M500 en

«Machine M500» project

Development of a Brand New Energy Efficient Furnace

for Growing Extra Large Sapphire Monocrystals

(up to 500 kg)

Delta-Sapphire Limited Liability Company

Sarov, Russia

2015

“Machine M500” project Development of a conceptually novel energy efficient furnace to grow extra large synthetic

sapphire monocrystals (up to 500 kg) of high optical quality.

Project relevancyThe increasing demand for synthetic sapphire is provoked by producers of laser elements, windows, screens, wafers of big

diameter, etc.

Te relevancy of the project is stipulated by two key factors:

Need for leucosapphire price reduction Need for monocrystal size increase

The suggested technology will 3x decrease the prime cost, which will allow to:

• Retain current position of leucosapphire on microelectronics market• Win new markets by removing Si, SiC, GaAs, GaN• Find new mechanical applications (pistons, bearings, etc.)

The suggested technology will 6x increase the boule size, which will allow to:

• Increase manufactured product range (windows, screens, large size wafers)• Apply production in new energetics (super high-power lasers)

“MACHINE M500” PROJECT RELEVANCY “Machine M500” project

Brand new energy-efficient furnace to grow extra large sapphire monocrystals

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Heat-Insulating Shields

Resistance heater

Crucible with stand

Raw material feeding Crucible Heat shield made of ceramics (NEW) instead of molybdenum:• Operating costs decreased by 10%

Conductive heater made of ceramics (NEW) instead of tungsten rods

Crucible made of high-temperature ceramics(NEW) instead of tungsten:

• Yield increased from 70 up to 95%

• Requirements for vacuum decreased from 10-5 up to 10-2

• Crucible volume of standard machine increased by 20 %

NEWAdditional

charge device

INNOVATIONS IN MACHINE DESIGN“Machine M500” project

Brand new energy-efficient furnace to grow extra large sapphire monocrystals

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Global new growing furnaces market:

1,200 pcs. per year$128 billion per year

Market growth 14% per year

Growing furnaces manufacturers:

CrystalTech HK Co., Limited (China), Cyberstar (France), Thermal Technology LLC (USA), ARCEnergy (USA), Tronic Technocrystal Pte Ltd (Taiwan), ‘Apeks’ Co., Ltd (Russia), etc.

Global leuco sapphires market: 14,400 tonnes per year$ 4.32 billion per yearFurnaces sold over the world: 12,000 pcs. ($ 4 billion)

Market growth

30% per year

Global upgrading furnaces market:

12,000 pcs. $1.3 billion

Market growth 10% per year

Crystal growing companies(servicing available furnaces):

Kyocera (Japan), Namiki Precision Jewel Co., Ltd (Japan), Rubicon Technology (USA), Sapphire Technology Company (South Korea), Monocrystal (Russia), etc.

MARKET“Machine M500” project

Brand new energy-efficient furnace to grow extra large sapphire monocrystals

Vladimir F. TYUTIN

Victor I. TIKHONOV PhD

Prof. Leonid I. VOLCHKEVICH

Prof. Vladimir Y. ULIANITSKY

Tatyana A. STAVNICHAYA

Marina K. FILINA

Maria V. IVANNICKOVA

Project Leader

Research manager

Research consultant

Research consultant

Marketing, PR

Financial modeling / analysis

Commercialization

Kazan Aviation Institute (Kazan), higher technical education

Experienced inventor, innovator, effective manager, able to combine the budget and TRIZ.

Kazan Aviation Institute (Kazan), Mechanical Engineer, PhD

Design and research leader, 38 years of experience. 30 patents, 120 hand-written works.

Bauman MSTU (Moscow), machine tools and instruments, DrSc

Doctor of Technical Sciences, Head of the Electronic Engineering department. Member of the International Academy of Technological Cybernetics and Automation/

Novosibirsk State University, Physics, Applied Mathematics, prof., DrSc, Lab. of detonation flows of Lavrentyev Institute of Hydrodynamics SB RAS, DrSc

Developer of the best national models of equipment for detonation spraying, technological solutions in protective coatings, ceramics and metal-ceramic composites.

MEPhI (Moscow), (higher technical education), The President's program"Innovation Management“

Experienced PR and Marketing manager, skilled in marketing and PR, project management, product distribution and GR.

SarPhTI (Sarov) (higher economic education),National Economy Academy under the RF Government

Experienced financial analyst, skilled in relations with VTB, Rusnano, VEB and other investment organizations.

MEPhI (Moscow),(higher economic education)

Extensive experience in business plans development. Skills in promotion, conducting exhibitions, competitions and workshops.

PROJECT TEAM“Machine M500” project

Brand new energy-efficient furnace to grow extra large sapphire monocrystals

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CURRENT PROJECT STATUS

Project assets• Over 2 years activity on the Project• Over $ 0.5 million invested in the Project• IP rating of the current stage of the Project is $ 2.5 million

Works executed on the Project• Conceptual schemes for key units developed• 2 patents received• Samples of high-temperature ceramics to be the basic material for developed machines obtained

Received financing

Total investment (100%) $ 1.976 million

• Grant of the Skolkovo Fund (51%) $ 0.999 million

• The WEB-Innovations Fund (44%) $ 0.876 million

• ‘GK Binar Ko’ Ltd. (5%) $ 0.100 million

Investment opportunity$ 3.3 million

For design& development stage, resulting in a fully operational machine model

IRR – 41%

“Machine M500” projectBrand new energy-efficient furnace

to grow extra large sapphire monocrystals

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Contacts:

Delta-Sapphire LLCSarov, Russia

Email: [email protected]. +7 (83130) 6 33 95www.delta-sapfir.ru

CONTACT DETAILS

Thank you!