Good afternoon. My name is Byung-tae Seo. I am going to present ARTIK IoT platform. After 20 years in memory, I joined the innovation team, but around two years ago. My boss, Oh-Hyun Kwon, who is in charge of device solution, this means semiconductors. I belong to semiconductor group, this one is to promote semiconductor for IoT. Anyhow, whenever he meets me, ask about, "What is our IoT strategy?" IoT in semiconductor area is very hard to approach. The reason is that, typically, semiconductor for IoT is very small and relatively cheap components. In the value chain, the semiconductor portion in IoT is very small. Whenever I talk to my customers, they said, "Hey, Samsung has everything, memory, LSI, and so on.
If you bring me every component and cheap, then I can make big money based on IoT service." It is very hard to promote semiconductor in IoT. Here are our answers. ARTIK is a platform to promote Samsung semiconductor for IoT. Let me start with a little bit of high-level story about IoT. What is IoT, first? Then talking about ARTIK. We have a lot of product in the world. Samsung is number one consumer electronics company. We have this kind of product. ARTIK is enablers to make the product is a smarter. Using ARTIK, we think that our customers will be able to transform existing product into smarter product very easily and conveniently, and I think it is what is value, but more value to the end users. Our hope is that, based on ARTIK, by 2020, more than 100 million devices per year.
Let me start with a very small video clip.
Alexa, turn on the light.
Okay.
Here, ARTIK Cloud enables you to control the light connected to the Legrand panel with an Amazon Echo, even though they were never designed to work together. Now, let's do the same thing using the Samsung Gear S2 watch.
This video clip is very deliberately designed to deliver some message in here. We have four different kind of product. The individual is IoT product. First one is very famous Amazon Echo, Alexa. Second one is the Samsung Gear. Third one is Legrand switch. Legrand is one of our ARTIK customers who produce the lighting switch. Last one is the SmartThings door open sensing kind of sensors. Four different brands. Each one is not designed to work together. In ARTIK, our hope to IoT business is successful, all these four need to work together to create better experience, better value. I'm repeatedly emphasizing that. Kind of turning on and off of light using your hand phone is not fun. It's just going to the wall and then on and off is maybe better, right? Everybody talking about, "Hey, I have a connected switch." That's the IoT product.
I think it's not much fun and not much of value. Issue is that further, suppose you have very good engineers in your home, and they connected all these devices. Now you want add one more devices. Later on, you bring another IoT product. Whatever you imagine, right? Say, kind of a doorbell. You buy a doorbell and then install it. Somehow you need to make it connected to all these four. How do you make it happen? That's the theme of ARTIK, and then that's what we are trying to do in ARTIK. Through that ARTIK hardware and then ARTIK Cloud, ARTIK software, our customers or developers can generate very valuable IoT product. That's why we think that ARTIK platform Our not just selling connectivity chips. We are trying to deliver more value in IoT world.
If I make a summary, user's view is that in a building, typically around 100 different brands are inside it. How can you make all the 100 different brands work together? Second, privacy and security. There's a lot of issues in the news magazines about the security and the privacy in IoT. It's not clear value. Developer's point of view, it's very hard to make interoperable. In IoT, as you know, that there's not so many kind of standards existing in terms either in connectivity or operation. Also, even though you have some product, it's hard to make it from POC to mass productions. How to make it ready for mass productions? Even for some small startup or developers, it's extremely hard to engage in IoT business. The reason is that they need to source many different kind of parts.
See some MCU or AP, you need to have connectivity chips, you need to have operating system, you need to collaborate with so many other partners. It's not that easy to make money in IoT. Even though everybody talking about IoT, it's the next growth, reality is in their IoT kind of revenue, it's relatively small at this moment. ARTIK. Last May, we announced that ARTIK module. This year, in Samsung Developer Conference, we announced ARTIK Cloud. We have hardware and the cloud. Probably we can do a little bit more than just providing hardware or cloud. We are trying to connect cloud to hardware and then bring some additional value. I will give you a little bit more detailed description about end-to-end solutions and then ecosystem. Also, here we have, even though it's small, I put some customer clouds.
If you're talking about every company, they claim they have their own cloud, right? Probably nowadays, everybody talking about the platform or cloud. Every IoT kind of a product company has its own cloud. They will not give up. The problem is you have many, many different kind of clouds. How can they work collaboratively, and how can make it easily connect each others to produce higher value? ARTIK Cloud, I'll give you a little bit more detailed description later, is assuming there are many, many different clouds in the industry. First, ARTIK module. Samsung is a semiconductor company. We are trying to sell ARTIK module. ARTIK module is a family of module. It has from very low-end to high-end. As an example, ARTIK 5 is designed for the ARTIK Hub. It has AP, Exynos, it has connectivity chips, three connectivity, Wi-Fi, BT, and Zigbee.
Because it's designed for hub, so it need to connect many different kind of things. It has a module and is a kind of a mass production ready. As soon as you make it as a device, you can ship it to your customer. At this moment, it's a module format, means that we get some kind of off-the-shelf component and then as a module. Later on, probably in later part of the presentations, Samsung is thinking about how can this kind of module as a little bit more competitive package rather than just assemble the module. Another thing is that Samsung has a very good brand of Knox technology, about the security, how do you protect your data in your smartphone? In ARTIK, we bring all of the Knox technology into our module. Depending on your applications, you can leverage the Knox technology.
Also, as I said, in our modules, it has every possible connectivity, including IoTivity. In connectivity, there was a standard kind of organizations, this year, we have OCF, Open Connectivity Foundation. That protocol is called IoTivity, we are supporting IoTivity also. Wi-Fi, Bluetooth, Zigbee, and then many different kind of protocol we support, including IoTivity. Cloud. As I emphasized, it's kind of individual IoT product is talking to cloud individually. We call it silo the device. To create more value or providing some rich experience for end users, we need to connect every kind of devices. Every different heterogeneous devices need to be connected, not just connected, it has to interoperable. ARTIK Cloud is deliberately designed to make them kind of interoperable possibility. Cloud has many intentions.
In ARTIK Cloud, starting from the beginning, it's designed for IoT, so how can all the heterogeneous device, including future device, this can make it, data can be exchanged from each others? Based on ARTIK Cloud, I think if you are app developers, then you can access very easily any kind of devices connected to ARTIK, and ARTIK Cloud can be connected to other clouds very easily. It has a very open API so that you can connect easily to the other clouds. Currently, we have around 700 different devices are connected as an example, as a reference. More and more devices are connected together. End-to-end solutions. Thanks to Steve Jobs, no one asked how to use smartphone, right? You buy a smartphone and then use it. You don't need any kind of manual. That's called mobile experience or out-of-box experience.
Can you imagine that kind of IoT devices, bring it at home, then without any kind of engineering hassle, you can just turn on, connect it to any kind of devices, and use it? How can it happen? We provide all the device management software in ARTIK, so that based on if you embed it ARTIK in your device and then leveraging our end-to-end program, you can easily connect to the cloud. As soon as you turn on, it's automatically connected to the cloud, and then you can see many other devices at the same time, so that you can create easily your own kind of a rule engine or rule settings, or create your own apps and so on. That's possible. Another problem. As I mentioned, we bring the Knox technology in our ARTIK module. Knox is a technology to protect a smartphone.
