© 2013

Copyrights © Yole Développement SARL. All rights reserved.

Flexible & Printed

Electronics

© 2012 • 2

Fields of Expertise

• Yole Developpement is a market, technology and strategy consulting company, founded in 1998. We operate in the following areas:

• Our expertise is based on research done by our in-house analysts, conducting open-ended interviews with most industry players.

• 30 full time analysts with technical and marketing degrees

• Primary research including over 3,500 interviews per year

MEMS & image sensors

Photovoltaic

Advanced Packaging

Microfluidic

& Med Tech

Power Electronics

HB LED, LED & LD Equipment and materials

© 2012 • 3

Mission Statement: Knowledge-Based Company

• Help our customers develop their business through

specific analysis, reports & services providing: – Accurate market data, market segmentation and marketing

analysis

– Technology evaluation; cost estimates and COO analysis

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– Identification of strategic development opportunities for companies and business units

– Support for M&A, due diligence, and identifying new investors

– Advertising opportunities in YOLE magazines, webcasts and specific events

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actions

© 2012 • 4

4 Business Models • Custom Analysis:

– Largest part of Yole activities

– Covered by NDA agreement

– A few days to several months of work, depending on objectives

• Published Reports: – An average of 40 reports published every year

– Available individually or through Annual Subscription Program

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imaging

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– M&A (buying and selling)

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© 2012 • 5

Our Global Activity

Yole Inc.

Yole Paris

Yole Japan

30% of our business is

in North America

30% of our business is

in Asia

40% of our business is

in EU Countries

Yole Korea Yole Développement Lyon HQ

Yole Taiwan

S+C

© 2012 • 6

Some of Our Customers

Financial investors

& industry advocates

R&D Organizations

Suppliers (equipment,

wafers, materials)

Component

manufacturers

Integrators, system

suppliers & end users

© 2013• 7

Definitions

• In the following slides, we use the following definitions:

– Flexible electronics: Partly or completely flexible electronic devices.

Manufacturing process can include evaporation, MOCVD, solution printing etc.

– Printed electronics: Electronic devices using solution-based manufacturing

processes (screen printing, roll-to-roll, inkjet etc.)

– Polytronics: Formerly “Polymer Electronics”. They are devices mixing printed

electronics, flexible electronics, and inorganic electronics (standard Si ICs, thin

film technologies and so on… )

© 2013• 8

APPLICATION LANDSCAPE

© 2013• 9

Application landscape (1/3)

Flexible

Application enabling / Function

enabling

Printed

(Potentially) Large volumes / Low

cost

Large OLED

Displays

TV

Small OLED

Displays

Mobile phones /

tablets

Conformable

Organic PV

Energy

harvesting

Large / high

volume

Organic PV

PV farms /

grid

electricity

OLED

Lighting

General

lighting

Systems on foil

Smart systems,

polytronics

Conformable

OLED Lighting

Automotive /

luxury lighting

Gas sensors

Wireless

sensors

Electronic

paper

e-readers

© 2013• 10

Application landscape (2/3)

• Market drivers for flexible and printed electronics are different, even though

manufacturing processes and end applications share similarities

• Main market drivers for flexible electronics are:

– The possibility to add new functionalities:

• Conformability for OLED lighting (for the automotive industry),

• Conformability for OPV (energy harvesting)

• Robustness for small OLED displays (for smart phones & tablets)

– The possibility to create new applications:

• wearable electronics.

