Nanodistrict Case Studies Israel

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Nanodistrict Case Studies - Israel

• Dr. Daphne Getz, SNI
• Dr. Yoel Raban, ICTAF

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Outline

• Review of Nano Technology in Israel
• Nano research in the Israeli Academia
• Nano industry in Israel
• Case study I (large firm) Applied Materials
  Israel Ltd.
• Profile, History, Involvement in Nano, Nano
  products, Nano process,
• Business environment, Alliances, RD, Strategy.
• Case study II (NDF) Do-Coop Technologies Ltd.
• Description, History, Involvement in Nano,
  Technology, Nano
• products, Strategy, Alliances, RD, Potential
• customers, Link to universities.

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1. Review of Nano Technology in Israel
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Nano research in the Israeli Academia

• Israel is home to six world-class research
  institutions, each with its own advanced programs
  in nanoscience and nanotechnology.
• Over 250 Israeli research faculty working in
  nanotech-related fields today, confirming
  dramatic growth since 2002 (nearly doubled).
• Researchers in Israel are working in 7 Leading
  Nano Fields particles, solid materials,
  structures, electronics photonics,
  biotechnology, filtration membranes, tools
  equipment.
• Most of the Israeli ongoing academic Nano
  research is basic research or applied research in
  its early stages.
• Institute of Physics Publishing ranks Israel as
  number 2 in publications and number 3 in patents
  (per M inhabitants) among the 15 most "effective"
  countries in Nanotechnology (Compano Hullmann,
  2002) .
• Between the years 1995-2005 Israeli researchers
  published about 2000 publications.

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Distribution of Researchers by Field of Activity
The sum of researchers in the fields is bigger
than the actual number of researchers due to
overlapping. Data Source DA, 2005
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Israeli Nano Industry

• The 2005 INNI Nanotech RD survey identifies more
  than 40 early-stage nanotech companies with core
  missions devoted entirely to nano-enabled
  technology or nano-enabling products and 12
  leading corporations with commercial involvement
  in nanotechnology.
• 48 of the companies are new start-up companies
  founded in the last 5 years (NDF).
• Private investment in the startups in 2005 totals
  about 76 million.
• The number of nanotechnology companies has
  doubled since 2000.
• Nanotech companies are operating in seven fields
  of activity. The main fields are nanomaterials,
  nanobiotechnology and nanoelectronics.
• Most of the Israeli nanotech companies have
  products which are in the early stages of their
  life cycle, 6 companies are already in revenue
  producing stages.

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Distribution of Companies by Field of Activity
Companies can be active in more then one field
Data Source DA, 2005
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Location of Nano Companies, Large Corporations
and Research Centers
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Nano Functional Materials Consortium (NFM)

• NFM (Nano Functional Materials) is a consortium
  of 13 companies and 12 academic research groups,
  seeking new ways to fabricate and use
  nano-particles in industrial processes and
  products.
• NFM consortium is supported by the Magnet Program
  established by the Office of the Chief Scientist
  in the Ministry of Industry, Trade and Labor.
• NFM is a member of IMPART within the European
  6th Framework Program, examining the impact of
  nanoparticles on the human health and on the
  environment.

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Case study I (Large Company) Applied Materials
Israel
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Applied Materials Inc.

• Applied Materials Inc. is the largest supplier of
  integrated circuit manufacturing systems and
  related services to the worldwide semiconductor
  and semiconductor-related industry.
• Service products include equipment maintenance,
  materials supply and management, parts
  refurbishment, equipment remanufacturing, yield
  enhancement, training and other solutions.
• Net Sale of Applied Materials Inc. worldwide was
  7 billions in 2005.
• Applied Materials employs approximately 12,600
  people in over 65 locations throughout China
  Europe and Israel India, Malaysia and Singapore
  Japan Korea Taiwan and the United States.
• Applied Materials Israel is a private company,
  subsidiary (100 ownership) of Applied Materials
  Inc.