If I do some analogies, it's kind of you have a city, and then you want to protect the city with a castle. That's a Knox technology. In IoT, it is from cloud to hub and hub to things, it has some kind of pipeline. We analogize like oil pipeline. It has a different kind of a problem of the protections. In ARTIK, we provide end-to-end security solutions. It has different levels. Like a lighting switch. How much money you want to put some protect lighting switch? Maybe nobody wants to spend dollars to protect your lighting switch, because in worst case, it's turn on or turn off, right? And then you can do something else. Doorbell, then it's a little bit serious, right? If your doorbell is not Door. I'm sorry, the door lock.
Door lock is not protected, then your home security is becoming a issue. You maybe want to spend a little bit more money to protect your door lock. Depending on your level of requirements and application, you may choose different level of security, and then ARTIK provides cloud to things of security solutions. Another one, the phone is on your hand. Sometimes if there's something wrong, then you do push the reset button, and then it becoming reset and then it works again. Worst case, you bring it to service centers and then upgrade it all the softwares. In IoT, everything is on the mounted in your house, let's say 200 devices on everywhere. In the building, maybe several thousand devices in everywhere, right? Something goes wrong. What will happen? You cannot dispatch engineers.
It's extremely important to update software or feature set of devices through the air. OTA capability is extremely important in IoT, and ARTIK provides OTA solution. It covers hardware, cloud, and end-to-end solutions. I bring it to our developers or customers, they need more tools. We bring all the partners, including operating system partners or security partners or API, SDK, all these partners. Even we bring the, we call it CAP partners, Certified Application Program partners. It's like, sometimes you have a good idea, but you don't have enough engineering resource. We bring our partners to help our developers or some people who has great idea. Again, in IoT, collaboration is the key. No one can succeed in IoT world without collaboration. One of the last feature sets is a PowerPoint reference design. I made a PowerPoint and then approached the customers.
I made a pitch. What is the conclusion? "Hey, okay, you have a good storyline, seems to be, but show me your capability." We create reference design. This one, of course, is not for sale, it's not for mass production, to show how ARTIK can capable. As an example, it's a lighting switch. We bring it to our customers, it's called Legrand. Last May, we announced with Legrand about next program with we have engagement. You know that there are a lot of semiconductor companies, they are definitely approaching to Legrand. We are latecomers, Legrand decided to work with us. Why? Because individual components or connectivity chip is very hard to make it valuable product. In ARTIK, as I described, combining all those hardware module to cloud, end-to-end solutions, they can easily connect this switch into Amazon Echo in maybe 10 minutes.
It's very important tool to prove that ARTIK capability and the value of ARTIK. It has a modular design, our customers can take what they need. In general, IT industry is saturated, as the semiconductor is also as about the same. It's a 7% growth up to 2020. If you're looking for IoT, it's about 25%. Definition of IoT, of course, is very broad. It's people to people, it has a different definition. Because it has a very high growth rate, everybody focusing on IoT, semiconductor industry is also, IoT is very important. In IoT, it has very different kind of verticals. Naturally, we started from home. As I said, Samsung Electronics is the number one consumer electronics company, very important to start with the home. Very similar to building, some lighting, transportation, retail, and healthcare.
That's covering about half of the IoT world. Of course, it has many different definitions, but based on our analysis, it's around half of the overall hardware value. With the ARTIK module, cloud, and end-to-end solution, we think that we can bring a lot of value, not just bring connectivity chips. Let me reemphasize that in IoT, probably you may have different imaginations, but in my opinion, seamless connections in a minute is extremely important. Also, many heterogeneous devices. How can we make them interoperate? Based on ARTIK, we can enable our customers and developers to excellent devices for IoT world. Our customer success in IoT is our success, and in this way, we sell our semiconductors. Thank you. That's my presentation.
Thank you, Dr. Seo. Let's give him a big hand for the presentation. We'll now proceed with the Q&A session. If you have any questions, please raise your hand, and we'll bring the microphone to you.
Thank you for presentation. Nicolas Gaudois from UBS. You talked about 100 million units by 2020, right, as the target? Any idea we should split this between the low, mid, and high-end segments you talked about? If you could maybe frame a little bit what kind of value you would get in the low, mid, and high-end in that context. Thank you.
It's very subjective, right? It's our own analysis because in IoT there are so many different aspects and then broad spectrum. In our target market, I mentioned about 100 million devices in 2020. That's around 5% of our target market. It's very small. Still, it's a very high value, and your question is about the segmentation from low to. I think it's around 55% is low-end, 45%-40% is high-end. Like a lighting switch or lightings, definitely you may need to have a low-end chip. Door lock, depending on your applications, you may want to have some kind of image processing because you do not want to transmit all the image or information to somewhere else. It's more longer term point of view is more cost, right? It's a kind of a mix, but it's definitely 55%-60% is low-end.
That's our estimation.
The value in dollars?
Dollars?
The difference between.
Dollar?
solution versus high end in dollar terms, you know, actually.
Oh, you mean the price low end? Okay. Very difficult question, but let me try answer. Less than $10, we define as a low end, above 10, we define the mid and high end. Next question.
Thank you for taking my question. This is Peter Lee from NH Investment & Securities. Can you tell us how many percentages of in-house semiconductor chips are in ARTIK platforms? Can you tell us in overall?
I think it's kind of varying, depending on the timeframe. We start ARTIK without any preparation. The semiconductors, it requires at least one and a half years of preparations to define any kind of product. We start ARTIK and then defining chips. At this moment, as of today, we are bringing kind of an off-the-shelf component. High-end chip is our sister division's chip, and the low-end chip, our partners and we has a collaboration with other partners, so we are using some other chips. Over time, we have a plan to develop additional chips for IoT. We realized that most of the semiconductors are very mobile phone centric. It's very optimized for phone or phone centric kind of applications. For IoT purpose, we think its optimization has to be shifted a little bit.
I think it would be a year or two years may be required to best optimize for IoT product is ready. No question? Probably my presentation is so great. Oh.
Hi, this is Bill Lu from UBS. If I was, for example, a excuse me, company that makes lights. I have no experience with IoT. I come to you, I don't know how to integrate your hardware or the software. Are you providing consultants to help this customer? Besides charging for the hardware, are you charging for the services? Longer term, if this company wants to use a Samsung Cloud, are you charging a monthly fee, can you just talk about monetization outside of the hardware? Thank you.
We have a partnership with a couple of companies, and then we train them how to use ARTIK and ARTIK Cloud. We call it TAP partnership. If you approach to us, then probably we'll not provide the education or service, but we bring our partners to you. Our partners and you may have a contract and then get some engineering service. That's first answers. For business-wise, for cloud, definitely we have a business model for cloud because the cloud itself is a cost center, right? Somebody has to pay for it. Depending on data storage and then transactions, either our customers or end user has to pay. It's a new business model. Every IoT devices need to think about those kind of a new business model.
In ARTIK Cloud point of view, we'll get some money based on the transactions. One last question? Okay.
Thank you very much, Dr. Seo. My name is Simon Oh from Bank of America Merrill Lynch. For me, ARTIK is pretty new technology. Still, I have to understand further and further for this area. My first impression on this, it seems to be something like lots of different chips integration, which already available from the lots of the packaging companies, memory chip lots together. It is sometimes called SiP, chips integrated. How the ARTIK can be different versus the multi-chip packaging solutions, which already provides the firmware, different hardware, software function to cover most of the IoT functions? Why would Samsung's value-added function versus already integrated in chips or SoC type of functions?
So-
Thank you.
Probably, I should answer in two different ways. Providing just a SoC or connected chip, depending on you name it, is the same. We are just one of the many semiconductor provider players. In that sense, we are the same, no differentiation. Probably, we need to compete with the die size or performance, whatever, right, in the package cost. In IoT, if you have a very integrated chip, that would be one of the competency. And if you have a very good package technology, that would be another competency, and so on. As a traditional semiconductor producers, you can imagine what would be the competency as compared to other semiconductor providers. In Samsung, I think it's not much of a question to can compete with many other players.
