Slide 1: Investor Presentation
Investor Presentation May 2022 Atomera Incorporated 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements concerning Atomera Incorporated (““Atomera,” the “Company,” “we,” “us,” and “our”). The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and s
Slide 3: Investment Overview
Investment Overview ► Mears Silicon Technology (MST®) is a thin film used to enhance semiconductors § Results in higher performance, lower power, and lower costs for ICs ► Capital-light IP and technology licensing business § Robust and growing patent portfolio ► Engaged with 50% of world’s top semic
Slide 4: MST Technology
MST Technology Potential Benefits ► Improved Efficiency § Higher transistor performance § Lower power consumption § Better reliability ► Lower cost § Reduced die size § Improved yield § Higher throughput ► Same benefits as a node shrink Atomera Incorporated 4
Slide 5: Strong and Defensible IP Portfolio
Strong and Defensible IP Portfolio 307 Patents Issued and Pending Discoverable These distinctive layers are visible on products using MST 119 US Patents 27 91 US Pending 64 Foreign 97 Foreign Patents Core MST Method and Device MST Enabled Devices/Architecture Extensive know-how Next-Gen Architecture
Slide 6: Target Customers & Partners
Target Customers & Partners Integrated Device Manufacturers Foundry Fabless Tool Suppliers (Partners) Atomera Incorporated 6
Slide 7: Customer Engagement & Revenue Model
Customer Engagement & Revenue Model v Customer Wafer Manufacturing Atomera MST® Deposition Customer MST® Deposition 1. Planning 2. Setup 3. Integration 4. Installation 5. Qualification 6. Production Phase Engineering Service • MST deposition on customer wafers Fees • Integration consulting • Integra
Slide 8: Customer Engagement Model
Customer Engagement Model Customer Wafer Manufacturing Standard customer engagement Atomera MST® Deposition Customer MST® Deposition Planning Setup Integration Installation Qualification Production Phase Joint development 1 Atomera MST® Deposition Customer MST® Deposition JDA Completion Planning Set
Slide 9: Customer Pipeline
Customer Pipeline Number of Customer Engagements 27 24 21 18 15 12 9 6 3 0 2016 2017 2018 2019 2020 2021 1Q22 Phase 1 Phase 2 Phase 3 Phase 4 • 19 customers, 25 engagements • Working with 50% of the world’s top semiconductor makers* • 10 of the top 20 (IC Insights, McClean Report 2021) ^ End of year
Slide 10: MST Key Benefits Across Nodes
MST Key Benefits Across Nodes Leading Analog & Mainstream FinFET Advanced 3D RF SOI Planar Mobility 25% 10% <5% 8% Dopant Engineering 20% 15% 15% 20% MST-SP TDDB/BTI (enables overdrive) PNO & HKMG gate stacks 25% 25% 25% 180nm 130nm 90nm 65nm 40nm 28nm 22nm 16nm 14nm 10nm 7nm 5nm These Benefits are
Slide 11: MST technology focus areas
MST technology MST-SP focus areas MST for RF-SOI MST for Advanced Nodes Atomera 11
Slide 12: MST-SP
MST-SP ► MST-SP is a highly-engineered asymmetric power device § Uses MST to enhance Idlin and precisely control dopant profiles ► Improves 5V power devices G § Lower RSP B S D § Can be traded for up to 20% smaller area ► Targeted for rapidly-growing PMIC market 12
Slide 13: 5V Transistors – Critical and Growing Market
5V Transistors – Critical and Growing Market ► Targeted at rapidly-growing PMIC (Power Management IC) market § Power devices can be up to 80% of PMIC die area ► All ICs need stable, regulated power § Across battery charge level, lifetime degradation, and load § Across usage modes – DVS (Dynamic Volt
Slide 14: Example: Use Of 5V Transistor In Apple iPhone13
Example: Use Of 5V Transistor In Apple iPhone13 13 of 25 IC’s in Apple iPhone13 Pro use 5V transistors § iPhone 13 Pro teardown by Tech Insigths § 5V transistor assessment by Atomera Reference https://www.techinsights.com/blog/teardown/apple-iphone-13-pro-teardown?utm_source=Prospect+Email&utm_mediu
Slide 15: 5V MST-SP Product – Value Proposition
5V MST-SP Product – Value Proposition ► Industry best performance at 180nm (Rsp) § Based on measured silicon data § Scalable to smaller process nodes Gate G B S D ► Meets all reliability requirements Source Drain § Breakdown Voltage (BVDSS) > 10.5V MST MST ► Significant cost savings, performance ben
Slide 16: Royalty Opportunity
Royalty Opportunity ► ~410 wafer fabs operating worldwide ► Adoption of MST in one fab can make Atomera profitable from royalties alone § 2022 non-GAAP OPEX guidance is $15.25M - $15.75M Example 1 | Worldwide Average Fab Example 2 | Leading Foundry, 28nm Fab Monthly Fab Capacity1 Monthly Fab Capacit
Slide 17: MST Customer Business Opportunity
MST Customer Business Opportunity ► Foundry economics Wafer GM$ MST Wafer Price GM% Increase Royalty Cost 28nm HP wafer $ 3,300 45% $ - $ - $ 1,815 28nm HP+ wafer $ 3,450 45% $ 68 $ - 5% higher price for +15% performance boost 28nm HP wafer with MST $ 3,600 47.0% $ 208 $ 72 $ 1,907 30% performance b
