Rmw investor overview for gsr ventures august 12 2013 (2)

www.redmicrowire.com

Topics

RED Micro Wire Intro

Market Potential Global Reach: The company Ownership structure Management

The Product: Technological innovation Product placement Achievements to date

Market Strategy Product Roadmap RMW vs. the Competition Go to Market Plan

Investment & Collaboration


RED Micro Wire at a glance

What is RED Micro Wire (RMW)? RED Micro Wire is a technology start-up, works in collaboration with a technology partner (WMT). RMW developed a new technic to produce A VERY cost effective micro bonding wire with the highest quality for the Semiconductor, LED, Other industries.

RMW Product Unique composite bonding wire with a fine glass coating and a soft Copper/Silver core.

Why RED Micro Wire The RMW innovation solution solves problems that have challenged the semiconductor industry for decades, fulfilling the demand for a high reliability – low cost solution and enabling further industry innovations


Bonding Wire

What is bonding wire? Micro Wire bonding involves welding thin wire to a pad on a bare semiconductor die-chip and the other end of the wire to a conductive pad on a substrate/package, to be placed on a PCB providing electrical connection between the silicon chip and the external leads of the semiconductor device

Wire bonding market is $5B, mostly made either

of Gold (Au), or Copper (Cu) Silver (Ag) starting now

Cu & Ag are becoming most common in the market,


Dominant Technology

Although other technologies exist, wire bonding is projected to retain market dominance = ~75%-80%


Creating Better Wires

RED Micro Wire breakthrough technology enables the semiconductor industry to create

high efficiency chips, at lower cost

How? Unique micro bonding wire, produced in an innovative method that enables: high scalability high reliability improved usability

at lowest cost (~30% lower)


Production of Bonding Wires

Traditional Drawing Technology

RMW innovative Casting Technology Traditional production of micro bonding

wires is by drawing RMW produces wire by casting copper/silver

into glass sleeve/capillary RMW 1st product is being proved to replace

the very expensive gold bonding wire Deliver Ag (Silver) & Cu (Copper) wire


Packaging material is ~$22B in 2012

TAM bonding wire is ~ $5B in 2012 (stays stable on wards) – 22.4 million KM market consumption in 2014 (HERAEUS MATERIALS TECHNOLOGY March 2013)

Major Market players - Nippon Steel/Tanaka /Heraeus/ MKE

PdCu is expected to be 40% in 2015

Ag is expected to be 10% in 2015 (HERAEUS MATERIALS TECHNOLOGY March 2013)

Bonding Wire Market

Source: SEMI Materials Market Data Subscription August 2012


Company

RMW is a subsidiary of RED Equipment a leading turnkey solution provider of secondary semiconductor manufacturing equipment

Privately held start-up, established 2011

Employees 15 (45 employees the whole group)

Singapore HQ, Israel R&D

Global presence – established sales network

IP – unique wire composition & wire manufacturing technology machine

Status – Completed feasibility, planning to ship samples by beginning of 2013 to 1st tier selected customers (OEMs, IDMs & Foundry)


RMW Worldwide

Haifa, Israel

Hsin-Chu, Taiwan

Sales

Refurb - Storage

R&D

Dresden, Germany

Osan, Korea

Singapore

San Jose, CA

Dallas, TX Tokyo, Japan


Structure

Technology partner WMT Provides machinery services, processes, IP

RED Micro Wire has licensed the technology exclusively for the semiconductor & LED market from WMT While building our own IP & application

Red Equipment PTE Ltd

Privately held Company

Red Micro Wire (RMW)

65% owned by Red Equipment

35% Owned by WMT

Wire Machine Technologies (WMT)

35% owned by Red Equipment

65% owned by WMT


Experienced Management Team

Shimon Dahan , CEO - Over 25 years semiconductor executive experience including Senior VP of Worldwide Operations at TowerJazz Semiconductor. Experienced in leading start-ups to real world success Loo Eng Yoong, VP Finance - Over a decade of accounting experience Danny Hacohen, VP Business Development & Marketing - Over 25 years in hi-tech, specializing in semiconductors, holding senior positions in business and operations management of several technology companies. Dominik Stephan, Director, Application & Product Marketing - Wire bonding expert, developed several successful bonding wire products and published numerous technical papers in local and overseas conferences and journals.


RMW: The Wire of the Future

The reliability of gold wire.

The cost of copper wire.