The problem with the IoT is that it's so much fragmented, so much different kind of product and optimization point. It's extremely hard to get large volume. In semiconductors, large volume is extremely important, probably you probably well understand in terms of economy. We need to have some kind of a common foundation. Otherwise, you need to optimize everywhere, then you are losing the game. You need to compete with the basic fundamental competency, and then at the same time, you need to get some same kind of foundations. Now, in our ARTIK approach is that, okay, our chip is not 100% optimized, maybe 97% optimized. Probably our competitors are a little bit better than in terms of 2%-3%. If we bring some additional value than our competitors, probably then those 2%-3% may be compensated.
Eventually we get large volume, then it's a much better position than our competitors. That's our strategy, definitely. What kind of value you can bring it to your customers is a story that I'm trying to tell today. Right? We are talking about the cloud. ARTIK hardware and the cloud is easily connected. As long as you have ARTIK Cloud and hardware, then you can bring the security solution very easily. You can bring device management solutions very easily. Those things are not easy in general. Providing just the connectivity chip, okay, we are same. Can you bring additional value? Okay, let's forget about IoT, just talking about the silicon. Sometimes, engineers choose some specific vendors because their tool set, their compilers, engineering tools are better than the others. It's not a silicon game, in my opinion.
If I make a summary, a little bit long, but core competency is definitely there. We need to work on there. With only silicon competency, I think it's very hard to win. That's our belief. Okay? Thank you. Thank you very much.
Please give him a big round of applause. Thank you, Dr. Seo. The next presenter is Dr. Hyuk Chang, Director of Material Research Center. Please join me in welcoming Dr. Chang to the stage.
Good afternoon. Can you hear me correctly? Okay. Today, I'd like to introduce about a new material, so-called quantum dot. Maybe I'm going to tell you how did we realize this new material into the set and made a real product to the market. What's the potential of this material, and what's the next plan based on this quantum dot materials. Before I go into the story about the quantum dots, I'd like to show you about the materials innovation. This view graph shows how does the materials innovation made a device creation, historically and technically. We are now talking about the LCD TV these days, Excuse me. The material for liquid crystal has been discovered in 1888. It's been a while to realize this material into the device. RCA made a first product out of this liquid crystal material after several decade of the years.
Then the device has been evoluted by the Sharp. The first product is in the market, and TFT-LCD was realized. In 2005, Samsung made a very large LCD mass production was successful. The reason I'm telling you this way is. In the past, materials has been discovered and principle has been defined, then made a lot of experience to build the actual synthesis of these materials. Then device was developed based on that materials, finally, eventually made a product. It takes a while. It has the same story. You all know about the lithium-ion battery. Everybody in this room has the cell phone, smartphone, and it has the power inside, the lithium-ion battery inside. The basic concept, how does the lithium ion is stored in the material, has been discovered in 1946.
Then it took another 30 years, we think about, by this kind of a principle, we can make a battery. It took 30 years. Another 20 years, Sony made a first lithium-ion battery product. After then, that has been evoluted to many applications in the cell phone, laptop, even these days, many of the smartphone and electric vehicles. The material was first before we realized the device out of that. In terms of the display materials, you can compare how does the materials and device has been combined. You can see here at the very early of the 1950s, CRT was the first TV product. Inside of this CRT, we had a cathode luminescent inorganic materials was in there to produce the light out of the electricity. After then, by utilizing that liquid crystal materials, flat display was enabled by utilizing this liquid crystal.
From this time, TV was going into the era of the digital. We made a try to have a very high color, a slim design, and thin, even larger panel displays. We could develop the LCD. Still we are using the LED as a backlight from cold cathode to the LED for the backlight, and still we are using a liquid crystal. At the same time, we've developed OLED materials to having another display devices. At this time, these two technologies are kind of competing in each field. For the small and medium size of the display, we utilize OLED material. For the larger panels, we utilize LCD by LED backlight. Today I'm going to talk about how this LED LCD TV material has been evolved to the LED quantum dot LCD device. This is so-called SUHD TV that Samsung now has a product.
We are using quantum dot materials for having three different colors out of the blue LED backlight. We are kind of struggling, the device, and the customers are required better product in a very short-term period. Material development is kind of slow, kind of behind from the device requirement from the market. That's why we are doing the novel method to do the research on the materials. Another example of the batteries. From your lead-acid battery, nickel cadmium, lithium ion, by utilizing different electrolyte materials, we could have the energy density and the mobility has been increased. Now we are about here. This lithium ion battery go into the electric vehicle and the smartphones. Now we are heading to another device by new materials, which is electrolyte is not liquid. It can be solid polymer or ceramic.
We can make it more thinner and more safer, even into the wearable devices. That is the evolution of the battery and the materials. Still, the market requires longer time of the battery, but the material is not ready. It's kind of a little bit low, behind the device roadmap. I'm going to tell you this. You know the Moore's Law? Memory density and the cost is increased twice by year. Still going on. If you see the story about the battery, it's kind of a shame as a research developer of the material science, but we only could have three times of the increase during the last 20 years. As you can see here, 200 watt per liter, about 600 watt per liter these days. Still, new materials are kind of competing each other to have a better energy density of the battery.
Actually, we need another new chemistry other than lithium ion. We are kind of at the limit of the lithium ion batteries. Maybe even for the higher than 800 watt per liter, we need to develop the new chemistry. It's undergoing on in the laboratory. We will see within two years, I guess. I'm going to tell you about the device. As I told you, the materials development is kind of behind of the device roadmap. You can see this market of the smartphone. We had a lot of increase at this time by utilizing 3G to 4G. The media, not just only the video telephony to the DMB and high-speed internet, we had a lot of increasing of the market size. Also for the display, at the very beginning, mono colors LCD, color LCD.
The Samsung smartphone is utilizing color OLED, and now even utilizing curved flexible OLED is utilized. That kind of materials and the wireless communication technology made a market increase dramatically. You see here, its slope is not that high as these days. Many people say, "Well, what's the next of the smartphone?" The market increase slope is kind of slowing down nowadays. What's going to be the next? Flexible phone, foldable phone, even long-lasting smartphones or wearable phones. Every function of those new smartphone is coming from the novel materials. That's what I'd like to tell you today. I'm going to tell that kind of a story into the quantum dot story again. Based on that kind of a learning curve, I'm going to start about the quantum dot story. Same view graph about the quantum dot history.
It's just 30 years ago, we discovered the quantum confinement effect of the new material. When we have materials has less than 5 nanometers size, we can have a quantum confinement effect, and that particle gives to start the semiconductor properties. That means if we give the electron, we can produce the light. Even if we give the light, we can produce the electrons. That's the semiconductor effect. The first effect was discovered here, and many researchers do the study, how do we give the efficiency of that kind of a concept. In the meantime, many researchers is working to think about the device, what we can do out of this fancy material. 2D, some kind of a laser device, even TFT and color converting, even the memory, photovoltaics, electro-luminescence.
Many of the concept of the device out of the quantum dot materials has been suggested, but not has been realized as a commercial product. In 2013, our researchers at Samsung made some kind of a modification and give a new concept to making a multi-shell quantum dot materials. Made a success in the materials level, and we start to utilize that material into the device. First target was a TV. At the same time, Sony made a TV, but they utilized the cadmium-based quantum dots. We decided we cannot use the cadmium into our product because that product is used by the customers. Even during the process, many employees in the factory, they have to use the cadmium material during the process. We don't allow that kind of things by our policy.
