Hello, and very welcome to this Capital Markets Day with Sievers Semiconductors. My name is Anders Storm, and I am the Group CEO of Silvers. I'm going to take you through a very exciting agenda we have. Unfortunately, we don't have of the moderator here today, but I'm going to moderate too today. So we're going to take you through this.
We have a very exciting agenda. I'm going to start talking about overall the company. Then we're going to have Sivers Photonics, William, also called Billy, doing his presentation and then Sievers Wireless, which I will do. Then we're going to have the CEO of Cambium Networks, a customer to Sievers Wireless, doing his presentation. And then we're going into photonics and the partnerships with IMEC and a very interesting deep dive into the photonics business.
Of Knysen here. It's going to be very technical. So for those guys who like that, that's going to be very interesting. And then in the end, we're going to end with Q and A. So we're not going to have a Q and A during the presentation.
So please send your questions CEO of the company. So let's start with a video.
Of. Today, broadband and being connected is equally important as water and electricity.
Of CEO.
With small efficient products and strong commitment, we achieve great things. Of. With focus on semiconductor technology, our passion goes from innovation at every stage COO. All the way to our customer success. It's a passion for customers, products and technologies of And how they contribute to a more connected and safer world.
That's us,
of.
Okay. So that is a summary of what Siever Semiconductors are doing. But today, we're going to tell you more about the details. So Thank you for joining us today. So to go back a bit and give you sort of the introduction to the company, if you haven't heard about us before, We are a company working in 2 business areas.
1 is the wireless business area, where we're focusing on 5 gs technology today. The other one is sort of an area which is called photonics, where we do laser chipsets. The company today and the group is had its headquarters here in Stockholm in Vodaf. And we are about 120 employees, and we also have an office in Glasgow and one in Gothenburg with the focus of wireless Sweden and the Photonics in Scotland. The company was actually founded quite far back.
About 6, 7 years ago, we started a journey to go into these very exciting business areas. And I would say both the 5 gs and the photonics business areas are now sort of really, really hot areas to be working in. So that's fantastic that we have products in both areas and making great progress. We also have a very good team behind this working on delivering all of these things from over 20 PhDs who makes the products together with others as well. We have also strong investors.
We brought in a lot of institutional investors, over 20% of the company now. We also have a strong cash position. We had $60,000,000 in the end of Q2. So what have happened since we started this journey then and what have we done and And where are we today? So if we go back then to 2016, we were listed on Axiatorio or Spotlight at that point.
And we were contemplating how we could take sort of all this high frequency technology that Sievers had been doing for many, many years in radars, in voltage Control Oscillators and so forth into this new interesting 5 gs market where high frequency is going to be sort of the most important thing. So we started that journey and started developing some circuits, RFICs and antennas. Also in 2017, we had the opportunity to acquire a photonics company at that point than CST Global. We acquired them for $23,000,000 which has been a very good acquisition, as you can see. Also, we decided to sort of rebrand ourselves and get into the NASDAQ First North, which has a much stronger brand all over the world.
And that was very important for us, of course, because we are working of more or less outside of Sweden most of the time rather than in the rest of the world. And we also, at 2017, already got our first design win in the 5 gs, even before we had the first chips that actually ready. And now we've done sort of 26 design wins. And a design win means that you actually have a customer who have picked your chip and started the design in any way for to making a product. So from that and in 2018, when this product was sort of more or less ready, we actually won a very prestigious Price at the IEEE event in Philadelphia before a lot of the really big semiconductor companies out there.
Of Semiconductor. And from that, it only it took off really strongly, and we added more and more design wins over the years. We also added in October 2018, our first Fortune 100 customer in Photonics, which was a sort of massive step for us getting an agreement, sort of an MSA, as it's called, getting that into place. And that customer have now placed sort of prefunding or NRE over $10,000,000 into the company in new products we're working with. Of COO.
So did the same thing. We added a new Fortune 100 customer as well to the list. We were up to 21 design wins in total. Of And we also had some 2 really large customers in the 5 gs where we could go out with volumes and so forth. So over $60,000,000
of Ravin. Estimated orders came in.
And we also changed our name to Silvers Semiconductors and rebranded the company from our previous name Silvers IMA. COO. So Semiconductors is actually telling much more the story where we are as a company now than Sievers I made it, and it's much easier actually to be out there and market the of company. People immediately understands who we are when we address ourselves as a semiconductor company. And now in 2021, we took the huge leap of moving into the main listing on NASDAQ.
We moved directly up to the mid cap list in on the 10th June, which was a big leap. We also see the number of shareholders growing heavily. We had almost up to 20,000 shareholders now. We've also gone over 20% in institutional investors. We have launched a new product that I'm going to talk about just today.
And we also hiring a lot of people now to take care of the future growth. So we actually added more than 20% of the headcount so far and are still adding during the year. So to mention some of the significant events, I mean, we've added 5 design wins. We are up at 26 now this year. We have 2 new orders from our Fortune 100 customer, SEK 25,000,000 total.
We got our first 5 gs volume orders from the U. S. At about SEK 7,000,000. We also were approved for trading in NASDAQ again. We had an order and a confirmation from 8 devices that the technology is really working well.
Vixen. We're going to tell you much more about that today. That's really cool technology, but also really hard to understand maybe. We also have our lead Japanese customer now Moving forwards in important steps when it comes to mass production, we're establishing our U. S.
Office. Of We just hired the 1st VP Business Development in the Photonics business. And we also launched this really state of the art 5 gs Chipset just today, and I'm going to talk more about and that's many first in the market that we have been able to achieve with that chipset. Of Some numbers as well. Looking back at the Q2, we actually had a growth on the revenue from 25% year on year.
DA, but a lot of it or most of it is actually connected to onetime costs incurred because of the Nasdaq move. So in general and the assets we have in the end, that's SEK 143,000,000. So cash so we have a lot of cash left to keep on investing in the growth that the company is seeing. And here you can see the segmentation reporting. Of As I said, the wireless business grew really well.
Photonics was sort of flat for the quarter. Our biggest market areas are North America with almost 70% this quarter and Europe, 18% and Asia, 13%. And of course, the reason for the North American market is connected both to the Fortune 100 customers and also that the U. S. Market is first with millimeter wave, and it's coming now in different steps, which I will talk more about in the wireless business later on.
If we look back how the financial performance has been in top line over the years. So in 2016, we had SEK 18,000,000. We've moved up now, so we had 96 in 2019. Then unfortunately, we got straight into a pandemic, but we're still able to reach the same Level in 2020. So why are we here?
And what's the sort of fundamental reasoning behind sort of what Silverace is doing. Yes, number 1, I mean, there is an increased data capacity need in the whole world, and everybody is probably aware of this. Of the company. And the market has been growing, and Ericsson report is constantly saying that it's an exponential growth, and we're using more and more data. We're using data centers, cloud storage, sending movies to Israel, watching Netflix.
All of this is just driving a huge need out there. And there's 2 technologies that can actually sort of provide the gigabit society in the future, and that is sort of the 5 gs piece of Andfiber to the home or fiber in the data center. So all of these things is really important, and we are in the middle of this of the company, and the strategy is sort of built on this foundation. And if we look at those different markets, I mean, the hyperscale data centers, which is behind all the sort of cloud data centers, is growing a lot. There's a lot of different other areas within silicon Photonics that's growing.
Healthcare is a new market that's growing a lot in there where you're using lasers for different sort of Sensors and so forth. So it's a very interesting market as well in this area where we can address a lot of different verticals and so forth. Of And we have a fantastic sort of market in front of us with great organic growth. So if you look at where we are maybe Strongest in 5 gs, which is the fixed wireless access piece. There is an estimate of sort of 88% growth CAGR from 20 21 to 2025.
If you look at the photonics market, we had the health care sector growing at 81, and we look at the sort of data centers about 20. Getz. And how can you sort of get into those without sort of too much work in that sense and the long lead times? Of Semiconductor. And what kind of market is it?
I mean, if we look at today in 5 gs, we're addressing a market around $7,000,000,000 TAM that we can sort of address. If we look at the overall market that we don't address that will use sort of these high frequencies millimeter wave type of things. CEO of you have defense markets, you have handsets, pieces, tablets, you have SATCOM radar, 5 gs repeaters. There's a lot of markets here you can of Merge Into and Reduce What We're Doing or You Can Actually Acquire Companies Maybe Who Can Bring You Into This Very Quickly. Of.
And there's a 10x market that we could address with this. So what we're saying, it's a possibility also to acquire growth here of in very, very interesting verticals. So I mean, it could be 5 gs handsets, I mentioned, defense, SATCOM radar or consolidation, of course, in the market we are already. Photonics SL, you can do vertical integration, go up in the value chain. There's consolidation, you need talent, you need capacity.
For example, the Fortune 100 customer needs capacity. So There is many opportunities for the company here to grow and move in that direction. And to look back, I mean, we did a really good acquisition of CCT Global. If we look at the semiconductors in general, it is a very, very sort of busy market when it comes to acquisitions. It's it's been almost 1600 acquisition over the last 11 years.
So one important piece of the strategy, not just sort of the own growth and the organic growth is, of course, to constantly look at this and pick companies that fits into your portfolio and that kind of stuff. Of. So what we're doing and what we've done so far really strongly, we've been working really, really hard with our partners of to develop our products and have a sort of companies around us that fits into the value chain. CEO of We have partners like IDT, Renesas, NXP, IMEC who's here today, Amplion, Blue Wireless, ASM America and so forth. All of those things is sort of very important, as you will see today when we go into the details about photonics, how sort of important is to work together on these pieces.
Also adding sort of the organic verticals and growing them, and we are in a very good position COO. CEO of M and A activities, both in wireless and photonics. I think that's an important piece to have in the overall strategy for the company going forward as well. So These are the fundamental pillars what we are seeing in the future that could grow the company in a good direction. If we look a bit on the shares and the owners over time, here you can see the shares since 2016 to now.
There's been some sort of huge event here. For example, when we entered the 1st North and we went into the main list, the big order last year with the SEK 480,000,000 order, for of Vol. We have had a big change, I would say, over these years in the owner list. With a lot of new owners, Swedbank in total has about 10 plus percent now. We've also recently got the 3rd AP fund as an investor and so forth.
We have a German fund now with plus 3% in the company as well. So I think we have a very good mix of owners as well as a lot of Retail Investors that is interested in the company. So it's a very good mix now, and we keep on building on that, of course, going forward. So I've actually gone through this a bit quicker, and I don't know if the guys are online yet to of Yes. So they are online.
So we will now move into Photonics, and I'm happy to present Billy, who is our MD for Photonics, and he will now Takeover.
Okay. I understand. Just checking, you can hear me okay?
I hear you very well.
Of Okay, good, good. Okay, Anders, I can't hear you, but I think you can hear me. Okay, that's good. Thanks, Anders, for the introduction, and hi, everyone, of SABRIS Photonics business and what we are doing. My name is William McLaughlin, as Anders O'Sayed, and I'm the Managing Director for SABRIS Photonics.
I studied Electronics and Engineering at Glasgow University, specializing in photonics in the silicon industry. Of I've got more than 28 years experience in semiconductor development, quality and operations. Of Suez. And today I'm going to give you an introduction into the Sievers business. The next slide.
Of We're based in Blantyre, where we have a semiconductor fabrication facility for development and manufacturing of photonic devices, Specifically lasers. Our team is currently around 76 people and we're expanding. We've expanded actually this year by about 10 people, so going from 70 to 80. And we've got plans to expand that even of Fuddl significantly over the next year and the year after. Currently, that group consists of 14 PhDs, given a lot of our work involves research and development, where we then take that and develop it into engineering and production solutions.
We operate 6 days a week, so fab is fully functioning over 3 shifts. So it's a full semiconductor fabrication facility. Of Within this facility and with our current capable team, we have developed excellent technical capability in laser photonics, which allows us to participate of the company in multiple high growth areas, and I'm going to expand on that later in the update. Next slide, Anders. Here, I've got some examples of what some of the inside of that facility can look like.
Of We have processes from lithography to etching, so it's a lot of material science, a lot of testing. And this is a type of capability that's required in order to fabricate the devices. We actually run our operations in 4 inches which is actually kind of state of the art for indium phosphide. And we have got plans to move that to 6 inches which would be up to the kind of the latest that's been done in the industry. So excellent capability exists that we can do end to end in our facility.
Of Next slide, Anders. I'm going to talk now about the 3 main kind of vertical areas. Now we have other areas that we're working on that we'll talk of Quantum and Research and Development. The 3 main commercial pillars that we're looking at are optical communications, of which is going through our kind of 2x growth at the moment up to 24x and that's expected to grow even further now. Of 4x in optical sensing.
