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May © 2015 From Technologies to Market Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions Report sample From Technologies to Market

Energy Management for Smart Grid, Cities and Buildings: Opportunities for battery electricity storage solutions 2015 Report by Yole Developpement

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May © 2015

From Technologies to Market

Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

Report sample

From Technologies to Market

2

WHY ENERGY MANAGEMENT AND FOCUS ON BATTERIES?

• There was an interesting time for fossil-fuel electricity business.

• There has been an interesting times for wind power business.

• There has been an interesting time for photovoltaic business.

• There is an interesting time for electricity grid and microgridmanagement and battery businesses.

• The electricity grid management business is driven by other businesses with verysolid and sustainable roots (energy efficiency, power supply security, clean andrenewable energy…).

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

3

MOTIVATION FOR THIS REPORT

• The growing share of intermittent renewable energies (wind, PV) reveals strong interest in stationarybattery electricity storage systems.

• The energy management is key for the development of new technologies for better world, such as smartcities, smart buildings, clean energy sources, clean mobility, etc.

• Most of those technology solutions are interlinked.

• The growing EV/HEV market is a game changer driving the battery performance improvement and costreduction.

• An electricity storage solution, especially a battery, is at the center of all these technologies andapplications. Although battery as electricity storage solution is known since years, new batterytechnologies are still maturing and their cost fall is expected to significantly speed-up the developmentand deployment of existing and new technologies, applications and thus to open new businessopportunities.

• The combination of renewable energies, batteries and energy management is sought by customers tryingto reduce their electricity bills. It becomes a nightmare for conventional utilities.

• Traditional business models and value chain relationships are becoming obsolete and will be reshaped.New energy management solutions and business models have to be developed. This will have a greatimpact on the business of both existing players and newcomers.

• The numerous synergies within the energy market will lead to growing value chain integration andincreased M&A activity. An example of this trends are the EV/HEV manufacturers which become energycompanies.

• The goal of present report is to provide the insight into this fascinating and rapidly evolving world withstrong synergies and emerging business opportunities.

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

4

WHO SHOULD BE INTERESTED IN THIS REPORT?

• Decision makers, such as

• Renewable energy (PV, wind) players

• Battery cell manufacturers

• Suppliers of stationary electricity storage solutions for residential, commercial buildings and utility scale systems

• Developers of novel energy management solutions

• Electricity grid operators

• Operators of conventional (fossil…) power plants

• Developers of new battery cell chemistries

• Players involved in storage solutions other than batteries (pumped hydro, thermal storage…)

• EV/HEV makers and their suppliers

• Manufacturers of power electronic & electronic components, cooling systems, DC safety devices, etc.

• looking for the insight into

• How the transition toward renewable energy sources and clean electricity and the development of new batterytechnologies and solutions will impact the electricity business and

• What risk and opportunities it will bring?

• Market size for stationary battery electricity storage systems

• Expected movements within the value chain

• How the electric vehicle drives the development and deployment of the stationary battery electricity storagesystems.

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

5

EXECUTIVE SUMMARY

Benefits of battery storage

Load shifting ($$)Load shifting /

backup

Load shifting /

power addingGrid stabilization Renewables firming

Reduced demand

access charge

Replace conventional

(non RES) sources

Benefits from

legislation & incentive

programs

Reduction of the need

for new electricity

generation plants

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

Yole Développement

6

MARKET FORECAST FOR STATIONARY BATTERY STORAGE

Geographical specificities of stationary battery electricity storage market

Japan• Willing to step-out of nuclear

electricity

• Massive investment in battery

technologies development

(METI+industrial players)

• Strong battery cell and

battery players: Panasonic,

Sony, Hitachi, AESC, GS

Yuasa, NEC,Toshiba…

• xxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxSouth KoreaLeading battery and

battery cell suppliers

(LG Chem, Samsung

SDI, Kokam)

China• Big battery cell and battery players:

BYD, BAK, Lishen, ATL…

• Current leader in PV and wind

installations

• Integrated solutions

(grid+building+electric

vehicle+battery storage+renewables)

under development by several players

• Multiple policies to gear up the

energy storage market:

xxxxxxxxxxxxxxxxxxxxxxxxxx

Europe• xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxx

USA• xxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxx

xxx

• “Gigawatt battery” factory for

Tesla Motors under

construction (~35GWh/yr mfg.

capacity)

• Strong PV and battery storage

solutions deployment in

California

• Deployment of net metering

South America• Diesel replacement initiatives

• Strong, still unused potential for

renewables (PV)

• Electricity supply for

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Australia• Diesel replacement initiatives

• Strong, still unused potential for renewables (PV)

• Electricity supply for remote habitation and mining areas

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

7

ENERGY STORAGE SYSTEMS

Classification of energy storage systems

• Energy Storage Systems (ESS):

• electrical energy can be storedand used at a later time whenand where it is needed.

• Enabler for:

• Using more renewable energy

• Achieving CO2 reduction goals

• Clean mobility

• Smart building and Smart grid

• Different storage technologies arein use or under development.

