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1 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.

Corporate

Overview

> May 2015



Who We Are and What We Do

A world-leading supplier of deposition and etch systems, Veeco designs,

builds and sells thin film capital equipment to global manufacturers that

make high-technology electronic devices.


Thin Film Technology: At the Core of Everything We Do

LED

Wireless

Power Electronics

Hard Drives


Industry Leader in Thin Film Equipment

> Highly differentiated process equipment and

technologies that enable the manufacturing of

high-tech electronic devices

> Industry leader in MOCVD, MBE, IBD, IBE,

Single-Wafer Wet Etch and other advanced thin

film process technologies

> Operations in 10 countries on four continents

> Based in New York, with about 800 employees worldwide

TurboDisc® EPIK™700 GaN

MOCVD System

NEXUS® IBE-420Si™ Ion Beam

Etching System

WaferStorm® 3300 Single Wafer

Wet Etch Processing System


Veeco Businesses and Markets

Molecular Beam

Epitaxy

(MBE)

Metal Organic Chemical

Vapor Deposition

(MOCVD)

Advanced Deposition

and Etch

(AD&E)

LED Lighting Power Electronics Solar

Wireless

Data Storage Optical MEMS

LED Backlighting

Solar

Atomic Layer

Deposition

(ALD)

Flexible OLED Displays

MEMS Advanced Packaging

Precision Surface

Processing

(PSP)

Semiconductor


Transformation from Industry Player to Industry Leader

Ed Braun, former Chairman & CEO leads management buy-out to create a new

equipment company for the semiconductor & data storage industries. Company

completes a dozen technology acquisitions during this time

John Peeler new CEO – accelerates product development, creates flexible operations

strategy and high growth markets

Veeco launces multiple industry-changing system innovations including GEN10™ and

GEN2000™ MBE systems and TurboDisc® K465i™ MOCVD System

Veeco sells metrology business to focus exclusively on Process Equipment

Veeco introduces NEXUS® DLC-X™ and Optium® ADS-800™ for data storage and and

TurboDisc MaxBright™ Multi-Reactor MOCVD system

Veeco becomes the #1 provider of MOCVD systems, critical to making LEDs

Veeco acquires Synos Technology and enters flexible OLED equipment market;

