OPPORTUNITIES FOR PIC’S ON INPOCT 29, 2019

AGENDA

§ What is Integrated Photonics?§ Addressable markets§ Introduction to SMART Photonics§ Value chain and way of working§ Some concrete applications§ Conclusions

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CONVENTIONAL PHOTONICS

3Photonics Market size (2018): ± $ 650 Billion

BUILDING A CIRCUIT WITH ONLY 3 BASIC ELEMENTS

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Photonic integration3 basic elements

Waveguide

Phase

Amplitude

j

ASOA

PHM

PWD

Electronic integration3 basic elements

Electronic chips InP Photonic Integrated Chips

PHOTONIC INTEGRATION RESEMBLES ELECTRONIC REVOLUTION

Photonic integration will change the world again!

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Electronic integration has changed the world

INP INTEGRATION PLATFORM

§ Photonic integration needs active and passive components § Light sources and amplification can only be realized in Indium Phosphide (InP)§ Monolithic integration of all functionalities!§ Mature technology§ Butt-joint integration: no compromise between active and passive

components§ Full on-wafer electrical testing§ Enabler for low-cost integrated circuits!

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waveguides phase modulators gratings Amplifiers/ laser gain section

COMPARISON PHOTONIC TECHNOLOGIESIntegrated Photonics platform technologies

Technique InP Si Photonics Hybrid Si.

Schematic view

Integrated full InP based chip

Silicon based chip with

connected InP laser

Silicon based chip with InP based lasers

bonded

Maximum bandwidth1 > 1,000 Gb/s 100 Gb/s 400 Gb/s

Integration level Full - Limited

Passive components

Activ

e co

mp. Lasers

Phase modulators

Required production facilitiesInP Fab

(eg SMART) InP Fab

(eg SMART)Si Fab

InP Fab (eg SMART)

Si FabInP/Si bonding

Fab

Key: Poor performance High performanceSource:

1 At competitive size and cost

Silicon element

InP element

INTEGRATED INP CHIPS MORE COST-EFFICIENT THAN HYBRID SILICON

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HybridSilicium

A more efficient process flow and better scalability… Lower mask cost

Mask cost comparison (EUR’000)

0 1,500

InP~EUR 20k

Hybrid Silicon~EUR 1,000k

~50x more expensive

!

INDICATIVE

Process flow comparison

Si Waveguide litho and etch

Epitaxial growthEpitaxial growth

InP Waveguide litho and etch

Assembly: die attach

Back-end processing

InP Waveguide litho and etch

Back-end processing

Hybrid Silicon

InP

Fully scalable wafer-scale

process

No continuous flow,

individual dies per functional

material: Limited

scalability

Not required

Not required

INP PLATFORM CAPABILITIES

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KEY MARKET OPPORTUNITIES IN COMMUNICATION AND SENSING

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Communication applications

Sensing appications

Aviation

Big Data

5G Wireless

Energy

Healthcare

Automotive

High tech

Packaging

ChipManufacturing

design§ Communication applications key trends:

§ Ongoing transition to higher network speed § Access networks are migrating from DSL towards Fiber (FttX )§ 5G§ Ongoing rise in data traffic§ Increasing cloud based storage capacity (datacenters) required§ Transition towards advanced coherent optical to technology

§ PICs on InP create disruptive sensing solutions for many sectors:§ Health & Medical§ Automotive§ Aerospace / Aviation§ Machinery§ Energy§ Consumer Electronics

This leads to strongly improved and completely novel functionalities:

§ Smaller, faster, better performance and lower power

§ Photonic IC’s (PIC’s) can be used to address major problems in society

INTEGRATED PHOTONICS WILL HELP SOLVE MAJOR SOCIETAL ISSUES

Faster data rates and reduced power consumption

Mobility: Autonomous drivingEye safe LIDAR systems

IoT

Medical diagnostics: portable and close to patient

With Integrated Photonics we use IC’s that operate on the basis of light instead of electronics.

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STRONG MARKET GROWTH, DRIVEN BY INP INTEGRATED PHOTONICS

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

PIC market estimates 2024 (USD B)

Roland BergerMarkets&MarketsStratistics MRCKn owle dge Sourcing Intell ige nce LLPBCC Research

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2017 2018 2019 2020 2021 2022 2023 2024

InP Photonics development 2017-2024 (USD M)

Telecom Datacom Sen sing

Application value, driven by PIC PIC value itself

THE WORLD IS PAYING ATTENTION!

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Source Photonics opens new InP laser fab

26 Feb 2019 - Facility in China will double production capacity of

lasers and other photonic components

Source: Optics.org Synopsys and SMART Photonics Expand InP-Based PIC Design AutomationDevelopment of SMART Photonics PDK for Synopsys’ PIC Design Suite Enables a Complete and Seamless InP-Based Design FlowSource: Million Insights

“Silicon Photonics Market

to Exhibit Huge Growth

Based on Rising Usage of

Photonic Technology and

Increasing Demand for

Optical Multiplexers Till

2025”Source: Bloomberg

Cisco to acquire silicon photonics

chip maker Luxtera for $660 million

Source: TechCrunch

SMART IS BUILDING ON >30 YEARS TECHNOLOGY HERITAGE

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2012 2013 >2022Early1980’s

1994

First Multi Project Wafer produced

2017

Achieve full control

Scale up toserve globalcustomers asstate of theart photonicsfoundry

Origin Spin-off SMART Photonics

Round

New fab

Onboarding TU/e

First production

NanoLab establishedEstablished first shared facility for integrated Photonics prototyping

