Affordable Scaling of Sensor Manufacturing with Printed Electronics - PowerPoint PPT Presentation

Thin Film Electronics ASA (“Thinfilm”) Affordable Scaling of Sensor Manufacturing with Printed Electronics Using Printed Electronics to Create the Internet of Everything Davor Sutija, Chief Executive Officer TSensors Summit Munich 2014

The $100 Billion Market Opportunity Penetration of electronic intelligence in physical objects $100 billion $315 billion 1 (1% of retail value) (~23% of retail value) MARKET GAP EXISTING MARKET I n t e r n e t o f E v e r y t h i n g Why hasn’t this gap been addressed? Lack of scalability in conventional electronics Cost of integration The solution? 5 – 10 trillion Printed Electronics # disposable items sold in 2012 1 Global semiconductor market (2013) Source: IDC; Gartner; World Bank; IMF; HIS; The Semiconductor Industry Association; OICA; IC Insights; MarketLine; Apparel Market; Planet Forward

Compelling Opportunities for Printed Electronics Application Market size ($ bn) Trillions Monitoring of 1-2 perishable goods of Sensors Interactive 2-5 Devices packaging Technology- ~2bn differentiated Personal 1-1.5 health care solutions and Software service offerings Dynamic 5-10 for customers: price display Thinfilm Tags Cloud Anti-theft/ Device 2 brand protection Software Cloud Logistics 2-5 NFC & "Internet 10+ of Everything"

About Thinfilm: Key Product Families Thinfilm Memory Smart Labels - Display Smart Labels & NFC Barcode Authenticate genuine products, validate Sensors and timers Simple, effortless wireless link between refills, track gray market activity bring local intelligence to everyday everyday products and phones/tablets products Unique electrical signature provides Printed display for a clear, Every item uniquely identifiable, forensic-level protection with instant in- definitive digital readout cloud-linked for custom experiences field testing (customs, in-store) Multi-bit rewritable memory to store Temperature, humidity, chemical, Sensor integration enables supply chain info and track use and other sensors possible active, dynamic smart objects

Thinfilm Innovation in Printed Electronics ► 2014 CTIA Wireless, Emerging Technology Award Alongside Samsung, VMWare, Nokia ► 2014 All-Star Innovator, PharmaManufacturing.com ► 2012 Wall Street Journal Technology Innovation Award ► 2012 World Technology Award Sponsored by CNN, Time, Science and Technology Review ► 2012 GigaOM Mobile 15 Alongside Nest, Fitbit, Apple, Samsung ► Industry awards from IDTechEx, FlexTech Alliance, etc.

Memory and Logic Fundamentals of Computer Design from the Printing Press Memory + Logic Printed memory OTFT (Organic thin film transistors) - rewritable and nonvolatile - Excellent material stack characteristics for - commericlized technology both p and n type materials - Roll-to-roll manufacturing - High-volume manufacturing compatible methods

Manufacturing Options for the Internet of Everything Printed Electronics Conventional Silicon Additive print processes, Subtractive process, • • based on inks based on photolithography Highly scalable Gradual capacity scaling not possible due to • • CapEx orders of magnitude below ‘ megafab ’ economics • conventional silicon New factories $5-10B+ • Quick turnaround Hundreds of production steps • • Continous roll or high-efficiency 8-12 week standard process time • • sheetfed processes Relies on old/obsolete factories for • Large area sensor NFC/RFID, but 70 closed 2009-2013, • 9 more in 2014

Organic thin-film transistor and PDPS performance Schematic cross section Schematic cross section G Gate insulator Semiconductor S D Planarization Plastic foil Top-gate, bottom-contact configuration p-channel n-channel

Transistor development roadmap Traditional manufacturing – Base process • Vacuum deposition • Spin coating • Photolithography Small-scale printing • Gravure plate printer • Rotogravure printer • Flexo printer HVM printing S2S High-volume manufacturing compatible methods • Rotogravure printer • Screen printer HVM printing R2R High-volume manufacturing • R2R system

Production capable PE manufacturing equipment Kroenert Roll-to-roll printing machine Ohio GT high sheet to sheet gravure print

Use Case: Brand Protection Thinfilm Memory™ in market now to protect luxury goods against counterfeiters Authentication labels Brand authentication • Refill verification • Dispenser tracking • Grey-market identification •