RMW produces high quality micro bonding wire with a soft metal core and an insulating glass coating

RMW wire property uniqueness enables copper wire to become a feasible solution to replace Gold wire for customers that could not previously use cu wire


Challenges in Cu Wire Use

Cost – Ever increasing Au Price

drives towards Copper wire

Inherent issues with bare copper – Corrosion

– Hardness

Physical limitation of traditional wire making – Scalability

?

bare Cu

Reliability vs. Cost

High Cost Low Cost

Low

Rel

iab

ility

H

igh

Rel

iab

ility

Au

CuPd

Ag


The RMW Solution

Cost – Ever increasing Au Price drives

towards Copper & Silver wire – Highly cost effective

manufacturing process

Inherent issues with bare copper – Corrosion – Hardness – Insulation provides protection +

wire crossing – Very soft wire

Physical limitation of traditional wire making – Scalability – Reduced wire diameter up to

4um

bare Cu

Reliability vs. Cost

High Cost Low Cost

Low

Rel

iab

ility

H

igh

Rel

iab

ility

Au

CuPd

Ag


Wire to wire shorting

Potential - Assembly Defects

Wire crossing can pass open/short at electrical test and be accepted at optical inspection at wire bond stage

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Technological Innovation

Composite wire Innovative control over core and coating enables unmatched synergetic

efficiency Soft metal core with a high strength, ultra fine glass coating Ultimate in geometrical accuracy

RED Micro Wires are Better Than Gold

glass coating

metallic core

The RMW innovation: casting instead of drawing


Wire Cross Section

Cross section of wire clearly shows core (bright) and glass coating (dark)

Core shows good roundness

Glass layer is non concentric and shows variation in thickness

Glass-core interface is very smooth, no sign of interfacial layer or degradation

Glass coating shows no voiding or cracking

4N Core

Glass layer

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Product Placement

Item Au Cu CuPd RMW Ag Reason RMW Cu Reason

1st Bond Very Good

Challenging Worse than Copper

Comparable to Au

Very soft FAB, little work hardening

Similar or better than Cu

- No Alloy formation - glass protection

2nd Bond Very Good

Challenging Better than Cu Comparable to Au

Very soft wire Similar or better than Cu

Glass breaks free during bond. Copper core is

softer than usual copper

Looping fair fair fair Better Glass acts as a structural member to stiffen the loop

Better Glass acts as a structural member to stiffen the

loop

FAB Very good

hard Harder than Cu and

inconsistent

Comparable to Au

Similar hardness Better than Cu

Glass protection , yet interface clean to bond

Handling Very easy

Very difficult

Better than Cu Comparable to Au

Glass protection is complete protection

Comparable to Au

Glass protection is complete protection

Reliability Very Good

Challenging Slightly better than Cu

To be proven No data available yet

Similar to copper

Mainly depending on Cu core, which is 4N

Min Wire Diameter*

0.6mil 0.6mil 0.6mil 0.15mil Glass pulling method enables

much lower diameter

0.15mil Glass pulling method enables much lower

diameter

Cost 7 x CuPd 0.5 x CuPd 1x CuPd TBD Highly efficient manufacturing

technology

0.7 x CuPd Highly efficient manufacturing

technology

*(by usual technology)

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Achievements Since Inception

Built team of experts and supporting labs in 2 centers – Israel & Singapore

Design & manufacturing of first 2 production tools

Technology launch and developed significant interest with customers and industry experts – introducing unique properties to the industry

R&D proved wire is bondable & suitable for wire bonding industry

Rev 3.1 Cu, usage process for standard Cu wire bonder available

Collaboration with tier 1 partners: tool manufacturers, IDM’s, foundries and more

Our Rev 3.0 Ag in evaluation & discussion with tier one wire supplier and potential customer for possible collaboration


RMW Product Roadmap

Q4-12 Q2-13 Q4-13

“BW” 50µm 18µm

“BW” 17µm 4µm




“BW” 17µm 4µm

“BW” 17µm 4µm

“BW” 17µm 4µm

Au

Cu

Ag

Pt

RMW will lead wire diameter scale down to drive scalability RMW will introduce additional core materials to offer further alternatives

Q3-12 Q1-13 Q3-13 Q2-14 Q1-14


Competition & Market

Current major players & market share $5B Market

MKE

Tanaka

Heraeus

SMM – phased out of the semi this year

Nippon

Our goal to take 5% of the market by 2015

with exponential growth over the next years


Our Partners:

1st tier equipment manufacturers, foundries & IDMs

2nd tier many other assembly houses, LED manufacturers

3rd tier Labs, Research institutes & Centers, Universities, Space & Aviation

RMW Go To Market Plan

Feasibility completion – May/2012

- 1st machine in samples production

Rev 3.0 Ag samples (qual) – March/2013

Wire technical acceptance – June/2013


The LED Market


Top 10 LED supplier of 2011

Table. Top 10 LED suppliers for 2011, by revenue of packaged LED components.*

1 Nichia 2 Samsung LED

3 Osram Opto Semiconductors

4 LG Innotek

5 Seoul Semiconductor

6** Cree

6** Philips Lumileds

7 Sharp 8 TG 9 Everlight


General Lightening


New Market: LED

Source: Yole Development


Investment & collaboration

Current status: ~$5m invested to date by RED Equipment Funding needed: $10m (per milestones)

Accelerate the development process to go to market with the right product

Investor profile:

Strategic partner, active in one or more of the following: 1. Financial Investment 2. Marketing & Business Development 3. Technology and Engineering Resources


Thank you.