EXTERNAL USE

Nanomanufacturing Innovations For 

Electronics, Display & Energy: 

Opportunities and Challenges 

Omkaram (Om) Nalamasu

Chief Technology Officer

Applied Materials
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

OUTLINE

 Introduction to Applied Materials

 Nanotechnology vs Nanomanufacturing

 Nanomanufacturing for Electronics & Display

 Nanomanufacturing for Energy: Global Drivers, Technology 

Inflections and Need for Innovative Solutions 

 Call for Action and Summary 
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

Applied Materials – Who We Are

 Founded in 1967 in Silicon Valley

 Global leader in Nanomanufacturing 

TechnologyTM solutions with a portfolio 

of equipment, service and software 

products for the fabrication of: 

– Semiconductor chips (#1)

– Flat panel displays (#1)

– Solar PV modules (#1)

– Energy Efficient Glass (#1)

 NASDAQ-100, S&P 500, Fortune 500

 Invest $1B in R&D per year for 5 years

– R&D in NA, EU, and Asia

 ~12,600 Employees globally

 Extensive global interactions

– Operate in > 20 countries

– Revenue typically > 80% outside US
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

Nanomanufacturing Technology

Small features on a large production scale

Placing a nanotube?

More Than Nanofabrication – Repeatable, Robust, Reliable, 

Controllable: Scalable & Cost Effective Solution
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Moore's Law and Transistor Cost

1B

1M

1K

1

1968 1973 1978 1983 1988 1993 1998 2003 2008

(Source: G. Moore, ISSCC 2003) 

Number of

Transistors

(x Billions)

Cost per

Transistor

(Nano $)

Human Made Items (2006)

Automobile (cars):

Toilet paper (rolls):

Ice Cream (pints):

Coca cola (cans):

DRAM (bits):

Flash (bits):

65,000,000

2,100,000,000

32,000,000,000

290,000,000,000

2,900,000,000,000,000,000

3,500,000,000,000,000,000

Exa-bits at Nano-dollars
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

Disruptions in ITRS Roadmap 

Patterning Interconnects Packaging

Cu

Cu

Al

M0

V0

M1

V1

M2

ALD III-V on Si, Vertical 

Transistors New Materials&Memories

The Road to 10 nm is Full of Fundamental 

Challenges and Disruptions 
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Courtesy Sharp

Cost

Function

Process Cost

Area

(Good) Function

Area

Cost Per Function: Flat Panel Displays

• Functions/area is the 

predominant driver for VLSI

• Cost/area is the more dominant 

factor in applications other than 

VLSI

Applied PECVD 5.7

AKT-PIVOTTM 55KV PVD
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Flat Panel Display (LCD) Manufacturing

> 20% Bigger (HD)TV Every Year for the Same Price

0

20

40

60

80

100

120

19921993199419951996199719981999200020012002200320042005200620072008

LCD Industry Revenue ($B) Production Cost per Area (k$/m2)

0.1

1

10

100

1995199619971998199920002001200220032004200520062007200820092010

2004

20”~$1000

2004

20”~$1000

2008

42” ~$1000

2008

42” ~$1000

2011 

60” ~$1000

2011 

60” ~$1000

0.1

1

10

100

1995199619971998199920002001200220032004200520062007200820092010

2004

20”~$1000

2004

20”~$1000

2008

42” ~$1000

2008

42” ~$1000

2011 

60” ~$1000

2011 

60” ~$1000

0.1

1

10

100

1995199619971998199920002001200220032004200520062007200820092010

2004

20”~$1000

2004

20”~$1000

2008

42” ~$1000

2008

42” ~$1000

2011 

60” ~$1000

2011 

60” ~$1000
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1600

370x470

400x500

3500 / 4300 / 4300A

550x650

600x720

620x750

5500/5500A

680x880

730x920

10K

1000x1200

15K / 15KA

1100x1250

1200x1300

40K / 40KA

1870x2200

1950x2250

41,140 cm2

(1.52 from 25 K)

Model

Substrate 

Size (mm)

Gen 2 Gen 3 / 3.5 Gen 4 Gen 5 Gen 5 Gen 7 / 7.5

System 

Layout

Substrate 

Area 

2,000 cm2

(1.00)

4,650 cm2

(2.33 from 1600)

6,716 cm2

(1.44 from 4300)

12,000 cm2

(1.79 from 5500)

