How can we

enable these

inflections with

Materials

Engineering?

Internet of Things

cv$150billion

cvcv

cv

cv cvcv

$1.7trillion

$16billion

$2.5billion

$6billion

$50billion

$60billion

$22billion

2020 Total Available Market

External Use

Global Technology Inflections

9

WFE DISPLAY Clean Energy New markets

Mega

Trends

Mobility

IoT

Mobility

High Res., Flex Display

Beyond Grid Parity

Electric Vehicles

Smart Grid

3D Printing

Medicine

Critical

Inflections

Litho

Patterning

3D Architecture

OLED

VR/AR

Flexible and High Res.

Energy Storage /

Harvesting

Beyond Grid Parity PV

Metal 3D printing

Personalized

healthcare

Materials

Engineering

Solutions

New Materials Etch,

Deposition, Patterning,

Clean

High mobility TFTs:

MOx, LTPS

Thin Film Encapsulation

Front Plane

Si Epitaxy (Kerfless Si)

High solar cells

Fault Current Limiter

Inspection

Microfluidics

Biocompatible matls.

External Use

Global Technology Inflections Driven by flexible form factor

10

WFE DISPLAY Clean Energy New markets

Mega

Trends

Mobility

IoT

Mobility

High Res., Flex Display

Beyond Grid Parity

Electric Vehicles

Smart Grid

3D Printing

Medicine

Critical

Inflections

Litho

Patterning

3D Architecture

OLED

VR/AR

Flexible and High Res.

Energy Storage /

Harvesting

Beyond Grid Parity PV

Metal 3D printing

Personalized

healthcare

Materials

Engineering

Solutions

New Materials Etch,

Deposition, Patterning,

Clean

High mobility TFTs:

MOx, LTPS

Thin Film Encapsulation

Front Plane

Si Epitaxy (Kerfless Si)

High solar cells

Fault Current Limiter

Inspection

Microfluidics

Biocompatible matls.

External Use

Flexible Electronics Applications

11

Digital Microfluidics

Formable Display

Flexible Display IoT

Flexible Circuits Large Display

External Use12

RENEWED INNOVATION THE AGE OF CONNECTIVITYCONVERGENCE

Computing

Mobility

User Interface

Open Platforms

Connected

Consumer

Electronics1

Connected

Industries2

Connected

Everything3

Geo-tagging

Gesture recognition

Touch panels Cloud computing

Millions of Apps

Tablets

Smart phones

Innovating Silicon For

a More Connected

Tomorrow

Smart sensors

Energy harvesting

Network architecture

Big data analytics

External Use

How Big is the Internet of Things

A Huge Growth

Market!

External Use14

Company Profile

Electronics & Display Industries Flexible Technologies

Global Inflections

Ou

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Summary

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Growing Visual Expectation: 4 Key TrendsDisplay is now the #1 differentiation feature of electronics

4K TV 8K TV

>600ppi phone

Full HD TV

>326 ppi phone

70 TV

5 Phone40 TV

3.5 Phone

Mobile TV Ubiquitous

55 TV

4.5 PhoneSIZE

RESOLUTION

OLED

FORM FACTOR

TODAYYESTERDAY TOMORROW

Source: deutsche bank

External Use

Flat Panel Display (LCD) Drivers

> 20% Bigger (HD)TV Every Year for the Same Price

LCD Industry Revenue ($B) Production Cost per Area (k$/m2)