We focused on cadmium-free quantum dot materials, and eventually, we made a success in 2015. First cadmium-free quantum dot LCD was developed and introduced in the market. You see here, another curve compared some kind of a similar curve as the smartphone. From the beginning of the CRT and the projection TVs, PDP, and first the LCD TV. At that time, the market is kind of slow, market increase is slow. From here to here, when we go into the digital technology, go into the TV business, tremendous increase was from 2003 to 2010. At that time, the TV market was more than $100 billion. Somehow from that time, it's kind of saturated. Even last year, the TV market is start to decrease, near to just $90 billion.
If you see here, resolutions dramatically increasing from HD, full HD, now we are talking about ultra-high definition. The color gamuts are almost up to 100%. That means we are seeing the almost correct colors, as you can see in the light. You can see exactly the same in the TV. Even though we have this kind of struggling to increase this color gamuts, the market is not growing as we expected. You see the design, the slimness is getting thinner and thinner, even curved design. Still, market is not increasing as we give the new technology inside. The display materials, as I told you, now we are up to here. LED backlight-based, cadmium-free quantum dot LCD is here to realize almost 97% of the color gamuts. What we have to do in the next?
Many talking about quantum dot LED, QLED, or holographic display or 3D display, or this new TV set can be realized by novel materials. Quantum dot is in the center of that kind of a device. We've already have the success out of the cadmium-free quantum dot is on the LCD. We can even go further to the more brightness of the LCD and even for the QLED, that we can go to the so-called ultimate display devices. I'm going to tell you how do we come up to here. Maybe some technical point over here, I'm going to skip the details about the technology, but you can just follow the storyline, how do we develop the materials. Before I tell you about our technology, this is the baseline. In Samsung Electronics, every business unit has their development team.
They are talking about and dealing about three to six months ahead. Just three to six months ahead. They are doing the development. That business unit has R&D center. They're talking about one to one and a half years ahead to the market. SAIT, where I belong to, is a kind of a Samsung Electronics corporate R&D center. We are dealing with five years or even further, five to 10 years ahead. That's why we could develop the quantum dot materials start from the 10 years ago, we focused on quantum dot materials, and 10 years later, by today, we made a product out of that novel materials, which has not been realized in any other university, any other research institute, or any other companies. This kind of a 3-tier R&D structures made that kind of innovation from the material to the device level.
I have a 5-core technology. Inorganic nanomaterials is the part for the quantum dot materials. Other than that, we have organic semiconductor, optical film, and battery kind of things. I'm going to tell you about what we do in this inorganic nanomaterials lab to realize the quantum dot materials. Here's another advantage that our system. When we start to design the material, we made a very tight communication with the device team, which is the business unit's development team. When we first design the material, the device team start design the set. When we have a lab sample, we give the sample to the set level and get the feedback to the material development. We start to synthesize the material in the lab scale. Also that material go to the prototyping of the set, then get the feedback, the data.
By this kind of a circulation, when we are ready to mass produce the materials, at the very same time, the set can be produced at the same time of the material's mass production. That's the view of our materials and device development. This is my motto. In the past, materials development in the first, device was followed by. Nowadays, device evolution is much faster than materials. If we follow this kind of synchronized roadmap circulations, maybe those two markets can be increased together. We do that kind of things in the quantum dot development. At the very beginning, we do the design of the materials. I just want to tell you this.
In the theory, in the 1980s, as I show you the view graph, at the very beginning of the quantum dot history, in the many research papers talk about quantum dot is perfect, and wavelength is tunable, and it can make the pure color. There is no scattering. Because it has a meta structure, we can control any kind of the device. That was the theory in the research papers. In practical, there was a lot of difficulties. Actual design, crystal was not perfectly crystalline, and there is a limitation of the tuning the wavelength, and when we make the powders, it is not uniform, and it make some kind of aggregations. That was very hard part. We do a lot of experiment to this practical status to the theoretical level.
One example, by the simulation of the materials, by using the computing power, we design the crystal structure of the quantum dot materials. We found out if we control this defect by novel materials, we can make the preservation. That means we can control the crystallinity. This kind of a material design is one of the strength part of my research centers. By this kind of modeling and design materials, we could solve many problems. Then we have to synthesize. By this kind of a lab scale synthesis equipment, we control the precursors, additives, solvent. By the theory, only one quantum dot can do everything. In practical, we have to control many of the precursors and additives and solvent. By combining all materials and meta optimization, we made a success the high efficiency quantum dot materials, which doesn't have the cadmium.
We are utilizing a lot of analytical method. You see here, we do the very high resolution transmission electron microscopy to see the atomic level of the quantum dot materials. Even we do the 3D tomography of the quantum dots. If we do the electron, we can see only the surface in the two-dimensionally. When we utilize this technology, we can tomographic the morphology of the quantum dot materials. Many of the high level, the analysis technology can control and analyze the phenomena of the materials. I'm going to skip about the details, but this is just a few of the many examples. Finally, we could develop the cadmium free quantum dots. We do a lot of band gap engineering by indium phosphide-based quantum dot, which doesn't have the cadmium.
As you can see here, the black dots are the simulation data. Red dots are the experimental data. You can see they are kind of a very well fit by the design and the actual. Also, this is the actual view of the cadmium-free quantum dot in the TM. You can see here. You can see the colors are different from here to the edge. That means we have a red is the core, indium phosphide, and three layers of some materials and zinc selenide and zinc sulfide, so-called multi-shell structures. That material made the very high efficiency out of the cadmium-free quantum dot materials. We can see the colors of the RGB. You can see the color change out of those materials. That is the lab scale.
To make this novel technology into the market, we have to do the mass production. As I show you here. I'm sorry. This is the lab scale synthetic design, I showed you over here is a 500-liter. That was a 10-liter jar at the previous view graph. This is a 500-reactor design and one step. I told you we have a multi-layer design. We developed a one-step multi-layer shell coating technology from here to here and continuous separation recovery. This reactor can produce the enough amount of the quantum dot materials for 800 sets of 65 inches quantum dot TV in one day. We have 10 of this line, so you can imagine how many quantum dot materials can be produced in one day. You can imagine how many quantum dots can be available by the yearly product can be available.
That was a very hard part when we start study about the 10-liter jar to the 500-liter jar in the mass production with a very high recovery rate in the one-step multi-layer shell coating technologies. After then, powder is not the final end. By utilizing the powder, we have to make a film out of that. This is a kind of a very conventional coating technology. We put the QD powders that has been produced from that jar reactor, and then utilizing these roll coaters, followed by barrier coating to cover these films, and then hardening, and then rewinding. We made this kind of a roll is in the mass production line. We can control the uniformity, and those residence formulations are very highly optimized. This is a design where the quantum dot films are inside.
Over here, we are using, as I told you, the LED is still the backlight. We proved the blue LED, and then by this quantum dot red and green colors, we can produce red, green, blue perfectly. By the liquid crystal out of that, we made the quantum dot-based LCD TV can be produced. This one shows very high efficient and full color gamut can be realized. Here is the SUHD TV in the market now. You can see here, this is so-called the color gamut. This is a standard of the DCI, so-called color gamut standardization. They are saying this is about exactly the same as the cinema that you can see in the theater. Now this SUHD TV can produce almost 97% of the color gamut are available. Actually, now is 100% in the lab now.