Optical sensing is where a huge amount of our work is right now. It COO of And then there's optical wireless applications like Li Fi, which is coming in. So that's also expected to cause an enormous growth up to 10x growth. So we're involved in all of these. We're also working with several Fortune 100 U.
S. Companies in these areas. Of Semiconductor. The first vertical is the optical communications market. This market varies from cloud data center products to quarter key distribution development.
Of Silicon Photonics sorry, Sievers Photonics are actively engaged in all of these areas, working mainly directly with customers, of also several academic collaborations. And we've emerged out of a lot of those academic collaborations going back over the years. Key markets for us, as I mentioned already, is in the U. S, approximately 98%, 85% area of our business is in the U. S.
Of Europe. And we're currently working on product collocations, which will then lead up to production ramps of several Fortune 100 companies in this area. Moving then on to the next area, which is optical sensing Sensors, a new and very exciting area within photonics. Traditionally, photonics has been thought of as optical communications only, but now that has gone into every area that's going to touch our daily lives. So that concludes areas such as autonomous vehicles, consumer biometrics and augmented immersive reality.
Of And we're seeing a lot of activity and requests in this from Silicon Valley U. S. Companies with most of their applications of augmented reality and security, such as facial recognition and atomic clocks. The key technology which enables most of us to happen is silicon photonics, and this is a really exciting area where we're going to spend quite a bit of this talk. Of And Andy and Joris are also going to talk about this later on in a little more detail.
But we are developing significant expertise within Sievers Photonics in that area. So I'm now going to discuss silicon photonics in a bit more detail. Of Sorry, my next slide. Just to cover the 3rd vertical before I move on. This is still an evolving and emerging market, We're expanding our customers.
So I would say of the 3 verticals right now, this is the area that we are probably working the least in. And that's actually driven because heartening, sorry, because the kind of sensing and sensors area is so aggressive right of the company. And there's so much work in that area that that's where most of our activities can spend. I mentioned earlier on that we also have a lot of research programs and one of them is in quantum technology. Of Research Projects in there from quantum atomic micrometers to quantum based lidar and quantum key distribution.
Of And the growth area for that has been well communicated is huge. But again, that's still very much in the research and development phase. So I'm now going to explain really what silicon photonics is all about. The graph that I'll look at the map I'm showing here is just kind of traditional. On the left hand side, we have the kind of classic kind of fiber optic business, which is metro and long hauls, huge distances.
And then we have the kind of silicon business on the right hand side. Of the silicon business has gone through enormous changes. Only about 7 or 8 years ago, 28 nanometer was the most advanced technology. Now you have companies down at 3 nanometer and even lower than that, it's like of Carbon Nanotubes and Things of That. However, the real limiting factor there is the requirement in terms of power of RC delays, which are caused by copper and the insulators to get data in and out of the device.
And this is where of Photonics comes to that. So this is basically silicon photonics both meeting each other where we get the best of both worlds. So the data will be brought in and out the device using photons rather than electrons. And this will be a game changer of the semiconductor industry and all the applications involved will be a game changer for the whole of the industry. To see how kind of serious everyone's taking that, the number of companies that are involved in this, this map shows that of some of the companies that are involved in silicon photonics and everyone who's involved in semiconductors or silicon right now is starting to gear up to this transition that's going to happen.
Of And as I say, it will be a game changer. The applications will utilize silicon photonics of LiDAR, optical qualms, biosensing, of applications such as artificial intelligence and every space that you can think of, including quantum. Of. Next slide,
Anders. So
looking forward, photonics, it seems a very attractive growth As a patient, because of the low cost and high volume semiconductor industry that already exists. So the infrastructure in semiconductors is already there. What we need is how to basically manufacture photonic devices, integrate them. Enceivers Photonics has the capability to actually meet that requirement. This technology is expected to reach $3,000,000,000 in of 5 years in areas such as biosensors for watches and the adoption into smartphones and various other wearable devices.
Of silicon photonics is also is one of the only sorry, Siva's Photonics is one of the only companies that offers photonics mitigation capability across the board. Moving on to the next slide, Anders. Of Okay. So what are Sievers Photonics' key strengths? And I've mentioned quite a few of them there.
We offer a unique custom end to end service of from design and modeling, prototyping to high volume manufacturing up to 100,000 devices on any of our substrates. It's a huge number of of devices that we make for substrate. And in the facility, we are capable to actually manufacture in this current facility, of very high volumes of that. Our main focus is going to be on our indium phosphide laser platform of Semiconductor. And that platform will be used as an enabler for silicon photonics.
We've already sold more than 50,000,000 devices in this field. The one other key part of this is what's called it's quite a long word, but it's CWCWM, it's what's called an MSA, Master Supplier Agreement. And Siemens Photonics has been chosen as our key partner in order to create basically the standard platform. So working with various other companies of as a founding member, a promoting member on this standard. And then Joris is going to talk about this a bit more later on.
Of But what that standard will do will allow all of the companies now, a bit like the way the silicon industry went, allowing the easiest option of all the technology and to bring the application to the field much quicker. And as I mentioned, this will touch on everything from artificial intelligence, optical comms of and high density co packaging optics. We already have several commercial orders of as a result of this activity. So it's very exciting. Next slide, Anders.
And as part of this, we've already announced that we've got collaboration with Eimink and ASM Micra that Anders mentioned. Of Again, Andy and George will cover this in more detail later. We plan also to make further announcements as part of the joint development program. Okay. So as I discussed earlier on, getting back to the kind of Fortune 100 companies, our Tier 1 companies that we're working with, we've got continuous business with several.
And I'm going to talk about roughly, I can't mention any details, but 2 companies that we've got a lot of activity with of And we are gearing up right now. We have got activity started with others. So several of the key projects are tracked of internally in a lot of detail. These are going to lead to high volume businesses. So We're very, very excited about that.
We've been hiring more staff, putting framework orders in place and starting of Next slide. 1 of the other Tier 1 companies we're working with is, as I mentioned already, is an augmented, emerged reality. Receivers are working on this area and we're looking forward to further announcements over the next year. Of To add some detail to that, if you go to the next slide, Anders, just some of the kind of detail that sits behind that. Of It typically takes about 4 years for that to come from initial discussions through to fruition.
And that's because of the kind of long gestation period during the development phase and then into product development of the research step. And we've already actually attracted quite a lot of revenue from those customers of Okay. So in summary, again, we've still got a lot of detail that we're going to cover here later in the talks. And then yours is going to go into a lot of detail in Silicon Photonics. I expect that we're going to have a good knowledge of that after today.
Siemens Photonics, what do we offer? A unique technology capability where we can design, prototype and manufacture high volume semiconductor photonic devices. We have world class expertise in indium phosphates and platform development in silicon photonics indication. We operate in multiple high growth markets including optical comms, sensing and wireless. And we're working with several Fortune 100 Silicon U.
S. Companies on Multiple Projects. So very, very exciting future ahead of us. And again, it was quite a quick talk, but that is all the material at the moment, and I'll be happy to take any questions later on.
Thank you, Willy. So let's move on then into the wireless piece here. And of Step here with Wireless. And first, I'm going to start on the sort of the basics a bit. What is 5 gs?
Of. And of course, it's the 5th generation mobile networks, and that's where the sort of the promise of gigabit speeds as has always been and also this low latency. And latency is the time it COO of the network, which is really important for mostly maybe for gamers, but also for autonomous cars, vehicles that needs to be really quick decisions and changes based on some AI or whatever it is that steers the vehicle of self driving cars, for example, who get information. So 5th generation will enable that through low latency and high speed. Of the company.
Then, of course, there are a lot of different parts of the 5th generation mobile network. You have what's called the low band, which is sort of, let's say, a glorified 4 gs network, but it's low frequencies, very small bandwidth, of the company. But they get very far in there. You have the mid band 5 gs technology, which is sort of sub-six gigahertz technologies. Werk.
But you get sort of 100 megabits per second. You don't really get the gigabit speeds. Then you have sort of what we call the real 5 gs, which is the millimeter D Wave 5 gs, which is above 24 gigahertz and upwards. And that's where you actually get the sort of wide, wide bandwidth, and you can actually sort of push through data much better. And it has nothing to do with the millimeter wave signals being smaller.
It's all about that there is bandwidth up there that has not been used and it's available. And there's a capacity crunch, I would say, in the lower bands because there's a lot of different things there that are sort of competing for the frequencies. So of And there are 2 pieces of this. That's what we call the sort of the licensed 5 gs NR, where NR is the new radio and the unlicensed piece, which is 57 to 71 gigahertz, which is using more Wi Fi technology unlicensed, which we're all using every day. So these are the sort of very interesting pieces, and that's where Silver Semiconductors is working in the 5 gs field.
And a bit, as I mentioned before, you have below 50 megabits per second in the low band. I think T Mobile in the U. S. Was very early out with that. For example, mid band has been used a lot here in Europe with the 5 gs, and that is what you can see here.
I tested Thalia here in town. I had 108 meg down, 146 meg up. So that's what you get basically on mid band. And then the 24 gigahertz and upwards, there suddenly you have 400 to 800 megahertz or even 2 gigahertz of bandwidth, and that's of where you get gigabit speeds and upwards. So that's really interesting.
And then a bit more why it is like that. If you look at this of All the different technologies that's been done before 5 gs came has been on these sub-six gigahertz technologies. And that's where 2 gs, 4 gs, Wi Fi, even the 5 gs I mentioned, Bluetooth, 3 gs, whatever, everything is fighting around this area, and they have this small channel with up to maybe 60 megahertz or something like that. Then you have this massive amount of license and unlicensed bandwidth for millimeter wave. And that is now what's coming in the 2nd wave of 5 gs, let's say.
Of of the company from Verizon and AT and T and others. There's been this unlicensed spectrum now coming in, in both the U. S, but in Europe of Silly as late as January 2020, where we have a lot of applications like the track to train applications or what I show you also around Trafalgar Square with different mesh applications and fixed wireless access where we're working. So this is actually a very sort of fantastic area to be in, and that's our sweet spot as well for the future. Of.
And then, of course, this is a process for the whole world to move into this. And frequencies are something that the sort of PTS or the FCC or whatever body it has sort of has the right to give out and people buying the licenses or they get license free spectrum. Of Semiconductor. And that goes slowly. I would say, in general, in the U.
S, they're always first with everything. They've been leading since sort of Android and Apple took over of from earlier Technologies. And then Asia, like South Korea, Japan and other countries has always been very, very early as well. And Europe has started, unfortunately, to be a bit behind on this. But We are getting sort of sub-six gigahertz 5 gs now in Europe, and we're seeing some countries like Italy and U.
K. I saw something coming out now, and Finland have done something. But That's going to come a bit behind. But it is very interesting, though, to see that it's now starting to happen, and we have customers starting rollout. And you will of Cambium CEO today tell you more about how they're actually rolling out real products in the field right now about these things.
So It's very exciting to see that it's now happening and the bodies are actually giving licenses out. Of. So what are we doing in 5 gs? What technology are we using and what are we actually building? So we are using something called silicon germanium and we're using RFSY.
There's of 2 technologies for different chipsets. We make sort of a very highly great integrated circuits, which we call an RFIC or a beamformer IC, And we also integrate them together with an antenna to sort of create this high frequency product that is sort of necessary to send these things out into the air. And it's very difficult to do on these high frequencies. It's maybe 10x more difficult Endoue SubSix products. You need very specific competence, and that's what Silvers Semiconductors has with our very long history in this.
Of and also integrating these things because there is so much things happening nowadays with these kind of things because this technology needs to be beam steered because it goes shorter, so you have to sort of send the power in certain direction, which is called beam steering. Of of the company. And therefore, you use a lot of sort of channels, and you build 16 channels we have on the products today. And yesterday, we launched a 32 channel circuit of Rocket that no one has. So this is very important because the more channels you have, the more power you can get, and it's a sort of 50% more power actually be doubling the channels.
Of So that's quite interesting. Then we use what's called evaluation kits to get our customers to integrate this. And Also to make it easier for our customers, we're partnering up with a lot of different partners who makes the baseband or the signal who can be sent out into the air. Of and that is like Renesas, IDT, NXP and others we're working with to be able to do this. And of course, the ODM themselves that have their own baseband, so integrated into And then there is a number of applications now from the start, which is really interesting for this high frequency 5 gs.
