Integrated Photonics POET’s Optical Interposer Platform HCW... · 2020-03-02 · processes to...

© POET Technologies Inc. | PUBLIC 1

© POET Technologies Inc. | TSXV: PTK.V | PUBLIC

Integrated PhotonicsPOET’s Optical Interposer Platform

H.C.Wainwright 20th Annual Global Investment Conference

New York, NY Sept. 4-6, 2018

© POET Technologies Inc. | PUBLIC 2© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 2

Safe HarborThis presentation contains forward-looking statements and forward-looking information within the meaning of U.S. and Canadian securities laws, including but not limited to statements relating to revenue potential, growth and/or projections such as those included at slides 8, 10, 22 and 23 of this presentation. Forward-looking statements and information can generally be identified by the use of forward-looking terminology or words, such as, "continues", "with a view to", "is designed to", "pending", "predict", "potential", "plans", "expects", "anticipates", "believes", "intends", "estimates", "projects", and similar expressions or variations thereon, or statements that events, conditions or results "can", "might", "will", "shall", "may", "must", "would", "could", or "should" occur or be achieved and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends. Forward-looking statements and forward-looking information are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

The forward-looking statements and information in this presentation are subject to various risks and uncertainties, including those described under theheading "Risk Factors" in the Corporation's annual information form, many of which are difficult to predict and generally beyond the control of theCorporation, including without limitation risks: associated with the Corporation's limited operating history; associated with the Corporation's need foradditional financing, which may not be available on acceptable terms or at all; that the Corporation will not be able to compete in the highly competitivesemiconductor market; that the Corporation's objectives will not be met within the time lines the Corporation expects or at all; associated with research anddevelopment; associated with the integration of recently acquired businesses; associated with successfully protecting patents and trademarks and otherintellectual property; concerning the need to control costs and the possibility of unanticipated expenses; associated with manufacturing and development;that the trading price of the common shares of the Corporation will be volatile; and that shareholders' interests will be diluted through future stock offeringsor options and warrant exercises. For all of the reasons set forth above, investors should not place undue reliance on forward-looking statements.

Other than any obligation to disclose material information under applicable securities laws or otherwise as may be required by law, the Corporationundertakes no obligation to revise or update any forward-looking statements after the date hereof.

© POET Technologies Inc. | PUBLIC 33© POET Technologies Inc. | TSXV: PTK.V | PUBLIC

What POET does…


We design, build and test OPTICAL ENGINES

• What is an Optical Engine?﹘A device that emits, detects, amplifies, modulates and guides photons for the

purpose of creating or detecting a digital photonic signal.

• Why is it important?﹘Because photons can carry far more data at faster rates through an optical fiber than

electrons can carry through copper, so it’s faster, better and cheaper.

• Where are Optical Engines used?﹘The most common use is in devices called ”transceivers” that plug into switches and

servers and that connect them to other switches and servers.

﹘Transceivers control all of the aspects of converting digital electric signals into photonic signals according to accepted “standards” for datacom and telecom, including the type of housing.


POET “Optical Engine” for transceivers for datacom and telecom

POET Optical Engine

Inside

Transceiver

Module

Packaged Transceiver

Data Center Switch


Uses for transceivers with POET’s Optical Engines

• Who needs transceivers with POET’s Optical Engines inside?

﹘All the system operators that store those cat videos for you and send them to your phone when you want to look at them, like Datacenters and Network Operators (Google, Facebook, Microsoft, Cisco, etc.).

﹘Also, car manufacturers and wind turbine operators for LIDAR systems.

﹘Manufacturers of switching and graphics devices, to allow a faster conversion of data from electrons to photons.

﹘And a thousand other applications – almost anything electronic connected with copper wires would benefit from using photonics.

• Why would transceivers makers want POET’s Optical Engines?

﹘Through integration we can make an Optical Engine cheaper than almost any other company in the business of making optical engine components

﹘In a market with established performance standards, cost/price is king.


