MEMS/Nanotechnology Business Growth in China by Partnership, JVs and Acquisition

sparksdr@hanking.com

Dr. Douglas SparksCTO & Executive Vice President

Hanking Electronics Ltd

October 2016

通过合作、合资、收购，MEMS/纳米技术企业在中国的增长

Hanking Group’s Business Units

• Iron, Nickel & Gold Mining• Cast Iron & Steel Processing• Bearings• Retail Outlets• Investments• Electronics‐MEMS• 7000 employees

罕王集团商业板块

Location of Hanking Group’s Business Units

Hanking is an expanding, private company,headquartered in Shenyang, China

罕王集团全球布局

MEMSDesign

Fab

Hanking Electronics has just added 2 new MEMS & ASIC design offices inMilan and Pisa Italy

Why is Hanking Interested in MEMS?

Yole

为什么罕王对MEMS感兴趣

General M&A Technology 2016 Quotes

China has overtaken the United States for the first time as the world’s biggest “acquiring nation” for mergers and acquisitions in the technology industry, accounting for a 45 per cent share of the market in the first four months of this year,

It estimated that Chinese technology acquisitions reached a new high of US$65.7 billion through 456 transactions, up from the previous record of US$41.6 billion through 434 deals in the same period last year.

“Historically, the US had consistently been the biggest buying nation per year-to-date period and annually since 1995 [in technology mergers and acquisitions],” the report said.

US mergers and acquisitions in the technology sector totaled US$45.6 billion in the first four months of this year.

Dealogic‐ 2016

2016年技术企业并购总体价格

中国向硅谷注入了大量的资金

涉及中国投资者的技术交易的估计数目

Defintions‐ JV, Partnerships

定义：合资与合作

Partnerships‐ Can be formal or informal, sale, market or technology driven

Joint Venture (JV) – A formal business relationship dividing ownership that can lead to an acquisition by one of the venture organizations

Recent M&A Activity in ChinaMEMS & Semiconductors

Acquirer Target Announcement MEMS/Sensors/Semi

Hanking Electronics LtdMaxim Integrated MEMS Business Unit October, 2016 MEMS

SMIC Lfoundry June, 2016 CMOS & MEMS Foundry

Chine Resource Holdings Fairchild (Rejected) December, 2015 Rejected Semi & MEMS

GAE Ltd Silex July, 2015 MEMS Foundry

Tsinghua Unigroup Micron July 2015‐ proposed Semi   

JIC Capital NPX Power Business Unit May, 2015 Semi

National Silicon Industry Group Okmetic April, 2015 MEMS, SOI Wafer Supplier

Hua Capital Omnivision April, 2015 CMOS Imaging Sensor

Hua Capital ISSI March, 2015 Semi

JCET & Huatian STATSChip Pac December, 2014 Semi Packaging

Also‐ in Japan‐ TDK acquired Tronics, and Murata VTI…

Nanotechnology‐ Chinese companies have spent $3.9 Billion on biotechnology acquisitions in just the first half of 2016

中国最近的MEMS和半导体行业企业并购活动

MEMS Partnership Examples

XinGang & Vespers – PiezoMEMS microphones 2016

Hanking Electronics – MEMSCAP – Hanking MUMPS 2012

MEMS 合作的例子

R. Grace, MEMS Commercialization: From the Lab…to the Fab…to the Market, Commercial Micro Manufacturing, January/February 2012

Long Development Times for MEMS Products Acquisition can shorten this time

长的MEMS产品开发时间收购可以缩短这个时间

Acquisition Shortens the Product Development Cycle

MEMS accelerometers took 24 years to go from the idea stage to production.  Gyros took 26 years of MEMS development time.

Hanking acquisition shortens 24‐26 years  to 1 year of technology transfer

The Hanking (Maxim) products have high manufacturing yield, good reliability, products in automobiles, smart phones and drones already.  A starting customer base exists. 

These are advantages that Hanking will have over other Chinese MEMS gyro and 6 dof companies trying to develop these products on their own.

收购缩短产品开发周期

Partnership ExampleHanking MUMPS

合作例子罕王MUMPs

Hanking MUMPS: Partnership in China

MUMPS (Multiple User MEMS Process ) is a low cost method of getting new MEMS designs fabricated, which is needed in China. SOI, AlN-Piezoelectric and low stress poly processes and design rules are available.

The low price makes it ideal for Universities and start ups

罕王MUMPS在中国

Partnerships: Hanking’s Network of MEMS Fabs

R&D and Prototype devices run in production fabs/foundries

DRIE, Wafer Bond, Deposition, Lithography…

Hanking MUMPS wafer fabrication

4”‐8” wafers Single steps or entire processes

罕王MEMS美国研发条件

MEMS Acquisition Example

MEMS收购例子

Hanking Electronic’s MEMS Gyro and Accelerometer Products

Gyro            Accel

罕王微电子的MEMS陀螺仪和加速度计产品

Key MEMS Fabrication Processes‐DRIE, HF Release, Wafer Bond

Thick Epi/Poly Layer‐ Developed & Licensed from the Fraunhofer Institute

DRIE‐ Deep Reactive Ion Etching to form the capacitive plates

Anhydrous HF release of the moving epi/poly structures

关键MEMS生产工艺‐深反应离子刻蚀、HF释放、晶圆键合

Acquisition Patents and Other IP

Acquisition IP

83 Patents

SensorDynamics61 Patents

Maxim Integrated MEMS 90 Patents

收购专利和其他知识产权

Fraunhofer‐ A Strategic Partner for Hanking Electronics

Fraunhofer‐罕王微电子战略合作伙伴

Fraunhofer has been developing MEMS inertial sensor for over 20 years.