2002

Total investment in fundamental InP and Photonics research estimated at €300M

1991

Acquisition First commercialization components POEC acquired

by Uniphase for €1.2B

1998

Move to HTC andinstallation of tool setin HTC facility (50% ofprocess)

First step in control

2020

OUR FACILITIES

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• SMART Photonics @High Tech Campus– > 900m2 Production facility

• 570m2 3” Production cleanroom (Class 1000)– Processing and epitaxy

• SMART Photonics @NanoLab cleanroom Eindhoven– 850m2 Fully equipped R&D facility

SMART PHOTONICS BUSINESS MODEL

§ We are the first player offering production of InP integrated photonic chips as a foundry§ The foundry model is well established in the Semiconductor industry and currently accounts for more than 40% of the market§ Our customers are predominantly OEMs and system companies§ We use a generic process to support customers in a very broad set of application areas§ We sell our IC’s to large global companies as well as rapidly growing start-ups§ Market demand is presently exceeding our current capacity and is growing

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DESIGN PICs PACKAGING MODULE SYSTEM

DESIGN HOUSES OEMsSYSTEM

COMPANIES(E.G. CISCO)

END USERS

GOOGLE, FACEBOOK,

AIRBUS, PHILIPS HEALTHCARE

§ We are the first player offering production of InP integrated photonic chips as a foundry§ The foundry model is well established in the Semiconductor industry and currently accounts for more than 40% of the market§ Our customers are predominantly OEMs and system companies§ We use a generic process to support customers in a very broad set of application areas§ We sell our IC’s to large global companies as well as rapidly growing start-ups§ Market demand is presently exceeding our current capacity and is growing

VALUE CHAIN FULLY EMBEDDED IN THE NETHERLANDS

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DESIGN PICs PACKAGING MODULE SYSTEM END USERS

DESIGN TOOLS

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Mask Generator

Designer

Design KitFoundry

Circuit SimulatorPhysical Simulations

LAYOUT-AWARE SCHEMATIC DESIGN FLOW

§ Functional design using parameterized building blocks§ Fast and accurate modeling of large-scale PIC designs§ Automatically sweep and optimize parameters§ Orientations and connections are kept and passed to the mask generation software

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GENERIC PROCESS DEPLOYED THROUGH DESIGN KIT (PDK)

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• Key Intellectual Property of the company resides in the broadest set of building blocks for Integrated Photonics

• Releasing building blocks take extensive effort. PDK thus represents a strong unfair competitive advantage for the long term

• Process Design Kits are available:– Access via state of the art software tools– Design manual and Functional building block

description– Full layout-aware design flow– Circuit simulation and Mask design

Process Design Kit with our Building blocks is key IP ...and is offered via the design software of:

EXAMPLE: 2.5 GHZ MODE LOCKED LASER

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S. Tahvili and S. Latkowski, COBRA

1550.75 1551.00 1551.25 1551.50 1551.75-70

-65

-60

-55

-50

-45

-40

-35

-30

Pow

er d

ensi

ty (d

Bm/re

s)

Wavelength (nm)0 2 4 6 8 10 12 14

-80

-70

-60

-50

-40

-30

-20

2.40 2.45 2.50 2.55 2.60 2.65-80

-75

-70

-65

-60

-55

-50

-45

Spec

tral p

ower

(dBm

/Hz)

Frequency (GHz)

ISOA=115mA, USA=-2.7V

Spec

tral p

ower

(dBm

/Hz)

Frequency (GHz)

• Frequency comb laser for gas sensing• 30 mm cavity• < 4mm2

EXAMPLE: COMB LASER FOR GAS SENSING

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OUTLOOK: LIDAR THE EYES OF THE FUTURE

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Source: website Luminar

Advantages InP PIC technology

• Eye-safe wavelengths• Robust and small• Non-mechanical• High sensitivity

4 PRODUCT CATEGORIES THAT FULFILL ALL CUSTOMER NEEDS

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Discrete components Discrete + components PICs MPW

§ Standardized industrial integration process

§ Design using generic building blocks to create integrated chips

§ PDK streamlines design process for generic PICs process

§ Combines several discrete components onto one chip, e.g:§ Laser + Modulator§ Laser Arrays§ Laser + Spot Size Converter

§ Facilitates Si Photonics integration

end components Connected to passive photonic

§ Low threshold access to new technology

§ Combines multiple projects on single wafer

§ Generic building block approach

§ Single high-end components § Connected to passive photonic

chips

SMART POSITIONED TO ACCELERATE INP PHOTONICS INDUSTRY

Photonic Integrated Chips (PIC’s) based on Indium Phosphide (InP) will play a key role in the lives of many people as they enable new and improved functionalities, ultimately making our world better, greener and safer

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Extending technology leadership

Foundry will continue to fuel innovation

Accelerating scale-up process

Developing full photonics ecosystem

Continuous reinforcement

cycle

CONCLUSIONS

§ Integrated photonics has huge potential to have a very broad application range and to have strong societal impact

§ Dutch Integrated Photonics ecosystem built on years of investment in R&D, provides great opportunity for future economic strength in the Netherlands

§ SMART Photonics is playing a key role in the ecosystem, by supplying high performance InP integrated circuits through a foundry model

§ InP combines active and passive components in the best way

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