0.1

1

10

100

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

20042004

2020~$1000~$100020042004

2020~$1000~$1000

20082008

4242 ~$1000~$100020082008

4242 ~$1000~$1000

2011 2011

6060 ~$1000~$10002011 2011

6060 ~$1000~$1000

0.1

1

10

100

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

20042004

2020~$1000~$100020042004

2020~$1000~$1000

20082008

4242 ~$1000~$100020082008

4242 ~$1000~$1000

2011 2011

6060 ~$1000~$10002011 2011

6060 ~$1000~$1000

0.1

1

10

100

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

20042004

2020~$1000~$100020042004

2020~$1000~$1000

20082008

4242 ~$1000~$100020082008

4242 ~$1000~$1000

2011 2011

6060 ~$1000~$10002011 2011

6060 ~$1000~$1000

Functions/area is the predominant driver for VLSI

Cost/area is the more dominant factor in applications other than VLSI

External Use

Substrate Size Driving Costs Down

Mean time to double the substrate size = 1.5 years after Gen 4.5

Gen 10 = 60nm uniformity over ~ 1019 nm2 area at 50sph

2880x3130

4 up

10.46 up

12.1

6 up

15 ~ 17

6 up

19 ~ 24

6 up

37 Wide panels6 up

52 Wide panels

6 up65 Wide panels

Panel size

Inch

10.4 12.1 15 ~ 17 21 ~ 24 46W37W32W 52W

Panel/sub 4 6 6 6 666 6

Application Note PC -----------------> Monitor TV----------------->

1/ '06~

ACLS

AKT 90K2850x3050 class

Gen 10

90,144cm2(1.63 from 55 K)

12/ '08~

57W / 65W

8 / 6

1600370x470

400x500

3500 / 4300 / 4300A

550x650

600x720

620x750

5500/5500A680x880

730x920

15K / 15KA1100x1250

1200x1300

Substrate

Area

2,000 cm2(1.00)

4,650 cm2(2.33 from 1600)

6,716 cm2(1.44 from 4300)

15,600 cm2(1.30 from 10K)

40K / 40KA1870x2200

1950x2250

41,140 cm2(1.52 from 25 K)

Model

Substrate

Size (mm)

Gen 2 Gen 3 / 3.5 Gen 4 Gen 5 Gen 7 / 7.5

System

Layout

ACLS ACLS

2/ '93~ 4/ '95~ 1/ '00~ 6/ '02~ 7/ '04~1st Release

ACLS

25K / 25KA1500x1800

1500x1850

27,750 cm2(1.78 from 15 K)

5/ '03~

Gen 6Gen 5.5

19,500 cm2(1.25 from 15 K)

20K1300x1500

ACLS

8/ '04~

Gen 8 / 8.5

ACLS

50K / 55K2160x2400 class

2200x2500

53,136 cm2(1.21 from 40 KA)

TFT-LCD TVDesktop MonitorNotebook PC

4 up

10.46 up

12.1

6 up

15 ~ 17

6 up

19 ~ 24

6 up

37 Wide panels6 up

52 Wide panels

6 up65 Wide panels

4 up

10.46 up

12.1

6 up

15 ~ 17

6 up

19 ~ 24

6 up

37 Wide panels6 up

52 Wide panels

4 up

10.4

4 up

10.46 up

12.1

6 up

12.1

6 up

15 ~ 17

6 up

15 ~ 17

6 up

19 ~ 24

6 up

19 ~ 24

6 up

37 Wide panels

6 up

37 Wide panels6 up

52 Wide panels

6 up

52 Wide panels

6 up65 Wide panels

Panel size

Inch

10.4 12.1 15 ~ 17 21 ~ 24 46W37W32W 52W

Panel/sub 4 6 6 6 666 6

Application Note PC -----------------> Monitor TV----------------->

1/ '06~

ACLS

AKT 90K2850x3050 class

Gen 10

90,144cm2(1.63 from 55 K)

12/ '08~

57W / 65W

8 / 6

1600370x470

400x500

3500 / 4300 / 4300A

550x650

600x720

620x750

5500/5500A680x880

730x920

15K / 15KA1100x1250

1200x1300

Substrate

Area

2,000 cm2(1.00)

4,650 cm2(2.33 from 1600)

6,716 cm2(1.44 from 4300)

15,600 cm2(1.30 from 10K)

40K / 40KA1870x2200

1950x2250

41,140 cm2(1.52 from 25 K)

Model

Substrate

Size (mm)

Gen 2 Gen 3 / 3.5 Gen 4 Gen 5 Gen 7 / 7.5

System

Layout

ACLS ACLS

2/ '93~ 4/ '95~ 1/ '00~ 6/ '02~ 7/ '04~1st Release

ACLS

25K / 25KA1500x1800

1500x1850

27,750 cm2(1.78 from 15 K)