There's a third generation of the color gamut on the quantum dot TV. Last year version is 97% over here. Very low power consumption, because this is very highly efficient, and brightness, about 1,000 nit. Based on that kind of development, we proudly introduced into the CES show in 2015 in Las Vegas. As a person like me, as a material scientist, that was kind of a great time. When we do study the materials in the lab, after 10 years of the research, and we made some kind of a challenging, not to use the cadmium. Actually, even five years ago, which is 2010, we could have the same property of the cadmium material for TV with cadmium. We deny to produce that because of the reason that I told you.
Another five years of the effort, we could launch at the CES show, this quantum dot TV into the market. We start to sell that TV from that year. This year, again, second generation of the quantum dot TV was introduced again in CES show 2016. The efficiency has been even increased, and DCI color gamut has been another increase at that time. This is the TV commercial as you see many times in the market, and everybody can find this any store nearby your home. Quantum dot TV in the market these days. This is not the end. We are going to solve the very last problems of the quantum dot TV. We'd like to increase the brightness a little bit more, and we also increase the viewing angle performance by utilizing these quantum dot materials.
That is the final of the quantum dot LCD. It can be in the market soon. That's the third generation. This is the second generation, and that will be the third generation of the quantum dot TV. Again, that is not the end. As I told you, because of the novel functionality of the quantum dots materials, we can have many potential of the new device. As I told you, high efficiency quantum dot LCD, that's the one that we are now working on. We are going to increase the efficiency again and again for the second generation, third generation. Which is, we are getting the light from the backlight and give the colors, so-called, I just summarize opto and optic. This material can be utilized opto and electric. Get the light and give the electricity. Representatively, photovoltaics. Solar cell is the one example. Photodetectors.
If we have the light, if we give the electrical signals, that we have a lot of applications. When you imagine the autonomous driving, we need to have sensors for autonomous driving, even at night or very low light. By quantum dot, if we have a very low light sign from the road, we can change it to the electronic signal, then we can utilize that as our sensors. Memory is another example. Over here, QLED is another final destination of the quantum dot. So-called give the electricity to the quantum dots and giving the color directly. Then we can call it QD-LED. That is, I can say there's the ultimate display devices in the near future. QD laser is also available. If we give the electricity to the QD materials, we can produce the confined lasers out of that.
There's another many examples of the chemistry and the bio devices. Many patent and research papers are all over the place these days. Who will be the person or organizations or university who can realize these novel devices out of the quantum dot materials? I can say Samsung has the success story out of the quantum dot materials and device, even without the cadmium materials. We are kind of one and a half and two years ahead in terms of the cadmium-free quantum dots in the same research groups in the world. To do that, we have a lot of challenges in the materials, and another challenge for the device design. That will be the summary of the potential of the quantum dot materials, and hopefully you fully understood the storyline of the quantum dot materials development and device and commercializing in the real market.
Thank you very much. If there are any questions, I would be happy to answer. Okay. Please.
Thank you for your presentations and your team's effort on mass production of quantum dot. My name is Claire Kim, came from Daishin Securities in Seoul. I believe there are still challenges of making blue QD-
I understand one of the reasons is that blue QD is easily oxidized.
Can you tell us how your team works on those challenges?
Blue QD is not in these QD LCD devices. Blue QD is the main technology for the QLED device. Red and greens are under the development, but blue is not ready yet. You are saying that oxidation is the problem, but I'd better say oxidation is not the problem, because of this is the inorganic materials, which is different from organic OLED materials. By the chemically, or by the ultraviolet attack, or by the thermal attack, inorganic materials, the quantum dot is very stable. Even the oxidation is stable. Only the problem is when we give the electrons going to the quantum dot materials, the energy level is not stable. That is the main reason that blue is not ready yet.
Even the red and greens are not easy to control. We've already have some data, not only with us, but in the many university has some data on the red and green, but blue has some problem on that matter. I'd better say, when this can be ready, I don't know. Because of this quantum dot has been in the market recently, the number of the researchers in the world regarding quantum dots are increasing very much during last one years. I believe many people is working on the same problem to understand the stability of the quantum dot, then it can be sooner than expected. That can be my answer. Okay.
Hi. Nicolas Gaudois from UBS. Just on the manufacturing process for QLED. I mean, I understand this is a printing process.
You mean QD LCD or QLED?
QLED.
QLED.
Yeah, specifically. If you can clarify manufacturing process-
Okay
The challenges around that process, again, similar question, this plus what we discussed on materials, what actually is the timeline, more or less, for commercialized devices eventually?
Definitely, the QLED has to be produced by inkjet processing. If we are talking about the larger panel size, we have to utilize the inkjet processing, which is different from currently available evaporation technology for OLED. You may know that there is another research are going on for soluble OLED devices, struggling a little bit more. QLED is also adopting the soluble processing.
Over timeline, therefore, because by definition, if using a printing process, the front plane of existing manufacturing at Samsung Display is not really usable, right?
Our business unit for Samsung Display device, SDC, and also the Samsung Electronics VD division has their roadmap on the devices, but I'm not the one that can announce that at this moment, but which is not in ready position yet. Not only by us, but in the world. Material is not available. I should brought my, the learning curve of the blue QD materials, but as you see that in many research papers, the efficiency of the blue QD, the best performance in the university now is less than 2%. To have the commercial level, at least we have to have 20%. It's one order difference. Because of that story and the background of our research activities, the speed of the evolution will be increased, I believe.
Yeah.
Hi, Mark Newman from Bernstein. Thanks for the presentation. Could you talk a little bit about the difference between advantages and disadvantages of QD LCD versus OLED?
Yes.
talking about the technologies that are available today.
OLED, clearly its adoption is happening quite aggressively in mobile.
One of the competitors in Korea, LG, is pushing OLED for their TVs. I want to just see if you can talk about the advantages of quantum dot LCD versus OLED for now and going forward for the next few years.
The main advantage of the QD LCD over OLED, technically, I'm not talking about the product. I'm talking about the technology in principle. QD LCD, the materials, and all the components can be made by the wet process and continuous coating process. There is no limitation of the size in terms of the producibility. As you know, Samsung smartphone is utilizing OLED, pure RGB OLED, which is not white OLED, pure RGB, the real OLED devices. We are focusing on the OLED in the smartphone or the laptop or the pad size. The reason is, if we are talking about 85 inches, even 65 to 85 inches of the evaporation and patterning, the producibility is not compete to the quantum dot materials and quantum dot films in terms of the size.
That's why we are focusing on OLED, pure RGB OLED, into the smartphone and the pad device applications. I can say the preciseness and size and the producibility, in those 3 worlds, QD LCD has the comparative to the OLED production. Another beauty of the quantum dot has, as you can see in my view graph, color gamuts are superior to the OLED materials. In terms of the TV applications, the QD LCD has the better potential than OLED. There is 2 disadvantage in technology: the viewing angle. Because the color filters of the LCD is in the mid-range of the panel. If you see the TV from the very wide angle view, from like this, you can see some different from the front view. That can be solved by another component in the quantum dot, the materials.
That is the 1 disadvantage from the OLED devices. Other than that, by the color gamuts, efficiency, power, cost, producibility, and everything, QD LCD is superior to OLED. That's what I'm saying.
Do you think in the near future that these problems on the producibility of large OLED can be fixed, such as some other kind of white oxide, white OLED oxide-based version? Do you think that could be a direction that Samsung might take instead to fix these problems?
Well, internally, we have the technology that you are mentioning, we didn't decide to use that technology as a product because we have the better design, better performance by the quantum dot LCD. There is no reason that we go for that. Surely, we have the technology, we just don't use it into the actual product.
Thank you very much.
Mm-hmm. Okay.
