SiC, Sapphire, GaN : what is the business evolution …

1 2016 FromTechnologies to MarketSiC, Sapphire, : what is the business evolution of the non-Silicon based semiconductor industry? FromTechnologies to Market2 2016 | | About Yole D veloppementMEMS & SensorsDisplaysCompound Semi LED & OLEDsImagingPhotonicsMedTechManufacturin gAdvanced PackagingBatteries / EnergyManagementPower ElectronicsFIELDS OF EXPERTISEYole D veloppement s 30 analysts operate in the following areas3A GROUP OF COMPANIESM arket, technology and strategy operationsDue and business costs analysisTeardown and reverse engineeringCost simulation analysisPatent LOT OF SYNERGIES IN BETWEEN III-IV MATERIALS 2016 | | Semicon West -SiC/Sapphire/GaNGaN/Sapphire*LEDRF GaNPower ElectronicsGaN/SiCGaN/Si**GaN/SiC*GaN/Si **: Mainstream**: Challenger**:R&DGaN/Si**SiC/SiC**Si/Si*D o youseesynergies and business Opportuities?

2 GaN/GaN**New BusinessNew MaterialsNew SupplierIntegrationIssuesGrowingMarketsN ew EntrantNew PackagingSupplyChainM&ADue DilligencesGaNSiCSiSapphire6 PLAYGROUND 2016 | | Semicon West -SiC/Sapphire/GaNLEDRF GaNPower ElectronicsGaN/ SiCGaN/ SiCMaterialRelatedMaterialRelatedEquipme ntOrganisationsLEDs8 SAPPHIRE INDUSTRY GROWTH DRIVERS: HISTORICAL PERSPECTIVE1892 First artificial ruby and sapphire by AugusteVerneuilFirst watch with a sapphire window19601929 Development of larger and shaped sapphire crystals for industrial and military applicationsFirst wafers developed for Silicon On Sapphire applications1970 Gems and WatchesIndustry and specialty electronic 2016 | | Semicon West -SiC/Sapphire/GaN9 SAPPHIRE INDUSTRY GROWTH DRIVERS: HISTORICAL PERSPECTIVE1992 First blue LED on sapphire substratesFirst LED growth cycle.

3 Mobile applications201020002014 LED Era Second LED cycle: LCD TVs Sapphire shortageSofter LED growth + sapphire excess investmentSapphire excess capacity2012 Consumer Electronic Applications (Camera lens and fingerprint reader covers, display )Consumer Electronic Era? 2016 | | Semicon West -SiC/Sapphire/GaN10 SAPPHIRE APPLICATION BREAKDOWNNon LED applications now represent close to 30% of the total sapphire material consumption and are growing quickly. 2016 | | Semicon West -SiC/Sapphire/GaNLEDO ptical WafersSmartwatch Cover GlassCell Phone Cover GlassHuawei2015 Material Consumption Breakdown Per Applications.

4 (Note: excludes traditional watches, aerospace, defense )KyoceraTotal: 134M mm of TIE11 SAPPHIRE WAFER FORECAST Revenuefromwafersincreased17%in2014thank stoasignificantvolumeincreaseandrelative lystableaveragesellingpricescomparedto20 13. However,despiteananticipated16%volumeinc reasein2015,the18%ASPdropwillleadtoanove ralldecreaseinrevenuefortheyear. price pressure is offsetting volume growth and resulting in essentially flat revenue through the end of the decade. 2016 | | Semicon West -SiC/Sapphire/GaNVolume growth + ASP increase (material shortage)Large ASP drop12 ALTERNATIVE SUBSTRATES Webelievethatcompaniesthatarecommittedto thetechnologywilleventuallymakeitwork(To shibaor,toalesserextend,Samsung) Decreaseof4 GaNsubstratepriceclosertotheUS$ SiCwillloosegroundasCree, expect sapphire to remain the dominant substrate in the LED industry for years to come.

5 2016 | | Semicon West -SiC/Sapphire/GaNPower Electronics14 OTHER WBG MATERIALS Figure-of-meritWBG isnot limitedto GaN& SiC! BesidesGaNandSiC, (m cm2)Breakdown voltage(V)SiSiCGaNGa2O3 DiamondAlN 2016 | | Semicon West -SiC/Sapphire/GaN15 WBG MATERIALS FOR POWER ELECTRONICS OVERVIEWS tructure of the report 2016 | | Semicon West -SiC/Sapphire/GaN This report describes the landscape of different WBG materials for power electronics applications. WBGSiCDeviceGaNDeviceGaNon Si GaNon GaNFS/BulkGaNGa2O3 DiamondAlNSiCepiEpi on SiliconSiCwaferTodayTomorrowAlternative solutions 16 WBG market SEGMENTATION AS A FUNCTION OF VOLTAGE RANGEC urrent status and Yole svision for 2020*WhileSiCisusedfor high voltage applications, GaN-on-Siismainlyusedfor lowvoltage.