• Large-scale storage systems -xxxxxxxxxxxxxxxxxxx arecommonly used.

• Battery:

• Modular

• xxxxxxxxxxxxxxxx

• Especially suitable for small-sizesystems (kWh - MWh range).

• Trends toward xxxxxxxxxxxx

• Battery are especially suitable for small-scale energy storage.

• Thanks to improving battery performance and decreasing costs, batteries are increasingly used also in large-size ESS. Batteries

Classification of Electrical Energy Storage Systems

Yole Développement

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

8

ENERGY STORAGE SYSTEMS

Battery - key for many applications

Battery is key for many applications: to achieve lower system costs or as technology and market enabler.

Tesl

a M

oto

rs

Renewables:• Solution for PV and wind intermittency

• Selfconsumption

EV/HEV:• Driving range / Vehicle cost

Grid:• Grid stabilization services

• Alternative solutions to grid extension and reinforcement

• Alternative to xxxxxxxxxxxxxxxxxxxxxxx

Building:• Grid independence

• Energy backup

• Better xxxxxxxxxxxxxxxxxxxxxxxxxxx

• Smart building “center” (Electricity supply-Battery-Usage)

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

9

ENERGY STORAGE SYSTEMS

Battery electrical energy storage system – from Watt-hours to mega-Watt-hours

A modularity of batteries allows a large variety of applications and thus stronger cost decrease thanks to a larger volume production. Wh

kWh

MWh10MWh/6MW BESS system, UK

Tesla electric car battery

EV/HEV, rail, airplane, PV hybrid

inverters, auxiliary energy

supplies, UPS…

Large-size auxiliary power supply,

renewable electricity sources,

electricity grid services…

Consumer

applications…©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

10

Expected movements within the value chain

The battery and RES players and EV/HEV makers will increasingly focus on the business related to energy supply and energy management (grid, city, building

Battery cell BESS RenewablesBuilding /

Smart city

EV

supplier/

maker

Energy

management

Energy

supplyOtherT&DBattery

*Non-exhaustive overview

Battery cells and battery systems

suppliers are looking for

expanding their products at new

markets

PV and wind players need BESS to

deal with the intermittency of

generated electricity

xxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxx

EV/HEV players

have an

advantage of

xxxxxxxxxxxx

xxxxxxxxxxxx

xxxxxxxxxxxx

xxxxxxxxxxxx

xxxxxxxx

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

Still a lot of

opportunities here!

11

VALUE CHAIN

Will EV/HEV players kill stationary ESS “pure-players”?

• Not their core business, but at least a nice businessopportunity:

• Low market barrier entry

• No established players at this market so far.

• The supply chain still very xxxxxxxxxxxxxxxxxx

• A strengthening competition andxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

• Lower battery price needed by customers can beoffered by automotive players

• Stationary battery systems are still expensive –customers are keen to purchase from the suppliersoffering lower price and acceptable quality.

• EV/HEV players purchase battery cell in very largequantities at lower price compared to low-volumesmall stationary pure-players.

• EV/HEV players have acquired axxxxxxxxxxxxxxxxxxxxxxxxxxx; some EV/HEV makershave their origin in the battery business (BYD).

Although stationary electricity storage market is not the core business of EV/EHV makers, there is a great opportunity for them to develop a business here.

EV/HEV

players

(Tesla,

BYD…)

“Pure-player” suppliers

of stationary battery

electricity storage

systems

• Low market barrier entry

• Ability to bring lower price

compared to “pure-player”

stationary storage competitors

• EV/HEV + stationary storage global

offer?

?

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

12

VALUE CHAIN

Move toward residential electricity storage business

Residential electricity storage market is currently in the focus of electricity storage business.

Car makers

Other

Container BESS

PV inverter

makers

V2H

2nd life

(Power electronics suppliers, PV module

suppliers, smart home solutions suppliers)….

Battery makers

House builders

Residential PV

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

13

VALUE CHAIN

Market shares of leading Li-ion battery suppliers

• Japan, Korea and Chinaare the leadinggeographical regionsregarding the batterycell supply.

• XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

• All the Top XXXXpositions are occupiedby Asian players.

• Mots of the remainingsmaller Li-ion cellsuppliers are originatingfrom XXXX.

• The leadership is farfrom being establishedtoday, and strongmovement within thevalue chain is expectedmainly dueXXXXXXXXXXXXXXXXXXXXXXXXXX.

Battery cell supply is today dominated by a few large companies producing cells in very large quantities.

Market share in battery cell suppliers in 2014Yole Développement

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

14

DC AND AC TECHNOLOGIES COEXIST

DC technology RAPIDLY gains in interest… and so the role of battery

• The number of DC appliances and DC electricity sources is growing.

• The losses and the complexity related to DC/AC and AC/DC conversion has become important.

