CommercializingNanotechnology

Jim Von EhrCEO & Founder

Zyvex Group

© 2007, Zyvex Instruments, LLC 2

Nano: Big Opportunity

Source: BCC Research

Nanotech opportunity{$14 Trillion}

Semiconductor{$260B}

Medical/Healthcare{$1,600B)

Chemicals{$1,700B}

Energy{$3,100B}

NanoPhotonics/Optics{$600B}

Automotive/Machinery{$1,300B}

Apparel/Textiles{$900B}

Aerospace/Defense{$1,100B}

Environmental{$600B}

Other{$2,600B}

Zyvex

© 2007, Zyvex Instruments, LLC 3

Zyvex Background

• Zyvex Corporation started in 1997 to develop molecular nanotechnology: manufacturing products by putting every atom where it was designed to go

• Became one of the most respected and well-known companies in the field

• First six years spent in basic research• Last four years spent commercializing tools and

materials• Internally-developed technologies moved from

invention to product to business: tools, materials, structures

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CustomersPartial List

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Alliances

Berkeley Sensor & Actuator Center

Partial List

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Commercialization, part 1

In 2Q07, Zyvex spun off four focused entities:

• Zyvex Instruments: nanoprobing tools for failure analysis in the semiconductor industry (30 people)

• Zyvex Performance Materials: high-performance materials for sporting goods and defense (18)

• Zyvex Labs: Atomically Precise Manufacturing, MEMS instrumentation (4)

• Zyvex Asia, Pte. Ltd.: Singapore-based company working with Zyvex Labs to commercialize APM (3)

Advanced Instrumentation for the Nanoscale

www.zyvex.com

© 2007, Zyvex Instruments, LLC 8

Our Vision

Zyvex Instruments is a leader in the nanotechnology market with years of experience providing tools, instrumentation, and applications to serve the semiconductor and advanced research markets.

We help our customers understand the world at a different scale — and unlock new technologies for the future.

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Nanomanipulator Systems

© 2007, Zyvex Instruments, LLC 10

Installed in FEI Nova200

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Cleaving Nano-Wires for TEM Prep

Nano-cleaving single crystal wires on a TEM grid.

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IC Probing Solution

Land on contacts <100nm diameter

Forward Biased nChannel FET

000E+0

20E-6

40E-6

60E-6

80E-6

100E-6

120E-6

140E-6

160E-6

180E-6

200E-6

0.0 0.5 1.0 1.5 2.0

Drain Voltage (Volts)

Dra

in C

urr

en

t (A

mp

s)

Gate 0.000 Volts

Gate 0.583 Volts

Gate 1.167 Volts

Gate 1.750 Volts

I/V curve of n-type MOS-FET

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nProber™

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Business Case Examples

• Customer “A”— 6 hours of probing— 1 week of FIB and TEM time— 1 week of analysis— Savings on the order of $20M

• Customer “B”— 1 week long probing experiment (multiple

transistors)— 1 week of analysis— Savings on the order of $10M

www.ZyvexPro.com

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Our Vision

Zyvex Performance Materials is the first commercial nanotechnology company providing real CNT powered products to the marketplace.

Our vision is to be the leading supplier of enabling technologies and performance materials which provide our customers with breakthrough results through Carbon Nanomaterials.

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What are the Benefits of Nanomaterials?

Conventional materials fail at defects in the structure.

Nanomaterials are remarkably free from defects, and this precision often leads to orders of magnitude performance increases.

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NanoSolve® Technology

Two distinct functions: • Non-damaging binding to CNT• Customizable adhesion to

host material

• Exfoliation• Dispersion• Adhesion to matrix

Zyvex NanoSolve® Enhanced Composites

Kentera™ molecular engineering

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Current Applications Commercially Available

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NanoSolve® Value Chain

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NanoSolve® Products

• NanoSolve Kentera™ dispersing agent

• NanoSolve Additives

— Bulk material concentrations

• NanoSolve Performance Materials

— Pre-Preg carbon fiber sheets

— Master batch pellets

— Thin film

— Resin

— Treated solvents

— Fabric composite panels

• Product Development Services

— Medical delivery technologies

Atomically Precise Manufacturing

www.ZyvexLabs.comHersam and Lyding UIUC

© 2007, Zyvex Labs, LLC 24

Nanotech Flavors

Wet/bio Dry/nano

Active

Passive

Enzymes

Ribosomes

Molecular motors

Molecular machines

BiotechDrugs

Nanopowders

Nanotubes

Electronics

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Definition

Molecular nanotechnology is the precise, controlled rearrangement of atoms into higher value products.