It's the fixed wireless access, actually sort of wireless broadband to the home, 5 gs in general then, where we now see sort of some build out in base stations, where you actually connect to handsets as well. We are not doing the handsets today. Mesh and backhaul, where you sort of send these signals back to the Internet on the network, which is an important part because if you have high speeds in the front, you need to have high speeds in the back, so you can do it with millimeter wave or fiber. We have track to train applications, which means that you can actually have wireless broadband to the train. I mean the best thing would be if you can connect the fiber to the train, but I won't work.
So you can get the fiber in the air with this instead. So that's very interesting, and we've seen the first implementations of this in the UK, for example. Of. Then we have vehicle to the X application, and we've seen cars and stuff being connected with this in test ranges. Well, I have McLarens that has our staff on the top of them.
We have our customer in Fujikura in Japan just finished a big trial in Japan on buses without enormous buses trying this out. So all of those 26 design wins we have now are moving now into the next step here. And this is very exciting of Semiconductor. We now have developed over these years in this sort of fundamental silicon technologies are now moving into real and hard hardware and products. And these are the hardware and products we are selling, and they look exactly like this, and this is what is integrated into our customers' products.
So we have chipsets and antennas, and we have different type of antennas that can steer up and down and vertically and horizontally. We have antennas that just sort of put the beam somewhere and so forth. So it's a bit different how you do this. We also have baseband partners of today, NXP and IDT, we're working on more of them. And now with the new ship, I think we're going to be able to bring in more partners in that side as well.
We also have a partnership with Amplion, which doing a sort of a more a beam former type ship, which is less integrated and is more used sort of in base station type of application. Yes. To mention that as well, I mean, all of these things in general we developed are really highly integrated. So it's really good to use in the sort of consumer near things like the home units, the CPEs or the small cells or the pico cells and that kind of things because it gives you less parts, lower cost and higher integration basically. So we have those 26 design wins.
I'm going to go into to tell you more about them. I mean, one of the bigger ones is the ADTRAN and CCS. We have Blue Wireless with the track to train applications. We have Cambium Networks, which will be here today, of course. Fujikura, we just had a press release that they are now going into volume production.
We have 8 devices. We have partnered with Amplium for the beam former and so forth and so forth. And the really big project we're working on now is the CPE deal, and that's sort of the new product that we launched yesterday that will go into this in Q1 2023. So we already need to have hardware now To be able to integrate that and that put into volume production then in Q1 with an undisclosed partner so far, but it's for the U. S.
Market. We have other customers like Siemens Healthineers, so we use this for health applications as well. So there is a lot of ways you can CEO of use this technology. And even if you use it in different verticals, we don't need to sort of change the product too much. We can actually sort of reuse what we have.
It's sort of a COTS product from the shelf in that sense. So it doesn't require too many people to do all of these things either. So to give you a more flavor on where the products are moving and so forth, and I'm sure that Atul will tell you more about this product that they are now launching and getting out into proof of concepts with their customers. And I'm not going to dwell too much on this, but this is a very exciting project we're doing with Cambium. The company.
Then we have Fujikura, as I mentioned. They built up what's called a CPE. They also made their own antenna and a module that can be sold. Of. And separately, they also have this sort of small base station, a small cell that they can use together for vehicle to the excommunication and buses that it is in this case.
Of and they're now going into volume production, and we're working on closing a deal with them now as well for for the volume production. This is an extremely cold project also with Blue Wireless, where we have the track to train applications. And this is the first time you actually can do real gigabit connectivity to trains, and that's because of this bandwidth and the technology we're using that can follow the train of At Speed. So there's been tests done with these trains on 200 kilometers per hour where the train go past and we can be connected in both the back and the front with 2 gigabits Persekian. So maybe we get 4 gigabits per second into the train, and then you can have Wi Fi on the train, so everybody can happily watch Netflix between Glasgow and London or whatever you want to say.
And that's the next thing that's going to be built out with Blue Wireless. And in this case then, First Rail, which is the owner of EVO Rail, who have taken this product to market, and they are now talking to several large train companies. So I'm hoping within the coming 6 months, you will see more and more of these deals coming out. And actually, I haven't seen any of sort of competitor at all to Evio Rail here who can do this technology. Of course, this is sort of not sort of the big volume market per se like fixed wireless accesses, but it's a very good margin market and a high sales per unit market for us.
And it's excellent and cool technology, of course, to showcase what you can do with this in the future as well. ADTRAN. They have this mesh and fixed wireless access products. ADTRAN is a quite large company listed in NASDAQ in the U. S.
They actually merged with another company now also and they are actually a fiber company from the beginning, but they're going to use this technology as sort of what they call fiber extension. And they have a huge amount of Tier 1 operators where they're selling fiber solutions to. So I think it's a very smart strategy for them to sort of prolong and have this sort of last mile or whatever connectivity where they can't put fiber of and they can broaden this network out for any of their operators. And there is a big drive in the U. S, the infrastructure drive and the RDOF, which is now giving money to operators to install gigabit technology everywhere.
So we're waiting now with patients on seeing how well with ABTRAN be able to sort of get this technology out together with the fiber solutions. We also have CCS, who have built out this with sort of a neutral host operator in London called OnTICS. So this is built out now in several places. And the network is growing every day, and they're putting in orders. Of course, it's been hampered quite a lot as well.
I didn't mention that with Blue Wireless, but of course, that's been delayed a lot due to the COVID of situation. And no one's been on the train, so they haven't built it out. But this is the same thing a bit. But they built out some parts in Westminster recently. SLEAD.
They have it in Soho now. They have it around Trafalgar Square as it's been before, and this is very interesting in general. And they are actually using it also of backhaul information from ordinary Wi Fi hotspot or that kind of thing. So it's fantastic to see our technology on lamp poles in London. I was there looking myself.
It's really cool. Then there's a completely different technology where we're using Syrris technology inside on a company called Airwave or AirWine. They call it wave tunnel. Wave tunnel is a way of sending gigabit technology give away a bit speeds through walls and sort of replace cabling in house in buildings. And they are talking about 5,000,000 buildings in the U.
S. That needs to replace the 100 megabit cabling to 1 gigabit cabling. So that is, of course, a very interesting piece here. Will they do that by sort of taking long time, pull out the cables, change all the cables to gigabit cables? Or can they do it with this, which is much quicker and easier?
Of Sysco. It's going to be interesting to see how well they succeed. But this is a smaller company, but really cool tech. My guess is that Cisco COO. We have this fixed wireless access technology as well.
This is being launched now in the U. S. Tycon Networks. We have a company, 8 devices, that sort of builds modules based on our stuff that integrate renaissance Baseband, our antenna making module, a PCMEMCIE module that you can just directly connect into your solution, and you can build up and you get even quicker to market. And they're also part of helping some larger fixed wireless access companies in the U.
S. Who get this to the market. So this is a very interesting application and supports us. And now to the 5 gs NR chip we just released, and this is very exciting. The team has been working on this quite a long time now.
This is part of the big CPE order we have talked about. And we have, together with this company, Put Down. And we always want to have that, as we had with CCS on the 60 gig from the beginning. We always want to have an R and D company who sort of pulls this True. So we have a speaking partner on the technology and then also talks to the end market, so we actually know what to build into the technology.
So they've been part of this and also sort of putting up the specification and all the needs and how we can build this in a good way. So this order includes that they are paying for development as well, and they will in future then pay for per unit. So these chipsets COO of Interesting Solution. And you can then do vertical and horizontal polarization. So you only need it looks like you have 16 patches, but you actually have 2 polarizations below them, so you can make a really, really small module.
Also, most of the chipsets Competing out there has either 0 IF or low IF signals going in from the baseband. We have both here, which is really flexible for any customer. So we don't need to think about if they have whatever they can actually use it. And for example, NXP has been really keen on using the 0IF part because it costs less if you have that kind of interface. So that is really interesting.
Also, we've focused on getting a power solution out, which is reaching CEO of the company. So for the CPE here, we can use one single chipset instead of several chipsets, which MEMS. Actually, it's the integration and the synchronization, which is a big sort of Challenge for many can be done very easily because it's on one chip, which is really good. Yes. And then there is a lot of technical things here.
But I mean one thing is that we're now covering the whole bands. There is 5 different bands in millimeter wave for license 5 gs. They're called N257 and so forth. We're covering all of those. So that's from 24 to 43.5 gigahertz.
We have really small modules. Engineering samples for these will be available in Q4 and production samples next year in a year. Sander. And it's been a fantastic sort of inflow of new requests when we launched this yesterday. So it's very of Semiconductor.
And nice to be able now finally to talk about this officially. We have, of course, talked a lot with the current customer about it, but now we're getting to the next step here. And this is also what we're going to do with NXP to integrate this. We talked about earlier module, but we think that this module is actually the one we should do with NXP, NXP, and they have agreed to that. So this is sort of what we see now during the coming 6, 9 months, I would say, that we can get to something with NXP.
So if we compare a bit, without saying the name on the left hand here, I mean, many of our competitors here, they're using 4 modules to do the same of as we can do with 1 because we have higher power and more channels. So we actually have about 3 dB extra, which is 50% more output power even if you just have one module here. So this is quite interesting, and this is one of the largest companies starting with the Q. So we are doing something very specific here, which is really interesting. And of course, that company is really big, and they can win a lot of of market shares and so forth, but all companies who don't use their baseband needs to go somewhere else to look for technology if they don't want to use them.
And if they have their own baseband, they need to go so this is a very interesting niche market we can address. And if we look at then the sort of the main use case for these are small cells and CPEs. And looking at the just recent market report from Small Cell Forum,
there's going
to be a lot of growth In millimeter wave here, you can see the sub-six gigahertz is already out there, but the yellow pieces here is actually all the small cells that's going to be built out over the coming years. And here's sort of the millions of small cells. And of course, in a small cell, we need of the company to use more than 1 unit. It could be
up to 4 or whatever.
So that's really interesting. Then if we look at fixed wireless access, as I mentioned before, it's still the 88% growth in the future. We're seeing being part of this from 2023 with this module. It's just 4% sort of the market that we will capture with this customer. There's a lot of opportunities on top of what we have won so far in this.
We can also see that EU or Europe is actually coming now of From Nothing in 2020 to Small Things in Millimeter Wave 5 gs NR, but it will then Start developing over time here. If we look at then in the end here, we have 6 gs as well. To look a bit forward, and of course, that's sort of maybe 10 years down the line. And what will 6 gs be about? It will also be about even higher frequencies.
We talked about now 71 gigahertz. This is 95, 140 gigahertz, they're talking about, and that will be settled during a lot of discussion, of course, in the future. Of. And you're looking at microsecond latency. And we're actually there already with Blue Wireless.
We have 0.7 microseconds latency with the track to train application, which is huge. Then, of course, they want to have it even lower, and they want to Terabit is the sort of discussion of speeds. But as we've been talking about now, they talked about 10 gig for 5 gs Sub 6 and they're 100. So that's always the marketing number. I think the real numbers would probably be around 100 gigabits per second in the end of when we discuss sort of what 6 gs actually will do.
And I would say the unlicensed 6 gs. As we see it, 802.11ay is already developing and could be sort of out earlier, and that's where we see 20, 30, 40 gigabits in real speeds in the future, and that's sort of a project we are looking at in the next of the high frequency on the license bands. So if we summarize wireless, I mean, 5 gs comes of. We are in the millimeter wave, and that's where you get the true gigabit speeds. We had an 118% growth in 5 gs in Q2, which is really encouraging.
We're seeing now that the pandemic is moving away a bit. We have sort of ramping, and we have SeaWiSH inside in 6, 7 products ramping, and we're really happy to soon have our CEO of Cambium to tell you about that. We also have just launched now the state of the art 5 gs NR thing that will accelerate us and the company from 2023 and forward. 6 gs, many companies are working about it. You will probably hear us do things in the future here as well.
But what's interesting is the millimeter wave will be even more important. So this is not sort of a thing that's just millimeter wave is just now and here and then it disappears. It's actually going to be more important also 10 years down the line. So there has to be a road map for the future. So we're actually way ahead, I think, of the schedule here, about half an hour.
And I'm not sure because our dear friend Atul is actually based in California. I have the next exciting speaker, and it's our CEO from Cambium Networks, Atul. I'm very happy to have you here, and I'm handing over to you to present your company and what you guys are
doing. Thanks, Anders. Good morning from Silicon Valley. Here. Of Thank you.
So we are very excited to be here, and thanks, Anders, for giving us an opportunity. I will introduce Cambium Networks, and I hope we get about 5 minutes of question and answers at the end. Anders, thank you for moving to the next slide, please. So this is our safe harbor statement. I won't read it.
But just in case anybody has any questions, I'm here. Of Semiconductor. Next slide, please. So now I'm going to introduce briefly to you the KEM Networks overall. As we look at Cambium Networks, we are really focused on singular mission.