Need smaller, faster, cheaper and lower power integrated photonic transceivers

Mega data centers require new technology

Mega Data Centers built by

Others

A single Mega data center (500,00 sq. ft.) is estimated to require

~700,000 100G long reach transceivers @ $250 ASP = $175MSource: Needham & Co., Research Note on AAOI, May 22, 2017


Guidance & Navigation

Test & Measurements

LIDAR systems

Medical & Healthcare

Oil & Gas

Photonic Sensing

Telecommunications

Optical communications

Server to server

Rack to rack

Data center to metro

Data Communications

Photonics is a part of everyone’s life today


Why POET does it…


Old phone Kbps Kilo=103

Home Mbps Mega = 106

Datacenter Gbps Giga = 109

Front plates Tbps Tera = 1012

Traffic Peta = 1015

Traffic Today Exa = 1018

Traffic Tomorrow Zetta = 1021 | Yotta = 1024

Gaming (1%,4%)

File Sharing(8%,3%)

Web/Data(18%,11%)

IP VOD(22%,14.5%)

Internet Video(51%,67.4%)

Source: Cisco VNI Global IP Traffic Forecast; 2016-2021

300

250

200

100

50

0

2016 20212020201920182017

Exabyte

s p

er

month

24% CAGR2016-2021

Data Communications market fueled by growth of the connectivity


Integrated photonic transceivers will dominate the market

Integrated transceivers

forecast to

$20 Billionby 2025

from

$3.2 Billion todaysurpassing current discrete-

based devices in 2021

25,000

20,000

15,000

10,000

5,000

0

2012 2024202320222021202020192018201720142013 20162015 2025

PIC

Transceivers

Discrete

Transceivers

Sale

s R

evenue (

$M

illio

ns) $3.2 Billion

2017 $20 Billion2025

Integrated Transceivers Sales Forecast

Source: Oculi, llc


$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2017 2018 2019 2020 2021

Serviceable Available Markets (SAM)

CAGR 27%2017 - 2021

Ethernet Data Centers Wide Area Networks

Ethernet Data Centers <1km reach both within and

between data centers

Wide Area Networks (Metro – intermediate) served

by 1km - 10km links

+

+

POET Optical Engines address top two transceiver market segments


Wafer Fab

Costs Packaging and Testing Costs

0% 50% 100%

Electronics

Photonics

Why Integration MattersApproximate Breakdown of Transceiver Costs

Transceiver Margins: 30%

Bill of Materials (BOM): 70%

Electrical Components: 25%

Optical Components: 30%

Packaging: 45%

75% of total BOM

13

• Packaging and testing = > 80% of total cost of a conventional optical transceiver

• By applying proven wafer-scale semiconductor manufacturing techniques to achieve Integration, POET:

• Dramatically reduces component cost

• Improves size, power, cost, speed, reliability and scalability

• Enables new functionalities

POET’s Optical Engine

reduces BOM Cost of

Transceiver by >50% =

>100% Margin Increase for

some module suppliers


2019 Market Price vs. Modeled POET Price* for 100G Optical Engines

100G Optical Engines PSM4 CWDM

Transceiver Pricing $150 $250

Price of

Optics + Packaging (minus electronics)

~$74 ~$150

Price of

POET Optical Engine~$25 - $40 ~$50 - $70

POET

Solution

Competitor

Offering

POET Optical Engines enable < $100 PSM4 Transceivers (< 1$/Gbps) and < $150 CWDM4 Transceivers

2-3x Reduction 2-3x Reduction*modeled at production volumes

POET will drive Market Share Gains with a Compelling Price

Difference for Optical Engines


Sizing the Opportunity for POET Optical Engines

Datacom and Telecom

A 4-year cumulative opportunity of $480M from a single customer

*Serviceable Available Market (SAM) based on forecast

shipment data and expected pricing for POET Optical Engines

$Millions

0

50

100

150

200

2019 2020 2021 2022

Single Customer SAM*

Telecom (PON) Datacom 100G Datacom 400G


How POET does it…


Three Approaches to Optical Engine / Transceiver Manufacturing

Conventional “Silicon Photonics” POET Optical Interposer™

• Assembled one at a time

• Components placed manually

• Optically align each placement

• High component cost

• High assembly cost

• Final test upon completion

• “Monolithic” chip integration,

except:

• Lasers not wafer scale so need

active alignment

• High insertion losses, so no

integrated mux-demux yet

• High cost per die and wasted

real estate for laser attach

• Final test upon completion

• A device, not a Platform

• Multi-chip module approach

• Use known good die

• No active alignment

• Low insertion losses

• Wafer level assembly, packaging

and test

• Low cost per die

• High final yield

• High performance detectors and

integrated mux-demux

• True Platform Technology

Integrated


Optical Interposer

Chip-scale Integration using POET’s Optical Interposer Technology

Electrical Interposer

Electrical Die 1

Electrical Die 2

Electrical Die 1

Electrical Die 2

Optical Die 1,2

Electrical

Interconnections

Electrical Die 1 Electrical Die 2

Optical Layer

Electrical Layer

Electrical Die 1 Electrical Die 2

Optical

Die 1

Optical

Die 2Waveguides

First practical application of 3D semi fabrication

processes to photonic interposer devices:

• Flip chip and under-bump metal

• Through silicon vias (TSVs)

• Pick and place assembly

• Wafer-level test, burn-in and packaging

• Compatible with Si CMOS processing


POET’s

Optical Interposer

PlatformA multi-purpose integration

platform with unique benefits

for device manufacturers

POET Optical Interposer Platform

• Small form factor

• Scalable architecture

• Flexible and customizable

• Multi-chip module for a multiple chip designs

• Electronics integrated through high frequency metal traces

• Fully compatible with conventional CMOS

• Useful for a broad range of applications, including:

• Datacenters

• Telecom

• Networking

• Automotive

• Industrial Sensing

• High-performance Computing

Improves yields, lowers cost of packaging, test and assembly,

improves reliability, scalability and time to market


Interposer WafersSilTerra Malaysia8” Silicon Foundry

Dielectric Deposition and

Patterning on Silicon Wafers

Substrate Under Bump Metal

Soldering

Product Design

Market Development

Process Integration

Production Monitoring

Dielectric Waveguide

Design and Simulation

Assembly & Test

Die Attach

Encapsulation

Stealth Dicing

Final Test

Ship

POET Optical Engine Manufacturing Supply Chain Partners

Currently performed by

subcontractors

Dielectric Waveguides

Almae Epitaxy for 25G

DML Lasers

Quad PINs and External

Cavity Laser Production

Epitaxy

Fab Processing

Testing

Cleave / Coat

Solder

Active Devices2”- 4” Compound Semi Fab

DenseLight

DenseLight

BB Photonics


POET…the Company


Publicly Traded – TSX Venture (Canada) – PTK.VOTC QX (US)

POETF (SEC Compliant)

Corporate HQ (Incorporated in Ontario)

Toronto, Canada

Admin, Design,

and Lab

Silicon Valley,

California

Design, Fabrication

and Testing

Changi Road, Singapore

We are an Integrated

Photonics device

company

99

59

02

Employees

Patents

Technology

Platforms

Indium Phosphide (InP) Lasers, SLEDs, ELEDs,

modules for optical sensing

Hybrid Integrated Photonics Packaging (HiPP)

Optical Interposer PlatformPassive Dielectric Waveguides

Wafer-level Integration into Silicon

02 Operating

Subsidiaries

DenseLight SemiconductorsSingapore

BB PhotonicsUS and UK


POET DenseLight Fab in Singapore

• DenseLight Semiconductors, Pte. Ltd.

﹘Wholly-owned subsidiary of POET Technologies, Inc.

﹘25,000 sq. ft. purpose-built fab for 2” - 4” InP wafers

﹘Full in-house vertical integration

﹘ MOCVD-based epitaxial deposition

﹘ Wafer fabrication

﹘ Test & Assembly

• Full product-line of components to modules

﹘Super-luminescent light-emitting diodes (SLEDs) and

laser products

• Global direct sales and distribution network

• Complete optoelectronics integration capability


Legacy Products in Photonic Sensing ~ US$3M LTM Sales

TAM

$10BTest &

Measurement

Significant Opportunity Across Multiple End Markets

Medical & Healthcare

TAM

$2.5B

Structural Health

TAM

$6B

Guidance & NavigationTAM

$4.5B

Source : MarketsandMarkets, LaserFocusWorld, Allied Market Research, Photonics Industry Report by Photonics.org

Key Products

Roadmap Extension

1550nm SLED

Long Wavelength (1.2um-1.7um) Broadband Light Sources

ELEDs (TO Cans)

Fiber Bragg Grating Lasers

Integrated Light Modules

L Band FP and DFB Lasers

Broadband SLED Sets

Market size numbers represent projections / forecasts from 2019-2021


Hybrid Integrated

Photonics

Packaging

(HiPP)

Light Sources

and Detectors

Proprietary

Dielectric

Waveguide

Technology

Three unique capabilities and one mission: photonics integration

POET Technology & Expertise

© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 25


POET’s Strategy - to co-develop Optical Interposer-based solutions across a variety of

markets beginning with Optical Engines for datacom and telecom applications

Component and Module Makers*

System Integrators and End Users*

• Macom

• Broadcom

• Lumentum

• Applied Optoelectronics

• NeoPhotonics

• Intel

• Kaiam

• Luxtera

• II-VI

• . . . .

• Finisar

• Oclaro

• Accelink

• Applied Optoelectronics

• Molex

• Mellanox

• Innolight

• Source Photonics

• Inphi

• . . . .