LED lighting

IT

Entertainment

HVAC

Mobile phone

Sensor

DC electricity sources

Fuel cell

Devices supplied by DC electricity

DC

AC

Less conversion = less lossesSimpler battery storage integration and

integration of photovoltaics

AC

DC

DC Battery DCDatacenter

Electric vehicleGrowing markets

Telecom

Photovoltaic installation

Battery as the center of energy flow control from DC electricity generators to the DC-powered

devices

Stationary storage

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

15

BATTERY ELECTRICITY STORAGE SYSTEMS FOR BUILDINGS

Overview of commercially available residential systems – power vs. energy capacity graph

The manufacturers focus on battery energy capacity, with systems going up to 30kWh

Dominance of

products with

high

energy/power

ratio

Frontier not

well defined

Overview of residential electricity storage systemsYole Développement

Residential

systems

Commercial &

industrial and

community

systems

High power/energy

ratio

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

16

BATTERY ELECTRICITY STORAGE SYSTEMS FOR BUILDINGS

Prefabricated houses with integrated PV & electricity storage solution and their suppliers

PV system with electricity storage system based on Lithium iron

phosphate batteries from xxxxxis installed at a range of houses by

German prefabricated home-builder xxxxxx

xxxxxxxxx“Smart Power Station” aiming for energy self-sufficiency through

combining large-capacity solar power, storage cells, and HEMS systems.

Cumulative number of solar

homes built by xxxxx

Huge potential for

implementation of

electricity storage

solutions!

• Prefabricated houses represent a huge potential for implementation of electricity storage solutions!

• This potential has been already identified by several players.

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

17

BATTERY ELECTRICITY STORAGE SOLUTIONS FOR ELECTRICITY GRID

Load defection or grid defection?

• Many residentialelectricity customersthink about totalindependence fromthe retail electricityprices variations.

• However, the mostpopular choice is stillto maintain theconnection to thegrid and just lowerthe amount ofelectricity purchased.

• This result in bigchallenges for gridoperators that willstill have to guaranteethe grid stability andsufficiently strong gridconnection, but forcustomers consumingless electricity less income tocover grid operation,upgrades andmaintenance.

Most customers with solar&batterysystems prefer to stay grid-connected.

This brings new challenges for grid operators.

Small Battery

Load

Load

Big Battery

Load

1. Load defection 2. Grid defection

Still relying on electricity from the grid Off-grid

PV PV

Example of a PV house

Current situation:PV

Two options for the future:

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

18

BATTERY ELECTRICITY STORAGE SOLUTIONS FOR ELECTRICITY GRID

BESS as a solution to rapid (and unexpected) electricity demand increase

• The electricity consumptioncan increase very rapidly duringsome day periods

• In winter due to electricheating

• In summer due to airconditioning

• In evenings due to electriccar charging at homes(especially in the case whenfast charging is used).

• Several solutions exist and areunder development to avoidcritical grid instability duringsuch periods:

• Xxx

• Xxx

• xxxx

• …

• In the case of xxxxxxxxxx,BESS are particularly adaptedto stabilize the grid!

Flexible electricity sources and BESS are needed to comply with rapid and big variations of electricity consumption

Fast increase of the electricity demand (brown curve) measured in France on 25 January

2015. Blue curves correspond to expected consumption.

RTE, Yole

+

+

05:30 PM

06:30 PM

65.6 GW

73.0 GW

Demand

increase rate:

7.45 GW per

hour!!!

The real

consumption

corresponds well

to the real one

rather easy to

manage by grid

operator

The real demand is

quite different from the

expected one

difficult to manage

it without fast-response

capacities

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

19

EV/HEV AND ELECTRICITY STORAGE

Why EV/HEV technologies and players are important for stationary electricity storage business?

EV/HEV will have a strong impact on the energy management business and stationary battery storage market

High (and peaky)

energy demand from

the grid

DOUBLE CLEAN MOBILITY = clean

PV/wind electricity+battery storage &

electromobility

Battery cell technology

development driven by

EV/HEV

xxxxxxxxxxxxxx

xxxxxx

Vehicle-to-Home

Vehicle-to-Grid

Battery cost reduction

2nd life for a car battery

in stationary systems

Mennekes

©2015 | www.yole.fr | Energy management for smart grid, cities and buildings: Opportunities for battery electricity storage solutions

© 2015

Yole Développement

From Technologies to Market

21

MEMS &

Sensors

LED / OLED

Compound

Semi.