launches GENxplor™ R&D MBE System, industry’s first fully integrated MBE system

Veeco launches TurboDisc EPIK700 GaN MOCVD System to accelerate adoption of

solid-state lighting

Veeco launches Propel™ PowerGaN™ GaN MOCVD system to enable transition from

R&D to production of highly-effiicient GaN power electronic devices

Veeco purchases Solid State Equipment LLC to extend footprint into high growth

markets; renames business unit Veeco Precision Surface Processing

1990

2007

2010

2008 -

2010

2013

2012

2011

2014


Competitive Advantages

Industry leader with exceptional technology,

differentiated equipment and low cost of ownership

Decades of expertise in growing, depositing and etching

advanced thin film technologies with over 300 patents

Global presence, world-class sales channel and local

process engineering to reach and support customers

worldwide

Outsourced and internal manufacturing capability for

maximum production flexibility


Where We Are

Fremont, CA Plainview, NY St. Paul, MN

Somerset, NJ

Poughkeepsie, NY

Mannheim, Germany

Shanghai, China

Hsinchu City, Taiwan

Penang, Malaysia

Seoul and Suji-gu, Korea

Singapore

Philippines Bangkok, Thailand

Tokyo, Japan Horsham, PA


Leading Technology Companies Choose Us

Data Storage, Optical

and MEMS

MBE for Research and

Industry

Lighting and Display

https://www.agc.com/english/index.html


Veeco provides process equipment

solutions that drive tomorrow’s

technology breakthroughs today

We are a dynamic, innovative and

high-growth company recognized as

the best in the markets we serve

Vision

We help customers make

products for a more productive

world and a cleaner and

sustainable environment


2014: Solid Execution in a Transition Year

EPIK700™ MOCVD Gained Traction in Multiple Regions

Data Storage Secured Sizeable Q4 Orders

Propel™ MOCVD Launched New Opportunity in GaN Power

GENxplor® MBE Gained Research Market Share

New Product and Business Wins

PSP Acquisition New Trajectory for Revenue & Profit Growth


MOCVD, MBE &

ALD Technology


$0

$5

$10

$15

$20

$25

$30

$35

2009 2010 2011 2012 2013E 2014E 2015E 2016E

CCFL

Fluorescent

Incandescent

LED

LED Lighting Adoption to Accelerate in 2014 and 2015

Source **: McKinsey Lighting Report 2012

69%

2020

• Incandescent

phase-outs

• Utilities broaden

subsidies

• LED bulb prices come

down

Average Selling Price for Different Lamps

45%

2016

LED Value-Based Percent

of Lighting Market**

Source *: iHS, Barclays Research estimates

9%

2012


LED - New, Greener Paradigm for Lighting

By 2025, LED lighting adoption …

will eliminate 258 million

metric tons of carbon emissions

By 2025, LED lighting adoption …

will save over $280B and enable

us to avoid building 133 new

power plants

LED TV


MOCVD Industry Leader

24 % 29 %

44 %

62% 51%

2008 2009 2010 2011 2012

Competitive Advantage: Lowest CoO and Superior Customer Connectivity

Note: Estimated comparative market share Veeco and Aixtron only

K465i and MaxBright are

#1 Selling MOCVD Systems with

the Industry’s Highest Productivity

Veeco

Market Share

2013 2014

63%

2007


EPIK700 MOCVD: Pulling Ahead of the Competition

> Highest productivity platform with up

to 20% improved CoO compared to

previous generations

> Designed for best-in-class uniformity

which provides greater wafer yield

> Fastest to production with easy

process transfer

> Most efficient capital investment

for maximum profitability

> All betas accepted; quick

process transfer of recipes –

in discussions for multi-unit

orders with multiple customers

Strategic Wins in 4 Key Geographic Regions


Power Electronics: New Growth Opportunity for MOCVD

Notes: 1) Yole Nov 2011, 2) IMS Research Feb 2012

Ga

N P

ow

er

De

vic

e M

ark

et2

($M

)

Power Electronics device market continues to grow

GaN-based power devices offer higher efficiency,

switching speed and lower power consumption

Veeco MOCVD is positioned at key customer sites

around the globe to support this high growth segment

1

2011 2012 2013 2015 2018 2021


> Outstanding film uniformity, yield

and device performance

> Long campaign runs for process

development flexibility and best-in-

class low particle defects

> Modular design for ease of

configuration, operation and

maintenance…and best cost

of ownership

> Fast cycles of learning

Single Wafer 200MM System to Accelerate Industry Transition from

R&D to High Volume Manufacturing

Propel: Cost Effective, High Yield GaN Power Devices


GaN Power Represents New MOCVD Growth Vector

More than 30 Industry Leaders Investing in GaN Power R&D

GaN Power Electronics Potential Customer Landscape


GENxplor MBE Driving Increased R&D Market Share

System Generating

Worldwide Interest for

Cutting Edge Research

Customer engagements span multiple research fields including:

IR detectors, laser diodes, novel HEMTs, graphene, solar, high- temp

superconductors, UV LEDs, and thermo electrics


Veeco ALD: 10x Faster Than Traditional ALD and Scaled With Virtually No Limits

A new generation of ALD:

Fast deposition

Low temperature

Large area format

Focus R&D efforts on semiconductor and other applications, and

continue to monitor the flexible OLED market opportunity.


Data Storage &

Other Thin Film

Technologies


Hard Disk Drives Will Continue to Dominate Storage

2012

3,500

2020

It took Seagate 29

years to reach their

first billion hard

drives… and only

four years to reach

their second billion

Source: Western Digital

Exabyte

Ship

ments

Over 85% of exabytes in

2020 will be stored on HDDs

2016

Client PC

Personal Consumer Electronics

Cloud

Smart Phones/ Tablets

Cloud SSD

Client SSD


Data Storage Business: More than Just HHDs

End Market Blended

CAGR ~10%

High Performance Optical Coatings

MEMS & Magnetic Sensors

*Seagate

End Market

CAGR ~ 5%

PVD CVD DLC IBD IBE Lap

&

Dice

From 1960- 2010 approximately 1

billion terabytes of data was stored.

In 2012, 1 billion terabytes

were stored.*

EUV Masks


Global Trends Driving Veeco’s MEMS Opportunity

> We are the largest

supplier of thin film

magnetics process

equipment

> Over 800 etch and

deposition systems

installed worldwide

> Strong technical team

and dedicated

applications lab

Source: Semico Research Corp. Dec 2012

$B

illi

on

s o

f d

oll

ars

$20

2005 2015

MEMS Revenue by Application

Automotive

Smartphones

Displays

$0


Veeco IBD Required for EUV Mask Roadmap

Currently engaged with key industry

players on next-gen equipment solutions

> $300B semiconductor market

investing heavily in EUV to solve

lithography challenges

> Defect-free photomasks are a

technical roadblock

> We have 100% market share in

Ion Beam Deposition for this

application


“Soak and Spray” Technology

enables Single Wafer Control with

Low Cost of Batch Processing

Highly Configurable Platform

Serves Multiple Applications and

Wafer Sizes

Strong Position in Advanced

Packaging

Extends Footprint in Compound

Semi & MEMS

Significant

Overlap in Business

Opportunities

Working to Accelerate Growth

for a Robust, Highly

Profitable Business

Increased Access

to High

Growth Markets

Complimentary

Differentiated

Technology

Synergistic Combination

to Drive Growth

& Profitability

1 3

PSP: Great Fit to Support our Growth in 2015 & Beyond

2


Veeco Summary

Market Leaders

We are a leader in each of our core technologies – MOCVD, MBE, ALD, IBE/IBD, Wet Etch

and Other Advanced Thin Film Process Technologies

Exceptional Technology

Our people, technology and process knowledge enables us to deliver systems with the

lowest CoO to the world’s leading companies

Tied to High Growth Markets

LEDs for lighting, power electronics for energy conversion, hard drives, wireless chips and

MEMS for cloud computing and state-of-the-art electronics

High-Performance Organization

Fast and agile culture featuring speed as a competitive differentiator, customers count on our

flexibility and value proposition

Documents

Veeco Presentation Name Here - s2.q4cdn.coms2.q4cdn.com/391606028/files/doc_presentations/Veeco-Corporate... · Atomic Layer Deposition (ALD) Flexible OLED Displays MEMS Advanced