• Acacia

• Ciena

• Arista Networks

• Infinera

• Huawei

• Nokia

• ZTE

• Fujitsu Networks

• Coriant

• Arista

• Cisco

• . . . .

• Microsoft

• Google

• Facebook

• Baidu

• Alibaba

• Tencent

• AT&T

• Verizon

• Comcast

• Warner

• . . . .

• Both markets are characterized by significant overlap

• System Integrators and End-Users often specify

requirements

• Among these companies, we have engaged in discussions

with 13, and all continue to be interested in the Optical

Interposer to varying degrees

• Active qualification for co-development or contract

development is in process with 3 major companies (all

under non-disclosure)

• We continue to forecast delivery of prototypes by the end

of Q4

• Certain components / processes have been or are in

qualification cycles, including:

• QuadPIN Detectors

• DFB Lasers

• Assembly and Test Equipment and Processes

*Not an exhaustive list


Management Team

Dr. Suresh VenkatesanCEO

25 years semiconductor industry experience

Motorola, Freescale & GLOBALFOUNDRIES

Technology Development &

Commercialization

Thomas R. MikaCFO

25 years semiconductor industry experience,

Tegal Corporation (NASDAQ: TGAL)

CEO and CFO leading IPO, several follow-on

financings and restructurings

Rajan RajgopalGM and President, DenseLight

Over 28 years of industry experience

Former VP at Global Foundries and Micron

David E. LazovskyExecutive Chairman

Founder, CEO and Director of Intermolecular

(NASDAQ: IMI)

20 years of semiconductor industry

experience - IMI and Applied Materials

Dr. William “Bill” RingSVP

20 years semiconductor industry experience:

HP, Tyco, BB Photonics

Optical technology, product and business

development

Dr. Yee-Loy LamCTO DenseLight

Co-founder of DenseLight Semiconductors

Professor Nanyang Technological University

Specialist in optoelectronics, fiber-optics

sensors and photonics systems applications


Board of Directors

Peter D. CharbonneauDirector

Former General Partner, Skypoint Capital ,

funding early stage data and telecom co’s.

Board Member, Mitel and Teradici

John F. O’DonnellDirector

Counsel to Stikeman Keeley Spiegel

Pasternack LLP

Canadian attorney with 43 years of

experience specializing in corporate and

securities law

Chris TsiofasDirector

Partner at Toronto Chartered Professional

Accountancy firm Myers Tsiofas Norheim LLP

25 years of experience on both financial and

operational issues

Jean-Louis MelingeDirector

Partner with ARCH Venture Partners

Managing Director, YADAIS

Former CEO, Kotura

Leading expert in silicon photonics and optical components

Don ListwinDirector

Founder, Listwin Ventures

Former CEO, Openwave Systems

CEO, Canary Foundation

Former EVP, Cisco Systems

Consulting Professor, Stanford School of Medicine

Mohandas WarriorDirector

President & CEO of Alfalight, 2004-2016

15 years at Motorola Semiconductors (Freescale)

leading test and assembly operations


March 2018 ”bought deal” public offering

Closed March 21, 2018

Underwriters: Cormark in Canada; H.C.Wainwright in USA

Shelf Offering in Canada

Private placement to qualified investors only in USA

25,090,700 Units

Gross Proceeds $13,799,885 CAD (US$10,663,548)

Unit = One Common Share plus 0.5 Warrant

Pricing $0.55 CAD (US$0.425)

Warrant Strike Price CA$0.75 (US$0.58)

Not separately tradeable


PTK.V POETF

POET capitalization and key statistics

Total common shares outstanding 288,057,302*

Warrants Outstanding ($0.52 CAD US$0.40)

Warrants Outstanding ($0.75 CAD US$0.58)

34,800,000 (11/2/16 offering)

12,545,350 (3/21/18 offering)

Share price $0.355 CAD* (US$0.27)

Market cap $102.3M CAD* (US$78.4M)

52 week range $0.19 – $0.79 CAD* (US$0.15 – $0.61)

TTM revenue (6/30/18) $2.8M USD

TTM gross margin (6/30/18) 52%

Cash (6/30/18) $10.0M USD

*As of Aug. 31, 2018 as reported by the TSX Venture Exchange


Multi-Billion $high-growth

market opportunity

Robust product development

pipelinestrong IP position

Able to leverage

existing design, manufacturing and sales capabilities

High-margin Business

Model with sustainable cost advantages

Paradigm Shift Photonic Integrated Circuits – only path

to dramatic cost reductions

Technologydeveloping for

for mass market commercialization

Investment

Highlights

Integrated Photonics POET’s Optical Interposer Platform HCW... · 2020-03-02 · processes to...

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