market development and r&d · 2012. 8. 24. · page 4 topsil Årsrapport 2010 solid development...

MARKET DEVELOPMENT AND R&D

LD Markets 15 April 2011

3 2010 in brief

5 Market development

15 8” R&D and new plant

21 Focus towards 2012

24 Q&A

AGENDA

2010 IN BRIEF

TOPSIL ÅRSRAPPORT 2010

Solid development in underlying markets continued in 2010 – aggregated market growth on Topsil’s markets of around +8% to approx. USD 1.4bn*

Main growth driver remains increased investments in smart power and energy efficient solution, e.g. in transportation, infrastructure and industry

Growth on high and very high voltage levels on par with previous year

20% increase in wafer volume

Sharp increase in demand for CZ as consumer electronics market rebounded

Group revenue of DKK 457m (+8%) and EBITDA of DKK 102m (+2%) – in line with expectations for 2010

Surge in cash flow from free operations (CFFO )to DKK 92.7m (DKK 37.2m) driven by reduced NWC

Decrease in trade receivables

Tax for 2010 pre-paid

STRONG DEMAND IN UNDERLYING MARKETS RESULT ON PAR WITH EXSPECTATIONS

* Source: Yole Developpement, March 2011

MARKETDEVELOPMENT


UPDATE FROM YOLESHORT TERM IMPACTED BY FIN. CRISES

The High Power market is a “long cycle” business and has performed well during the financial crises.

Short term growth impacted by slow down of projects:

Until beginning of 2011, bank financing has been restricted. Industry investments and renewable projects have been put on hold.

Infrastructure and government programmes have been stopped awaiting financial stability.

Stimulus packages aim at supporting infrastructure projects, but these projects require long planning and approval processes .

Order visibility has become shorter, but underlying market is regaining momentum.


UPDATE FROM YOLELONG TERM GROWTH SCENARIOS INTACT

Longer term growth scenario in the power market is maintainedwith double digit growth numbers

Source Yole Developpement, March 2011


UPDATE FROM YOLEGROWTH SCENARIOS CONFIRMED

Source Yole Developpement, March 2011


MARKET UPDATE AND GROWTH SCENARIOS 2011 - 2012

Main wafer type split by application


LONG TERM MARKET DRIVERSGLOBAL ENERGY CONSUMPTION AND SOURCES

Energy consumption expected to increase more than 3 times over the next decade

Existing energy sources will run out and new will be developed


LONG TERM MARKET DRIVERSGLOBAL ENERGY – SOLAR BEYOND SUBSIDIES

Grid parity: Consumer price = PV power cost

• Source: www.eupvplatform.org• Source: www.eupvplatform.org

Solar market has taken off significantly and will continue to develop


LONG TERM MARKET DRIVERSGLOBAL ENERGY – THE GRID

Transformation of the Grid is essentiel to handle new sources of energy


Industry: Continued focus on energy-efficient solutions in industry, e.g. industrial motors (”Smart power”)

Transportation: Continued movement towards more efficient and more climate-friendly transport of people and goods

Automotive:

Hybrid and Electrical vehicles (# units): 2010: 1m, 2014: 3m, 2018: 12m

Renewable energy sources

Solar generation (# units): 2010: 3m, 2014: 6m, 2018: 15m

Wind generation (# units): 2010: 80K, 2014:130K, 2018:230K

New investments in infrastructure and integration of new energy sources in existing grids (smart Grids etc.)

Main risks: Financing, manufacturing and supply chain bottle necks, availability of rare metals change of political focus

SUMMARYLONG TERM MARKET DRIVERS


Contract customers developing in line with expectations

Costumers are scaling up production capacities in some production lines, short term, implying lower overall production in 2011

Introduction of new 6” PFZ for medium power market will have positive effect from 2011 with sales from new customers

Development of 8” product represents a significant growth opportunity. Global shortage of supply to continue.

GROWTH TOWARDS 2012CUSTOMERS

R&D AND NEW PLANT


Development in wafer sizes due to production line constraints (i.e 6” line, 8” line)

CZ: 3” -> 4” -> 5” -> 6” -> 8” -> 12” -> 16” (400mm) -> 18” (450mm)

FZ: 3 ” -> 4” -> 5” -> 6” -> 8”

12” FZ theoretically possible, but never tried.