Transforming Print Technology into Products Temperature Sensor Label w/ Display Timer Label w/ Display Temperature Threshold Sensor Label w/ NFC

OTFT Temperature Threshold label Batteries – various technologies available. Current 9V drive voltage on its way to 6V. Battery On-switch compatible with need to activate label somewhere in use-case flow On-switch Printed NTC thermistor from PST OTFT based threshold circuitry based on print-compatible material sets Threshold Temp Display detector w/ Display sensor driver or w/o latch OTFT based display driver Electro-chromic display from ACREO

Sensing and Logic with Printed-Dopant Polysilicon NFC-enabled smart label combines sensing + wireless communication Printed System Printed NFC NFC Smart Label Internet of  NFC Barcode product ready with commercial yields Everything  Supported natively by Samsung Galaxy S5 and other Google Android phones  NFC well positioned as the glue for the Internet of Everything beyond smart devices (Android, Apple, Windows Phone, etc.)

NFC Temp Threshold Tag Batteries – various technologies available. Current 6V drive voltage on its way to 3V. Battery Proprietary on-switch to activate label at customer’s command On-switch Printed or conventional thermistor PDPS based threshold circuitry Temp Threshold NFC sensor detector interface NFC interface made by PDPS – readable with Android phones

NFC Smart Label: Temperature Sensor Operation 1. Phone RF energy activates tag NFC Barcode IC activated by 13.56MHz (NFC standard) RF power transmitted by mobile phone 2. NFC Barcode transmits Unique ID + sensor data to phone Label transmits 128-bit code = Unique ID + sensor bits following Enables full audit chain by connecting sensor data reads with fixed, universally Unique ID 0000  Temp ok 3. Mobile app takes action 0011  Temp high 1100  Temp low based on tag ID and sensor data App provides intuitive user interface and may connect to cloud database server to unlock personalized/customized user experience 4. Cloud services record & analyze Aggregate user activity can be mined for valuable insights and analytics. - Logistics & brand protection: track counterfeiting and diversion, sensors can identify weak links in temp-controlled supply chains - Consumer marketing: optimize on-package digital promotions and offers by leveraging user history, location, context data

Cloud Connectivity & the Printed Internet of Everything Recommendations/ Personalized • • alerts based on cross-sell, up-sell sensed data content & offers Loyalty & contest Recall and • • integration expiration alerts Multimedia tips & Contextual, • • tricks from celebrity multi-lingual info experts Authenticity check to Analytics gathered for • • verify genuine product brand owner Smart packaging builds loyalty with mobile-first customers

Printed Electronics Use Case: Fresh Food Monitoring & Cold Chain Transport Need for cost-effective sensing Temperature excursions compromise food quality and safety every day • 24% of food calories produced for human consumption are wasted • 40% of losses in developing countries due to poor storage/monitoring • / NFC / RF Brief high temperature excursions can reduce shelf life of • fresh food by 40%+ $8 Billion logistics market for temp-sensitive pharmaceuticals, including Temperature Sensor Label • $2.8 Billion of specialized packaging and instrumentation 40% of vaccines in UK kept at incorrect temperatures • $20 Million in ruined vaccines annually in US Federal Vaccines for • Children Program

Application Example: Time-Temperature Sensor Label Sensor & Display Labels Printed Electronics Positioning Low Printed Electronics Cost per function Sweet Spot Temperature Monitoring for Perishable Goods Color $1.4 billion in 2010 changing 9% CAGR labels High Simple 500,000,000 color changing labels Tracker Data Loggers & Alarm Tag s sold per year Low High System performance

One sensor label for fresh foods – multiple touch points B2B B2C Packaging Facility Retailer Consumer Internet of Things, Verification Connected Home Label applied Employee scans with Consumer uses their own Check in / check out items phone or store-issued NFC enabled phone to scan from smart refrigerator Temperature tracked device to determine package in store and in-line through processing freshness and upload receive freshness sensor Alerts to eat expiring foods information to cloud for data (“Is this fish still first (with recipe Scans verify freshness big data good?”) suggestions) before/after shipment analytics/monitoring Significant opportunity to Automated mobile alerts to Stores can dynamically introduce personalized rebuy expiring/depleted allocate inventory to mobile marketing items (milk, eggs) discount safe food with limited shelf life – less waste