Our mission is to connect the unconnected. And the way we do it is we have a multi gigabit wireless fabric, which weaves together multiple networking standards of and really demystifies, simplifies the different complexities and brings together a very high performance when affordable broadband connectivity from 300 meters to over 100 kilometers. And I'll explain how their solution works. But the wireless fabric is very multipurpose. It's designed so you can customize and create a purpose built network, Reliable Network, Resilient Network.
And Cambium Networks brings 5 gs, LTE, Wi Semiconductor, all different technologies. And all of those solutions are managed from a single pane of glass, single cloud based network management. We have a very strong belief that if it can be wireless, it will be wireless. And the multi gigabit fabric is the new fiber. You really don't have to have digging going around.
And in a very simple manner, you can install very high performance networks. Of Semiconductor. In Q2 2021, we achieved record revenues of $92,700,000 of Semiconductor and delivered 19.9 percent adjusted EBITDA margin. So that's good strong results. We have Our history briefly is we actually were divested out of Motorola.
So very strong DNA of RF of and Quality Wireless Products. We are headquartered in Schaumburg in Illinois and have R and D presence in Chicago area, Silicon Valley, Bangalore. So these are some of our very key sites and Ashburton UK. So with that global footprint, we have a very diverse revenue mix across products and geographies. Of our broad market presence with over 17,000 network operators worldwide and of over 10,000 channel partners.
We sell our products through 2 tier channel and very strong global channel distribution worldwide. This has created an attractive financial model. And we believe that our revenue and growth is very sustainable. And I will go through the key differentiation of the organization and how we what is our intellectual property, how we create that multi gigabits wireless fabric, which is all managed from a Single pane of glass. And this wireless fabric is very mission critical.
That's one of the key DNA of the company. While we use of merchant silicon different chips. We have very strong cloud based RF algorithms, device based RF algorithms. We deal with RF noise in a lot of developing countries where we install our products. We also provide significant spectral efficiency, the number of bits per Hertz per second we can pump through our network.
Our main solutions are we have point to point products. Point to point products connect towers and buildings at a distance of over 100 kilometers if needed. And then we have point to multipoint products. They spread the connectivity. They in the last 10 kilometers, 15 kilometers, 20 kilometers, they CEO of Buildings, campuses, residential areas, so that's point to multipoint.
And then our Wi Fi solutions provide the high speed bandwidth CEO of the expertise in designing quality in tough climates from minus 50 Celsius to plus 50 Celsius, really tough, tough terrains. So So now let's go to the next slide, please. This will show the next slide will show the wireless fabric. What I mean by the wireless fabric? Really, the of 3 key areas of wireless fabric are, as I said, point to multipoint, point to point and the entire Wi Fi solutions.
Wi Fi solutions include switching as well. So let me just briefly describe. If you look at some of the near term next 12 months or so, what you will see from Cambium Networks, These are some of the new capabilities Cambium is releasing. Our 28 gigahertz 5 gs, where we are working closely with Anders and Savers, of That product is in proof of concept right now, and we volume shipped next quarter in Q4. So that's 28 gigahertz 5 gs.
And then Wi Fi 6e. Wi Fi 6e is a very exciting capability Cambium will be adding. There's about 1.2, 1.3 gigahertz of band being added in 6 gigahertz zone. So that next year will be Wi Fi 6E. Of And then we are adding a lot of capabilities in our product lines.
There's a product called Medusa, which is a 14x14 massive MIMO product. I won't go into the technical details, but fundamentally, it gives you very high capability from Cambium. So some of the recent launches, of which are giving the traction both in urban and the rural environments. We introduced 60 gigahertz millimeter wave, which is called CN wave 60 gigahertz. Of Semiconductor.
And I'll show some of the customer success stories there as well. And 60 gigahertz for us is a precursor to our 28 gigahertz product coming next quarter. Of the company. And the 60 gigahertz product gives us good capability. If you look at Wi Fi goes, for example, in the last 300, 400 meters of And then the CNwave 60 gigahertz takes over next, say, 2 kilometers or so.
And it has a of meshing capability. So you can really mesh couple of nodes and go multiple kilometers and gives you significant gigabit capability. And then when you go from 4 to 7 kilometers or so, the 28 gigahertz 5 gs fixed 5 gs product takes over. Of So that's what I mean by wireless fabric. And then all other wireless fabric is managed from the cloud management.
Doesn't matter whether you have Wi Fi or LTE or 5 gs or switching, It doesn't matter. We weave all of that into the cloud management, single cloud management. Wi Fi 6 of. There is a major transition going on right now in the industry. Every 4 to 5 years, Wi Fi changes the architecture.
So there is a change going from Wi Fi 5 to Wi Fi 6 right now. And Cambium has introduced very high performance products there. And they have a software defined radio, so you can customize different throughputs, frequencies, all of that. It gives you a lot of flexibility. And Wi Fi 6, as I said, gives us the last 300, 400 meters.
And Cambium does outdoor in a very superior manner. So a lot of our Wi Fi products go into campuses, into hospitality, CEO of it goes into the smart city projects, those areas. And then the fixed wireless broadband comes right behind and gives full connectivity from that edge of all the way to the core. And then 28 gigahertz CNwave, that is purpose built, fixed 5 gs of Point to multipoint. What I mean with the purpose built is 5 gs will have a lot of complexity in big 5 gs core products.
We don't do mobility. We only do fixed 5 gs. So we it's very purpose built, that's what we mean. We have made it very simple, very easy to install and MU MIMO. So this way, Cambium will have the affordability yet mission criticalness in a lot of applications where customers really want standards based fixed wireless broadband.
It's a very, very attractive product. And there are over about 30 customers or so worldwide who are now of the company. That is one of the key collaboration, very innovative collaboration between of Cambium and Syvers for many years, and we are very excited to launch this product next quarter. Next slide, please. So as we go into Cambium infrastructure differentiators, really, it is focused on very focused on 4 or 5 key unique things we do.
Number 1, we have leading spectral efficiency. And the spectral efficiencies are algorithms the way we deal with the air algorithms in our software, the way we design our antennas, there's a lot of unique systems architecture we put together to give leading spectral efficiency. And as I mentioned earlier, we have the product called Medusa. Of Medusa fundamentally gives you that phenomenal massive MU MIMO architecture. And we have been shipping the product for last many years and is viewed in the industry as one of the very high spectral efficiency products.
And now as we introduce the 28 gigahertz, 5 gs fixed direction, if we go in that direction, we also have broad channels and very high multi gigahertzhighperformance. So the journey of spectral efficiency by Cambium continues very strongly. We have embedded network intelligence. What we mean by that is we have we are constantly sniffing the air. We are constantly making sure We understand the noise conditions, the conditions in the spectrum, and we adjust continuously.
Of And that gives our products a lot of resiliency and high quality. Reliability, as I said earlier, all our designs of our design for minus 50 Celsius to plus 50 Celsius, tough terrains, tough climates in many, many different locations. Of And the laboratory wise, we also make we have very good strong labs where we test these products very thoroughly before they go out. Very scalable architecture. The way our entire cloud management functions, the cloud management is scalable.
We have over 600,000 devices now under management in our CN Maestro cloud based management, very scalable COO of architecture in terms of radios, how we manage them and number of users we can support. That spectral efficiency also feeds into scalability. If you take Cambium Networks product, per access point on the tower, we can have lot more users compared to competition, many cases even twice of Because that's how we designed the product and very attractive economics. The way we do attractive economics is we really focus a lot more of merchant silicon partnerships with companies like Sivers and these partnerships are deep. We don't just come at the end.
We work with our our partners way in the beginning as we're designing. And so our partnership with Syvers has been in that, so very close. Our engineers of Semiconductor. I've jointly worked on a lot of things, debugged a lot of things. And that creates and then add value in that management, performance, spectral efficiency.
Those are the areas we add value and that gives a very attractive economics without sacrificing quality. CEO of Semiconductor. Next slide, please. So as we look at the broad set of customer base, as I said, our revenue is very diverse. Our entire presence is very global.
And this gives you in different segments, some of the customers we serve worldwide. As I said earlier, we have 17,000 network operators worldwide, pretty global footprint and about 10,000 plus channel partners, 2 Tier Distribution. And the segments we serve is mostly Cambium goes after midsized service providers. Of CABP. And internationally, we do have large service providers.
But typically, Cambium's value proposition is very strong for the midsized growing entrepreneurial and progressive service providers worldwide. And as you can see, whether it's Asia or Europe of North America, South America, good strong presence. And then SME, mid market enterprises. In the enterprise segment, where we have been able to grow very well and enterprise is one of our fastest growing segment, we have hospitality. Of So COVID impacted everybody.
So enterprise did slow down in 2020, but 2021, enterprises come back, especially segments like hospitality, Education, Smart City, some health care, these are the segments where they are bringing more connectivity, more throughput of the company and really bringing lots of institutions online with that high performance connectivity. Government, many of our projects are with defense or local and state government emergency response. Those are areas which need mission critical connectivity. I call it ad hoc connectivity, connectivity on demand. Whenever there is an Action going on, they need to create a broadband network quickly so that all the people are connected who are responding to the event.
So government, local and state, defense, very key point to point, point to multipoint and sometimes Wi Fi usage as well. Of And then industrials. Industrials for us are oil and gas. We are present in many large oil and gas companies of providing, whether it's point to multipoint or point to point from the oil platforms to the shore. Mining is another area.
Energy Grid, Water and Waste Management, Transportation, particularly railways. Many of the control signaling uses fixed wireless broadband. So these are some of the very attractive segments. They all value that mission predictableness yet affordability. Next slide, please.
As we look at the last, I would say, 15, 16 months, of the world has come to Cambium Networks. While wireless was very important always, it doesn't matter what segment you are in, wireless is always important. I would say the need for more broadband from home because learning of It's increased at home. Students are working from home. Knowledge workers are working from home.
So in general, the need for more throughput, more connectivity from home has increased. Enterprise refresh cycle with Wi Fi 6, I think you talked briefly about that is going on right now. And then 5 gs and next gen wireless is enabling that thing I mentioned, of which is wireless is the new fiber. I think when fixed 5 gs arrives and it gets going, you will see now in addition to 60 gigahertz of the supply capabilities, we are increasing the distance and now you have broader channels. So the multi gigabit capability gets enabled as 5 gs next generation wireless comes.
Of And broadband proliferation in general, whether it's people, places or things, smart cities, digitization, more sensors everywhere. That means you really need a lot more connectivity, a lot more throughput. So this the wireless fabric weaves together all of this of and brings that entire solution in such a manner that you can easily deploy, easily manage. Of Next slide, please. I won't go into the details of this slide, but I think this kind of shows you how that wireless fabric works.
Of the company. And in the point to point is those blue dots and the point to multipoint are the yellow dots and the Wi Fi shows the last 300 meters or so. So fundamentally, the buildings are connected with point to point. And there you can go, as I said, up to 100 kilometer line of sight. Typically, it will be 10, 20, 30 kilometer connectivity from regional office to the headquarters or connecting campuses or buildings.
And we have those very high performance, high quality point to point products. And they use different frequencies. They use different technologies depending on what is that purpose built network. Of And then point to MultiPoint distributes the bandwidth in the last 10, 20 kilometers. And again, multiple technologies.
There's a proprietary technology. There's now 5 gs VIX Emerging. We give customers lots of choices because each customer has different need, each nation has different frequency of different standards sometimes. So we give that flexibility so you can build purpose built network. And then the last 300, 400 meters, We have indooroutdoor WiFi.
That's kind of how that entire campus or entire small city is covered of the company with affordable broadband. And then all of those products in this diagram you can see are managed from that single pane of glass in the cloud called CN Maestro. LAN and WAN are converging because earlier, I used to see LAN was high speed, WAN used to be slower speed, not anymore. With the technologies like 28 gigahertz and then 60 gigahertz coming in the last few, the millimeter wave push happening, you really have fiber speeds and multi gigabits all the way in last 10 kilometers or so. And then with meshing, you can extend those distances.
We are also striving now to monetize software because we have lots of devices under management. We are beginning to add value added services. Of the product called CN Maestro X, where we are basically starting to now monetize some of the capabilities which are value add. And then the Tier 1 and Tier 2 service providers in general, in general, fixed wireless broadband is accepted now as a standard. Of That's one thing 5 gs has done.
5 gs has legitimized our fixed wireless broadband standards. And as a result, we are very excited as high performance 5 gs products come. Next slide, please. And very briefly in this slide, what we are showing is this is the concept of wireless fabric. I'll work from the right hand side to the left hand side.