5/ '03~

Gen 6Gen 5.5

19,500 cm2(1.25 from 15 K)

20K1300x1500

ACLS

8/ '04~

Gen 8 / 8.5

ACLS

50K / 55K2160x2400 class

2200x2500

53,136 cm2(1.21 from 40 KA)

TFT-LCD TVDesktop MonitorNotebook PC

Panel size

Inch

10.4 12.1 15 ~ 17 21 ~ 24 46W37W32W 52W

Panel/sub 4 6 6 6 666 6

Application Note PC -----------------> Monitor TV----------------->

1/ '06~

ACLS

AKT 90K2850x3050 class

Gen 10

90,144cm2(1.63 from 55 K)

12/ '08~

57W / 65W

8 / 6

1600370x470

400x500

3500 / 4300 / 4300A

550x650

600x720

620x750

5500/5500A680x880

730x920

15K / 15KA1100x1250

1200x1300

Substrate

Area

2,000 cm2(1.00)

4,650 cm2(2.33 from 1600)

6,716 cm2(1.44 from 4300)

15,600 cm2(1.30 from 10K)

40K / 40KA1870x2200

1950x2250

41,140 cm2(1.52 from 25 K)

Model

Substrate

Size (mm)

Gen 2 Gen 3 / 3.5 Gen 4 Gen 5 Gen 7 / 7.5

System

Layout

ACLS ACLS

2/ '93~ 4/ '95~ 1/ '00~ 6/ '02~ 7/ '04~1st Release

ACLS

25K / 25KA1500x1800

1500x1850

27,750 cm2(1.78 from 15 K)

5/ '03~

Gen 6Gen 5.5

19,500 cm2(1.25 from 15 K)

20K1300x1500

ACLS

8/ '04~

Gen 8 / 8.5

ACLS

50K / 55K2160x2400 class

2200x2500

53,136 cm2(1.21 from 40 KA)

TFT-LCD TVDesktop MonitorNotebook PC

External Use

Display Trends at CES 2016

18

Advanced TV

4K and above

Large size

OLED TV / QD TV

Curved TV

OLED Expanding

IT

Virtual Reality

Devices

Automobile

Panasonic Curved 4K OLED TVSamsung 170 Modular Display Hisense 8K LCD TV

Audi New A8 with OLEDs

Lenovo Yoga X1

with 14.1 OLED Galaxy Gear VR

External Use

Things are becoming Flexible

19

External Use

Towards Fully Flexible and Foldable Displays

20

External Use

Applied Materials Display Products

NEW EQUIPMENT SEGMENTSCORE TFT-LCD EQUIPMENT

CVD Array Array Test PVD ArrayPVD Color

Filter

PECVD PiVot NAR CF

TV Monitor & Notebook Mobile Phone

+LTPS+ Metal oxide

+ Touch

New TV Tablet Smart Phone

CVD MO

PiVot MO

NAR TP PVD

SmartWeb

ADAPTING

LTPS

Metal Oxide

Hi Res

Touch

OLED

KPX CVD

Pivot

EBT

Expanding portfolio to grow in new segments

+ TFE

CVD

TFE

+ Advanced Test

EBT-HR

21

FLEX OLED

External Use

Applied Roll to Roll Product Portfolio

22

Advanced e-beam based

R2R evaporation system

for packaging and

special applications

TOPBEAM

SMARTWEB

TOPMET TOPMET CLEAR

CVD

Worlds leading modular

sputtering system for

transparent conductive

oxides (touch panel)

and window films

PVD

Worlds fastest

evaporation metallized

and transparent

packaging

Most advanced front

contact free CVD

deposition system for

ultra-high barrier film.