15,600 cm2

(1.30 from 10K)

ACLS ACLS

1st Release 2/ '93~ 4/ '95~ 1/ '00~ 8/ '01~ 6/ '02~ 7/ '04~

Gen 8

ACLS

50K 

2160x2460

53,136 cm2

(1.21 from 40 KA)

2006

Gen 5.5

19,500 cm2

(1.25 from 15 K)

20K 

1300x1500 

ACLS

8/ '04~

ACLS

25K / 25KA

1500x1800 

1500x1850

27,750 cm2

(1.78 from 15 K)

5/ '03~

Gen 6

Flat Panel Display Equipment – PECVD

Gen 10 = 60nm uniformity over ~ 1019 nm2 area at 50sph

Gen 10 AKT-90K PECVD
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Cost per watt

Applied Materials Enables and Expands 

Markets by Driving Cost Reduction....

1974 2004

4 

trillion

1,400,000 

trillion

10 cents 5 nano-dollars

20,000,000x Cost Reduction

Source: SIA, IC Knowledge LLC

1995 2005

0.3 million 

m2

25 million 

m2

$30,000/m2 $1,500/m2

20x Cost Reduction

Source: Display Search, Nikkei BP, Applied Materials

Cost per transistor

FIRST

Cost per area

THEN

NOW
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Global Energy Opportunity 

 Global economy is set to grow four fold and could approach tenfold in developing 

countries in 2007-2050 period

 Global “business-as-usual” will increase CO2 emissions by 130% raising global 

temperatures by 6oC 

 Over $45 trillion dollars need to be invested to reduce the CO2 emissions by 50% 

or $17 trillion to maintain today’s emission levels

Source: World Energy Outlook, Source : IEA, Energy Technology Perspectives 2008

Comparison of the World Energy outlook 2007

450ppm case and the Blue Map Scenario, 2005-2050

Emissions (Gt CO

2)
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Energy Technology Innovations

 IEA identified 17 critical technologies on demand and 

supply side to address energy efficiency, generation and 

transportation innovations necessary to fuel global 

growth
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Energy Technology Markets

13

Li-Ion battery 

(~20%)

Solar PV 

(~25%)

LED

(~24%)

Source: SIA, Display Search, Photon Consulting, Bank of America-Merrill Lynch, IIT Japan, Avicenne, BCC

GENERATION

CONSERVATION

STORAGE

demand

scale + 

technology

cost

reduction

CAGR ‘10 – ’13F
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Energy Efficiency - Opportunity

• Lighting consumes 22% of electricity

• Plant to light efficiency for incandescent lamps is only 0.8% but can go up 

10 fold with LED lighting to 8%

Source: National Academy of engineering

• Buildings account for 40% of primary energy and 73% 

of electricity use
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Reducing HVAC Energy: Architectural Coated Glass

Cost Reductions Achieved 

with Low-e Coatings

Low-e Coatings

Phoenix

San Antonio

700

Annual Energy Expenditures ($)

300

500

400

600

Cost Reductions Achieved 

with Low-e Coatings

Low-e Coatings

Phoenix

San Antonio

700

Annual Energy Expenditures ($)

300

500

400

600

700

Annual Energy Expenditures ($)

300

500

400

600

2000 ft2 house with 300 ft2 of windows

Annual Energy Loss (U.S.) Due to Today’s Windows: ~ 4.5Q BTUs* (6% total energy usage, 

cost >$40B)
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Increasing Adoption of Coated Glass

Savings from 2007 Global Output ~ 36,000 Bbl/day†

† Equivalent to 12 oil wells or 18Mt CO2

Bird’s Nest Stadium (Beijing)

Shanghai SYP Engineering Glass Co. 

10,000m2 of high performance Low-E glass

House of Sweden (Washington DC)

AGC Flat Glass

5500m2 Stopray® Elite 

and Stopray® Carat glass

Main Triangle Building (Frankfurt)

Guardian Industries

15,000m2 SunGuard® Solar Control 

and Low-E coated glass

Burj Dubai (UAE)

Guardian Industries

100,000m2 SunGuard® Solar Control 

and Low-E coated glass
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Large Area Glass Coating Systems

 Glass Substrate is ~ 2.6 m x 3.6 m

– Uniformity Spec of +/- 1% on 275 nm film (10 layer Triple Low e stack)