Imaging Photonics

MedTech

Manufacturing

Advanced

PackagingPV

Power

Electronics

FIELDS OF EXPERTISE

Yole Développement’s 30 analysts operate in the following areas

22

4 BUSINESS MODELS

o Consulting and Analysis

• Market data & research, marketing analysis

• Technology analysis

• Strategy consulting

• Reverse engineering & costing

• Patent analysis

www.yole.fr

o Reports

• Market & Technology reports

• Patent Investigation and patent infringement risk analysis

• Teardowns & Reverse Costing Analysis

• Cost Simulation Tool

www.i-Micronews.com/reports

o Financial services

• M&A (buying and selling)

• Due diligence

• Fundraising

• Maturation of companies

• IP portfolio management & optimization

www.yolefinance.com

Blu Morpho

o Media

• i-Micronews.com website

• @Micronews e-newsletter

• Technology magazines

• Communication & webcast services

• Events

www.i-Micronews.com

23

A GROUP OF COMPANIES

Market,

technology and

strategy

consulting

www.yole.fr

M&A operations

Due diligences

www.yolefinance.com

Fundraising

Maturation of companies

IP portfolio management & optimization

TBA

Manufacturing costs analysis

Teardown and reverse engineering

Cost simulation tools

www.systemplus.fr

IP analysis

Patent assessment

www.knowmade.fr

Blu Morpho

24

OUR GLOBAL ACTIVITY

Yole JapanYole Inc.

Yole

Korea

40% of our business is in

EU countries30% of our business is in

North America

30% of our business is in

Asia

Blu Morpho

25

RESEARCH PRODUCTS - CONTENT COMPARISON

Custom analysis scope is defined with

you to meet your information and

budget needs

Breadth of the analysis

Dep

th o

f th

e a

naly

sis

Custom

Analysis

Workshops

Standard Reports

26

SERVING THE ENTIRE SUPPLY CHAIN

Our analysts provide market

analysis, technology

evaluation, and business plan

along the entire supply

chain

Integrators and

end-users

Device

makers

Suppliers: material,

equipment, OSAT,

foundries…

Financial investors,

R&D centers

27

SERVING MULTIPLE INDUSTRIAL FIELDS

• We are working accrossmultiples industries to understand the impact of More-than-Moore technologies from device to system

From A to Z…

Transportation

makers

Mobile phone

and consumer

electronics

Automotive

Medical

systemsIndustrial and

defense

Energy

28

REPORTS COLLECTION

o Yole Développement publishes a comprehensive collection of market & technology reports and patent analysis in:

• MEMS & Sensors

• Imaging

• Medical technologies (MedTech)

• Advanced packaging

• Power electronics

• Compound semiconductors

• OLED, LED & Laser diode

• Semiconductor Manufacturing

• Photovoltaics

• Batteries

o Our reports are unmatched in quality and technology depth and typically include:

• Technology trends and evolution: costs, barriers, roadmaps, etc.

• Supply & value chain analysis: business models, relationships, value flows, etc.

• In-depth analysis of applications and market drivers: challenges, inflection points, etc.

• Market data ($, units, wafer starts, etc.)

o Every year, Yole Développement, System Plus Consulting and Knowmade publish +60 reports.

o Take the full benefit from our Bundle and Annual Subscription offers.

www.i-Micronews.com

29

OUR 2015 REPORTS PLANNING

MARKET & TECHNOLOGY REPORTS by Yole Développement

o MEMS & SENSORS

− Sensors and Data Management for Autonomous Vehicles

− AlN Thin Film Markets And Applications

− Sensors for Wearable Electronics And Mobile Healthcare

− Status of the MEMS Industry

− Uncooled IR Imagers

− IR Detectors

− High End Gyro, Accelerometers and IMU

− Non-Volatile Memory

o IMAGING & OPTOELECTRONICS

− Camera Module Packaging (Vol 1 : Market & Technology Trends / Vol 2 Teardowns &

Reverse Engineering)

− Uncooled IR Imagers

− Wafer Level Optics

− Status of the CMOS Image Sensors

− Machine Vision

o MEDTECH

− Microfluidic for Sample Preparation

− Microfluidic Applications

− Sensors for Wearable Electronics And Mobile Healthcare

o COMPOUND SEMICONDUCTORS

− High Purity Alumina (HPA)

− Sapphire

− Wide Bandgap Materials For Power Electronics: SiC, GaN (and also Ga2O3, AlN,

Diamond, Graphene… as a trend)

* Reports to be decided within 2015

o LED

− LED Module

− OLED for Lighting

− UV LED

− LED Phosphors Market

o POWER ELECTRONICS

− Power Packaging

− Thermal Management for LED and Power

− Power Electronics for Renewable Energy

− Energy Management For Smart Grid And Smart Cities

− Status of Chinese Power Electronics Industry

− New Technologies For Data Center

− Inverter Market Trends For 2013 – 2020 And Major Technology Changes*

− IGBT Markets And Application Trends

− Power Electronics for HEV/EV*

− Status of Power Electronics Industry

o ADVANCED PACKAGING

− Advanced Packaging in Emerging Markets in China

− Status of the Advanced Packaging Industry

− Supply Chain Readiness for Panel Manufacturing in Packaging

− WLCSP*

− Flip Chip Business Update

− 2.5D & 3DIC Business Update

− Fan-Out and Embedded Business Update

o MANUFACTURING

− Lithography for MEMS, Advanced Packaging and LED

− Thinning & Dicing Equipment for Advanced Packaging, MEMS, Photovoltaics, LED, CMOS

Image Sensors

− Non-Volatile Memory

30

OUR 2015 REPORTS PLANNING

PATENT ANALYSIS by Knowmadeo Patent Infringement (crossed analysis based on Knowmade and System Plus Analysis expertise)

− MEMS Microphone Applications

− Infrared Imaging

o Patent Investigation (crossed analysis based on Knowmade &Yole Développement expertise)

− Power GaN

− MEMS Gyroscope

− 6-axis & 9-axis Inertial MEMS IMUs

− Microbatteries

− Embedded Active & Passive Packages

− Interposer

− Phosphors for LED

TEARDOWN & REVERSE COSTING by System Plus ConsultingMore than 30 teardowns and reverse costing analysis and cost simulation tools to be published in 2015.