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Applied Materials Israel - Profile of the Company

• Location Rehovot, Israel
• Year Established 1991
• Ownership  Private
• Parent Applied Materials Inc
• Subsidiary Integrated Circuit Testing GmbH
  (Germany)
• Number of Employees 1100 (650 engineers
  technicians)
• Field of activity Nanoelectronics -
  Semiconductor equipment
• Technology Nanometrology, Process Diagnostics
  and Control systems, Computer Based Training.
• Potential Customers Semiconductor manufacturers
• Estimated Annual Sales 450 m in 2004 400 m in
  2005

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History of the Company

• APPLIED MATERIALS (Israel) was originally
  established in Israel as a technology center in
  1991.
• It's mission was to develop control systems
  integrating hardware and software for the
  company's automated systems.
• In January 1997, APPLIED MATERIALS formed the
  Process, Diagnostics Control (PDC) Business
  Group, incorporating the advanced inspection and
  metrology capabilities of two acquired Israel
  based companies Orbot Instruments, a supplier of
  wafer and reticle inspection systems, and Opal
  Technologies, a supplier of SEM based metrology
  systems.
• The two companies were integrated into APPLIED
  MATERIALS including their manufacturing
  facilities and research and development centers.

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Description of Involvement in Nano

• The company applies Nano manufacturing technology
  solutions for the electronics industry with a
  broad portfolio of equipment, service and
  software product.
• Applied Materials develop high speed automatic
  metrology systems for semiconductor manufacturers
  to verify critical sub-micron dimensions during
  the production of integrated circuits (chips).
• Applied offers several types of products that are
  used to measure and inspect the wafer during
  various stages of the fabrication process.

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Metrology and Inspection Products

• Metrology
• Metrology is the science of measurement to
  ascertain dimensions, quantity, or capacity the
  techniques and procedures for using sensors and
  measurement equipment to determine physical and
  electrical properties in wafer processing.
• Inspection
• Wafer inspection systems are used to detect
  particles, pattern defects, and process-induced
  defects, any of which can occur on the wafer
  during the fabrication process. Detection results
  from the inspection systems are fed to defect
  review systems for further analysis. With the
  right technology, many defect root cause can be
  identified inline, leading to accelerated process
  response.

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Metrology and Inspection Products

• Scanning Electron Microscopes (SEMs)
• VeritySEM Metrology systems enable precise
  control of the lithography and etching processes.
  
• SEMVision G2 Defect Analysis products enable
  customers to use this technology as an integral
  part of their production lines to analyze defects
  as small as 30 nanometer.
• ComPlus-2T Inspection system detects defects in
  devices with design rules of 90 nanometer and
  below.
• Uvision system
• UVision Inspection system is the industry's first
  laser 3D brightfield tool, uncovers critical
  defects on the wafer that have not been detected
  before by any other system.

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Nano Process

• Manufacturing and production of metrology and
  inspection tools are carried out in-house, in
  small series, close to the developing center.
• Applied Materials Israel share manufacturing of
  some unique components with a few companies in
  Japan and in the UK.
• Applied Materials use some of IMEC (Belgium) and
  SUNY (Albany) wafer FAB facilities.
• Applied Materials Inc. recently took over Metron
  Technology Inc, which one of its subsidiaries,
  Metron Technology (Israel) Ltd. Also provide FAB
  Solutions in Israel.

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Description of the Business Environment

• Leading Competitors
• Tokyo Electron Limited (Japan)
• ASML (Netherlands)
• Nikon (Japan)
• KLA-Tencor Corp. (USA)
• Cannon
• Novellus (USA)
• Markets all over the world
• Most of the customers are in the Far East

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Alliances

• Applied Materials Israel collaborates with other
  industrial companies and academic groups via
  several national consortia, including WFCM (Wafer
  Fab Cluster Management consortium), IMG4 (4th
  generation of Imaging Machines), and Alpha
  (Advanced Low Power High-end applications).
• Applied Materials Israel supports Centers of
  Excellence in the academia by giving scholarships
  to research students, and collaborates with the
  leading research groups in Israel.

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RD - Evolution of the Knowledge Base

• Applied invested 16 of net sale on RDE in the
  last 5 years.
• In fiscal 2005, Applied (worldwide) invested
  nearly 1 billion in research, development and
  engineering.
• Approximately 700 patents were issued, growing
  the intellectual property portfolio to more than
  5,000 patents globally.
• Product development and engineering centers are
  located primarily in the US, UK and Israel.
  Applied outsourcers certain RDE activities, some
  performed in other countries.
• Applied has collaborations in specific RD
  subjects with companies in Europe, USA and the
  Far East.

