BUSINESS MODEL FOR LAB-GROWN DIAMONDS

Produced by Microwave Plasma Chemical Vapour Deposition (MPCVD)

Team Members

Lim San San A0098499Y

Lin LinA0110239U

Alec LiuA0110166W

Wang Jun-Un EugeneA0098504Y

Mohammad KhalidA0098544R

Agenda

• Introduction

• Current & Potential Applications- Value Proposition

- Customer Selection

• Method of Value Capture

• Scope of Activities

• Method of Strategic Control

• Summary

Lab-Grown Diamonds

Lab-Grown Diamonds

• 80% of global natural-mined diamonds (135Mcarats or 27,000 kg) are used industrially

• Increasing demand for industrial-grade diamonds

• High-quality and low-cost lab-grown diamonds can address this market demand

• Established in 2005, with funding from the EDB for the first plant

• World’s largest MPCVD (Microwave Plasma Chemical Vapour

Deposition) diamond research facilities

• Industry leader in lab-grown diamond technologies

• Production of colourless, high purity and cost-effective lab-grown

diamonds for various industrial and scientific applications

• Complete technology value chain - from R&D, production, to cutting

& polishing

• Jewellery Business Unit: Gemesis

• Process to produce high-purity solid materials

• Microwave will energise the precursors decompose and deposit on the substrate.

• In the case of Diamond:– Carbon atoms from CH4 are reattached to diamond substrates, initiating the

natural crystallisation process

– Growth condition is difficult to optimise and maintain

MPCVD Diamond Technology

• Hardest and Most Thermally Conductive material in nature- 4x the hardness of Tungsten Carbide- 5x the thermal conductivity (2200W/mK) of Copper

• Low thermal expansion• High voltage durability very good insulator• Radiation hard high electron mobility• Wide optical spectrum

Superiority of MPCVD Diamonds

Current Applications

Consumer ApplicationsMechanical Applications

Mechanical Application

ApplicationValue

PropositionCustomer Selection

Mechanical Applications

Application Value Proposition Customer Selection

• MPCVD diamonds are applied on tools and equipment to improve machining performance and increase tool lifetimes

• High purity results in extreme hardness and allows toolmakers to achieve high precision in tooling design

Application Value Proposition Customer Selection

Single Crystal Diamonds-MPCVD

Higher Purity

Better crystal

structure

Higher hardness

More wear resistant

Longer tool life

Smoother surface

and edge

Sharper tips

Better thermal properties

Sustain higher pressure

Source: DiamTech

Properties of Different DiamondsHPHT Natural MPCVD

Hardness (MPa)* 1500 2790 2860

Impurity Metal catalyst Unpredictable foreign impurity

Almost none

Tool life (normalised)

1 Inconsistent 3 to 8(depends on application)

Propertyconsistency

High Low High

Supply consistency

High, with numerous suppliers

Low High, with few suppliers

Price (small diamond)

Low($25)

High ($50 - hundreds)

Moderate – high($50)

Price(large diamond)

High($1600-2000)

High(>$5000)

Low-moderate($500 – 700)

Applications General tooling High-end: Precision tooling, high-pressure, high-temperature resistance apps.

Application Value Proposition Customer Selection

Mechanical Applications

Application Value Proposition Customer Selection

Mechanical Application Industries

Precision Machining

Wood Machining

Grinding & Polishing

General Engineering

Crushing, Sawing &

Mining

Oil & Gas Drilling & Drill Bits

Road Maintenance

Stone and Concrete

Processing

Mining, Tuneling &Drilling

Value Proposition

Application Value Proposition Customer Selection

• Providing a wide range of extreme performance products and solutions to meet customer’s demands of the precision cutting, oil & gas, hard rock mining & tunneling, and road maintenance industries

