Transcript Quantumatics Inc

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%
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What is the problem that semiconductor chip
manufacturing is about to face?
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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
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What is our answer to the problem?
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The Technology
Existing Technology
QuantumaticsTM’ 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
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How does our technology provide a compelling
solution?
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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
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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...
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The Market
Quantumatics plans to target:
– Lithography Equipment & Process
• Stepper / Scanner machines
• Reticle manufacturing machines
• Reticle / mask
These are the two
main types of
– Semiconductor products
machines that deal
• Microprocessors & Microcontrollers
with patterning
• Optoelectronics & Flash memories
Masks or reticles are used
• Programmable Logic Devices
to transfer the image of
• Digital Signal Processors
the chip’s design onto the
wafer. This process is
called patterning
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Let us now explore the market potential…
Segment Size & Growth
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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
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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
• Reticle
– World market size - Sales
• $2.2 B in 2002, $6.1 B in 2011
– Growth
• 14% CAGR - MSDW & our analysis
*MSDW:
Morgan Stanley Dean Witter
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Semiconductor Products
Segment: 2000 - 2008
• Microprocessor
– $37.1 B - $77.3 B, 10% CAGR
• Microcontroller
– $13.3 B - $77.9 B, 25% CAGR
• Programmable Logic
Devs
– $ 5.0 B - $26.9 B, 23% CAGR
• Digital Signal Processors – $ 5.9 B - $44.6 B, 29% CAGR
• Flash Memories
Source: Needham & Co.
– $10.0 B - $65.9 B, 27% CAGR
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Who is the customer for this technology?
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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
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Who will compete with us?
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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
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What is our execution strategy?
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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
Proof of Concept
Prototyping
Us
Manufacturing
Selling
Equipment Maker
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How do we make money?
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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
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Who will run the company...
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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.
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Who will advise us...
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Technical Advisors
• Scientists from the Jet Propulsion Lab / NASA Caltech
• Scientific Advisory Board
– Comprising of scientists from academia
– Industry experts
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What is our project plan and what are some of
the milestones?
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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
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What does the plan imply financially?
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Sales Forecast - Stepper
Stepper Sales Drive All Revenues
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Sales Forecast Stepper
Machine Sales occur due to:
– New Fabs
– Fab Upgrades
Every Quarter:
– 10 new fabs
– 15 fabs upgrade
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•
Average order size for a new fab is
11 latest generation scanners
Average order size for upgrading a
fab is 4 latest generation scanners
80
70
60
50
40
30
20
10
0
20
07
20
08
20
09
20
10
20
11
Source: S G Cowen & Company Analysis
Units Sold
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Sales Forecast Assumption:
By 2011, 32% of all latest machines sold by an equipment maker will be quantum
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Financial Projections
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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%
120000
100000
80000
60000
$'000
40000
20000
0
-20000
2005
Revenue
2008
2011
Gross Profit
Net Income
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Cash Flow Projections
60.000
•
•
•
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
$' 000
50.000
40.000
30.000
20.000
10.000
0
-10.000
'06
'08
'10
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How do we succeed?
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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
Uncertainty Score out of 5
1 - 1.9
2 - 2.9
3 - 3.9
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How much money do we need to make this plan
a success?
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Capital Requirements
$'M
6
5.4
5
4
3
2.7
2
Second Round after 12 months
1
0
First
Second
R oundsof Financing
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Why Should You Invest ?
•
Amounts in real dollars
•
$1978
$100
2002
•
2011
Your money will grow at 53% annual rate†
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*
† 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
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May we address your concern about the
gestation period?
– What is the minimum that you can make in this
deal and how soon?
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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
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No wonder the Press all around the world is
excited....
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Media Coverage
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American Institute of Physics
Chicago Tribune
CNN
Daily Post (London)
Daily Telegraph (London)
Nature
The New York Times
The Times of India
USA Today
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