An illustration

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Zyvex Labs Vision

Lead the commercialization of adaptable,

affordable, atomically precise manufacturing.

Creating the final step in precision manufacturing…

Hand-crafting (blacksmith)

Precision mass-manufacture (Ford)

Semiconductor lithography (Intel)

Atomically Precise Manufacturing (Zyvex Labs)

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Atomic Precision Roadmapfrom 1983

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Atomically Precise Manufacturing

• Manufacturing physical objects by putting (nearly) every atom where it was designed to go – positionally-controlled chemistry

• Apparent end-point of Industrial Revolution: the ultimate manufacturing precision

• Disruptive cost advantages: low-cost factory, highly-differentiated but low-cost products

• Faster time-to-market: software controls manufacturing, leading to fast setup time, quick turns, customized products

• Long-term environmental impact: clean, green (“nature’s way” of manufacturing)

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What does APM do?

• Enables the manufacture of materials and structures at the atomic or molecular size scale.

• Integrates the knowledge and cost structure of low-cost high-volume chemistry with the knowledge and manufacturing flexibility of engineered systems (treating matter as software).

• Results in a disruptive and enabling manufacturing technology that achieves extremely low cost, yet highly customizable products.

• Possibility of doing this demonstrated by every living thing: we molecularly transform material from food into ourselves. Green plants do this via solar power.

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2001 2006 2008

Pre-APM

Zyvex NIST-ATP$25M USD

20__ 20__ 20__ 20__

Zyvex APM Strategy

5 Year

APMManufacturing

Scale-up

…….High Volume

ManufacturingBuild own “Factory”

APMManufacturing

Scale-up

…….High Volume

ManufacturingBuild own “Factory”

APMProof of Concept

…….High Value, Low Volume

Manufacturing

APMProof of Concept

…….High Value, Low Volume

Manufacturing

3 Year

APMManufacturing

Systems

…….Sell “Factories”

to other Manufacturers

APMManufacturing

Systems

…….Sell “Factories”

to other Manufacturers

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APM Early Markets

• Medical & healthcare— Sensors— Molecular diagnostics & molecular binding sites— DNA-sequencing nanopores

• Energy— Bio-inspired catalysts – synthetic enzymes— Nanostructured membranes: batteries, filtration

• Semiconductors— Metrology standards— Nanoimprint lithography templates— Specialty devices like quantum computers

• Other: ultraprecise resonators, photonic devices

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• Become the global leader in APM— Major core enabling technology for medical, semi, and

energy industries in our lifetime— Develop “APM factory”: IP, know-how, product

• Will create a significant economic impact— Five spin-outs over next ten years— Attract and retain top technical talent— Create thousands of new high-tech jobs— Form alliances with other key countries/institutions

• Social Impact— Transform manufacturing into software-like economics— Better, cheaper, “greener” products

Zyvex Value Proposition

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Zyvex approach to APM• Atomic resolution lithography via

Scanning Tunneling Microscope: H depassivation from Si surfaces

• Atomic Layer Epitaxy (ALE) Atomic Layer Deposition (ALD)

Hersam and Lyding, UIUC

Passivated surface

Depassivation

Self limiting Deposition

Depassivation

• Use these techniques to create 3D Si structures

• Rudiments of Patterned Si ALE have been demonstrated

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Scaling up

Movie download: www.nanorex.com

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Precision Assembled Systems

Q3,05

Mini

SEM

column

• Shrink components to sub-centimeter scale

• Opens major new markets in small instruments—Lab instruments—Homeland security—Industrial automation

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Precision Assembly

Assembled, actuating micromachine

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Mini Atomic Force Microscope

~300 mm

~$150KLaser alignment

Consumable probesAtomic resolution

5nm/min drift

~0.5 mm

~$50KIntegrated resonator w/fdbk

Renewable probesResolution TBD

1nm/min drift

+ Integrated closed loop positioning in X and Y + arrayed architecture+ on-chip electronics = higher throughput

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Summary

• The pathway to building a new technology is a winding path

• Nanotechnology commercialization is happening today

• Atomically Precise Manufacturing will lead to “digital matter”, which will deliver similar benefits as digitization of information

• Zyvex has been, and intends to continue to be, a leader in the commercialization of nanotechnology

www.Zyvex.com

www.ZyvexPro.com

www.ZyvexLabs.com

www.ZyvexAsia.com

Contact Jim Von Ehr: jvonehr@ZyvexLabs.com