1. Outstanding quality Gallium Nitride (GaN) – enabler for new industries
Robert Dwilinski - President, CEO

2. AMMONO business field
Manufacturing of GaN (Gallium Nitride) semiconductor crystals and wafers
Based on own proprietary technology (unique in world’s scale)
Activity concerns three key enabling technologies; very closely interacting:
- Advanced materials
- Photonics
- High power electronics
Supplying already 24 customers – lasers, LEDs and electronics producers

3. AMMONO-GaN single-crystals3

4. AMMONO-GaN wafers

5. Vertical LED structure on AMMONO-GaN
Department of Micro and Nanosciences
Aalto University School of Science and Technology
Prof. Harri Lipsanen
Prof. Markku Sopanen
Dr. Sami Suihkonen
M.Sc. Muhammad Ali
M.Sc. Olli Svensk
M.Sc. Sakari Sintonen

6. Green LD structure on AMMONO-GaN
524 nm (cw)

7. GaN laser applications

8. Versatile laser projection

9. „…The new Samsung Galaxy Beam phone includes a projector that can show films and pictures at up to 50”…

10. LEDs

11. LEDs

13. Electronic applications
Gallium Nitride enables a new range of applications 13

14. Power Devices
GaN substrates show higher resistance and higher break down voltage parameters over traditional Si and SiC materials
Better heat dissipation
GaN mostly targets MOSFET, IGBT

15. GaN HEMTs market forecasts

17. Market environment and competition
Lack of GaN-on-GaN HEMTs on the market
Several companies produce HEMTs GaN-on-Si and GaN-on-SiC
No European producer of GaN HEMTs

18. GaN HEMTs – price analysis$
HEMTs GaN-on-SiC:
15-20 W/mm2
EUR /mm2
thus EUR 5-6 k /cm2
GaN 2” (= 20 cm2) results in transistors worth 125 k EUR
GaN 4” (= 80 cm2) results in transistors worth 500 k EUR

19. Devices based on Ammono-GaN
Blue laser
Green laser
LED’s
Solar cells
Transistors 19

20. Total addressable market
The market for gallium nitride based semiconductor devices is projected to surpass $25B by 2015
Applications for Gallium Nitride:
DVD information storage (Blue laser Diodes)
Solid state lighting (White LEDs, UV LEDs)
Displays (Laser TV, laser projection)
Automotive electronics (MOSFET transistor, power switches)
Power transmission lines (High Voltage electronics, HEMT transistors)
Wireless communication (3G/WiMAXbase stations )
Flame sensors (UV detectors)
Wireless Broadband (High Frequecy transistors)
Solar Cells (For satellites)
Radiation detectors 20

21. Result of a project started in 1992
AMMONO as a company
Result of a project started in 1992
World leader in low dislocation GaN
Proprietary patent protected technology
Located in suburbs of Warsaw / Poland
Nichia - minority stake holder
1999 – Setting the AMMONO company
2009 – Start of commercial activity
First devices on AMMONO-GaN
2012 – Launch of the 2” product

22. Autoclaves in the production hall

23. 2011 summary ISO Certification Increase in number of customers
Launch of a LED dedicated
high-transparency GaN material
Launch of the 2” product
Starting cooperation with distributors in Japan, US, Korea and Taiwan.
50% / 50% sales split between acedemia and industry
Launch of 2” mass production programme

24. Customer profile – sales volumes
Laser related R&D is the main driver for low dislocation gallium nitride wafers sales today

25. s.25 25

26. 2012 Ammono development goals
Scaling up the production capacity for 2” C-plane
Building new autoclaves
Preparing necessary seed base
Bringing solutions for the LED market
Increasing the material transparency
Introducing the high-transparency 2” C-plane n-type substrate
Providing a solution for the electronic applications
Introducing the semi insulating 2” C-plane substrate
Starting the development of the 4” substrate
Targeting first samples for 2014

27. Difficulties
Traditional fund sources (VC, Stock Market, Strategic) are reluctant to invest in long-term, risky projects on the area of high technology (and advanced materials in particular). This phenomenon deepens within increasing technical complication of projects (technologies became more and more complicated), because this elongate project time frame and expose to unpredictable market risks
Let’s forget that market itself can develop such projects by organic growth
There is a need of efficient mechanism for growing such projects in EU 27

28. SUMMARY
AMMONO products could revolutionize photonics and electronics industries and give competitive advantage to producers of customer goods, as well as advantage of defense systems
Organic growth of nowadays advanced technologies is not possible any more – requires substantial investment, which is not achievable in today’s EU
Proposed solution enabling growth of KETs is creation of European project of large credits or loan guaranties for carefully chosen companies presenting extremely promising technologies

29. Thank you Q&A

30. Solutions – new mechanisms
People facing problems to rise financing are trying to collect several projects in the following way:
Creation of parent company employing M&A, PR… specialists
Exchange of shares of parent company with several chosen hi-tech start-up companies
This would increase the value of the parent company because of larger scale of activity, synergy of incorporating companies (if any), and risk mitigation (even if some of them fail the others should keep value share on acceptable level)
Listing (IPO) of parent company on chosen Stock Market
In fact this is very difficult to collect a number of projects of similar maturity and scale, additionally offering significant synergies 30

31. Solutions – new mechanisms – Equity line of credit
Additionally, listed company can get funds from equity line of credit:
A structured equity line is a commitment by the investor to purchase up to a predetermined dollar amount of shares of the public company's common stock over a certain period. It is very similar to a bank line of credit in that cash is available to the company on an "as needed" basis. The difference is the company repays the investor in stock. The company has the right but not an obligation to "draw down" on the equity line and sells shares to the investor when it is most favorable for the company. When the company draws down the line, the shares are sold to the investor at a discount. 31

32. How to create efficient mechanism of growth of KETs in EU?
EU officials bear main responsibility for policy to efficiently grow KETs in EU
People engaged in KETs should propose solutions and demand decisions of EU officials
AMMONO proposal is that EU or EIB should offer long-term credits or guaranties for carefully chosen companies presenting extremely promising technologies but not able to get bank credits in required amount due to lack of sufficient collateral
Exercised mechanisms like the mentioned above should be analyzed and improved upon long-term performance of supported projects (carried by the group of experts created to this end) 32