– Flexible electronics is NOT meant to be low-cost, and usually uses expensive processes

(MOCVD, evaporation)

• The main market driver for printed electronics is:

– Cost reduction thanks to high volume (Roll-to-roll) manufacturing or to the fewer use of

expensive manufacturing processes (MOCVD, evaporation):

• potentially lower cost OLED TVs can be built if solution based manufacturing is mastered, potentially

low cost OPV can appear if technical challenges are leveraged

© 2013• 11

Application landscape (3/3)

Technology Application Development

driver Manufacturing focus

Displays

Small OLED

Display

Smart phone & tablets

displays; PMP displays etc. Robustness

Flexible substrate &

encapsulation

Large OLED

Display TV screens Lowering costs

Large volume (R2R)

solution printing

Electronic

paper

E-readers; auxiliary screen

for cellphones

Low power

consumption

Standard evaporation /

solution processes

Lighting

Conformable

OLED lighting

Automotive indoor lighting;

luxury lighting Conformability

Flexible substrates &

encapsulation: flexible

material layers

Large panel

OLED lighting General lighting

Lighting

homogeneity

Standard evaporation /

solution processes

OPV

Conformable

OPV

Energy harvesting;

conformable solar panels Conformability Inkjet printing

Large volume

OPV

Solar farms; building

powering Lowering costs

Large volume (R2R)

solution printing

Sensing

Printed sensors Chemical sensing; printed

touchscreens Lowering costs

Any manufacturing

process

Systems on foil

/ Smart sensors

RFID sensing; medical,

cosmetic, packaging, etc…

Enabling the

“Internet of

Things”; low cost

smart systems

Polytronics

© 2013• 12

Players landscape (1/3)

Flexible

Application enabling / Function

enabling

Printed

(Potentially) Large volumes / Low

cost

Large OLED

Displays

Small OLED

Displays Conformable

Organic PV

Large / high

volume Organic

PV OLED Lighting

Systems on foil /

polytronics

Conformable

OLED Lighting

Gas sensors

Electronic

paper

© 2013• 13

Players landscape (2/3) Main Equipment Supplier Map

Printed electronics and Flexible electronics share most of their manufacturing processes

© 2013• 14

Players landscape (3/3) Main Material Supplier Map

Printed electronics and Flexible electronics share the same manufacturing materials

© 2013• 15

Each Printed Electronics Segment Has Very

Complex Supply Chains

Example of ThinFilm Electronics NVRAM supply chain Unique to ThinFilm

If you want to play in

Printed Electronics, you

have to put your own

infrastructure together!

© 2013• 16

PRINTED ELECTRONICS APPLICATIONS

© 2013• 17

Printed Electronics Applications

© 2013• 18

Former YOLE Printed Electronics Forecast

by Application

peLMS = Logic, memory & sensors and includes 50+ applications

“pe” represents “printed

electronics”

Must use traditional "printing"

manufacturing techniques

Must be "electronic" and not

simply electrical

These two definitions separate

out new and interesting

technological advancements

from simply old technologies

that may be flexible or use

organic polymers

Substrates may be flexible or

not , transparent or not ,

organic or inorganic

2010 2011 2012 2013 2014 2015

peLMS $18 $33 $59 $107 $194 $351

peSolar $25 $29 $34 $40 $47 $55

peLighting $4 $16 $70 $200 $448 $810

peDisplay (peOLEDs &ePapers)

$153 $266 $430 $518 $665 $765

$0

$500

$1 000

$1 500

$2 000

$2 500

Re

ve

nu

es

$ m

illi

on

US

D

Printed Electronics By Applications

© 2013• 19

Technology needs always more time to

come to the market…

peLMS = Logic, memory & sensors and includes 50+ applications

“pe” represents “printed

electronics”

Must use traditional "printing"

manufacturing techniques

Must be "electronic" and not

simply electrical

These two definitions separate

out new and interesting

technological advancements

from simply old technologies

that may be flexible or use

organic polymers

Substrates may be flexible or

not , transparent or not ,

organic or inorganic

2010 2011 2012 2013 2014 2015

peLMS $18 $33 $59 $107 $194 $351

peSolar $25 $29 $34 $40 $47 $55

peLighting $4 $16 $70 $200 $448 $810

peDisplay (peOLEDs &ePapers)

$153 $266 $430 $518 $665 $765

$0

$500

$1 000

$1 500

$2 000

$2 500

Re

ve

nu

es

$ m

illi

on

US

D

Printed Electronics By Applications

© 2013• 20

Flexible Printed Electronics Market

Forecast in US$M by application

• Printed & flexible electronics market will grow from below $200M in 2013

to ~$960M in 2020.

