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
LowReliabilityHighReliability
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
LowReliabilityHighReliability
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
16

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
18

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)
19

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
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 Q2-14Q1-14

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.

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

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