Investor Enthusiasm for Nanotech
Opportunities in Electronics
Vahé Mamikunian, Senior Analyst
Lux Research Inc.
March 15, 2007
Agenda
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•
•
•
•
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Nanotech? Opportunity?
Breakdown of funding
Venture capital investments
Examples of electronics applications and impact
Three things to keep in mind
Q&A
What’s nanotechnology again?
Not “nano by accident”
“The purposeful engineering of matter at scales of less
than 100 nanometers (nm) to achieve size-dependent
properties and functions.”
Really small
Not just “small;” “small
and different”
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Electronics will dominate the $3.7 trillion in emerging
nanotechnology manufactured goods in 2014
2004:
Selective
deployments
proliferate
$3,000,000
2005 to 2009:
Commercial breakthroughs
open markets
2010 to 2014:
Nanotechnology becomes
commonplace
$2,500,000
16%
$ millions
$2,000,000
50%
$1,500,000
$1,000,000
34%
$500,000
$0
2004
2005
2006
Manufacturing and materials
2007
2008
2009
Electronics and IT
2010
2011
2012
2013
2014
Healthcare and life sciences
Source: October 2004 Lux Research Report “Sizing Nanotechnology’s Value Chain”
* Nanointermediates and nano-enabled products only; nanomaterials cannot be meaningfully broken down by sector.
Lux Research Inc. • 140 East 45th Street, 30th Floor
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5
Agenda
•
•
•
•
•
•
Nanotech? Opportunity?
Breakdown of funding
Venture capital investments
Examples of electronics applications and impact
Three things to keep in mind
Q&A
Nanotech funding worldwide, 2005 – $9.6 billion total
By region
By sector
$0.18
$0.78
$2.74
$1.59
$3.37
$3.96
$2.06
US$ billions
North America
Asia
Europe
Rest of world
$4.46
US$ billions
Materials
Life sciences
Electronics
Other
Sources: Lux Research Reference Study “The Nanotech Report, 4th Edition”; Lux Research Report “How
Industry Leaders Organize for Nanotech Innovation”; Lux Research Report “Ranking the Nations: Nanotech’s
Shifting Global Leaders”; Lux Research Report “Making Sense of Nanotech Venture Capital”
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
7
Nanotech funding worldwide, 2005 – by sector
(estimated for government funding)
Corporations: $4.47 billion
Governments: $4.61 billion
$20
$0.36
$0.40
$0.11
$132
$1.20
$1.41
$165
$1.32
$1.53
$2.76
US$ billions
Materials
Life science
Venture capital: $497 million
Electronics
Other
US$ billions
Materials
Life sciences
Electronics
Other
$179
US$ millions
Materials
Life science
Electronics
Other
Sources: Lux Research Reference Study “The Nanotech Report, 4th Edition”; Lux Research Report “How
Industry Leaders Organize for Nanotech Innovation”; Lux Research Report “Ranking the Nations: Nanotech’s
Shifting Global Leaders”; Lux Research Report “Making Sense of Nanotech Venture Capital”
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
8
Agenda
•
•
•
•
•
•
Nanotech? Opportunity?
Breakdown of funding
Venture capital investments
Examples of electronics applications and impact
Three things to keep in mind
Q&A
Data
Analysis
Recommendations
After examining every VC investment in nanotech companies
through 2006, we found that…
Number and value of deals, 1995 to 2006
To date, there have
been 362 investments
in 171 companies,
totaling $3.08 billion
invested globally
(1991 to 2006)
In 2006, there were 57
investments totaling
$654 million in VC
funding
Number of
deals
70
$700
60
$600
50
$500
40
$400 Value of deals
30
$300
20
$200
10
$100
(US$ millions)
0
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E
Average deal size, 1995 to 2006
Number of deals
Value of deals
$14
$12
$10
Average deal size
increases 19% to
$11.5 million in 2006
as number of deals
falls 11% from 2005
Average deal
$8
size
(US$ millions) $6
$4
$2
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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Data
Analysis
Recommendations
Breaking down investment by sector, Electronics & IT trumps
other sectors on number of deals and average deal value
Electronics & IT leads
with 21 deals totaling
$243 million in 2006, for
an average deal value of
$15.8 million
Number of nanotech VC deals by sector, 1995 to 2006
70
60
50
Number of deals
40
30
20
Healthcare & life
sciences follows with 15
deals worth $124 million
in 2006, with an average
deal value of $10.6
million
Manufacturing &
materials ties with $122
million over 18 deals in
2006, with an average
deal size of $8.7 million
10
0
1995
Electronics and IT
1996 1997
1998
1999
2000 2001
2002
2003
Healthcare and life sciences Manufacturing and materials
2004 2005 2006E
Nanotools
Average deal size by sector, 1995 to 2006
Average deal
size
(US$ millions)
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
1995
Electronics and IT
1996 1997
1998
1999
2000 2001
2002
2003
Healthcare and life sciences Manufacturing and materials
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
2004 2005 2006E
Nanotools
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Agenda
•
•
•
•
•
•
Nanotech? Opportunity?
Breakdown of funding
Venture capital investments
Examples of electronics applications and impact
Three things to keep in mind
Q&A
Charting nanotech’s visible transformation
High
Gee-whiz
nanoproducts
Iconic
breakthroughs
Low
Unsung
heroes
Secret
weapons
Incremental
Step change
Awareness
of
application
Nature of impact
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Emerging nanoelectronics: some examples
Gee-whiz
nanoproducts
High

Fullerene
solar cells

Flexible
electronics

Fullerene
photodetectors
Awareness
of
application
Unsung
heroes
Low

Conductive
adhesive filler

Heat
transfer
materials

Reactive foil

Non-conductive adhesive
filler/Underfill additive
Incremental
Iconic
breakthroughs