© Yole Développement 2013

2013 2014 2015 2016 2017 2018 2019 2020

Smart devices $ 00 $ 00 $ 00 $ 00 $ 00 $ 01 $ 02 $ 05

RFID $ 00 $ 00 $ 01 $ 02 $ 03 $ 06 $ 09 $ 15

Sensors $ 01 $ 05 $ 09 $ 15 $ 22 $ 30 $ 45 $ 55

Printed & Flexible PV $ 00 $ 00 $ 00 $ 00 $ 00 $ 00 $ 01 $ 01

Flexible PV $ 04 $ 03 $ 04 $ 10 $ 12 $ 14 $ 16 $ 17

Printed PV $ 04 $ 02 $ 01 $ 01 $ 01 $ 01 $ 01 $ 02

Printed & Flexible OLED lighting $ 00 $ 00 $ 00 $ 00 $ 00 $ 00 $ 17 $ 41

Flexible OLED lighting $ 00 $ 00 $ 00 $ 02 $ 06 $ 18 $ 33 $ 58

Printed OLED lighting $ 00 $ 00 $ 03 $ 15 $ 31 $ 81 $ 134 $ 210

E readers $ 133 $ 129 $ 126 $ 123 $ 119 $ 105 $ 110 $ 115

Printed & Flexible OLED displays $ 00 $ 00 $ 00 $ 00 $ 00 $ 97 $ 118 $ 142

Printed OLED display large size $ 00 $ 00 $ 02 $ 07 $ 23 $ 69 $ 169 $ 276

Flexible OLED displays small size $ 34 $ 42 $ 42 $ 82 $ 120 $ 112 $ 95 $ 22

$ 00

$ 200

$ 400

$ 600

$ 800

$ 1,000

$ 1,200

Mar

ket

Val

ue

(U

S$M

)

2013-2020 Printed & Flexible Electronics Market Forecast in US$M

CAGR

123,61%

71,88%

77,27%

79,71%

22,28%

-10,78%

146,94%

111,84%

89,64%

-1,99%

21,05%

169,84%

-6,13%

© 2013• 21

Printed & Flexible Electronics 2013-2020 forecast:

Print vs. Flex vs. Print/Flex in US$M

© Yole Développement 2013

2013 2014 2015 2016 2017 2018 2019 2020

Printed & Flexible $ 01 $ 05 $ 10 $ 17 $ 25 $ 134 $ 192 $ 259

Flexible $ 39 $ 46 $ 46 $ 94 $ 139 $ 144 $ 143 $ 97

Printed $ 136 $ 131 $ 132 $ 146 $ 174 $ 256 $ 414 $ 602

$ 00

$ 200

$ 400

$ 600

$ 800

$ 1,000

$ 1,200

Mar

ket

valu

e (

US$

M)

Printed vs. Flexible vs. Printed&Flexible 2013-2020 Forecast in processed surface (US$M)

CAGR

38,94%

15,96%

23,65%

© 2013• 22

PRINTED ELECTRONICS CHALLENGES:

TECHNICAL LIMITATIONS

© 2013• 23

Technical limitations

• Materials performances

– High-performance materials are required for most

applications such as OLED displays for example.

– Solution materials have to keep from mixing with each other

– They have to stay contained in a pixels area for displays

– Etc…

• Appropriate equipment

– Appropriate printing equipment must be developed and

affordable.

– Printed electronics requires smaller pitches than what can

offer current printing pieces of equipment: graphic industry

does not need a precision under 40 µm

• High Volumes!

– For printed solutions to become affordable, high volumes

have to be reached, and this will not be the case at short / mid

term

In OLED Displays for example,

high intra-pixel uniformity is

required, which is not yet

attainable with current solutions.