* Reports to be decided within 2015

31

OUR 2014 PUBLISHED REPORTS LIST

MARKET & TECHNOLOGY REPORTS

by Yole Développement

o MEMS & SENSORS

− Technologies & Sensors for the Internet of Things: Businesses & Market Trends 2014-2024

− MEMS Microphone: Market, Applications and Business Trends 2014

− Status of the MEMS industry

− MEMS & Sensors for Mobile Phones and Tablets

− High End Gyroscopes and Accelerometer Applications

− Inertial MEMS Manufacturing Technical Trends

− New Detection Principles & Technical Evolution for MEMS & NEMS

− 6/9 DOF Applications in Consumer Electronics

− MEMS for RF filters and Antena Switches - BAW / SAW

o IMAGING & OPTOELECTRONICS

− Status of the CMOS Image Sensor Industry

− Uncooled Infrared Imaging Technology & Market Trends

− Silicon Photonics

o MEDTECH

− Point of Care Testing: Applications for Microfluidic Technologies

− Solid State Medical Imaging: X-ray and Endoscopy

o COMPOUND SEMICONDUCTORS

− RF GaN Technology & Market Analysis: Applications, Players, Devices & Substrates 2010-

2020

− SiC Modules, Devices and Substrates for Power Electronics Market

− GaN-on-Si Substrate Technology and Market for LED and Power Electronics

− Power GaN Market

− Graphene Materials for Opto & Electronic Applications

− Sapphire Applications and Market: from LED to Consumer Electronics

o LED

− LED Packaging

− LED Front-End Manufacturing Trends

− LED Front-End Equipment Market

o POWER ELECTRONICS

− Power Electronics for HEV/EV

− Inverters

− Gate Driver Unit Market for Power Transistors

o PHOTOVOLTAICS

− Emerging and Innovative Technology Approaches in the Solar Industry

o ADVANCED PACKAGING

− 3DIC Equipment and Materials

− 3DIC & 2.5D TSV Interconnect for Advanced Packaging - 2014 Business Update

o MANUFACTURING

− Market & Technology Trends in Materials & Equipment for Printed & Flexible Electronics

− Permanent Wafer Bonding for Semiconductor: Application Trends & Technology

PATENT ANALYSIS

by Knowmade− LED Based on Nano-wires Patent Investigation

− GaN on Si Patent Investigation (LED, Power devices and RF Devices)

− New MEMS Devices Patent Investigation

− Non Volatile Memory Patent Investigation

TEARDOWN & REVERSE COSTING

by System Plus ConsultingMore than 30 teardowns and reverse costing analysis and cost simulation tools to be published in 2014.

32

MICRONEWS MEDIA

o About Micronews Media

Micronews Media, powered by Yole

Développement, ensures you the best visibility

in the disruptive semiconductor community.

With our services, we help you to reach your

customers worldwide with the media products

they prefer, including our website, e-newsletter,

webcasts, and magazines. Invest in a high added-

value editorial program and get access to Yole

Développement’s network (48 000+ contacts).

o Five supports and channels for your visibility

• A technology magazine to highlight

your visibility with advertisements,

company profiles, product descriptions and

white papers

• A webcast to highlight your expertise and

develop your business identifying

commercial leads

• Articles, advertisements & logo and

banners dedicated to your company, its

products and expertise in @Micronews e-

newsletter and on i-Micronews.com

Focused

community

Identified

contacts

Large

community

Mass contacts

33

COMMUNICATION SERVICES

All services listed below are available on–demand.

o i-Micronews.com, the website

Slider – Banners (on English or Japanese websites) – Articles –

Logo and profile as sponsor

o @Micronews, the e-newsletter

Headline article - Tiles

o Custom webcast

Develop your dedicated event with a high added-value program. A

turnkey event withYole support (logistics, promotion, data…)

o Technology Magazines: Custom – Co-produced

Increase your visibility through a dedicated technology magazine

with ads, company profile, product descriptions and white papers.

It can be a custom magazine: your company is the only one to

benefit from it – or a co-produced one: up to 2 companies.

Contacts:

Camille Veyrier ([email protected]) and Clotilde Fabre ([email protected]),

Media & Communication Coordinators.

34

CONTACT INFORMATION

o Consulting and Specific Analysis

• North America: Steve LaFerriere, Director of Northern America Business Development, Yole Inc.