Thank you. This is Peter Yu from BNP Paribas. On the technology side, can you explain a bit on your argument that you are about one and a half to two years ahead of competition.
Perhaps on the IP issues.
Oh.
I understand that you acquired Nanosys back-
Yes
a few years ago.
Yeah.
What does Nanosys play in your IP portfolio, and does that effectively block your competition from using cadmium free-
Okay
quantum dot.
Okay.
Is there other bypass way that other competition can produce this quantum dot product?
One is a patent portfolio, what was the other one that you mentioned?
The technology gap competition.
For the patent portfolio, the cadmium-free that I showed you about multi-shell coating and the controlled defect, I think I showed you one point, so-called M, on our crystal structures. You remember that, my view graph? That material is the key material for having cadmium-free quantum dot, has the same performance as the cadmium quantum dots. We have that patent in terms of the materials, based on that, we have a multi-shell design and all the ligand chemistry, also the optimized solvent additives, kind of precursors, all the compositions, we have our own patent. Very original patent, quantum dot, the core and shell design, we acquired from Nanosys. In terms of the QD materials to the device for cadmium-free design, we have the fully aligned. Its patent portfolio is fully ready, and now we are using that now. There's no problem.
The technology gap that I told you, one and one and a half years, the reason that I can tell that is we have announced cadmium-free quantum dot in the TV as a market two years ago. Now, if we see the report from the other companies or other, even in the universities, we still see the same numbers as we had two years ago, even today. I can say we are at least one and one and a half years ahead of the other organizations. That's what we have analyzed. It's kind of a little bit conservative. I can say one or one and a half years, maybe at the longer terms. Okay.
Sure. Great. Thank you very much. Dai Monna from Bank of America Merrill Lynch. I have two questions. Number 1, yes, QD sounds a great technology, consumers do care maybe price or cost.
What would be the overall incremental cost to deploy your further more advanced quantum dot technologies?
Secondly, sorry, maybe a little bit different question, we've been seeing great evolution of the TV technologies. We have already 4K resolution.
Yeah.
the 8K may come soon. Quantum dot can really help to make the TV better resolution?
Also whether the consumers really do care, like 8K or even 10K?
That's my question.
Yeah. Thank you.
That is also my question. We do that kind of discussion in our lab and with our strategic divisions all the time, whether the customers require that much of the high definitions in their home. We don't know for sure, once the customer is acquainted to the current available technology, then they will see the difference. We don't want to be behind to that next level of advancement. That's why we do all focus on the new materials. Maybe 4K will be the final requirement from the customers, I don't believe. The customers will require even higher and even the low cost and better design. That's why the researchers are working on the next generation of the quantum dot materials. I'm sorry, the another question was?
First question was incremental cost-
Oh, okay.
-to deploy the QD.
As you know, the QD LCD TV is about, I don't know about the market price right now, but as I understood, always about 30% less than OLED TVs. It is even cheaper than OLED devices because this wet process, the producibility is very good. There is another room for even reducing the cost out of the quantum dot LCD TV. I may don't say the quantum dot itself price can be reduced dramatically from now on, but I can say there is another compartment which covers the quantum dot films, the substrate film materials, and some kind of encapsulation materials. There is many room to reduce the cost for the total of the quantum dot films. There should be another reduction of the cost, and it is going on now. I don't want to say quantum dot itself, the cost can be reduced dramatically.
This product is in the market just two years old. You can imagine how many other parts of the compartment cost can be reduced from two years old new technology. Any other comments or questions? If not, thank you very much.
Thank you.
Can you hear me the back side? It is okay? Sounds good. Ladies and gentlemen, good afternoon. This is Kun Hyuk Kang from Package Development in Semiconductor R&D Center. In general, at the end of the session, many people go back home, but not today. This is ridiculous. Next time, this forum will be start around 3:00 P.M. or 4:00 P.M. This is very excellent. Just kidding. This is the first time to make a presentation about the packaging technology officially in outside. The reason is, the Samsung packaging has been developed for internal customer mainly. That means not outside company. Therefore, we developed this packaging technology inside. That's the reason I'll be a bit tense. However, I will do my best to share Samsung packaging technology with you. Are you ready for enjoying Samsung packaging world? Let's go.
My topic is composed of a total of three parts. The first one is IT industry and semiconductor. Next is the Samsung packaging capability. Third one is what kind of competitiveness we have. The last, finally, you will get what and how you achieve from Samsung packaging. Part one, IT industry and semiconductor. Let's watch short video about how semiconductor works in a smartphone.
The CMOS image sensor in your smartphone is capable of taking high resolution pictures with zero shutter lag. The taken image is loaded into the ISP inside the application processor. The ISP processes the raw data in order to remove noise and artifacts, which will give a high quality image. Each Samsung AP has a distinct trait that can uniquely identify one from another. The image data from the AP is sent to the cellular modem. The image data is packetized inside the modem to be sent to the cloud server. The DRAM in the server receives the incoming data with the help of the virtual environment. DRAM sends the data to the server SSD, where it is securely stored. The stored image data can be retrieved to be viewed through your mobile or TV.
The image data sent to the TV will be adjusted in order to match the resolution and frame rate. Finally, the DDI simultaneously send the image data for it to be displayed.
Why semiconductor for future? As semiconductor are advancing much more, IT technology is able to change the activities that human can do, such as memory, and decision making, manipulation, perception. People want to change their lives with more semiconductor. The good example will be the, as you know, that artificial intelligence. Few months ago, very exciting battle happened in Korea between AlphaGo from Google and humankind in Paju. Many people imagine or say should be humankind, human being will win the game. The result is changed. That means this IT technology will be replace the human activities. Future semiconductor industry. This slide shows some number of interconnection devices with respect to the timeframe. Up to 2010, let me call this the PC, personal computer era. Only 3 billion interconnection is available. How about the current? Should be that there is a mobile era.
More than 18 billion device interconnection is available through the smartphone. How about the future? I don't know name of the era. Let me say there is a complex but diverse era. More than over 15 billion interconnection will be available. That means this huge explosion of the usage guarantee. We need some semiconductor. Let's get in more deeply for the future semiconductor, future IT application. There are several categories in future application. Out of them, mostly these four categories will be dominant. Probably the industrial, second is wearable, memory, the medical, the last one is automotive. Among them, that industrial and automotive will be very dominated for the semiconductor market. Definitely, the self-driving car is not included. Therefore, self-driving car is included in this market. Therefore, their usage of the semiconductor will be expanded.
Future IT industry will continue to drive the semiconductor market tremendously. This is end of the first part, is very important. What kind of the demands was required from the personal computer in general? Right, the cost or quality. How about the smartphone? Smartphone want some demands, kind of slim or low power. How about the future IT? Several different application wanted various demands. For example, slim, security, high reliable, and low cost, and high performance, et cetera. How to deliver these kind of demands, do you think? Using silicon technology or using one packaging technology? No way. Therefore, in the future, how to combine well the silicon and packaging technology, that will be the key point in the future. That is today's major topic. The part two, Samsung packaging capabilities. What is strong point with Samsung Electronics, do you think? Definitely.
Samsung has device and packaging, and set all of them, especially DRAM and logic. Therefore, we have some experience to integrate packaging solution through the memory and logic. Also, this kind of expansion can be available to the LCD and LED, too. Samsung has started the packaging development from the 1985, so 31 years. Actually, I joined Samsung 1995 after I graduate in the U.S. My PhD degree, the title should be also packaging. In my case, the packaging experience is more than 25 years. Two-third should be there over at this packaging. Therefore, Samsung can handle full complete packaging solution, not only conventional, but very high-tech advanced, such as PoP and TSV. Especially PoP stands for the Package on package, and TSV through silicon via technology will be very outstanding in the whole world.