Source: DuPont

© 2013• 24

Aerosol Coatings1,6%

Curing Tools0,8%

Displays (device)29,4%

Inks8,1%

LMS (device)0,1%Polymers

0,6%

Printing Tools3,1%

RFID (device)4,2%

Solar Cells (device)51,6%

Not Defined0,5%

Amount Raised - Applicative BreakdownTOTAL US$1,35B

Dow Jones Venture Source

Application Breakdown

• Solar cells lead the raised amounts in printed electronics, even though they will not be the first to

reach actual volumes, if-ever they can reach high volumes…

© 2013• 25

FLEXIBLE ELECTRONICS CHALLENGES:

TECHNICAL LIMITATIONS

© 2013• 26

Challenges for Flexible Electronics

• Flexible barriers

– The main challenge is on materials for encapsulation

– Current technologies are not so good when used on flexible devices

– Current options such as flexible glass or multi-layer technologies are expensive

– Active materials are required for higher performance applications such as OPV

or flexible OLED. No such material yet exists

• Some companies start to build production lines for flexible OPV in 2016+.

Nevertheless these companies are betting on the hope that a suitable

barrier material will exist by the time the line is operational.

© 2013• 27

PRINTED ELECTRONICS CHALLENGES:

FINANCIAL INCOHERENCE

© 2013• 28

2013 Financial analysis • In last report, we tracked 24 companies for a total of US$1.35B raised over 2000-2010 (we did not

get the information for 3 companies).

• Two years later, 1 companies out of the 3 that had raised > $100M did bankrupt:

– Konarka (photovoltaics).

– Nanosolar starts layoffs in February 2013

– And PlasticLogic is currently trying to find new applications outside the e-readers market!

$422

$372

$180

$61 $59 $57$36 $34 $29 $25 $21 $10 $9 $8 $7 $6 $4 $3 $3 $3 $2

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Am

ou

t ra

ise

d (

US

$)

Total amount raised over 2000-2011(USD)Dow Jones Venture Source

? ?

© 2013• 29

POLYTRONICS

© 2013• 30

Polytronics definition

• Polytronics (Polymer Electronics) is the “evolution” of printed & flexible electronics.

We assimilate it to the also called “hybrid printed electronics”, it is the integration on

a flexible foil of different technologies:

– Printed devices (printed sensors, OPV)

– Si ICs

– Thin film technologies

– Etc…

• The main purpose of Polytronics is to develop smart systems with a potential low

cost, thus enabling larger visions such as “the Internet of Things” and even more.

• The global interest in polytronics is born from the difficulties faced by the flexible &

printed electronics industry. It is an alternate way to come to similar results while

trying to avoid some of the main challenges.

© 2013• 31

Time for disillusion:

- No killer applications

- Huge technical

challenges

- Low market pull

- Restructuration of the

market (companies

close)

Printed electronics

promises:

- Only a few potential

applications (OLED

displays, touchscreens)

Flexible electronics

promises:

- Not flexibility, but

robustness and

conformability.

Beginning of the Hype for

polytronics

Printed electronics, Flexible electronics &

Polytronics history

80’s 90’s 2000’s 2010’s 2020’s

Highly conductive

polymers start to be

investigated.

Printed electronics

promises:

- New applications

(Kodak’s first diode)

Beginning of the hype

Printed electronics

promises:

- New applications

- Low costs

Flexible electronics is

being investigated

In the hype!

Tremendous amounts

of money are being

invested. First

working prototypes

are demonstrated.

Start-ups are

popping-out

Printed electronics

promises:

- New applications

- Low costs

- Infinite potential

Beginning of the hype

for flexible electronics

Polytronics starts to

be investigated

First high volumes

in printed & flexible

electronics, in a few

applications only

Actual polytronics

challenges are

being revealed

Legend:

Printed electronics

Flexible electronics

Polytronics

© 2013• 32

Several building blocks are being investigated by polytronics. Some building block already exist,

but most of them must exist to build a marketable devices.