CNT
displays

Biologically selfassembled
nanoelectronics
Secret
weapons


CNT sensors
Fullerene transistors
and memory devices

CNT memory
and logic
Step change
Nature of impact
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Reactive foil for room temperature soldering
What it does: Room temperature fluxless
soldering of heat sinks to IC packages or
component mounting; component mounting
onto printed circuit boards
How it works: A controlled self-propagating
exothermic reaction – initiated by a thermal or
electric stimulus – melts and bonds the solder
between two components
Key nanotech enabler: Alternating nanoscale layers of nickel and aluminum
Who’s developing it:
– Reactive NanoTechnologies (RNT)
Stage of development: On the market
Reactive foil
Heat sink
Solder
Solder
Packaging
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Integrated circuit
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Heat transfer materials
Current contact
area = ~2%
MWCNT contact
area = ~40%
What it does: Carbon nanotubes
increase the surface contact area
Multi-walled
carbon
between the heat sink and IC by up
nanotubes
Heat sink
to 20 times (from 2% to 40%)
offering 4 times better thermal
performance
Integrated circuit
Packaging
How it works: Multi-walled carbon
nanotubes vertically grown between the heat sink and the IC increase
contact surface and facilitate thermal conduction from the IC to the heat sink
Key nanotech enabler: Multi-walled carbon nanotubes
Who’s developing it:
– Nanoconduction, Fujitsu
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
16
Nanotube enabled memory or logic chips
What it does: Non-volatile memory with
low power consumption and high density
How it works: Van der Waals forces hold
nanotubes down representing an “On” state
Key nanotech enabler: Carbon nanotube
solution etched using current CMOS
technology
Who’s developing it:
– Nantero and LSI Logic (On Semiconductor)
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
17
Flexible electronics
What it does: Conformable electronics
circuitry or displays
How it works: Conductive ink used
to print micro circuitry on polymer
surface; thin film transistor circuitry
transferred to a polymer film
Key nanotech enabler: Conductive
nanoparticles (e.g. gold or silver)
dispersed in ink solution; carbon nanotube thin film transistors;
Who’s developing it: Epson, Plastic Logic, Nanosys, Nano-Proprietary,
NTera, NanoHorizons, Nanometrix,
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Self-assembled nanoelectronics
Case study: Cambrios
Based on Angie Belcher’s
(MIT) research
Uses genetically modified viruses
to deposit perfect, inorganic
nanoscale structures
Applications in manufacturing
electronics components – i.e.
nanofilms (using bifunctional agents)
and nanowires of precise length
Combined with self-assembling capabilities,
creates platform for “wet,” bottom-up
IC/sensor manufacturing
Potential technology platform to succeed
etched silicon
Massive long-term impact on chipmakers
(Intel, TI, TSMC), capital equipment makers
(Applied Materials, ASML), and materials
suppliers (MEMC, ATMI)
Lux Research Inc. • 140 East 45th Street, 30th Floor
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www.luxresearchinc.com
19
Protein-based memory
Porphyrins - redox reactions
Zettacore (Levine)
Bacteriorhodopsin - light reaction
UConn (Birge)
Lux Research Inc. • 140 East 45th Street, 30th Floor
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Agenda
•
•
•
•
•
•
Nanotech? Opportunity?
Breakdown of funding
Venture capital investments
Examples of electronics applications and impact
Three things to keep in mind
Q&A
Three critical aspects to successfully commercialize
nanotech innovations
Environmental, health and safety
Intellectual property
Partnerships
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
22
Firms need a comprehensive plan for nanotech EHS
Real Risks
Establish processes
to control real risks
during manufacture,
use, and end-of-life
Perceptual
Risks
Communicate with
the public, press, and
NGOs to prevent
perceptual risks
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
Regulations
Use realistic
projections
to plan for
regulations
23
Nanomaterial IP is dense and entangled
Lux Research looked at the universe of 4,986 nanotechnology patents covering 102,651
claims, and then did an in-depth claim-by-claim analysis of eight nanomaterial platforms
covering 2,646 patents and 49,807 claims.
It’s messy – detailed analysis required for each particle and application
However, judicious firms can find freedom to operate
General
Structural
materials
No patents
High white
space
Challenge
unlikely
Low white
space
Challenge
likely
Energy
Optics
Electronics
Healthcare/
cosmetics
Other
Platform
overall
Lux Research Inc. • 140 East 45th Street, 30th Floor
Source: June 2006 Lux Research Report “Hidden
in Nanotech IP”
New York,Opportunities
NY 10017 • 888-589-7373
White space indicates freedom to operate;www.luxresearchinc.com
challenge gauges how likes patents in the area are to conflict
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84% of corporations* tap start-ups for nanotech
innovation
“We have made huge investments in
start-ups – up to $10 million in one
case – to guarantee access to the
innovations and materials that flow
out of them. We systematically screen
for interesting technologies and look
for external sources of materials that
can help us shorten time to market.”
(Chemicals company)
“Do you work with these external organizations
as part of your nanotech efforts?”
84%
Start-ups
Academics
69%
Public
agencies
47%
Corporations
Others
None
*Corporations in industries somewhat or highly-impacted
by nanotech
0%
44%
13%
16%
20%
n=35
40%
60%
80%
100%
Source: Lux Research, “How Industry Leaders Organize for Nanotech
Innovation”
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
25
Thank you / Discussion
Vahé Mamikunian
Analyst
+1 415 486 2162
vahe.mamikunian@luxresearchinc.com
www.luxresearchinc.com
Lux Research Inc. • 140 East 45th Street, 30th Floor
New York, NY 10017 • 888-589-7373
www.luxresearchinc.com
26