Email: [email protected]

• Japan: Yutaka Katano, General Manager, Yole Japan & President, Yole K.K.

Email: [email protected]

• RoW: Jean-Christophe Eloy, President & CEO, Yole Développement

Email: [email protected]

o Report business

• North America: Steve LaFerriere, Director of Northern America Business Development, Yole Inc.

Email: [email protected]

• Europe: Fayçal El Khamassi, Headquarter Sales Coordination & Customer Service

Email: [email protected]

• Japan & Asia: Takashi Onozawa, Sales Asia & General Manager, Yole K.K.

Email: [email protected]

• Korea: Hailey Yang, Business Development Manager, Korean Office

Email: [email protected]

o Financial services

• Jean-Christophe Eloy, CEO & President

Email: [email protected]

o General

• Email: [email protected]

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PRODUCT ORDERPlease enter my order for above named report : One user license*: Euro 4,990 Multi user license: Euro 5,990- The report will be ready for delivery from May, 22 2015- For price in dollars, please use the day’s exchange rate.

All reports are delivered electronically at payment reception. For French customers, add 20% for VAT

I hereby accept Yole Développement’s Terms and Conditions of Sale(1)

Signature:

*One user license means only one person at the company can use the report.

Founded in 1998, Yole Développement has grown to become a group of companies providing marketing, technology and strategy consulting, media in addition to corporate finance services. With a strong focus on emerging applications using silicon and/or micro manufacturing (technology or process), Yole Développement group has expanded to include more than 50 associates worldwide covering MEMS, Compound Semiconductors, LED, Image Sensors, Optoelectronics, Microfluidics & Medical, Photovoltaics, Advanced Packaging, Manufacturing, Nanomaterials and Power Electronics. The group supports industrial companies, investors and R&D organizations worldwide to help them understand markets and follow technology trends to develop their business.

MEDIA & EVENTS• i-Micronews.com, online disruptive technologies website• @Micronews, weekly e-newsletter• Technology Magazines dedicated to MEMS, Advanced Packaging,

LED and Power Electronics• Communication & webcasts services• Events: Yole Seminars, Market Briefings…More information on www.i-micronews.com

CONTACTSFor more information about :• Consulting Services: Jean-Christophe Eloy ([email protected])• Financial Services: Jean-Christophe Eloy ([email protected])• Report Business: David Jourdan ([email protected])• Press relations: Sandrine Leroy ([email protected])

CONSULTING• Market data & research, marketing analysis• Technology analysis• Reverse engineering & costing services• Strategy consulting• Patent analysisMore information on www.yole.fr

REPORTS• Collection of technology & market reports• Manufacturing cost simulation tools• Component reverse engineering & costing

analysis• Patent investigationMore information on www.i-micronews.com/reports

FINANCIAL SERVICES• Mergers & Acquisitions• Due diligence• FundraisingMore information on www.yolefinance.com

Definitions: “Acceptance”: Action by which the Buyer accepts the terms and conditions of sale in their entirety. It is done by signing the purchase order which mentions “I hereby accept Yole’s Terms and Conditions of Sale”.

“Buyer”: Any business user (i.e. any person acting in the course of its business activities, for its business needs) entering into the following general conditions to the exclusion of consumers acting in their personal interests.

“Contracting Parties” or “Parties”: The Seller on the one hand and the Buyer on the other hand.

“Intellectual Property Rights” (“IPR”) means any rights held by the Seller in its Products, including any patents, trademarks, registered models, designs, copyrights, inventions, commercial secrets and know-how, technical information, company or trading names and any other intellectual property rights or similar in any part of the world, notwithstanding the fact that they have been registered or not and including any pending registration of one of the above mentioned rights.

“License”: For the reports and databases, 3 different licenses are proposed. The buyer has to choose one license:• One user license: one person at the company can use the report.• Multi-user license: the report can be used by unlimited users

within the company. Subsidiaries and Joint-Ventures are not included.

• Corporate license: purchased under “Annual Subscription” program, the report can be used by unlimited users within the company. Joint-Ventures are not included.

“Products”: Depending on the purchase order, reports or database on MEMS, CSC, Optics/MOEMS, Nano, bio… to be bought either on a unit basis or as an annual subscription. (i.e. subscription for a period of 12 calendar months). The annual subscription to a package (i.e. a global discount based on the number of reports that the Buyer orders or accesses via the service, a global search service on line on I-micronews and a consulting approach), is defined in the order. Reports are established in PowerPoint and delivered on a PDF format and the database may include Excel files.

“Seller”: Based in Lyon (France headquarters), Yole Développement is a market research and business development consultancy company, facilitating market access for advanced technology industrial projects. With more than 20 market analysts, Yole works worldwide with the key industrial companies, R&D institutes and investors to help them understand the markets and technology trends.