6 The 600-900V range willbethe battlefield. UPSEV/HEVM otor ControlPV InverterWind Mills600 VRail Power Grid<200 kV+Ships & VesselsPFC/ Power supply Audio AmplifierSiCTransistors 2015 GaN on-SiTransistors 2015 SiCdiodes 2016 | | Semicon West -SiC/Sapphire/GaNMedium-VoltageHigh-Volt ageLow-VoltageGaN-on-SiTransistors 2020 SiCTransistors 2020900 kVBattle fieldsCo-existing * Based on current development status17 SIC& GANPOWER DEVICEMARKETto 2020 The GaN-on-Sidevicemarketisexpectedto growmuchfasterthanSiC. GaN-on-SiCAGR 2014-2020: 95% !

7 SiCCAGR 2014-2020 : 22%The total WBG device market is estimated at $139M in 2014 and expected to be $743M in 2020, in a $ overall device market . * GaN-on-Sinominal scenario isconsidered. 2016 | | Semicon West -SiC/Sapphire/GaN18 CONCLUSION: HOW TO ACCELERATE SIC ADOPTION 2016 | | Semicon West -SiC/Sapphire/GaNAcceleratorLimiterScien tistDreamOptimisticPerformances are betterObviouslythe nextgenerationDesigner ChallengeRealisticHow do use the deviceHow do catch the performanceHow Long to developWhychanging? Propose directlythe converteras a Black Box Propose directlythe optimizedpower module Propose new manufacturingprocesses19 WBG MATERIAL COST AND WAFER SIZE COMPARISON8-inch Si wafer as referenceGaNon Si is the most interesting WBG technology in terms of cost and wafer size.

8 2016 | | Semicon West -SiC/Sapphire/GaN* Nominalized with respect to 8-inch silicon waferRadio Frequency21RF COMPONENTS OVERVIEW (1/2)RF DevicesSolid State Electronic Devices SiGaAsGaNSiCInPSiGeVacuum ElectronicDevices (VEDs)** There are numerous vacummdevice types, including Gyotron, Klystron, and traveling-wave tubes ( TWTs). The following table lists the pros and cons of solid state electronic devices compared to VEDs. ProsCons Lower maintenance cost Instantaneous operation Wider Bandwidth Smaller size and lower weight Cheaper.

9 Lighter power supplies Reduced electronvelocity in the semiconductor Thermal limitation caused by semiconductor thermal impedance Lower bias voltage Lower outputpower 2016 | | Semicon West -SiC/Sapphire/GaN22 Multiple CompetitingtechnologiesFewCompetitingtec hnologiesPOWER AND FREQUENCY REGIONS FOR DIFFERENT SEMICONDUCTORSGaNenables new possibilities for both high-power and RFMD 2016 | | Semicon West -SiC/Sapphire/GaN23 GANHEMT DEVICE STRUCTURE2 DEG electron confinement makes GaNHEMT capable of a drain current density about ten times higher than that of Si devices.

10 Energy2 DEG: In 2 DEG, or two-dimensional electron gas , the gas is free to move in a two-dimensional plane parallel to the AlGaNand GaNhetero-interface,but not perpendicular to it because of the two potential barriers confining the potential well. SourceDrainAlGaNGaNBufferSubstrate: concentration of 2 DEG is about 1 1013cm-2 , making GaNHEMT capable of a drain current density about ten times higher than that of Si devices. 2016 | | Semicon West -SiC/Sapphire/GaN24 GAN SADDED VALUESGaNoffersvariousbenefitsat system voltage operationHigh current densityHigh Frequency GaNmaterial propertiesHEMT benefitsRF System benefitsHigh powerWide band gapHigh charge densityHigh electron mobility Higher impedanceTemperature toleranceSmaller sizeWider bandwidthHigh efficiencyLower capacitanceRuggednessLow NoisePALNAS witchVCOM ixer Gain BlockPhase shiftersVar.