MEMS Foundry and R&D labs

Fraunhofer worked with SensorDynamics to launch this MEMS business

Hanking has licensed 83 Fraunhofer patents

Improvements to Hanking MUMPSfrom the Acquisition

200mm Fab Tools

15 Years ofMEMS process DevelopmentMaxim & Sensor Dynamics

FraunhoferTechnology

Hanking MUMPS

通过收购提高罕王MUMPS

SensorDynamicswas a European semiconductor company specialized in developing and manufacturing high‐volume micro‐ and wirelesssemiconductor sensor products for applications in automotive, industry and high‐end consumer sectors. The company was acquired by Maxim Integrated Products, Inc.; a semiconductor company based in San Jose, California. Acquisition was announced in Jul 2011 by Tunc Doluca, CEO and President of Maxim. SensorDynamics was acquired for $164 million ($130 million in cash plus $34 million in debt). SensorDynamics developed and produced custom‐made designs and standard components for use in vehicle stabilization, occupant protection, navigation systems, keyless go systems or autonomous energy generators for wireless and battery free controllers for industrial, automotive and high‐end consumer application.[5] With its headquarters in Graz, Austria, SensorDynamics had offices in Italy and Germany and a worldwide sales and distribution network. The company employed about 130 people in July 2011.  Founded in 2002

9 years of product development as part of SensorDynamics

背景：SensorDynamics

Hanking will be Leveraging 20 years of Fraunhofer, Sensor Dynamics and Maxim 

MEMS Gyro‐Accel Technology

Fraunhofer MEMS gyro  14 years of R&D : Licensed Patents Filed 1995‐2009

Sensor Dynamics – 9 years of development– founded in 2002‐ start up company – sold for $136M to Maxim 2011

Maxim Integrated  2011‐2015‐ 4 years of product commercialization, manufacturing and customer development at Maxim

New Hanking Electronic’s team members come from Maxim, Sensor Dynamics, ST Micro, Freescale….

20 years of technology and product development 1995‐2015

罕王将利用Fraunhofer, sensor Dynamics 和Maxim的20年开发经验的MEMS陀螺仪‐加速度计技术优势

New Fab Tools/Processes available for Hanking MUMPS Foundry

HF release, DRIE‐ STPS, LAM, Gemini bonders, CMP/grind wafer thinning, polySi, TEOS dep, Spray coaters, liftoff, steppers ….

罕王MUMPS代工的新设备/工艺

Piezo MUMPS‐ Piezoelectric ResonatorsAluminum Nitride (AlN)‐SOI‐ Partner

AlN

PIEZO MUMPs5 Mask LevelsAlN Layer 0.5um10 SOI um2 Metal layers 

Si

Hanking MUMPS

压电MUMPS‐压电谐振器 氮化铝‐SOI

Hanking Electronics' New MEMS Fab

Located outside of Shenyang

Backend fab was completed in 2015,

Hanking’s customers will have access to a high volume 8” MEMS fab

罕王微电子新MEMS厂房

Hanking MEMS Cleanroom

Class 100 MEMS cleanroom – and equipment install 2015 Pure MEMS fab, not a CMOS fab.  CMOS wafers can be made elsewhere and then bonded to the MEMS wafers

罕王微电子洁净间

Hong Kong

GuangzhouShenzhen

Taipei

Hsinchu

QingDao

Weihai

Shenyang

Harbin

Changchun

Beijing

Zhengzhou

Dalian

Taiyuan

ShijiazhuangTianjin

Lanzhou

Xian

Kunming

Chengdu

ChongqingWuhan

Shanghai

ChangshaHangzhou

NanjingHefei

Xiamen

Hong Kong

GuangzhouShenzhen

Taipei

Hsinchu

QingDao

Weihai

Shenyang

Harbin

Changchun

Beijing

Zhengzhou

Dalian

Taiyuan

ShijiazhuangTianjin

Lanzhou

Xian

Kunming

Chengdu

ChongqingWuhan

Shanghai

ChangshaHangzhou

NanjingHefei

Xiamen

Target Customers: Fabless MEMS Companies, Startups & Universities in China

There are more than 100 institutions and 500 researchers and more than 50 fabless MEMS design start‐ups in China

目标客户：在中国的无晶圆厂MEMS公司、初创公司和大学

Hanking MUMPS – in China as a MEMS Development Partner

• Provides proof‐of‐concept prior to volume manufacturing – use MUMPS China

• Enables accessible and cost‐effective early‐stage development through standard processes

• Supports multiple process platforms for product flexibility as required

• Provides exploratory development and single step processes as needed

• Hanking’s 200mm fab for high volume production

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罕王MUMPS –中国MEMS开发的合作者

Hanking’s Commitment to MEMS

Hanking is developing a 127 acre industrial park near Shenyang, China, dedicated to MEMS-based sensor products. This will include a MEMS fab for 8” wafers, packaging facility and system assembly buildings for consumer, industrial, automotive and medical products.

In Liaoning province

罕王微电子对MEMS的承诺

Conclusion

MEMS and Nanotechnology business growth is being accelerated in China by acquisitions, JVs and partnerships

Hanking Electronics has employed both partnerships for its Hanking MUMPS foundry services and acquisition for MEMS inertial sensors

Hanking Electronics is announcing a new product line of 3dof and 6dof MEMS IMUs

总结