 18 Chamber System ~ 90m: one panel every 20 sec 

– Annual output ~ 10 million m2 (10 km2)
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Electrochromic "Smart Glass"

Key Requirements for Market Adoption:

 Performance: Energy efficiency, lifetime

 Form: Color selection, match non-EC panes, pane-to-pane 

consistency, large size panes, on-off

 Cost: At least comparable to Low-e glass + shades

Typical Structure

 ~ 10 metal/dielectric layers, most < 100nm thick (up to ~ 500nm)

Images courtesy of Sage Electrochromics

Goal is to bring nanomanufacturing expertise and 

scale to bring the cost/m2 from $1000 to <$100-

150 range 

Market studies indicate opportunity to address 

over 60% of buildings windows market at that 

cost point
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LED Industry’s Near Term Focus is on Backlight Inflection

1980 1990 2000 2010F 2020F

Relative LED Unit Shipments

General Illumination

Backlighting

Specialty LED
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LED Backlighting for Laptops and LCD TVs is the Next 

big thing

• Display Search projects LED 

backlighting for laptop market to 

grow from 52% in 2009 to 100% in 

2012 driven by: Power savings, Slim 

form factor & green technology

• All major LCD TV players are 

investing- e.g. Samsung, Sony, LG

• Attractive attributes

• High Contrast (3,000,000:1)

• Lower energy consumption

• Color Gamut>105%

• LCD TV market is forecasted to 

grow - 17% CAGR, 200 M sets in 

2012

• #LEDs per TV is 900 in 2009- going 

down to 500 by 2012
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General Illumination Opportunity: Cost & Efficiency

Need ~ 10x LED Cost Reduction for General Illumination

Source: DOE, SSL Program
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Source: DOE, SSL Program, Applied Materials

Efficiency of LED lighting is improving at ~10 lumens/watt

Need 10X LED cost reduction for HBLED general illumination

Opportunity in LED Lighting
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Improvements to Reach 10X Cost Reduction

Reducing HB LED

$/lm

Manufacturing Cost

≥ 2x reduction

$/m2

Luminous Efficacy 

≥ 4x increase lm/m2

Luminous 

Efficiency

≥ 2x increase

lm/watt

Power 

Density 

≥ 2x increase

watts/m2
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

Total LED Demand

 LED demand to grow at a 38% CAGR from 2009 – 2015 to 

175B die.

 Backlighting application will continue to dominate

 Lighting to dominate growth at a 102% CAGR

2008 2009 2010 2011 2012 2013 2014 2015

Other 12.8 13.7 13.1 16.8 21.0 26.3 32.9 41.2

Lighting 0.7 1.0 5.1 9.2 10.8 20.5 29.0 33.3

Backlighting 13.8 20.7 37.4 51.0 67.5 87.8 96.4 100.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Billions of LEDs

www.ledmarketresearch.com
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Solar/PV and the 1970s Energy Crisis

 "I will soon submit legislation to Congress calling for the 

creation of this Nation's first solar bank, which will help us 

achieve the crucial goal of 20 percent of our energy coming 

from solar power by the year 2000." – Jimmy Carter, 1979

 "The administration has significantly reoriented the country's 

approach to energy matters in the past 2 years." – Ronald 

Reagan, 1983

White House West Wing - 1984 White House West Wing - 1992

Installed

1979

Removed

1986
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The Problem was the Economics...

0

20

40

60

80

100 Retail Electricity

Wind

Solar PV

Solar Thermal

Cents Per kWh

(Constant 2000 Currency)

Sources: NREL, DOE

Includes:

No incentives

No Carbon impact

Electricity Prices – 1980
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Solar PV Learning Curves: cSi and TF

$1

$10

$100

1 10 100 1,000 10,000 100,000 1,000,000

Cumulative Production (MWp)

Module Price (2006 $/Wp)

Historical Prices

Source: Adapted from National Renewable Energy Laboratory

$1.00/W @ >100 GW

2007

1980

c-Si

Polysilicon

shortage

> $1 per kWh equivalent PV electricity cost

2008

2009

$2

=

Cost / m2

Watt / m2

$ Production / Watt

cSi

Common focus to drive down cost per watt

Broadest 

applications, 

dominant for 

Thin Film 2007 rooftops

2009

$1.00/W @ <20 GW

2008

Thin

Film

Ideal for large 

ground mounted 

systems due to 

cost and scale
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

Behind the PV Learning Curve

=

Cost / m2

Watt / m2

$ Production / Watt
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Solar PV to Become Mainstream As it Approaches 