Also, we have the full wide range of the packaging service, from fab, bumping fabrication, bumping, and test. This bumping and packaging is highly related with the fabrication, the material, and structure. Therefore, if we don't know the structure and material in fab, the good quality of the packaging cannot be guaranteed. Also, in the beginning development stage of the packaging, Samsung packaging team cooperate with the customer to create new novel solution, communicate very well, and collaborate very well. Also, during development, some outstanding activities such as mechanical and electrical and thermal simulation. Also, some reliability and troubleshooting will be available. What that means, using this kind of supporting, we'll be able to reduce some trial and error. Therefore, perfect and fast delivery will be available from Samsung Package team. Many people ask me, what is the major strong point of Samsung Package team?
There are several, I think about, I summarize the four categories. The first one is the collaboration with the device and set. Second is through various packaging platform. I will show later, not one or two, huge. Third one is very highly skilled with our engineer. Last one is I already mentioned, huge experience. This kind of engineer and experience cannot be gap within a few or two or three years. Based on this core technology, we cooperate customer and guarantee to give a perfect and optimized package solution to the customer. That is only Samsung can do, I guarantee. This is some our development history. There are some several good, excellent packaging for memory and logic. MCP, we started first from the 2004. TSV, we developed the 2006. PoP, that is very excellent for the AP and memory device.
We mastered the first from 2007. So far, 1 billion unit is made, evolving PoP, we call the ePoP, CoF, or something like that. Based on these 30 years experience and technology, we have 1,900 U.S. patent so far. Well-prepared this patent is, we pre-develop this kind of technology and IP. We pass this technology to the customer on time. Out of 1,900, around more than one-third will be the 3D. That means TSV, PoP, and wafer stacking technology related. This is a full lineup. AP and modem device, we have some PoP and SiP. Network server, conventional flip chip, plastic ball grid array. Also, we developed a high-tech 2.5D interposer technology. Display driver IC, we developed a chip-on-flex. That means a very flexible packaging. We put several different IC and package on the flex packaging.
Flex of film is good for some wearable or bendable product. The last one, Samsung packaging competitiveness. This is a very interesting page to introduce. What is the major concern for package so far? Gentlemen? Right, cost. Many customer request me always, "Hey, Dr. Kang, low cost, low cost." Always for packaging. How about the future? Probably correct. The cost is a basic. That's it. Do you think? There are two major items existing. The first one is this. There are some challenges or hurdle to be overcome in chip side and set side. In device, chip side, for example, the design, low saturation is critical. Fabrication guy always is headache to pay tons of money, as you know. In set area, what is that will be? The critical issue should be the battery size. How to extend the battery life?
That means how to make a small or thin or low power solution. That's the first. Second item will be the value. What is the meaning of the value, packaging value? At the end of the first part, I already mentioned Even PC era, the value from the packaging is a cost. However, currently, the future IT, there are so many demands and various value will be available. For example, thin, small, low power, and low thermal conductivity, high thermal conductivity, low thermal resistance, high density, high quality, and finally, cost. Do you think only silicon technology can do that? In PC era, silicon technology can do that. For example, 64, the micron and the nano, and one more. Right now is a 10 nano. Memory is around 20 nano. Whatever it is, it will be available.
However, the silicon technology can create that thin value, do you think? Small value? No way. How can you solve this one? There is a reason I introduced a new concept, device package integration. What is a device package integration? Using the silicon and packaging technology to create a new value. That is a DPI. This DPI cannot deliver silicon technology, only one or two package type. For example, wafer-level package. There are so many different packaging technology and experience. In order to meet this DPI, combine silicon and existing packaging technology is very, very critical. Only Samsung can handle this DPI solution. Let me show some example of the DPI. The left-hand side is a conventional discrete packaging for the logic and DRAM.
If I use HBM, high bandwidth memory, with the TSV, the interposer, the value we call the memory bandwidth will be increased from 50 GB per second to more than 500 GB per second. The value, high density and low power, small size can be expected. This kind of DPI will be the future for semiconductor company. That is a roadmap, some example, roadmap of the DPI. Package on package can reduce the thickness from around 40%. With the narrow pitch, the size will be reduced around 25%. High bandwidth using the HBM and 2.5D will be 1 terabyte can be available. Let me explain more detail this numbering 4 items. First, PoP. I think that this Package on package, PoP, is a very, very excellent for development and mass production.
That means equipment point of view, material point of view, structure point of view is well equipped, except thickness. How to meet the thickness? How to reduce the thickness? The current thickness of PoP is 1.1 mm, not cm, 1.1 mm. Very thin. Samsung is among develop their 0.9 mm, and we have already mass produced. The thinnest packaging of PoP thickness is 0.8 mm, will be ready at the end of this year. As you know, the thinner the package, the higher thermal resistance. How to solve this problem? Samsung has a really various novel thermal solution. For example, thermal interface material, TIM. If I fill this TIM, that is a Samsung IP, Samsung patent material and Samsung patent. If you fill up this TIM between the gap bottom and top package, the heat path goes up.
Without this gap, if there is some gap, 80% of heat will be come down. If I fill some TIM material, around more than 40% will goes up. Heat dissipation will be the both direction. Using this kind of technology, definitely more than 10% thermal improvement can be guaranteed. This is the hottest topic in my presentation today. All right? It is a fan-out PLP, panel-level package. As name implies, PLP is progressed the wide, large panel-level, instead of small wafer-level. PLP has a very good motivation to move for the cost. This is your report. I make a copy from your report about the area advantage from the 200 mm, 300 mm and PoP, cost reduction will be expected. Second part is the area usage ratio.
In wafer, as you see that same red line, in wafer level, they cannot use this area. That means is a dead space. However, panel level, the area usage is around 95%. Therefore, two point of view, area and usage reduction, PLP is good for the cost. Next view graph is more exciting also. If in the future, several device will be put under one package, that is a multi-die SiP or something like that. That means package size will be increased. The current AP size is 15 by 15. Okay. Let me assume their panel size is 400 millimeter by 500 millimeter. The output from both of them should be almost 3.25 times. If package sizes increase, their output will be there. Difference output will be the larger and larger and larger.
Therefore, PLP is better for cost performance and productivity than wafer level in the case of the large body. Next thing is a very good example for the future IT, is evolving PoP. What is the major interesting item for the wearable guy, wearable IT guy, do you think? For example, this kind of smartwatch. It works, yes. The major concern should be battery life, as you know. Right? How to increase the battery life? That means how to make a small and thin package. That is this. System in package PoP, I call is SiP PoP. Put the several device in one package. That is one example. From top package, the NAND and DRAM and controller is one package. At the bottom is AP, PMIC, and several passive. We put one package with the same thickness. Therefore, area is reduced around 40%.
Additional value, for example, simple board design and simple supply chain management and IR drop and electrical performance can be expected using this SiP PoP. Samsung right now is expanding. There's several different type of SiP PoP put the several different device. In the first session of this forum should be the IoT. We cooperate IoT team to give a very excellent packaging solution using this technology. 2.5D interposer. It's very unfamiliar to a gentleman. This is a conventional packaging. It's a flip chip plastic ball grid array with a heat sink. It's very tough. The bandwidth is around 128. How to increase that one? With the conventional package I already mentioned, no way. Therefore, Samsung developed and mass produced using their logic and HBM with a silicon interposer, with one HBM. One cube, we call the one cube, has a four height.