Slide 18: Financial Review
Financial Review Income Statement Three Months Ended ($ in thousands, except per-share data) March 31, 2022 March 31, 2021 December 31, 2021 REVENUE $ 375 $ 400 $ - Gross Profit 294 400 - OPERATING EXPENSES Research & Development 2,339 2,229 2,249 General and Administration 1,648 1,513 1,508 Selling
Slide 19: Summary
Summary ► High margin, recurring revenue financial model ► Strong technology, patent position, and balance sheet ► Traction with many top industry players and growing licensee base ► Ramping commercial license revenues Atomera Incorporated 19
Slide 20: Thank You
Thank You Atomera Incorporated 20
Slide 21: Backup Slides
Backup Slides Atomera Incorporated 21
Slide 22: New Board Member
New Board Member ►Suja Ramnath ►CEO & President – Integra Technologies ►Deep semiconductor business experience § Division GM Analog devices § Senior VP and GM MACOM Technology Solutions § RF Micro Devices § Electrical engineer 22
Slide 23: Customer Engagement Model
Customer Engagement Model Customer Wafer Manufacturing Standard customer engagement Atomera MST® Deposition Customer MST® Deposition Planning Setup Integration Installation Qualification Production Phase Current joint Atomera MST® Deposition Customer MST® Deposition development Planning Setup Instal
Slide 24: Atomera MSTcad™
Atomera MSTcad™ ► Leading semiconductor companies use TCAD to model manufacturing processes § MSTcad is an add-on for MST ► MSTcad can speeds up the time needed to evaluate multiple MST integration options ► Lowers cost of MST evaluation ► Speeds time to successful wafer runs ► Fewer wafer runs lead
Slide 25: MST enables legacy capacity expansion
MST enables legacy capacity expansion ► MST provides 30% performance advantage § 0.13u analog design § MST vs control silicon ► Enables a die shrink of 15-20% ► Smaller die means more manufacturing capacity § Without the cost of building a new fab Atomera Incorporated 25
Slide 26: MST 28nm benefits
MST 28nm benefits MST shows 30% ► Performance improvements due to MST can be higher performance traded for area reduction ► 28nm PDK SPICE model used to showcase: § Logic scaling with MST shows 22-25% area reduction • Using a NAND2 gate § Analog scaling with MST shows up to 21% area reduction ► Impl
Slide 27: MST for High-k metal gate (HKMG) transistors
MST for High-k metal gate (HKMG) transistors ► MST enhances HKMG transistor performance and reliability* § Reduced stress induced leakage current (SILC) enabling reliability improvement § 23% long-channel mobility enhancement § 2.7x lower gate leakage SILC e- mobility JG vs. EOT * Professor Suman Da
Slide 28: Joint Development Agreements
Joint Development Agreements ► Advantages of joint development § Atomera and customer engineers aligned on common goal § Customer “resident expert” team develops expertise on Atomera technology § Resident experts become natural advocates ► First JDA signed with market leading semiconductor company §
Slide 29: MST: Mears Silicon Technology
MST: Mears Silicon Technology Quantum Engineered Silicon Partial Monolayers of MST Enhanced Oxygen in Silicon Transistors Supported by Major Semiconductor Tool Suppliers Atomera Incorporated 29
Slide 30: Atomera state of the art research center
Atomera state of the art research center ► Epi deposition facility § 300mm Epi deposition § 200mm Epi deposition § Wafer cleaning equipment § Metrology tools § Advanced wafer handling § World class clean room facility ► Available to deliver customer wafers Epi Deposition Tool Atomera Incorporated 30
Slide 31: Atomera MSTcad™ Progress
Atomera MSTcad™ Progress ► Leading semiconductor companies use TCAD ► MST is modelled with a TCAD add-on called MSTcad ► These plots show silicon verification of MSTcad simulations ► Enables good electrical match-up for 5V NMOS and MST SP ► Should speed time to successful results with customers Atom
Slide 32: Atomera Licensees
Atomera Licensees Large fabless RF semiconductor company Market Leading semiconductor company Atomera Incorporated 32
Slide 33: MST1 vs MST2
MST1 vs MST2 ► MST1 § Blanket technology § Easy to integrate § Deposited at beginning of mfg process § Degraded by high heat in STI/Well module § Faster time to market for low heat processes § Used for FinFET, RFSOI, newer process nodes ► MST2 § Selective technology • Integrated after STI/Well so av
Slide 34: MST Matching Performance
MST Matching Performance 35 ► Transistor mismatch is an industry problem Si control 30 ► Certain circuit designs benefit from mismatch MST process 25 reduction Better Matching § A-D convertors 20 σΔVth [mV] § SRAM 15 § Flash 10 § DRAM sense amplifiers ► MST can reduce mismatch by more than 50% 5 1.8