Grid Parity

1980s

2009

1. DEVELOPMENT 2020 ?

(0 – 10GW)

2. SCALING

(10 – 100GW)

3. MAINSTREAM

(100GW+)
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Crystalline Silicon PV Value Chain

Poly-Si

Feedstock

Ingot

Production

Cell

Production

Module

Assembly

Distribution,

Integration &

Installation

MC

Cz

Wafer or

Sheet

Wafering Production

Applied HCT Squarer Applied HCT Cropper Applied HCT E500SD-B/5 Applied HCT (SRU)
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Improve Material Efficiency: Thin Wafers

Cost / m2

Watt / m2

* Cost assumes fixed silicon costs at $55/kg and constant efficiency

Kerf Loss

Wafer 

Thickness

$0.52 / Wp*

$0.46 / Wp*

$0.42 / Wp*

$0.34 / Wp*

 4 ingots concurrently

 Dual wire per motor 

pair

 20 m/sec wire speed

 ~ 24K wafers per cut*

 > 13MWp per year

Applied MaxEdgeTM
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Applied Baccini Cell Systems (BCS) 

> 500 Lines Installed

Leading >20% Efficiency Cells Use Baccini Technology

Wafering Cell 

Manufacturing

Module 

Manufacturing

 Ultra-thin wafer processing with low breakage (to 100 um)

 Highest uptime with lowest wafer breakage

 High throughput (1000-3000 wph)

 Excellent alignment repeatability (~10 um)

Polysilicon & Ingot 

Manufacturing
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Falling Solar Prices Accelerate Path to Grid Parity

Total Global Installed Capacity ~15GW, New Capacity came on board in 2010 ~12-14 GW
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Range of Energy Storage Markets

(Low) Energy (High)

(Large) Physical Size (Small)

Batteries for Portable Equipment

(2Wh – 100Wh)

Flashlights, toys, power tools, portable radio 

and TV, mobile phones, camcorders, lap-top 

computers, memory refreshing, instruments, 

cordless devices, wireless peripherals

Large Vehicle Batteries 

(1kWh – 1,000kWh)

Trucks, traction, locomotives, 

regenerative braking 

Transportable Batteries

(Starting, Lighting & Ignition)

(100Wh – 1,000Wh)

Cars, trucks, buses, lawn mowers, 

wheel chairs, robots

Stationary Batteries

(0.25MWh – 5MWh)

Emergency power, local energy 

storage, remote relay stations, 

communication base stations, 

uninterruptible power supplies (UPS). 

Large Energy Storage

(5MWh – 100MWh)

Frequency regulation, 

Spinning reserve, peak 

shaving, load leveling 

UPS

Regenerative 

Braking

Miniature Batteries

(100mWh – 2Wh)

Electric watches, calculators, 

implanted medical devices
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TFB and TFB HVM Technology 

 Technology: Potential to dominate μ-energy storage space

– Advantages: Small form factor, excellent cycle and shelf life, power density, 

safety and solder reflow compatibility

– Weaknesses: Use of shadow masks, thick layers, new materials, complexity 

with reactive layers

 Applied’s Approach : Develop HVM compatible TFB technology:

TFB Schematic Drawing Si IC Platform New Aristo Platform

Drive Cost Down to <$1/in2 with HVM Technology and Scale
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Application areas for TFB

 Robust, rechargeable, 

micro-sized, solid state 

battery for μ-power 

Markets

 Currently projected 

applications include:

10s μAh 10s mAh

Wireless Sensors

Automotive

Energy

Health

Industrial

Devices

Consumer

Telecom

Medical

Backup

Real time clocks

Memory backup

Tagging/ID

RFID

SmartCards

SecurID

5x5mm, smaller

(50 μAh or less)

1 in2 or 25x25mm

(~ 1mAh or greater) Stacked

(>10 mAh)
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NIST Extreme Manufacturing 2011 - EXTERNAL USE

40

Renewables Intermittency Demands for Grid Storage 

As RPS mandates lead to high renewables penetration, Solar/ Wind intermittency’s 

impact on the grid can be addressed by a Smart Grid with Storage 

Solar Wind
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Grid Storage Market – Economic Benefit Analysis