Customer Selection

Application Value Proposition Customer Selection

• Precision Tool Makers

Customer Selection

• Tunnel Boring Machining (TBM) Companies

• Road Maintenance Machining CompaniesVolvo Construction Equipment

Application Value Proposition Customer Selection

Customer Selection

Application Value Proposition Customer Selection

• Offshore Deep-Water Drilling Companies

Consumer Application

ApplicationValue

PropositionCustomer Selection

Consumer Applications

Application Value Proposition Customer Selection

• Jewelry, Bridal Diamonds - Colourless

– Certified lab-grown diamonds purest Type IIa

• Fancy Coloured Diamonds

– World-famous diamonds are of fancy colours due to their rarity

• Others: Luxury brand goods, timepieces, implants

Consumer Applications

Application Value Proposition Customer Selection

• How different are they compared to mined diamonds?

• Price

Value Proposition

Application Value Proposition Customer Selection

• Providing consumer eco-friendly and conflict-free diamonds that are of same as or better quality than mined diamonds at more competitive costs

Customer Selection

Application Value Proposition Customer Selection

• Jewelry dealers / Pro conflict-free diamonds

• Luxury goods manufacturer

• Direct to general consumer via e-commerce

PotentialApplications

SemiconductorWater purification

Water PurificationApplication

ApplicationValue

PropositionCustomer Selection

Water Purification - Disinfection Stage

Application Value Proposition Customer Selection

• Primary treatment, secondary treatment, tertiary treatment (disinfection)

Water Disinfection

Application Value Proposition Customer Selection

• Primary treatment, secondary treatment, tertiary treatment (disinfection)

• Wastewater treatment using MPCVD diamond electrodes for refractory chemicals

– Reducing the cost to purify water

– Higher efficiency

Diamond as Electrodes• Eg.

– Breakdown of chlorobenzene

– Breakdown of 1,4-dioxane

Application Value Proposition Customer Selection

Platinum electrode: less breakdown in 8 hours

Diamond electrode: more breakdown in 6 hours

94.5% breakdown of chlorobenzene

Diamond electrodes have 5x the 1,4-dioxane removal efficiency of platinum electrodes

Platinum electrode: 17% removal efficiency

Diamond electrode: 85% removal efficiency

Electrode PropertiesElectrode Material

OxidizingPower

Resistance Potential Window

Overpotential Hardness Others

RuO2 + ++ ++ ++ ++++ NA

IrO2 + ++ ++ ++ +++ NA

Pt ++ ++++ ++++ ++++ + Heavy metal pollution

PbO2 +++ +++ +++ +++ ++ Heavy metal pollution

SnO2 ++++ ++ +++ +++ +++ NA

Diamond +++++ +++++ +++++ +++++ +++++ NA

Application Value Proposition Customer Selection

Diamond electrodes 1. More physically/chemically resistant2. Longer lifetime3. Disinfect more effectively4. Do not produce heavy metal pollutants

Application Value Proposition Customer Selection

Trend & Market Info • More stringent legislations on water discharge

• Push for electrode use in water disinfection aided by shift

away from chemical treatments

0

0.5

1

1.5

2

2.5

3

3.5

2012 2019

Mar

ket

Rev

enu

e ($

b) 6% CAGR

$1.94 billion

$2.96 billion

Revenue forecast for Water, Wastewater Disinfection Systems market

Source: Frost & Sullivan

Value Proposition

Application Value Proposition Customer Selection

• Providing customers with high-quality boron-doped diamonds to achieve efficient disinfection of waste water according to their specific requirements.

Customer Selection

Application Value Proposition Customer Selection

• Early adopters in the water purification industry

• Industries switching from chemical to electrical disinfection

• End-user criteria: – Cost advantage

– Efficiency

– Compliance with EPA guidelines

– State environmental regulations in place

– Pilot facilities or large budget for new treatment systems

Customer Selection

Application Value Proposition Customer Selection

• Largest Water Companies

Semiconductor Application

ApplicationValue

PropositionCustomer Selection

Application Value Proposition Customer Selection

Semiconductor applications

• Mobile phone base station• Communication satellite• Radar• RF amplifier

High PowerHigh Frequency

Application Value Proposition Customer Selection

Diamond

https://www.ntt-review.jp/archive/ntttechnical.php?contents=ntr201008sf3.html

Semiconductor applications

Application Value Proposition Customer Selection

Modern Semiconductor Devices

• Bipolar Junction Transistor (BJT)• Heterojunction Bipolar Transistors (HBT)• Metal-semiconductor field-effect transistor• High electron mobility transistor (HEMT)