External Use

Roll to Roll Processing Current & Future

23

Cu

rre

nt

Ap

pli

ca

tio

nFood Packaging TP i.e. iPad mini Security / Decorative Window Films

Features

Advanced functionality

Transparent + barrier +

microwavable + retortable

7.9 Retina Display

Film based TP

thinner; lighter

Banknotes security

Anticounterfeit labeling

Decorative packaging

Energy saving

Increased comfort

Blocks heat and UV

Lo

ok

ing

Ah

ea

d

Flexible Displays RF-ID Tags Thin-Film Batteries Intelligent Packaging

Features

Robust

Lightweigt

Form Factor

Robust

Writing speed

Contact free

Smart Cards

Sensor Products

Time/temp indicators

Gas indicators

Thermocromic sensors

http://i01.i.aliimg.com/img/pb/865/991/457/457991865_737.jpghttp://i01.i.aliimg.com/img/pb/865/991/457/457991865_737.jpghttp://cn-pufa.en.made-in-china.com/product/FoHQxTDGuqRE/China-Anti-Counterfeiting-Label-Security-Holographic-Sticker-CN01JG218-.htmlhttp://cn-pufa.en.made-in-china.com/product/FoHQxTDGuqRE/China-Anti-Counterfeiting-Label-Security-Holographic-Sticker-CN01JG218-.htmlhttp://images.intomobile.com/wp-content/uploads/2007/03/thin-film-battery.jpghttp://images.intomobile.com/wp-content/uploads/2007/03/thin-film-battery.jpghttp://www.extremetech.com/wp-content/uploads/2013/01/flexbattery_light-640x353.jpghttp://www.extremetech.com/wp-content/uploads/2013/01/flexbattery_light-640x353.jpghttp://www2.cpttm.org.mo/cyberlab/rfid/tagInLabel.jpghttp://www2.cpttm.org.mo/cyberlab/rfid/tagInLabel.jpghttp://www.directionsmag.com/images/articles/RFID/RFID4tags2.jpghttp://www.directionsmag.com/images/articles/RFID/RFID4tags2.jpghttp://4.bp.blogspot.com/_Q6NM2S4ZwYA/S6rNtztw2rI/AAAAAAAAAYQ/JcgOfknshhE/s320/rfidlabel2.jpghttp://4.bp.blogspot.com/_Q6NM2S4ZwYA/S6rNtztw2rI/AAAAAAAAAYQ/JcgOfknshhE/s320/rfidlabel2.jpghttp://1.bp.blogspot.com/_XMm2OsWNvVg/SxEBaZMMTOI/AAAAAAAABQw/yazBmtaZfAw/s1600/Printed_intelligence.jpghttp://1.bp.blogspot.com/_XMm2OsWNvVg/SxEBaZMMTOI/AAAAAAAABQw/yazBmtaZfAw/s1600/Printed_intelligence.jpghttp://api.ning.com/files/scRZfpzTiMxxuWCD6pFecAt5wLgAqGVFqw6mQCCXjILzL3gu2KjFiXlG50rKFbGSGUDCVQQjru0KEphmTlxRllMhESjCUgsz/HolographicHumidityIndicator.jpghttp://api.ning.com/files/scRZfpzTiMxxuWCD6pFecAt5wLgAqGVFqw6mQCCXjILzL3gu2KjFiXlG50rKFbGSGUDCVQQjru0KEphmTlxRllMhESjCUgsz/HolographicHumidityIndicator.jpg

External Use

Flexible Electronics Challenges

Large Scale Mfg. on

plastic, glass, metal &

ceramic substrates

Changes to Supply

chain

Successful

Monetization

strategies

Fragmented with

different

requirements

Requirements on Density, Mobility, hardness

Vacuum Processes

High Dep-rates & Through put

Processing

Thickness & Composition uniformity control

Very Low defectivity

Tight Control of temperature

Market

External Use25

Company Profile

Electronics & Display Industries Flexible Technologies

Global Inflections

Ou

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External Use

Summary

External Use

Flexible Hybrid Electronics Manufacturing is a globally competitive Arena

3/28/201626

External Use

FHE MII Reach US Consortium

3/28/201627

External Use

Summary

Applied Materials is the global leader in semiconductor & display industries with highly differentiated roll to roll processing equipment

There are many global technology inflections enabled by flexible electronics and display - Materials Engineering at the heart of all these new developments

Technology Solutions exist for Large Scale Manufacturing on plastic, glass, metal and ceramic substrates

Localized Applications require close collaboration between Industry, academia and Government

The FlexiCenter @ IIT Kanpur provides a good platform for Application focused Research & Development

28

29