Some companies have already developed commercial products, but are now in “advance of

phase” and are techno-pushing

- Projects: Interflex, Chip2Foil, SmartEC, PRIAM etc…

- Bosch

- NXP

- VTT

- Fraunhofer

- CEA LITEN

- Etc…

- EnFuCell,

Infinite Power

Solutions, etc…

- Disasolar,

Eight 19,

Armor,

(Heliatek),

etc…

- KWJ

Engineering

- NXP

- Prelonic

technologies

- DuPont Teijin

- Agfa

- Heraeus

- Etc…

Polytronics main focus: Smart Systems

Thin film battery Energy

harvesting

Small/thin

inorganic

electronics

Printed sensors Printed antennas Materials

© 2013• 33

The 2009-2012 Pasteur project aims at creating a printed RFID – wireless sensor tag for which

enables monitoring the environmental conditions of perishables in the cold chain.

Many industrials and research centers are involved in this project: NVC, Inkoa, KUL,

WageningenUP, Verhaert, Philips, TU/e, NXP, Prelonic, TU Delft, CNM, IMEC, NTC, TNO, Catrene,

Boschman.

RFID – wireless sensor tag demonstrators: RFID – Wireless sensor tag structure

Example: Pasteur EU project

RFID – Sensor tag

© 2013• 34

Polytronics current stage

• Pilot facilities are being developed, mixing roll-to-roll processes and pick & place for

inorganic components: VTT, Fraunhofer Institute, CEA LITEN, etc…

• Prototypes and start-ups start to appear:

– VTT and EnFuCell : biosensor coupled with electronics for cosmetic applications like

monitoring lotion penetration into the skin

– Fraunhofer EMFT: polytronics based Lab-on-a-chip

BUT

• Only niche applications have been identified. The only killer application could be

RFID if costs manage to go lower than Si-based RFID

• The technology is still at basic development stage

• Practical questions start to arise:

– Smart packages: How to recycle it? It cannot go into standard recycle bins…

– Smart clothing: Will it be trend-dependent and never last more than one season?

– Smart sensing: Is there an health issue if my kid tries to eat the sensor I put in my

refrigerator?

© 2013• 35

Surfing on the hype

1990 2000 2010 2020

Late 90’s: beginning of

the hype for printed

electronics

Start-ups start to be

created

2005-2008: In the hype for

printed electronics

Large investments in R&D

/ large investments in

start ups

2000’s: beginning of the

hype for flexible

electronics

Start-ups start to be

created

2012: End of the hype for

printed electronics

Industry restructuration /

companies start to close

2010’s: In the hype for

flexible electronics

Large investments in R&D

/ large investments in

start ups

2013: beginning of the

hype for polytronics

Start-ups start to be

created

Legend:

Printed electronics

Flexible electronics

Polytronics

Interest and investments

© 2011 • 36

Copyrights © Yole Développement SA. All rights reserved.- Printed Electronics Report June 2011

PE “At-a-glance”

• Yole defines Printed Electronics as using some kind of printing technology AND

requiring a “semiconductor effect” such as “electron donor acceptor” or

“electron-hole” type activity

Yole sees the printed electronics segment as very different from printed wires and other

electrical devices

The semiconductor junction effect separates printed electronics from printed wires (e.g.

RFID antennas) and printed batteries etc.

• The industry is highly fragmented and needs to coalesce around 1-2

manufacturing techniques in each application or the efficiencies of industry will

not lower prices for equipment and material supply channels to make many

applications economical.

This is however not the case today as many manufacturing techniques can be used for

different applications.

pe transistors can be printed by various means: Inkjet, Gravure, Roll-to-roll,

Flexography, Nano-imprint, Screen printing, Spin coating

Overall the printed electronics industry need more “killer applications” (none today) and

“manufacture-able prototypes” to kick-start the markets

© 2012 • 37

DISCUSSION