1. SCOPE 1.1 The Contracting Parties undertake to observe the following

general conditions when agreed by the Buyer and the Seller. ANY ADDITIONAL, DIFFERENT, OR CONFLICTING TERMS AND CONDITIONS IN ANY OTHER DOCUMENTS ISSUED BY THE BUYER AT ANY TIME ARE HEREBY OBJECTED TO BY THE SELLER, SHALL BE WHOLLY INAPPLICABLE TO ANY SALE MADE HEREUNDER AND SHALL NOT BE BINDING IN ANY WAY ON THE SELLER.

1.2 This agreement becomes valid and enforceable between the Contracting Parties after clear and non-equivocal consent by any duly authorized person representing the Buyer. For these purposes, the Buyer accepts these conditions of sales when signing the purchase order which mentions “I hereby accept Yole’s Terms and Conditions of Sale”. This results in acceptance by the Buyer.

1.3 Orders are deemed to be accepted only upon written acceptance and confirmation by the Seller, within [7 days] from the date of order, to be sent either by email or to the Buyer’s address. In the absence of any confirmation in writing, orders shall be deemed to have been accepted.

2. MAILING OF THE PRODUCTS 2.1 Products are sent by email to the Buyer:

• within [1] month from the order for Products already released; or • within a reasonable time for Products ordered prior to their effective release. In this case, the Seller shall use its best endeavours to inform the Buyer of an indicative release date and the evolution of the work in progress.

2.2 Some weeks prior to the release date the Seller can propose a pre-release discount to the Buyer The Seller shall by no means be responsible for any delay in respect of article 2.2 above, and including incases where a new event or access to new contradictory information would require for the analyst extra time to compute or compare the data in order to enable the Seller to deliver a high quality Products.

2.3 The mailing of the Product will occur only upon payment by the Buyer, in accordance with the conditions contained in article 3.

2.4. The mailing is operated through electronic means either by email via the sales department or automatically online via an email/password. If the Product’s electronic delivery format is defective, the Seller undertakes to replace it at no charge to the Buyer provided that it is informed of the defective formatting within 90 days from the date of the original download or receipt of the Product.

2.5 The person receiving the Products on behalf of the Buyer shall immediately verify the quality of the Products and their conformity to the order. Any claim for apparent defects or for non-conformity shall be sent in writing to the Seller within 8 days of receipt of the Products. For this purpose, the Buyer agrees to produce sufficient evidence of such defects. .

2.6 No return of Products shall be accepted without prior information to the Seller, even in case of delayed delivery. Any Product returned to the Seller without providing prior information to the Seller as required under article 2.5 shall remain at the Buyer’s risk.

3. PRICE, INVOICING AND PAYMENT 3.1 Prices are given in the orders corresponding to each Product

sold on a unit basis or corresponding to annual subscriptions. They are expressed to be inclusive of all taxes. The prices may be reevaluated from time to time. The effective price is deemed to be the one applicable at the time of the order.

3.2 Yole may offer a pre release discount for the companies willing to acquire in the future the specific report and agreeing on the fact that the report may be release later than the anticipated release date. In exchange to this uncertainty, the company will get a discount that can vary from 15% to 10%.

3.3 Payments due by the Buyer shall be sent by cheque payable to Yole Développement, credit card or by electronic transfer to the following account: HSBC, 1 place de la Bourse 69002 Lyon France Bank code: 30056 Branch code: 00170 Account n°: 0170 200 1565 87BIC or SWIFT code: CCFRFRPP IBAN: FR76 3005 6001 7001 7020 0156 587

To ensure the payments, the Seller reserves the right to request down payments from the Buyer. In this case, the need of down payments will be mentioned on the order. 3.4 Payment is due by the Buyer to the Seller within 30 days

from invoice date, except in the case of a particular written agreement. If the Buyer fails to pay within this time and fails to contact the Seller, the latter shall be entitled to invoice interest in arrears based on the annual rate Refi of the «BCE» + 7 points, in accordance with article L. 441-6 of the French Commercial Code. Our publications (report, database, tool...) are delivered only after reception of the payment.

3.5 In the event of termination of the contract, or of misconduct, during the contract, the Seller will have the right to invoice at the stage in progress, and to take legal action for damages.

4. LIABILITIES 4.1 The Buyer or any other individual or legal person acting on

its behalf, being a business user buying the Products for its business activities, shall be solely responsible for choosing the Products and for the use and interpretations he makes of the documents it purchases, of the results he obtains, and of the advice and acts it deduces thereof.

4.2 The Seller shall only be liable for (i) direct and (ii) foreseeable pecuniary loss, caused by the Products or arising from a material breach of this agreement

4.3 In no event shall the Seller be liable for: a) damages of any kind, including without limitation, incidental or consequential damages (including, but not limited to, damages for loss of profits, business interruption and loss of programs or information) arising out of the use of or inability to use the Seller’s website or the Products, or any information provided on the website, or in the Products; b) any claim attributable to errors, omissions or other inaccuracies in the Product or interpretations thereof.

4.4 All the information contained in the Products has been obtained from sources believed to be reliable. The Seller does not warrant the accuracy, completeness adequacy or reliability of such information, which cannot be guaranteed to be free from errors.