41

Energy Storage Business Opportunities are very Price Sensitive – U.S. Market Substation On-site Power Area Regulation TOU Energy Cost Management Residential only TOU Energy Cost Management C&I only T&D Upgrade Deferral (90th Percentile) Load Following Wind Generation Grid Integration, Short Dur Electric Service Reliability Electric Service Power Quality Renewables Capacity Firming Wind Generation Grid Integration, Long Dur Electric Supply Capacity Electric Energy Time-shift T&D Upgrade Deferral 50th Percentile Demand Charge Management Voltage Support Renewables Energy Time-shift Electric Supply Reserve Capacity Transmission Support Transmission Congestion Relief

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

0 100 200 300

$/kW

GW (over 10 years)

At ~$1,000 / kW, market potential is ~ 10 GW (excluding residential) / yr

And ~ $10 Billion / yr

Pricing below $1,000 / kW & $100-350/kWh System Price enables new markets

Source: 2010 

Eyer et. al. 

(Sandia) Energy 

Storage for the 

Electricity Grid

Current Price Range ~$2,200 to $3,500+ / kW

Over next 10 years 

Grid Storage is a 

$300B Global 

Market Opportunity 

but cost per kWh 

needs to go down 

from $1000/kWh to 

~$100/kWh
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HEV Battery Development Roadmap

• Source: Iwai Yamamoto, Mitsubishi Chemical Group,GIES Symposium 2008 

700 Wh/kg

Current cost

$2000 /kWh

Improved battery

Year 2010

Cost: 1⁄2

$1000 /kWh

Next generation

battery

Cost: 1/10?

$200 /kWh

Advanced

Battery

Year 2015

Cost: 1/7

$300 /kWh

Innovative battery

Year 2030~

Cost: 1/40

$50 /kWh

Focus is to Reduce Battery Cost/kWh from $2000 to $300-500 to 

Enable EV Applications
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Applied Materials Enables and Expands Markets by 

Driving Cost Reduction.... Price Experience Curves

1,E-07

1,E-06

1,E-05

1,E-04

1,E-03

1,E-02

1,E-01

1,E+12 1,E+14 1,E+16 1,E+18 1,E+20

Cumulated bits

DRAM Price [$cents / bit]

PEF 40%

1980 1990 2000 2008

Semiconductors Display

1%

10%

100%

1 10 100 1000

Cumulated Display Area [million m2]

Relative Costs [%]

PEF 35%

1997 2000 2005 2009

10%

100%

1000%

1,E+01 1,E+02 1,E+03 1,E+04

Cumulated Coated Glass [Mio m2] 

Relative Coating Costs / m2

PEF 17%

1980 1990 2000 2005

Coated Glass

Solar
44

NIST Extreme Manufacturing 2011 - EXTERNAL USE

Energy Technology Markets

44

Li-Ion battery 

(~20%)

Solar PV 

(~25%)

LED

(~24%)

Source: SIA, Display Search, Photon Consulting, Bank of America-Merrill Lynch, IIT Japan, Avicenne, BCC

GENERATION

CONSERVATION

STORAGE

demand

scale + 

technology

cost

reduction

CAGR ‘10 – ’13F
45

NIST Extreme Manufacturing 2011 - EXTERNAL USE

Goal of Extreme Manufacturing Workshop

 How do we translate inventions (world leading science and 

technology) to innovations (products & services thru manufacturing 

leadership, jobs and economic development)?

 In Renewables, while manufacturing innovations address cost and 

performance, policy needs to play a critical role in creating demand 

and providing a competitive environment for long term investment 

for job creation 

 Call for Action:

– Policy to foster innovation and economic development 

– Clear targets for direct Investments in US

– A Comprehensive National RES standard and a roadmap 
46

NIST Extreme Manufacturing 2011 - EXTERNAL USE

Summary and Conclusions

 Nanomanufacturing technology is 

already the foundation of several large 

markets: Electronics & Display

 Nanomanufacturing technology has the 

promise to translate the potential of 

nanotechnology to address the 

problems of key challenge of our 

generation: Energy and Environment 

 Promising opportunities exist across a 

number of applications in energy 

efficiency, generation and storage 

– Glass, LED, PV, Batteries

 Technology and Policy Innovations 

need to go hand in hand to create a 

vibrant economy based on Energy and 

Environment 
47

NIST Extreme Manufacturing 2011 - EXTERNAL USE

THANK YOU FOR YOUR ATTENTION