So if you look at the right hand side, you have home gateways, you have EPMP4, those are devices on your buildings, campuses, bringing the bandwidth to the end at the end. And they generally give you good distance, 10 kilometer, 15 kilometers. Of And the performance of those devices, these are end devices in the buildings. That's 200 megabit, 10 megabit type performance. Then you go more to the 5 to 6 kilometer more in for more distances.
And as you go more distance, you really start of To bring that 5 gs fixed and we have a PMP point to multipoint, 450 products, and they start to give you 400, 500, 600, 700 megabits per second. Then you come towards 60 gig products, which are the last few kilometers, and you start to see pretty high performance end to end. Both 28 gigahertz and 60 gigahertz will give you multi gigabit performance. And all of these products, we can connect through our switching portfolio as well. So This is that concept of fabric that you purpose build depending on the throughput, latency, what kind of network you need.
You select the right technology. We weave together the fabric and offer you complete solution. Next slide, please. I will share some of the case studies with you. I think that will give you a flavor how these solutions are used.
Of this case study is from it's a hybrid fiber wireless infrastructure, which delivers multi gigabit of To The Home in Anchorage and Fairbanks, Alaska. That is one of the key points I want to make. The solutions we are pulling together, of Semiconductor. Sometimes wireless service providers use it. But a lot of times, the fiber guys realize that it's much easier of the company.
And some terrains are also very tough. And they have the billing systems and management systems, so it's easy to use wireless. Of And that's what we're finding. The Alaska Communications is a good example. In this case, this challenge was they really needed quickly to add the extension to the infrastructure.
And they used Cambium products, 60 gigahertz distribution node is the the main node, which provides the bandwidth. And then the edge node is V3000. And they have deployed very successfully the 60 gigahertz product and provided a multi gigabit connectivity to the homes and businesses in a fairly fast time. Of the company. With the same thing, they would have taken a lot stronger, a lot more time if they had just done pure fiber.
So that's an example. Next slide, please. Next, I will share with you a customer called Pentanet. They are in Perth, Australia. Perth, Australia actually at one point, they were they didn't have they were the in the 2nd slowest Internet speeds in Australian capital cities.
And very quickly, this company actually used to cater to gamers. We always focused on high performance network in the city. That's kind of how this started. Of But even they looked at Cambium products, especially 60 gigahertz, and now we're going 28 gigahertz, they're very interested in that solution as well. Of They said this is the way to bring both in remote areas as well as some high density areas, of a high performance multi gigabit connectivity.
So they adopted millimeter wave. And suddenly, the network is giving phenomenal performance, Especially to the gamers, low latency. And we just did a customer and channel event called Cambium Connections of earlier this week. And Stefan Garnish, the CEO, was one of the speakers. And he said very satisfied with these advanced new of Analogies as they're coming in, bringing that connectivity in an affordable manner.
So Pentanet is a great example how millimeter wave is being used of Semiconductor. Next slide, please. This is an example of a Silicon Valley city. Of the company. And their focus was to bring connectivity affordable connectivity, but very high speed performance, both in that city of as well as some of the areas where there was affordable housing.
So they want to make sure that as they connect some of the government buildings, some of the residential areas, there's a unified architecture. So they used 60 gigahertz CN wave solution here. We have connected many, many institutions and very happy as they're expanding. All these millimeter wave customers of are also now waiting for the fixed 5 gs expansion. As I said, we are covering with the mesh architecture last few kilometers of And with 28 gigahertz, that distance increases and the multi gigabit millimeter wave really takes over.
So that's it. That's another case study of one of the cities in Silicon Valley Bank. Another very briefly, the case study is the gigabit speeds municipal broadband of Aurora, Colorado. All of these examples, what you see is that each network is a little different. Each economics is a little different in the city.
And they yet what they focus on is how we provide the future, how we provide performances which can keep scaling. And that's where some of these millimeter wave technologies are clearly going in because many places, They can't provide fiber. Many places, it's another example we have actually publicly talked about was of In cities which are heritage sites where they don't want to dig in, so what we are finding is that wireless is becoming a very, very key way in which both wire and wireless guys are adopting the next generation architectures. Next slide, please. This is, I think, my last slide and then we can open Q and A as well.
So when it comes to the millimeter wave, of we especially the 28 gigahertz, our heritage as a company is how to design purpose built network that are easy to deploy. That's how we started 10 years back with our first set of products. Of that philosophy of easy to deploy, easy to manage using merchant silicon having that cloud radio algorithms has continued. And this is what we work very closely with Sivers in this 28 gigahertz product, 5 gs and our fixed product, which is next quarter will ship. Of And then it will continue in terms of the evolution, it will continue standards based.
Performance is fantastic. We are as I said, we are doing proof of concepts right now. And I'm very proud of the way the innovation happened between the two companies, the collaboration happened between the two companies, our engineers work together. And the entire solution has a very holistic view. Right from the beginning, we focused on configuration, deployment.
And 5 gs is a sophisticated algorithms. Of Since we don't do mobility, we focus on fixed solution, high performance solution. That makes it purpose built. So we are very excited working closely with Sivers.
CEO of the company. Thank you, Atul. I was thinking that we would take the Q and A
afterwards, so if you can stay for another half hour
or do you CEO of So if you can stay for another half hour or do you need want to Q and A now that we talked about? Of I don't know if you can hear me actually because that was a problem before also with Billy, couldn't hear what I was saying.
Of And Anders, I can stay as well. If it is at the end, that's not a problem for me.
Yes. So we take CEO of I don't know if you hear me actually, but someone maybe can tell you that on offline over there because we have some connection issues. Of But I hear you, and we now move on, and we have the Q and A afterwards. Okay. Thank you very much, Atul.
Very, very interesting presentation, and we have some questions already coming in now, so we'll take them soon. Of Semiconductor. But now we're going to move on, and I assume our next speakers are online already. I'm trying to look up here if we have that. So we're going to have 2 speakers who's going to connect together here.
It's our CTO from the photonics side, Andrew McGee, also called Andy and we have from Iamec, Juris Van Kuypenhout, who is of the Program Director of Optical IO. And can I get the thumbs up here from someone that they are okay? Yes, okay. So we're now going to start, and we have Andy McKee, the next speaker. Take it away, Andy.
Of Okay. Thank you, Anders. Thanks for the introduction. So I'm Andy McKee. I'm currently CTO at Sabre Photonics.
I was one of the cofounders of CST Global back in 2000 and 1. So I have a 20 year history of working in this business. Prior to that, I worked for JUUL PACCAR of the company for 5 years, and I have approved Stephen Glass Group in the University. My personal background is Indian post site laser chip design. I also spend a lot of time doing sort of technical road map and strategy within the business here at Siemers.
And on a day to day business, I spend a lot of time of the company. So in this little mini section, we're going to take a look at the silicon photonic Industry from a more technical perspective than what we've heard so far. So firstly, we wanted to go back and revisit the slide that Billy presented earlier. I'll just add a few further comments. So the top graphic that we have It really demonstrates the wide range of companies involved in adopting and deploying silicon photonic technologies.
The initial silicon photonics markets were really traditional fiber optic communications markets and specifically integrated silicon circuits of developed to drive data center, which I see from modules up to 100 gigabits data rates and deployed extensively in data centers since then. So more recently, we see maybe more sort of entrance into the space. For example, LiDAR for Autonomous Vehicle Sensing, Biometric Sensing and also Healthcare Applications. So the whole ecosystem is now rapidly growing of So it's important to stress that it's, you know, the senior Photonics is all commercial activities and all of these high growth areas, even, I would say, to a largely corporate spend, so that's very positive for us. From a technology perspective, of And this is quite interesting and important.
We're actually making on our Enu Fosseight 100 platform extremely extend our laser devices COO for each of the different end markets. So for example, we can make 100 milliwatts, high-tech, 30, 10 nanometer DFB laser of Optical Communications Modules for LIDAR systems, but also for gas and biometric sensing applications. Of So that really makes
it very efficient for us
to manufacture the license on the platform. Next slide please, Anders. Of So in this slide, we sort of dive a bit deeper into our specific technology and where it fits into the goals of Ecosystem. It's worth pointing out at this point, the reason that V5 devices are required of the is the inability to silicon to light. And therefore, 3 ply materials are always required will always be required to ultimately cover these circuits.
So today, there's a number of alternative technologies that are used to integrate the III V onto the silicon. Of They include growing ending phosphide directly onto silicon wafers, and this is actually shown in the salt and light segment CEO of on this page. But this technology is very immature despite more than 20 years of research. There is a couple of other approaches where pieces of unprocessed 35x epitaxia bonded onto the silicon wafers and then subsequently processed into liters. Now These approaches both have limitations in terms of reliability and also quite inefficient use of the 3 fiber material.
And So we operate specifically highlighted in red and sort of top left part of the diagram of Really the I said the complete fabrication and the testing of beryllium phosphide lasers. I know in good time 4 that actually bonded down onto the silicon wafers. So that's using very high accuracy flip chip assembly tools to do that. Of And this is really the most mature area within the industry. And that stands a number of sort of combination of improvements of both on the 3.5 chips on the silicon wafer processing, but I would say mainly by improvements in the placement accuracy of these Flochipper Sender Tools.
I think again, just to reemphasize, as I said in the previous slide, we're using very generic integration technology from 35 to the silicon across multiple different markets and application areas. Of Okay. Next slide, please, Anders. Okay. That just quickly highlights the area that we specifically participate in.
So this next slide gives a little animation of how our 3, 5 photonic devices are flip chip assembled onto the silicon wafer. So you can always imagine our smaller indium phosphide laser chips as a piece of LIGO effectively snapped into place of the company with very high precision to an underlying substrate. And this is a really critical part of the process in that it controls the optical coupling efficiency between the laser of That determines how much of the laser light gets launched into the silicon photonic circuit. So hopefully, that gives a very a nice representation of how our lasers are assembled into silicon photonic surface. Okay.
Next slide, please, Anders. Thank you. Okay. Now so the key strengths that we basically have today are the following. So we have very advanced in house laser chip design capability.
Specifically, we've got a very strong capability in designing high yielding DFB lasers, We support the applications of optical sensing and optical comms that demand an array outperformance. That's really critical. Of Wafer fab process technology, which has been developed to optimize and facilitate mechanical and optical integration into the silicon photonic circuits. Some of the details of this are shown at the bottom of this page. And we also see a schematic representation of what a sort of ATEX array of DFB lasers might look like.
Now while we obviously have a very close partnership with IMEC that we'll of It's important to mention that our devices are also currently fabricated and integrated into silicon photonics circuits are fabricated by multiple silicon photic fabs such as GlobalFoundries, VTT and Telogas. So the process architecture that we have today has also been designed for high volume scalability. Many of the applications we are in today are potentially very, very high volumes in excess or just magnitude in excess of what we do today. And we've done that using some complete omni for processing technology, including H Laser Facets and also High Precision Optical Coatings. And finally, on the photonics side of the business, It's really important to emphasize, we have a fab.
That's a really important strength today, given the well publicized squeeze the semiconductor industry supply chain in general. So having a fab under our control is really important for the photonics business today. So the 100 millimeter wafer fab that we have today is very well established with the full end to end process capability, of With capacity to further expand our outputs, we've invested heavily over the last 4 years in additional tools brought in to expand our capacity, our capability and generally strengthen our general manufacturing strength capability. I'd also comment that there's only a handful of other commercial fabs globally, which have this technical design and fabrication capability to produce, in particular, these very advanced indium phosphide DFB laser arrays. Of Okay.
Thank you. Anders, next slide please. Okay. Just a slide of to highlight our indium phosphide manufacturing platform. I mean, as the title states, our INP-one hundred platform underpins all of the Indian phosphate device manufacturing done today at Syvers Photonics.
So what are the key features of the platform? Well, we're processing 100 millimeter wafer sizes. Not many fabs are doing that today, particularly for Indian flow cytometry devices. We can yield up to even 125,000 laser diacytes per wafer at 100 millimeter diameter. We have in house EV lithography for DFB gratings, and that's really critical in terms of having the sort of design control to make these very high yielding arrays.
We have all wafer fast etching, all wafer optical coating, as mentioned previously, and we have optimized architecture for the flip chip bonding, and it's all scalable to high volume. So in terms of the devices that we can actually manufacture on the platform, a broad range of devices, but mainly focused on the emitters, the lasers. Obviously, we have DFB lasers across a broad wavelength range, which is 12, 15 nanometer out to 2.35 micron. And that covers the wavelength range of interest for both the fiber optic comms markets, but also the optical sensing applications. We can fabricate devices with modulation rates from CW, that's a constantly switched on laser, to very high modulation rates of 28 gigabits.