4.5 All the Products that the Seller sells may, upon prior notice to the Buyer from time to time be modified by or substituted with similar Products meeting the needs of the Buyer. This modification shall not lead to the liability of the Seller, provided that the Seller ensures the substituted Product is similar to the Product initially ordered.

4.6 In the case where, after inspection, it is acknowledged that the Products contain defects, the Seller undertakes to replace the defective products as far as the supplies allow and without indemnities or compensation of any kind for labor costs, delays, loss caused or any other reason. The replacement is guaranteed for a maximum of two months starting from the delivery date. Any replacement is excluded for any event as set out in article 5 below.

4.7 The deadlines that the Seller is asked to state for the mailing of the Products are given for information only and are not guaranteed. If such deadlines are not met, it shall not lead to any damages or cancellation of the orders, except for non acceptable delays exceeding [4] months from the stated deadline, without information from the Seller. In such case only, the Buyer shall be entitled to ask for a reimbursement of its first down payment to the exclusion of any further damages.

4.8 The Seller does not make any warranties, express or implied, including, without limitation, those of sale ability and fitness for a particular purpose, with respect to the Products. Although the Seller shall take reasonable steps to screen Products for infection of viruses, worms, Trojan horses or other codes containing contaminating or destructive properties before making the Products available, the Seller cannot guarantee that any Product will be free from infection.

5. FORCE MAJEURE The Seller shall not be liable for any delay in performance directly or indirectly caused by or resulting from acts of nature, fire, flood, accident, riot, war, government intervention, embargoes, strikes, labor difficulties, equipment failure, late deliveries by suppliers or other difficulties which are beyond the control, and not the fault of the Seller.

6. PROTECTION OF THE SELLER’S IPR 6.1 All the IPR attached to the Products are and remain the

property of the Seller and are protected under French and international copyright law and conventions.

6.2 The Buyer agreed not to disclose, copy, reproduce, redistribute, resell or publish the Product, or any part of it to any other party other than employees of its company. The Buyer shall have the right to use the Products solely for its own internal information purposes. In particular, the Buyer shall therefore not use the Product for purposes such as: • Information storage and retrieval systems; • Recordings and re-transmittals over any network (including

any local area network); • Use in any timesharing, service bureau, bulletin board or

similar arrangement or public display; • Posting any Product to any other online service (including

bulletin boards or the Internet);• Licensing, leasing, selling, offering for sale or assigning the

Product. 6.3 The Buyer shall be solely responsible towards the Seller of

all infringements of this obligation, whether this infringement comes from its employees or any person to whom the Buyer has sent the Products and shall personally take care of any related proceedings, and the Buyer shall bear related financial consequences in their entirety.

6.4 The Buyer shall define within its company point of contact for the needs of the contract. This person will be the recipient of each new report in PDF format. This person shall also be responsible for respect of the copyrights and will guaranty that the Products are not disseminated out of the company.

6.5 In the context of annual subscriptions, the person of contact shall decide who within the Buyer, shall be entitled to access on line the reports on I-micronews.com. In this respect, the Seller will give the Buyer a maximum of 10 password, unless the multiple sites organization of the Buyer requires more passwords. The Seller reserves the right to check from time to time the correct use of this password.

6.6 In the case of a multisite, multi license, only the employee of the buyer can access the report or the employee of the companies in which the buyer have 100% shares. As a matter of fact the investor of a company, the joint venture done with a third party etc..cannot access the report and should pay a full license price.

7. TERMINATION 7.1 If the Buyer cancels the order in whole or in part or postpones

the date of mailing, the Buyer shall indemnify the Seller for the entire costs that have been incurred as at the date of notification by the Buyer of such delay or cancellation. This may also apply for any other direct or indirect consequential loss that may be borne by the Seller, following this decision.

7.2 In the event of breach by one Party under these conditions or the order, the non-breaching Party may send a notification to the other by recorded delivery letter upon which, after a period of thirty (30) days without solving the problem, the non-breaching Party shall be entitled to terminate all the pending orders, without being liable for any compensation.

8. MISCELLANEOUS All the provisions of these Terms and Conditions are for the benefit of the Seller itself, but also for its licensors, employees and agents. Each of them is entitled to assert and enforce those provisions against the Buyer. Any notices under these Terms and Conditions shall be given in writing. They shall be effective upon receipt by the other Party. The Seller may, from time to time, update these Terms and Conditions and the Buyer, is deemed to have accepted the latest version of these terms and conditions, provided they have been communicated to him in due time.

9. GOVERNING LAW AND JURISDICTION 9.1 Any dispute arising out or linked to these Terms and Conditions

or to any contract (orders) entered into in application of these Terms and Conditions shall be settled by the French Commercial Courts of Lyon, which shall have exclusive jurisdiction upon such issues.

9.2 French law shall govern the relation between the Buyer and the Seller, in accordance with these Terms and Conditions.

TERMS AND CONDITIONS OF SALES