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The Strategy of the Company

• Applied Materials strategy is straightforward
  focus on core markets, develop new technologies
  for evolving markets and cultivate partnerships
  to service the customer value chain.
• Applied Materials overall strategy has the
  following goals (Michael R. Splinter -
  President and Chief Executive Officer, 15 August,
  2006)
• Grow in the core semiconductor business, in both
  systems and services.
• Enter adjacent and new markets that leverage the
  core competencies and provide opportunities to
  further grow the company over the long term (by
  aggressively pursuing organic expansions and
  through Mergers and Acquisitions activities).
• Enhance the business processes and synergies
  working across the company to achieve operational
  and financial efficiencies that increase margins
  and deliver higher levels of profitability and
  returns for the shareholders.

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Balancing the Cycles

• Applied Materials has decided to break the
  competitive mold--not only by leading their
  rivals in technological and market advances, but
  also by extending their offerings to include
  services, specifically the ability to service
  their competitors equipment
• By leveraging their technical expertise and
  global production footprint, Applied first
  supplements their cyclical production revenue
  with a steady cash flow from services and
  ultimately shifts their relationship with a core
  set of customers from price-based purchases of
  equipment to consultative analysis of their
  operations.
• "Their approach to moving up-market to
  value-based solutions and matching offerings to
  customers buying behavior, provides a lesson many
  in the chip fab market may want to watch"
  
  (Joel Cooke, Holden Advisors)

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Case study II (NDF) Do-Coop Technologies
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Do-Coop Description

• Do-Coop Technologies Ltd. is a private company
  based in Israel.  Do-Coop was formed in order to
  develop and commercialize novel water-based
  materials using Nanotechnology for the
  biotechnology, pharmaceutical and chemical
  industries and for additional industries as well.
• Incorporated 1997
• Employees 14
• Area Nano-biotechnology (provides new generic
  physical reaction environment)
• VC total amount raised to date 7M
• Sales
• 2004 - 137K
• 2005 - 300K
• President, CTO Founder Eran Gabbai

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History of the company

• Do-Coop has developed a patented Nanotechnology
  to modify the properties of water using nanometer
  size particles that enables the first ever
  introduction of water-based biomaterials.
• The Company dedicated over six years to develop
  and optimize its first line of products, branded
  as Neowater.
• Do-Coop has just started commercializing its
  first line of Neowater-based products, targeting
  the molecular diagnostics and research market
  within the Life Sciences industry.

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Description of Involvement in Nano

• Neowater, a novel proprietary water-based
  nanotechnology, is a broad enabling platform upon
  which research, diagnostics, biotech and pharma
  companies can obtain improoved price-performance
  results and overcome current technology barriers.
• As an example, Neowater enables superior
  water-based biocatalysts, solvents, reagents,
  media enhancers, and buffers that can maximize
  the efficiency of new and existing products and
  processes. 

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Do-Coop Technology

• NeowaterTM uses unique properties of
  nanoparticles that modify the physical properties
  of water molecules.
• Each nanoparticle within NeowaterTM with its huge
  surface creates an effect known as the surface
  effect organizing the water molecules around it.
  
• NeowaterTM mimic intracellular water using
  inorganic, insoluble crystals introduced in water
  in a patented process.

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Do-Coop Products

• NeowaterTM PCR Enhancer
• NeowaterTM Transfection Enhancer
• NeowaterTM Enzyme Enhancer
• NeowaterTM Bacteria Growth Enhancer
• NeowaterTM ELISA Enhancer

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Pharma Products
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The Strategy of the Firm
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The Strategy of the Firm
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Alliances

• Under NDA, to be publicized in the near future.

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RD (Evolution of the knowledge base)

• DoCoop has 3 patents registered at WIPO since
  2000
• Application numbers PCT/IL2000/000083 ,
  PCT/IL2002/001004 , PCT/IL2005/000198
• Inventors Eran Gabbai (and others)

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Do-Coop Potential Customers

• Diagnostics companies
• Biotech companies
• Pharma companies

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Do-Coop Link to Universities

• Scientific advisory board includes
• Prof. Yakir Aharonov, Professor of Physics at Tel
  Aviv University
• Prof. Eshel Ben Jacob, Professor of Physics at
  Tel Aviv University

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• Thank you!