The CW lasers that we manufacture today predominates, I would say, and those are all externally modulated generally on the silicon, okay? We produce devices with rated optical output powers of up to 100 milliwatts and pushing towards the top 200 milliwatts of Mark, and that's driven by the requirements of the Sulfur Technologies. So the devices are also designed in such a way that they can support a very broad operating temperature range, which is a minus 50 C to plus 95 C, and that covers the entire soft industrial laser requirement space. So we manufacture also reflective optical amplifiers, and they're used in external cavity tunable lasers. And again, we can supply devices in single array output formats, mostly in array format now just for scalability and for general sort of high speed density.
So one of the key takeaways really from all of this, the III V, Silicon Photonics Technology really is going to transform the electronics and photonics Industries in the following markets. We have AI and machine learning. We have optical computing. We've got high density co packaged optics for communications. We've got more traditional optical communications.
We've got LiDAR, biosensing, healthcare and even quantum technologies. So of On the platform, we're manufacturing a range of devices for a very sort of spectrum of markets and applications. Of Okay. Next slide, please, Anders. So this is effectively my final slide, and this is a quick introduction really to the partnership that we have with IMEC and SM and Micra.
And of course, Jeroz will cover this in a bit more detail in his of Slide 6, but I just wanted to comment quickly on what we're ultimately trying to achieve with this partnership. And that's really to accelerate the the adoption of silicon photonic ICs and really to provide a one stop solution for our customers of the company that covers both the design, the fabrication and also the packaging of these circuits. And already, as Billy mentioned previously, we're seeing strong commercial interest of with the partnership that was already publicized back at OFC in the summertime. So with that, I'll finish off and hand over COO. To Joris, he will take us through the IMEC slides.
Thanks very much, Andy. Of So yes, my name is Joris van Campanad. I'm a Program Director for the Optical IO Research Program at IMEC. And I will need to talk a bit further about what Andy already alluded to, the collaboration we have in integration of indium phosphide light source with silicon photonics. I will put this in a bit of a wider perspective We had a work that we're doing at IAMIC, and I will get back with some more details on the actual collaboration.
Next slide, please. So for those that are not familiar with IAMIC, I've included 2 introduction slides here to just illustrate what IAMIC is all about. We are a world leading independent R and D and innovation hub active in nano and digital technologies. So we are mostly based out of Belgium where our headquarters is based. But we do have a global presence with multiple sites, both in the U.
S. And in Asia. And the typical companies we work with and for includes of a wide variety, including big leading semiconductor players, so the IDMs and the fabless, but also the foundries for that matter, of As
well as system
companies. So we work with these kind of established companies, but also with start ups and also with a whole COO of universities and academic groups. So typically, we do co development partnerships, but we also have a variety of research programs where we work COO of In a pre competitive mode with multiple parties on the next generation technology development. Next slide please. So here you can see a quick picture of our facilities and our headquarters in Leuven, so that's 25 kilometers east of Brussels, where you can see our 2 main R and D fabs.
The older one is a 200 meter based one. It's based on 90 nanometer, 0.13 micron CMOS. There's a facility where we have been developing siliconics at the start of our project, let's say, which is already more than 10 years ago. In the meantime, we have, let's say, I would say it started state of the art fully functioning siliconx platform operating there. So we do quite some prototyping work with customers, but we also have, in the meantime established a path to high volume manufacturing with a in a partnership with a commercial foundry.
On the more advanced R and D sites, we have our 3 of IT. There we, in fact, use more advanced tool sets. That's the area where we also have the research programs running on next generation logic technology, path finding As well as memory programs and advanced packaging. And so we are very lucky that we can also use that facility for advanced electronics R and D. Next slide, please.
Of So in the next couple of slides, I will quickly touch upon the main application drivers. Andrew already alluded to some of them. I will recap that a little bit here. Of So next slide, please. So yes, the first driver that has originally, let's say, started most of the work or development work that we have been doing in The field of Telekoptonix has been driven by optical interconnects.
That's, of course, driven by the cloud systems that I'm sure everybody is Very familiar with, so these cloud data centers, especially the hyperscale data centers, they are very big facilities that span CEO of Several 100 of meters in cross section, and they require a lot of optical interconnectivity. So the likes of Google, Microsoft, Facebook, they are really have been driving the field, I would Since 2016, the 100 gig Ethernet era has really kind of driven very strong deployment of silicon photonics based receivers in this industry. And so that trend is continuously very strong growth in this field, driven by pluggable optics. But more recently also, the sheer bandwidth of Density requirements and power envelopes required. Other switches in such network require more advanced ways of integration of these transceivers with the advanced logic switch systems.
And so on the right, you can see here a picture that's borrowed in fact from a Cisco presentation where you can see that transceivers are now also being proposed to be cointegrated in the first level package together with the switch IC at capacities that span 50, 100 and perhaps in the future also 200 terabit per second of aggregate bandwidth capacity. These are really mind boggling numbers. And IMEIC is really active in the field of doing the technology part finding and development with these type of players to develop of the SelectFlex technology that will enable that scaling in the foreseeable future. Next slide, please. Another area where we see a very strong demand for of space of AI, machine learning and HPC systems.
So you know that these kind of systems that typically of use a multitude of GPU or TPU computing nodes. They also require terabit scale interconnectivity between these compute nodes. And as these systems scale out and require more bandwidth, there is also a transition foreseen from going from copper interconnects to electronic interconnects perhaps in the next 2 or 3 generations of this type of technology. And so you can see that some of the leading players in this field, that their research teams are already actively new architectures that make use of these co packaged optics where every single GPU would also have an optical receiver, again running at several terabits per second of And hi, Ben with Danske. And so that, of course, is a field that's seeing very strong growth as well and that can drive, I think, will be a next wave of further growth in siliconics receiver technology.
As you may notice here on this schematic there on the right, these brownish kind of modules, these are supposedly the lagged sources, in this case, multi wavelength light sources that would need to feed all these receivers that are co packaged with these of GPUs and other systems. So that's really again driving the need for more advanced of lower power, higher bandwidth and systoliconomous technology, but also accompanying a light source that also needs to scale in complex differences, number of wavelengths served. Of Next slide, please. So beyond optical interconnect applications, Anders alluded to it as well, we see more emerging sensing based use cases of silicon photonics. So LiDAR and 3 d sensing at large is one of them.
So today, it remains a hard problem. But of Yes. Basically, we're looking for a ladder solution that can be scaled down in costs, also in footprints. Of And today's systems are typically too big to get to these specifications. So doing chip scale integration of, for instance, the beam sealing elements of And the emitters and the receivers is something that we're also actively pursuing and researching in IMEC.
And that's also an area where of more advanced light source for instance for MMCW lighter may be required in the future. And in the next slides, Final application I would like to touch upon also in the field of biomedical and biosensing, also spectroscopic sensing applications. We see some kind of a similar situation where current systems are still fairly bulky. You can see a few examples of molecular diagnostics, DNA sequencing, cellular analysis. These are fairly bulky systems.
And with Amik, we also have a number of research programs looking at miniaturizing these kind of systems down to the chip level, which if you're successful will enable, I would say, many more use cases of these kind of technologies. Of Next slide, please. So what I can do now is walk you through, let's say, some of the technology platforms we have been developing to address some of these applications that I just introduced. So in this slide, you can pretty much see, let's say, probably our most comprehensive integrated electronics platform that we have built, of which is mainly tailored towards the communication use case, so this data center interconnectivity and also the emerging HPC GC AI System Interconnect Space. So we have, over the past 10 years or so, been quite active and successful in developing all these high speed modulators.
So you have a variety of them, the Magsenders, Ring Molars, Electro Absorption Molars using silicon and germanium at wafer scale. So we have this platform available in our 200 meter Process Line, but also 1st version in our 300 meter process line. We have our silicon waveguides there that are Pattern using advanced 193 nanometer lithography. We have silicon nitride, so waveguides. We have high speed detectors, and we have the features to couple of the company with low losses to optical fiber.
But what you see missing here, of course, is a native of Light Source Solution. And again, we need here a hybrid integration format. And he also introduced that there are several ways of doing that, of But the most mature one and the one that's most ready for near term adoption in products is for sure the flip chip integration. And that's exactly what we're developing with our colleagues at Sybres and with Amigre. If you go to the next page, you can see here an example of such of the transceiver prototype that we published at least 2 years ago.
This was kind of a test chip that came out of our research program where we have, in this case, a 300 meter Selectaustanics wafer that we fabricated and that contains a test chip for this terabit scale transceiver functionality. It also contains flip chip CMOS die here, so we're using also the most advanced three d assembly techniques, including microbems, as you will see in the next of Image, if you can just click once for once more. This chip, this interposer in fact is a 10 100 micron Tix Electronix interposer of contains all the active high speed optical components, the fiber coupling structures, but also through silicon vias. So it's really containing the most advanced 3 d modules Along with the most advanced optical components to get down to the terabit per second per millimeter bandwidth density, so very compact. It uses multiple wavelengths.
It's of Not shown here in the slide, but that's a key feature of this technology as well. And so it's really kind of the technology that now several companies are starting to commercialize of for this next generation optical interconnectivity beyond, let's say, the 100 gig, 400 gig, 800 gig terabit per second sorry, the Ethernet technology. So again, here we need these multi wavelength laser sources, and that's not presently integratable in our technology, hence the need for hybrid integration. In the next slides, you will see another example of a technology platform is kind of, let's say, an offspring of our communication platform that is more tailored our Slider Applications. So here we integrate high quality silicon nitride waveguides.
And as you can see, if you click once more here, You will see that we have also here some reference test chips aimed at beam steering. So this is a chip that's operating at 5050 nanometer wavelength, And it's really kind of a reference design to integrate the beam steering element at the chip scale. So you no longer need these bulky MEMS type systems or other type of beam steering elements that typically adds to the size of a LiDAR system. Of course, this is not a full system just yet. It's just a key building block that we have demonstrated and it's also attracting quite some interest from prospective customers.
Again, here we have the need for an integrated fifty-fifty light source to complement the toolbox. Next slide, please. Of Yes. And here you can see a final example, which is more in the life science spaces. So here in the life science area, you typically work with wavelengths that are a bit over there.
So between 450 nanometer, so also for this application space, we have developed a silicon nitride photonics technology platform, Which in fact can be directly deposited on top of a standard CMOS chip. So you can also see if you click once more that is kind of a waveguide layer that can be, for instance, deposited on top the back end of line of a CMOS technology and that can then interact with silicon pixels embedded in that CMOS chip of to make a more comprehensive spectrometer, for instance, and this is a technology that finds use cases in biosenting cytometry, Raman spectroscopy and also microscopy on chip. Of Next slide, please. So maybe now turning back to the projects we are running together with our partners, Cyrus Photonics and Amikram. So as Andy already alluded to, we have picked this flip chip, high precision flip chip bonding approach as the most mature near term solution for bringing light to our silicon Platforms.
So the key challenge here is indeed to have a very good alignment between these two parts, so we can have a very efficient light transfer from the 3.5 of Inophosphide component in this case to our silicon waveguide. So typically, in order to kind of have efficiencies well below, let's say, 50% or even 80%. We need to reduce that placement error to less than a couple of 100 nanometers. CEO of. So in order to get that and maintaining sufficient throughput of that assembly process, we need to do a careful job at designing that mechanical, of Optical and Electrical Interface.
So that's why, yes, the engineers at Cybersight need to work tightly together with engineers at the IMAX site to co design and interface, and that's exactly what we have been doing the past 2 years. And of course, we also need to complement that then with a tool that is capable of Yes, getting these high precision placements done at a high throughputs, and that's where the collaboration with ASM and EMEA came in. Next slide, please. Of So exactly. So this is the partnership we built together, the KDA, CND to have some kind of of a set of library elements developed prequalified, let's say, reference designs that then prospective customers can use and they can also fast track their product development, so they don't of I need to start from scratch.
That's exactly what we have been working towards. And in the next slide, you will see some results that we also published, I believe, a couple of months ago. So we have started this collaboration with 300 millimeter test design in our of Slipasonics R and D fab, where so after co designing the interface between the Cyrus and Amec engineers, we have of developed a process so we can etch these cavities in our siliconics wafers. As you can see there on the top right picture, that's an of SEM image showing the cavity etched in a select phonics wafer, where one of these indium phosphide, the abelase from Syros has been placed using the Ambikra tool. So you can see here that it's a process that we do at die to wafer level, so we can really have high throughputs.