Lifecycle of given diameter typically 15-20 years (FZ) and 10 years (CZ)

Marked development drivers: Technical performance, cost and quality (yield)

R&D CENTRAL IN SILICIUM WAFER MARKETP

rod

uct

Design of Experiment

Product capability Qualification follow up

Product release

Year 0

Project start Crystal Growth

Experimental and statistical DOEIP protection

Irradiation and anneal Engineering samples

Statistical product capability

Detailed customer and

production feedback

Customer feedback

Lock down of all

parameters

Define objectives

and resources

Experienced trial & error

simulations

First Crystal Process locked Samples QualifiedLaunch

Year 1 Year 2 Year 3Time


8” FLOAT ZONE PRODUCT

Large and heavy weight poly rods on stock for 8” production

Ingot

Tail

Cone

Flat

8” allows more components per wafer, thus reducing cost

8” NTD is relevant to the very high voltage applications and is currently in demand

8’’ NTD is still on R&D level

8’’ PFZ has been launched by two of the biggest corporations in industry


TOPSIL 8”- R&D

Design of Experiment

Product capability

Qualification follow up

Product release

Crystal Growth

PolyDefine specs Test poly Develop specs Qualify

Ingot productionCheck compliance Install machinery Train operators Ramp

Market & customers Strategy Target customers Sampling Ramp

IrradiationContact to reactors Resistivity control Annealing

Wafering8” compliance Strategic options Qualify Ramp

FinancialsCAPEX Cost model Cost price rev. Sales price rev. Ramp P&L

8’’

New manufacturing facility – Capacity expansionFinancing Project drawings Buy land Start building Finalize building Transition / Customer Qualification

First Crystal Process locked Samples QualifiedLaunch


TOPSIL – PRODUCTION (ALL PRODUCTS)

Ingot post processing+ QC

Irradiation

Ingot Etch + Anneal

Wafering

WaferingQC + Shipping

PFZ

WaferingQC + Shipping

Sourced CZ wafers

CZ growthIngot post processing+ QC

EPI

Speciality

Speciality

WARSAW

FREDERIKSSUND

EXTERNAL

WARSAW

EXTERNAL

FZ

CZ+CZ-EPI

CZ preparation

FZ growthPoly preparation+ Etch

Ingot post processing+ QC


NEW PLANT, CONSTRUCTION 2011-2012

To increase capacity in line with expansion business case

To make a modern facility in a modular and scalable design

To optimise flow and cleanliness in order to improve cost and quality

To increase capability, including 8’’, however is not a prerequisite for 8’’ production

Step by step transfer of machinery and people to enable smooth production and supply

FOCUSTOWARDS2012


MAIN FOCUS : GROWTHSTRATEGY SEIZING THE OPPORTUNITY

Increasing market share (revenue and earnings) in power market

Maintain high market share and grow with existing customers in the NTD market (high voltage)

Possibilities in the medium voltage power market with PFZ/EPI are large due to expected market growth and Topsils current limited size in this market

Topsil MUST expand as customers are demanding

Increased capacity

More efficient production at state-of-the-art cost positions (cost down)

Access to new products - 8”

Ability to choose the best substrate for a component (NTD, PFZ, EPI)

Movements from NTD to PFZ for some components

Movements from EPI to PFZ for some components

Movements from CZ to EPI for some components


RISK MANAGEMENT

Time to operation /qualification

Cost improvements to be reached for PFZ & NTD

Challenge Response

New Production facility

Primary focus on growth in volume; less on closing date for old plant

Detailed plan for all available internal / external resources (production equipment)

Cost improvements reached through yield improvements for Topsil and Cemat

Cost focus

Cost improvement program scaling to reach target

Cemat to be run as a production site

Time to market 8” NTD and PFZ + cost

Research & Development

8” Integrated Product Development is scaled to reach target (ingot, wafering etc.)

market development and r&d · 2012. 8. 24. · page 4 topsil Årsrapport 2010 solid development...

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