Si, SiC, SiGeGaAs, GaNInP

Modern Semiconductor Materials

Diamonds in semiconductor

Application Value Proposition Customer Selection

• High thermal conductivity• High carrier mobility• Wide energy bandgap• Long carrier lifetime

Application Value Proposition Customer Selection

Example: GaN on Si GaN on Diamond

Application Value Proposition Customer Selection

http://www.i-micronews.com/compound-semi/

Application Value Proposition Customer Selection

Value Proposition

• Providing customers with semiconductor-grade diamonds according to their specific application requirements to achieve high power, high frequency, high temperature and long lifetime

http://www.i-micronews.com/compound-semi/

http://www.digitimes.com/news/a20140324PR202.html

http://www.i-micronews.com/reports/Diamond-Materials-Semiconductor-Applications/3/402/

CAGR 14%

Customer Selection

Application Value Proposition Customer Selection

TriQuintSemiconductor is a

semiconductor company that designs, manufactures, and supplies high-performance RF modules, components and foundry services.

- Semiconductor design house- Semiconductor fabrication plant- Research institutes

Method of Value Capture

Value Map

IIa Technologies

Raw Material

Tooling Suppliers

Research Labs

Gemesis.com Consumer

Consumer

Innovators & Early Adopters

Consumer Jewelry Segment

Purchase

Product

Product

Purchase Mechanical & Tooling Segment

Semiconductor & Water Disinfection Segment

Payment Materials

Prototype Licensing

RCA

RCA: Research Collaboration Agreement

Custom Product

Custom Product

Custom Product

5

Money

Money

Money

Value Capture – Value added Production

IIa Technologies

Raw Material

Tooling Suppliers

Research Labs

Gemesis.com Consumer

Consumer

Innovators & Early Adopters

Purchase

Product

Product

Purchase

Payment Materials

Prototype Licensing

RCA

RCA: Research Collaboration Agreement

Custom Product

Custom Product

Custom Product

5

Money

Money

Money

Mechanical

• Impurity level

• Crystal orientation

• Optional doping

• Size and dimensions

Consumer

• Loose diamonds in different sizes and shapes

• Colorless, fancy colored.

Water

• Doping levels of boron

• Substrate selection

Semiconductor

• Quality and thickness

• Impurity level

• Crystal orientation

• Substrate selection

Scope of Activities

Scopes of Activities

Operations

• Diamond production

• Equipment building and maintenance

• Quality control

• Inventory control

Sales & Marketing

• Build distribution channels

• Product promotion and branding

• Identify potential market segment

• Technical customer service

R & D

• Diamond applications R&D (processimprovement, customer services)

• Collaborations (R&D and marketing) with external parties

Strategic Control

Strategic Control

Strong IP Management

• IP Strategy: To patent customized equipment and sub-processes

• Trade secret for the ‘recipe’ MPCVD

Branding & Education

• Awareness of lab-grown diamonds – consumer diamonds

• Trade shows and research collaboration

Asset Management• Acquisition: to compliment the

product, process and service

• Vertical Disintegration.

R & D• New product development for

new applications

• Process optimization

• Encourage open innovation through collaboration

Sustaining Profitability

Summary

Summary

IIa Technologies capable of producing excellent lab-grown

diamonds

Current applications of diamonds in industrial and

consumer areas

Potential applications in Water disinfection and

Semiconductor

Value Proposition:

The ability to produce diamonds customized to specific

customers’ needs

Growing company with potential growth and sustainability

QUESTIONS?