It's not a die to die process. It's really using wafer scale select tonics. COO. So we can use this for the more demanding high volume applications. The next slide will show you, In fact, the alignment precision that we have demonstrated so far, so we are now re hitting our targets in having the XY alignment Precision well below half a micron post bonding alignment accuracy.
It's also important that effect you can develop this process, but you COO of We need to co develop the testing processes. Typically, testing of photonic devices can take quite some time. Inamic, we have quite some experience in testing. We have skilled testing of our Photonics Technology. And so we're now also expanding that know how to doing the wafer scale test of the combined Q5 silicon photonics technology.
You can see there On the right, a photograph of 1 of these assemblies placed on our wafer scale prober, where we can now only do a LIV curve, so checking how much light is of We coupled into the silicon photonic circuit, and we have already achieved more than 10 megawatts of optical power coupled into this on chip waveguides. And we're working further optimizing that coupling efficiency as we speak. Next slide, please. So that brings me to my takeaway. So I hope I convinced you that Selectonics is really seeing this tremendous growth.
We see this hockey stick Trends, where we have a variety of applications driving growth now from transceivers, optical interconnects of various applications. The sensing domain, we have been able to put together, I would say, state of the art septonics platform to serve many of these applications, but this light source is dearly missing from our Blue Book. And that's exactly what we're co developing with Cyrus and Amikra to be able to offer to our joint partners a more complete and comprehensive solution, of Including the light source and all the other active components. And with that, I thank you for your attention. I'm open for any questions.
Thank you, Joori, and thank you, Andy, for that. Now we've really gone into Silicon Photonics in-depth. And it's really good to have done that so people really can understand what we're doing actually. So And now we're going into the Q and A part, and I'm getting questions here, and we also can take questions in the audience. So I don't know, can everybody hear us now in the Atul, do you hear me?
Yes, I do.
Very good. So So I'm going to start with a question to you, Atul. How many of your products have sewers inside today?
Of We'll be shipping our first sewers product next quarter, and it is in the COO of
So I think the question was about that you have it in the base station and in the home CPU unit.
Yes. I think as far as I know, both will have the SIEVUS products. Of And 5 gs NR, I think the most important thing is when you look at the 5 gs, 5 gs is the first time, at least for us, we are bringing fixed 5 gs product. Cambium has shipped of Historically, over the last 10 years, about 10,000,000 radios worldwide to about 150 countries. And not that all of that will have sewers, not at all, Because they have there's Wi Fi radios and all sorts of stuff.
But that gives you a flavor of the point about the point, particularly at the edge of The Stockport proliferation, which happens here.
Thank you, Atul. And now questions to, I would say, Andy as well as Juri here. How big deal is the achievement, Seabury's Imikra? And of How successful do you think it will be? Maybe Jore can start from your perspective.
Of Yes. I didn't quite catch the first sentence there.
Yes. So how big deal is the sort of achievements that you and Sievers and Amikre CRE have done together to sort of get to the point you are now and how do you see this sort of developing in customers and products in the future?
Of Yes, it's a good question. So we for sure have already quite some interest in this project. Honestly, we have a bit of a delay due to the corona crisis, of So that is some delay on our side, but we have already customers that are actively working with us and with Sybros on building first prototypes. So clearly, there is strong demand for the capability we're putting together here. So maybe I'll leave it at and leave to Andy to add more to that.
Of Yes, I would definitely say the offering that we're giving to the end customers is really attractive because we take away a lot of the sort of complex interface issues of the customer has to manage today themselves, which can be very complex. So the fact that we have the Siemens engineers working directly with IMEC engineers CEO of takes away all this pain for the end customers. So we think this is a really attractive sort of product offering for the customers. And we are seeing a lot of commercial interest Enes
Partnership. Thank you. So while we are at you, Anders, here can another question. What's the difference between a sort of 3, 5 compound Semiconductor that Sivers Photonics use versus sort of TCMC and Samsung manufacturers' ordinary CMOS.
Well, they're processing pure silicon wafers, and we are processing mainly indium phosphide wafers on the different substrates. Of. So our substrates are much more specific for photonic applications. Silicon is an indirect band gap, apparently for making semiconductor electronic circuits. Our complex semiconductors are direct bandgap, so you can emit light from our complex semiconductors.
That's why we use it.
Maybe I'll answer that. The question regarding Samsung and TSMC, the silicon industry is 35 gs, of course, is part of that. It's about 30 years ahead in terms of that kind of technology. However, as Joris and Andy pointed out, The absolutely amazing benefits you get of silicon are starting to reach a tipping point where silicon photonics will come in So that's why we think the silicon photonics technology is going to be so exciting for the future.
Thank you, Billy. So then we have a couple of questions for Atul here. And you have to answer carefully, I assume. But Candium. Do you give any forecast regarding volumes for 28 60 gigahertz products?
No, we don't. We have just 3 categories, Point to Multi Point, Point to Point and Wi Fi or Enterprise. And we because our customers buy solutions, Our customers really buy point product. They buy edge and transport and of Complete Solutions. So those are the 3 categories that only we discussed revenue there.
Thank you. So and a follow on on that. What type of customers Will Cambium 28 gigahertz products be used for any examples?
Yes, absolutely. Typically, where we are seeing traction are in countries where the 28 gigahertz band of is available to service especially the midsized service providers of Because 5 gs fixed 5 gs is just arriving in a lot of ways because standards just got mature chips are arriving. So I think you will see a broad adoption in the 28 gigahertz 5 gs countries. We are seeing traction in Middle East and by the way, every quarter as we release the product, we'll in our earnings release, we will give more commentary. Of That's our tradition.
As we did 60 gigahertz 4, 5 quarter back, and every quarter, we give more commentary. So you'll hear more from us. Of And I think EMEA, then probably North America, then CALA, so of Caribbean Latin America, then Asia. In that sequence is what I think will the proliferation will happen for us. But EMEA seems to be leading right now for us.
Okay. Thank you about that. Another question then that I also want to understand. Why did you choose why did you not choose ZEBERS for your 60 6 gigahertz product.
I think 60 no, that's a good question and very clear answer. In 60 gigahertz, We collaborate and this is all public information. We collaborated very closely with Facebook. Facebook did the Geograph algorithm, which is a meshing algorithm. And we also collaborated very closely with Qualcomm.
Of And those decisions were made 3, 4 years back years off. And 60 gigahertz has been around. We did not do the Phase 1 60 gigahertz, which was based on 802.11ad standard because we felt that, that technology need more maturity at that time. Then came the new standard 802.11ay. And we adopted or we I jumped on that project when Ay came, and we felt that there was silicon vendors providing mission critical solution.
Of And with Facebook, we felt the meshing, because 60 gigahertz is small distance and 1 to 2 kilometers. Of the U. S. So meshing was very important to bridge the distance. And for that reason, that alliance made more sense to us.
Thank you, Atul. So another follow-up on that. What is the typical range that you and throughput you will be handling in the 28 Gigahertz sort of between the BTS and the CPE.
The range, our a lot of it will depend upon probably of different geographies and terrains and weather and all that. Our thinking is it will give us 4 to 7 kilometer type of a range. And both 6028 will be multi gigabit architectures. Of That means you can get multi gigabits out. And as we're doing the proof of concepts, that will give us even a better idea in real conditions what we get.
Of But both are multi gigabit wireless fabric architectures. Both can replace fiber or supplement fiber. And that's why we say, if it can be wireless, it will be wireless. And that's why we say multi gigabit wireless is the new fiber.
Thank you. Here is, I think, a tricky question. I mean, Western to Cambium as well. Please elaborate on pros and cons about sort of owning a larger part of your component supplier ecosystem rather than, for example, silver type of technology, Dans secure it both in R and D collaborations instead. What's your view on that?
Sure. First of all, we focus on what we do well. Of We focus and this has been our philosophy that wherever there is merchant silicon, use merchant silicon because that gives us economics. Of So and we believe that Syvers is the best in class in what they do and so are some other chip manufacturers in what they do. We focus on selecting the best in class partner, and we focus on system design.
How do we deal with noise? Of how we do intelligent antennas, how we do beamforming, how we deal with noise. That's entire thing is system design. That's what we do well. So our philosophy is just we believe like Sievers, of They are best in class in what we do.
There's no reason. And then when it comes to R and D collaboration, there are areas where We create value in discussions because we are system designers, so we give feedback. But it's not so of Integral that there will be an IPR. It's more system. Our IPR is how we put together the entire system and solution, how we manage from the cloud, How we scale that from the tower, how massive number of news users in a city or urban area, how they scale, how a network operator can design a profitable business based on our solutions.
Those are our experts. How do we support 20 fourseven of Across the
globe.
Those are the things we focus
on. Thank you, Atul. That's a question for me, I assume. How many of your products TAB's Sewerage Insight. Maybe that's for you, but that was 2.
But in general, we have 26 design wins, But then, of course, there are multiple products, both CPE base station mesh node we're inside. So there is probably sort of 40, 50 T Products or something like that that's included in SeaVision's side. Let me see here other questions. The new chipset that you released yesterday, 24 to 43.5 gigahertz, will you be able to put them in the same product so you have, example, a CPE that can handle the whole range. Yes, that's the whole idea.
Then we can actually do 2 module in the same product and use that. Of To answer that question really, it's actually up to the F100 customer. So we unfortunately have to duck that question. When will new technology by Sievers, IMEC, ASM the rolled out market consumer products. How big is the TAM on this technology?
Billy, do you have any reply on that?
Well, I think we gave some information in terms of the applications will cover Many verticals that I talked about from optical communications to sensing. So if you were adding up the of based on yield for 2024. It's several 100 several billions of EASL in that market. We could come back with a more detailed question, but effectively, it affects all of the verticals that we're working in. There's no one area that will not be touched.
And I actually believe that those are areas that we've not talked about yet that it will touch.
Yes. So I can add to that as well. I mean, what we've said officially so far is that we assume to have first prototype customers Next Quarter and then volume in about a year after that.
Yes. So I mean, we are of There's work that we're doing right now in the portfolio and making announcements in the coming weeks, if not next week, or in collaborations that we're doing. So of And that's one of many that will start. So the activity with Ionac, we expect to lead to multiple different business
Yes. And that's why we have sort of invested a lot in the Indian Phosphide 100 platform, which is now sort of together with the partners coming to life this way. And that's a way we always like to work in Sievest. It's through partnerships we can build Things. We cannot sort of be alone in these kind
of things.
Exactly.
Yes. And then also question to both me and Atul, I assume, as Cambion Nors Sievers are part of the Open RAN Alliance. Is this correct? And what are the reasons why? Also, your view on the Open RAN collaboration and standardization for fixed wireless access development would be interesting to learn more about.
So yes, one of the reasons for Siever's part at least that we haven't been there. We have So far, not sort of had the low IF type of integration. We have 0 IF integration to our stuff. And O RAN products are often sort of things that will be sent through a low IF signal. So in that sense, we have not been sort of part of that because our product has not fitted into an O RAN application.
However, with our new product, we can actually fit Inter O RAN Applications. So that's basically a technical reason for not joining that from our side. Atul, do you have anything you want to add on O RAN? Of
No, we are not members. We are watching it, but so far we don't see as much of a need. And CEO of We are a medium sized company. We have to focus. We have to use every resource preciously.
So I think when we commit to these type of forums, we of And so, so far, we have not seen a major need to be there, but we are watching it closely.
Maybe a question you can't answer. Will Cambium test use CEVA's new 5 gs NR chips launched yesterday?
No, I don't think so. We have not tested that, but we are very focused on right now getting our product out, working with customers with what we have of And learning from that and let me just give like 1 minute quick lifecycle duration. Typically, a customer will use a proof of concept for 4 to 5 months, sometimes 6 months because they'll deploy, they will test configurability, Ease of deployment, diagnostics, because they're going to offer a service and the service has to be high quality. So it's a Rather than giving them too many products, too many technologies, it's important to give them a solution, let them work, let them feel comfortable. Then they deploy that in a small setting, then they deploy in a city, then they go multiple city.
It's a multiyear program with the customer. Of And so that's why we call it land and expand. So our focus is never to really of Too many products out there. Our focus is whatever we give that's complete and that's a good solution. And starting Q4, that's what we will do, of Focus on what we have and then keep expanding from there.
We learn a lot from these customers. And some of that feedback, we relevant feedback, we pass it ZEIVERS as they do their roadmaps of the future.
Yes. Thank you, Atul. So how big is the broadband Fixed Wireless Access. Market share do you think Sievers can reach? So I mean, we don't do forecast in general.
But as I mentioned, I mean, the overall TAM about $7,000,000,000 It's a huge market to address. And so far, we're just in the start of that market. So We expect to be an important player. And together with Cambium and others, we're going to capture some interesting market share, of course. Another question here.