Also, Samsung developed four cube, four different HBM, four cube using the silicon interposer technology. The speed will be up to one terabyte per second. The major hurdle for this 2.5 silicon interposer is the cost. A bit expensive right now. Therefore, Samsung is consider low cost solution about using the PCB or Redistribution Layer to reduce the cost. The solution will be ready around after 2018. Okay. 25, around 30 minutes, showed my presentation. For the 30 minutes 30 years long development action. I explained that, but it's well managed. 30-minute presentation, 30 years of development. Samsung packaging offer customer optimize turnkey solution. What is the meaning of a turnkey? Customer does not worry about from A to Z. I guarantee the customer good sleep.
We have some design, we have a fabrication, packaging, test, and some fault isolation, then find the fault and rearrangement of the quality, everything. In the whole world, who can handle that? Samsung is the number one in the PoP and TSV, and we will find more value for customers and extend the value. DPI will be their future promising solution. Definitely, I guarantee it. That means how to combine silicon and packaging is a very critical issue for future semiconductor company. Who will be the best for this DPI? Only one package solution, well-dominated silicon technology. Okay. If you have money, please go ahead. Last, Samsung will deliver, I promise you. I will provide best PoP and DPI solution for customer. Okay? Thank you very much. Okay. Please do not give a tough time. Okay? There are some simple, kind of elementary school question will be ready.
Okay. Are there any comment and question, please? That means well explanation or you do not know my presentation, both of them. Okay, sure. Yeah.
Hi, thank you very much. This is Bill Lu from UBS. I have two questions.
Sure.
You showed us a lot of different package types.
Yep.
I think it's pretty clear that Samsung is ahead in terms of PoP, in terms of TSV. If you look at all these other packages, can you tell us where you think the gap is the biggest between Samsung and your competitors? What are the key? Where you have advantages?
Oh, yes. I don't know detail of the quality of the key. However, I already mentioned, to meet their future direction. That means the DPI. I define the DPI. To meet the DPI, to deliver the DPI, one package solution cannot be available. That is my point. Okay? Is it enough? That's okay?
Sure.
Second question. In Taiwan, a lot of talk on apps processors using a fan-out package.
Right? If I look at your slides, it seems like the implication here is that you think PoP is a better solution, at least for now.
The talk on fan-out seems to be that it's good in terms of performance, but it's expensive.
Yeah.
I'm just wondering if you can give us your thoughts on that type of fan-out package and just the pros and cons. Secondly, in terms of the size of the market-
Yes. Okay
Does it stay one customer or do you see it broadening out? Thank you.
I don't know detail of their key, key as condition and the pack or the cost of that or something like that. I can just imagine. Also, for example, what is the best package type in AP? That depends on the customer. For example, customer A, I need a high speed, for example. In that case, different type of the package will be available, is good, is suitable. Second customer want to, I need a low cost, definitely low cost. With the largest, it doesn't matter. Wire bonding, for example. Wire bonding, PoP should be suitable. Customer C want, I need some high thermal characteristic. I propose TIM PoP or something like that. There is a various IT, one of several different type of the packaging demands or values. In the PC era, only one package type is dominant.
However, in the future, that will not be. Who is the better? It's very tough to ask, the answer.
Given that different customers have-
You have the two question. Go ahead.
Given that different customers have different requirements.
Sure
Are you going to offer a fan-out package as well for the apps processor market?
Oh, sure. That's it.
Can you tell us what the timeframe might be?
Right now, we developed that one, therefore, I cannot say the exact number of the period. Okay? Next, please. Sure.
Sorry, it's UBS again, Nick Durand. You talked about SiP a little bit. Could you maybe frame where you think Samsung will focus the SiP solutions and maybe-
SiP?
Yes, System in a package, by markets or applications.
If you look at either using SiPs effectively in the application processor type combination or for more sensor centric solution, et cetera, considering that so far SiP has been used more in the sensor hub or sensor centric solutions. Thank you.
Yeah. SiP is around more than. The history has a long time it's developed. The problem is, at that time is knowing the die is a very critical issue. Is put several devices into one package, no test, we cannot guarantee the quality of the one package. However, in SiP is a very excellent solution to make a small and thin solution. Right? Recently, with the high quality of the fabrication, we can guarantee there. Without known longer die solution, we can put the several devices in the one package. There's a reason we put the SiP solution for the wearable. Only wearable. Should be some that the head for the smartphone maker want that one, but I already mentioned, most of the wearable company, sensor maker, wearable sensor maker, they want this kind of SiP PoP solution. Okay? Sure. The mic, please. Over there.
Mm-hmm.
Thank you very much. Simon Wu from Bank of America Merrill Lynch. Maybe two questions. Number one, over the timeline, say, when the Samsung will be ready for the mass production for the wafer level packaging. So far, I'm hearing only the PoP solutions who are multi-chip packaging, let me say directly, TSMC seems to be ready to provide the wafer level packaging solution for Apple. When the Samsung-
Is that right? Okay.
Fan-out technologies. It's very interesting point is the panel level packaging, because all the chips coming from the rounded shape of the silicon wafers, this type of the rectangle type seems to be, yes, I fully agree. Theoretically, seems to be working. How are you going to convert the wafer, 12-inch wafer into the panel level?
Okay.
That's a kind of still I'm not an engineer.
Okay. Sure. Let me explain that one. In the wafer level and panel level, that is not on wafer. If in both case, your second question first, I will answer that one. In wafer level, in panel level, in the wafer, 12-inch wafer, you have a test, and you select a good wafer, good chip from the 12-inch wafer, and put it on the wafer or panel. That is a major difference. Can you understand what I'm talking about?
Yes.
Basic device is coming original 12-inch wafer, and wafer level is the base carrier, shape is a wafer. Panel level is the basic shape is a panel, the rectangle. It is different. Therefore, in wafer level, they will not do that in actual original wafer. Okay? There's a reason they have some problem. Mass production, yes. Only PLP is available in Samsung. It's very tough to answer that one. The Samsung has cooperated with many other company also. If you have some good solution, we will cooperate right now. Even we are doing some cooperation. As you know, in other company has a very good wafer level packaging solution. If we need a wafer level packaging, we can cooperate with them. PLP is one of our other stuff, I think. We can use the good solutions from the other side. Okay?
One more. Go ahead.
If I could just follow on Simon's question. Panel level fan-out is your decision, so you will not be doing wafer level fan-out. Your focus is to develop panel level, so it's not going to be both, you're just going to do one. The cost of panel level versus wafer level fan-out, you talked about the usage being 95% for panel level, which is more efficient usage of the area compared to wafer level. Is there any other cost advantage to panel level other than usage?
Productivity.
Productivity?
Yes.
Yield grade?
Productivity. Yes. For example, one shot of, for example, one process is a 12-inch. One process for the large size panel. One, for example, coating, for example. For example, some coating of the polyimide material is a 12-inch, is around 260 or something like that. One coating process in the panel level is around 700. One process. Its productivity is a huge change, right? There's a reason cost is better than WLP, I think.
You won't be developing wafer level fan-out. Your decision is to focus on panel.
I don't know yet. So far, sorry, so far, I opened many excellent packaging solution inside and outside. If my customer want to, if I can give the good value for customer, I can do something. This is my thinking, okay? This is myself, the head of the package development, this is myself. That is not good. It well matched with the company policy in general, right?
It's open. The technology will be open. Okay. Thank you very much. It's almost the end. In the beginning of my presentation, I'm very nervous about you so well applause or something like that. I'm very happy to enjoy also my presentation. Okay, thank you.