Will 6 gs standard be standardized as 3 gsPP release 18 and onwards similar 4 gs and 5 gs. Yes, for sure, 6 gs will get there. And I think there is also be sort of what we will call the next generation 8 to 11 AUI things where you really get to 20, 30 gigabits of things. Of it's and even lower latencies, which will match 6 gs in that sense from the Wi Fi standpoint. There was a lot there.
When do we expect more information on the F-one hundred? Yes, that we already have Surg. So now we have no more questions coming in here. Maybe we can 2 take some questions in the audience here. I see Klas from Nordea here wants to
of Yes. Thank you very much. So I mean Anders, you spoke Can you hear me?
It's a bit low, but okay.
Okay. So I mean, Anders, you spoke a bit about your TAM earlier in the presentation, of Semiconductor. I think you mentioned that you can 10 next that basically by moving into new applications and so forth. So I mean, could you give us any examples of what types of applications that is? And what do you kind of need to do differently to access those markets essentially?
And is it only on an inorganic side You were willing to do this? Or do you also see some organic kind of investment opportunities into that?
I definitely think that it's an M and A type of thing that you want to if you want to move into that quickly, for example, we have not gone into the handset side of things here because that's the huge a number of chipsets in handsets, of course. So the right acquisition where you can get into that is, of course, giving you a much bigger TAM immediately. That's part of the 10x. Another thing is this kind of repeaters or SATCOM that is coming in, which is a very close area. We could actually organic grow into that by sort of changing our chipsets a bit.
It's a long investment. It takes a long time. You can accelerate that via sort of good M and A activities as well. So there is many options in the different types of applications here. Of
Yes. And I mean, in what type of time frame are we talking here? Is this next year thing? Or is it 5 years from now or what kind of time
If you talk organic, of course, that takes some time. It's a couple of years. When it comes to consolidation or acquisitions, Ocean. That can happen anytime.
Yes. And I mean, looking at a lot of these new kind of applications and so forth, would you say they're at the same kind of level of maturity as your current ones? Or would you kind of be Geordie as your current ones? Or would you kind of be integrating into a more mature market already where there's sales opportunities
of I think that the millimeter wave market in general for all of those things that's connected to 5 gs, like 5 gs repeaters, handsets and all that, that is serving the same kind of level. If you look at SATCOM, that's maybe 1 to 2 year later, but also even further out, all the LEO SATCOMs, SATs and all of those things come out, that's a bit behind. Then you have the defense industry that's often a bit more Conservative. Could take a bit longer for 5 gs in there, but I mean, it's within 3 to 5 years as well in that area.
Of And Anders, a bit of a boring question maybe. But I mean, you're entering a rollout phase now, and obviously, there's quite long lead times on shipsets and so forth. And I mean, you'll need some high quite at high inventory to deliver, I'm guessing, on some of these projects. So could you maybe elaborate of What are your kind of current capital working capital needs during the coming year or 2?
Yes. We have actually not sort of gone out with that, sort of the exact working capital needs. But what we have said and what we do to Secure Chipsets for customers like Cambium and others. It's actually that we are investing, of course, in stock to make sure that we can buy and have a stock in house to secure the volumes for the future to not end up in a sort of lack of components. So It is, of course, working capital that we are putting into that as we speak.
And I mean, could you maybe help CEO of How many quarters do you have of kind of covered capacity in your mind?
I mean, we need to work 3 to 4 South because it's a long lead time item. So it could be everything from 4 to 6 months to sort of get more chips. So we have to work in that kind of way.
Of Okay. Thank you very much, Anders.
Thank you. So while we're sending the mic around here, if anyone puts up the hand in the air, We have a question to Atul as well. How does Cambium see on the ship shortage under this during this year and generally in the market.
I think as we I'm going to stay with the since we are in the quiet period, I'm going to stay with the things I have mentioned in our earnings call. In general, the supply chain and it's not just last few months, I think It was building over last few quarters. Supply chain, chip constraints has been tight, there's no question, of across the industry. And it's not even just that. I think if you look at the everybody read the news about container ships of So there's a downstream impact as well in just the demand has increased of.
Post COVID, the demand has increased from automotive. Everything is going digital, consumer electronics, people are buying more. So I think this is something which definitely is in and different chips are impacted to different degree. Of And then there's technological transitions going on as well in the Wi Fi world from Wi Fi 5 to Wi Fi 6. So again, more demand there.
So I think this is something all of us have to just work through in next few quarters. And but everyone is putting more capacity. Everybody is working on it. Everyone knows that there is chip shortages impacting many segments right now.
Thank you, Atul. A question here regarding the Amplion work stream and how it works. And of course, Amplion and us have had 2 projects. One is the chip that actually is in Cambium's products today. So that's been a joint venture to bring that chip out.
The other one is the which I think the question is about is the beamformers that we released about a year ago, and they are now out in sort of test equipment and people are trying them. We have had a few press releases about Taiwan and in India and so forth where the testing is. And they're still in testing, and they are not sort of in any design wins as of yet. Yes. Any questions in the room here?
Yes. We have Fredrik over there. So Well, the mic is going up to Fredrik first from Handelsbanken.
Thank you very much. Thank you for the presentations.
Thank you, Fredrik.
On the photonics side, maybe Anders or William, feel free. If and when you receive and get these volumes started, What type of production capacity do you have in place? And what type of investments do you see in front of you during what time span That sort of fits into the schedule you have going forward.
Yes. So that is, of course, a very sort of Secret Question in some ways. But as we've said before, I mean, to start off the duplication of lines and all of those things. I think we've talked about officially so far $30,000,000 or same thing in that line. Then, of course, if we're going Really Build Out and Invest in a Big Fab.
We're talking even more than that. I don't know if you want to elaborate more on that, Billy, without saying too much.
Yes, yes, I'm leaving the question. But basically, we have still some significant capacity in our current facility. So we basically the way the transition department is for the next year or of Semiconductor. And we will still be transitioning in this facility, expanding here with the pilot. But as Anders says, that That's your time period from kind of start to beginning is about a year.
So basically, the first pilot line would come up CEO of and a year from a t0 point, I'd say. And then we would do that in a modular fashion so that we can then we have already worked out the equipment sets, footprints and everything we need to do about that is a fairly simple case of the end of a module and I think it's finding the facility. Of But can't really get into any more detail on that. It's fair to say that we've shared all of those details with the Fortune 100 companies from Orkimos. So We are actively engaged in those conversations with them about what that expansion will look like.
And that's the kind of level of discussion we're at right now.
Thank you, Billy. Yes, Frederic.
Thank you. And maybe a question to Atul. You had a few slides on customer cases that I'm not sure that I Saw it straight on, but you referred to a case where you're replacing traditional microwave backhaul Networks. So is it fair to say that your product that you're replacing it with is a microwave backhaul, so you're sort of competing with Ericsson and Huawei products? Or are you sort of disrupting that backhaul part of the network?
Of Very good question. No, we are not replacing microwave in general. I think microwave does what they do very well on distances. What's happening is that If you are in an urban environment and you're putting video surveillance, for example, and you have to go around the buildings, you need more meshing. Of So those situations, the 60 gigahertz become very cost effective.
So that's a situation where Even if somebody had microwave, since microwave is a licensed frequency, it's a different architecture where 60 gigahertz unlicensed of or likely licensed depending on the country. You can go around the building. So there are applications where 60 gigahertz, whether it's a small cell architecture where you have to backhaul at high speed and 60 gigahertz can give you that small distance and meshing capability. So I think in general, 60 is unleashing new applications, not necessarily replacing a legacy stuff. Of the new applications is high speed broadband.
So if you are in a high density urban environment and you need to bring broadband, You don't need permits. You don't need to dig streets. You can just bring quickly. So I think 60 is a new building material. I always tell people, of When steel came at turn of the century 100 years back or so, you couldn't predict where all steel will go.
It's a new building material. It has gone into healthcare, the surgical steel, of That's the example. I think 60 gigahertz and millimeter wave in general is kind of extension of that LAN of In multi gigabit onto the distance. And that's what we say when we say wireless fabric in the last on the edge, multi gigabit wireless fabric on the edge. So no, we are not replace.
I think there might be application where some microwave made a replace, but that's not the main thrust.
Okay. Thank you.
Thank you, Fredrik. We have Victor from
Yes, it's yet to be announced.
Okay, yes.
Fund Manager. Of Thank you. I have a question mostly, I think, for Cambium and Siwes. There's a lot of buzz around the private wireless networks now. I was just curious to get your of Take on what kind of traction you see in your business in the private wireless networks or any other thoughts on this topic?
So Atul, do you want to start?
Yes, I can. Thank you. Private wireless networks are That's what Cambium does. Actually, most of our networks are private wireless networks. A substantial part is provided by the small and medium sized VISPs, wireless Internet service providers across the globe.
But more importantly, our networks also go into enterprises, As I said, oil and gas, mining, energy grid, water and waste management, smart cities, And it keeps expanding. Post COVID, everyone is focused on scalability because there are lots of performance and media rich applications which are driving it and also security. So I think in general, there is more proliferation of the controlling the network, controlling quality of experience. So we see definite expansion in private of Networks. And what 5 gs is doing, 5 gs is legitimizing it.
5 gs is saying that both license frequencies, Unlicensed or lightly licensed, they'll coexist. Not all applications need that mission critical, licensed, expensive 5 gs. Of Many applications will need that. Quite a few applications will be mission critical enough with fixed 5 gs. Of And that's why we see proliferation of private 5 gs networks across enterprises, small cities, municipalities, localities, you'll see all of that.
And each network will optimize the application. You see more marriage of low latency, high throughput, uptime, downtime, everything is little video surveillance needs a lot more uptime uplink of Speed. That customization happens through private 5 gs network, a lot better.
Thank you, Julien. I can add to that as well. I mean, if you talk about enterprise as sort of Industry 4.0 type of applications where both Nokia and Ericsson is talking now about licensed products and so forth. I think that unlicensed product in general in that application It's much easier to use rather than sort of expensive spectrum. As well as looking at track to train application, that is actually a private network in a of Danssen.
And they don't really need licensed. They need a dedicated track to train system that they can run license free. So I think there's a lot of thing in unlicensed spectrum that could be used for a lot of this that Nokia and Ericsson is trying to hype the license bans as well
Bitmoore. Okay.
I'll take one more question also for Anders and Billy then. On the optical sensors part. I noticed Billy talked a lot about AR and VR. Is this the Most exciting opportunity, you think? Or is there any other super exciting opportunity that you want to highlight in this space.
If I can answer first, and I think really agree. I mean, it is all of those spaces and what IMEX talked about today, VICL Interconnect, LiDAR, augmented reality, all the different pieces here, where you actually can use silicon photonics. Of Sandeep. And with as Andy said, small tweaking in between, and it's actually easy to then use it without sort of reinventing the wheel the whole time. So I think it's a lot of the spectrum there, which makes silicon photonics so hot right now.
So if you want to add something, Billy?
Of Yes, it's a
really good question. I am actually although I think that augmented reality, mass reality, the areas where it will actually be utilized in industry. It's going to be used in space. It's going to be used in so many Support Systems. However, I think sensors that will be applied in kind of bio functions of such as wearables and glucose monitoring, toxicity monitoring, Basically having health systems attached to various, certainly on person, that's extremely exciting area.
And I think we are doing a huge amount of work, and most of those kind of sort of verticals at the same time, both of those areas. I would say probably the kind of buying sensing stuff that's going to change the health industry is probably the most significant. Of That will be a game changer for everyone.
Thank you, Billy. So we are actually at 5 now. We can have one more question here, and I take one question from the online audience. Anders, how Is the remaining recruitments in the U. S.
Office going? And as you know, we have just recruited VP Business Development for Photonics. We are actually now in the end of the recruitment for the wireless piece of the business. So we have a couple of candidates we're looking at, and hopefully, We'll know within Q4 who's going to enter the role there. So this is a very exciting time on that.
And then after that, when we now recruited these 2, we look at the 2 other headcounts who will be sort of presales engineers that they will recruit. So that's the situation there. So okay, so that was all for today. Thank you so much for spending so much time with us. For you guys who are here, we will mingle a bit outside here and drink water or possibly wine as well if you like, and you can ask more questions.
And for everyone online, thank you so much for listening. I saw earlier there were several 100 people online actually listening. So Thank you for joining us, and thank you to Atul and Juri at IMEC for joining us at this. It's been a pleasure having you.
Thank you very much. Have a good day.
Thank you.
Bye bye. Thanks.
Bye bye.