Silicone Solutions for LED Opportunities for Channel Partners

June 5-6, 2007 Distributor Event Belgium

Questions to be answered :
- How Dow Corning sees this market? - What is Dow Corning strategy for LED market? - How does Dow Corning estimate this market (growth, volume etc.) ? - How Distributor fits into LED market ? - What are the typical applications for Dow Corning products in the LED market covered by the electronics distribution? - What products are recommended from Dow Corning within this applications? - Some of the success stories of Dow Corning in LED market - What Next?

How Dow Corning sees this market?

What is Dow Corning strategy for LED market?

How does Dow Corning estimate this market (growth, volume etc.) ?

LED Materials Market & Scope

LED - Definition
Solid-state light sources based on compound semiconductor materials, generating Light with welldefined wavelength
LED Position in E&AT Ind. High priority external market with double digit growth potential. Silicone technology is differentiating. E&AT needs to establish leadership position now to benefit from future expected growth

LED Market Scopes

Customers Applications
Mobile Appliance Outdoor Signage LCD Backlighting Automotive Lighting General Illumination

Major Markets
Light

DC Product Lines
Encapsulants Gel, Resin

LED Chip/ Packaging

Makers LED Assemblers & OEMs Optical parts fabricators & Molders

Management EPA Thermal SFM New Venture / BTI

Die-attach, Adhesive
Optical Elastomer Thermally conductive material Chip Fabrication

Equipment Vendors
Ind. Association / Government

Dow Corning Strategic Direction

Position Dow Corning as leader in LEDs solution
Achieving 45+% Global Market Share by 2011 Completing integration from LED Packaging to LED Assembly Delivering new market/opportunities for growth Enhancing focused LED promotional activities Enhancing Channels capability for assembly business through training and selling tools

Message to Customers:

Dow Corning is the answer to your LEDs needs from high performance optical materials, potting and thermal management solutions to a highly integrated molding equipment and application process capability complemented with the global research and development experts.

Market Segments and Growth

10000 9000

8000
7000 6000 $MM 5000 4000 3000 2000 1000 0 2001 2003 2005 Year 2007 2009 * No break down before 2003 rest of cell Signals Electronics Equip' Illumination

Display/Signs
Automotive Cell Phone

Total market size: 9000 MM$ in 2010 Av. Growth rate: 20% per year (for next 5 years)* Largest segments: Display/signs, Cell Phone, Illumination
*based on Prismark data

How Distributor fits into LED market ?

Lets take a look on LED VALUE CHAIN

LED Value Chain

End customer
CPs customers

LED Module manufacturers

Dow Corning traditionally Direct customers for Car Lighting

LED + PCB integrators

LED assembly
LED packaging

Dow Corning Direct customers

LED Chip manufacturers

Dow Corning material is present at every step of the value chain!

LED Chip Manufacturers

End customer LED Module manufacturers LED + PCB integrators LED Chip manufacturers

Market: Only a few companies Main players in Europe: Osram Optosemiconductors Philips Lighting (Lumileds) Strategy: Chip manufactures supported as direct customers
Specialized Micro-electronic grade optical materials (gels, elastomers, resins)

What:

Customer type:
DIRECT for DOW CORNING

LED + PCB Integrators

Market:
Sub-divisions from large Lighting/Auto companies OR PCB assembly companies or EMSI (Jabil, Solectron), acting as sub-contractors OR LED circuit design & assembly companies

End customer LED Module manufacturers

LED + PCB integrators LED Chip manufacturers

Dual Strategy:
Supported direct or through Cannel Partners

What:
Optical materials for globtopping (and lens overmolding) Thermally conductive materials Conformal Coating

Customer type:
DIRECT for DOW CORNING (auto lighting)

Served via CP

LED Module Manufacturers

End customer LED Module manufacturers LED + PCB integrators LED Chip manufacturers

Market: Many small/medium/large companies From small independent brand to well established brands (Philips, Osram, Zumtobel,Barco, Odeco) Strategy: Channel Partners Except Philips Lighting (direct) What: All of the Electronics Protection&Assembly product portfolio, especially transparent encapsulants and adhesives All of the Electronics Thermal Management product portfolio (Optical materials for optics molding) Customer type: Served via CP

Lets summarize our business

Segment Description # of players Players LED packaging produce LED chips and do packaging of these chips Limited globally Cree, Osram, Lumileds, SeoulSemicon, Stanley Electric, and Nichia etc. Advanced technology & material with specific performance Indepth professional level of tech. support JCR-xxxx, OE-xxx, EG-xxxx, SRxxxx High price (>200 Euro/kg) Low DIRECT LED assembly use LEDs in components and endproducts Very broad range/fragmented Different in every country /geo area Well-known, reliable material Logistic, some level of technical support Encapsulants , Gels, Resin, Die-attach, Adhesive , Thermally conductive material, Conformal Coatings Low price High CPs

Material need Support need DC product range

Price indication Price sensitivity DC route to market

To summarize in 2006:
Today CPs bring to Dow Corning 68% of all LED business globally 53% in Asia (vs. 27% in 2002) 99% in Americas 76% in Europe CPs have biggest business in PROTECTION & ASSEMBLY SEGMENT (64%) Light Management (36%, mainly Asia) CPs generated in 2006 75% of LED related leads Geographic split of LED market Asia (China, Korea, Japan) 66% America 34% Europe < 0.3%

What are the typical applications for Dow Corning products in the LED market covered by the electronics distribution?

Some of the REAL success stories of Dow Corning in LED market ?

LED assembly: what is my playground?

Indicator Systems
For displays and instruments:
Indicators, switches, keypads, etc.

Illumination Systems
Mobile devices (light sources lighting effects)

LED displays, signals, signboards

LCD backlight

Traffic lights, Guiding lights

Projector light sources

For automobiles:

Automobile exterior (rear lamps, turning Signals) Automobile interior (cabin lights) Automobile exterior (headlamps, fog Lamps)

For illumination:
Lighting (indirect), illumination (lighting for special effects) Lighting (direct)

LED assembly: what is my playground?

For displays and instruments:

For automobiles:

For illumination:

Success: Application Wins

What are the applications that we can win?
Customer: European Distribution Customer
Need to Encapsulate the PCB/Electronics that drive the LED in Emergency LED lighting in hazardous areas Product: Dow Corning Silastic 145

Customer: European Distribution Customer

Need to have Exterior LED Display potting Product: Dow Corning SE9187L (Black)

Customer: European Distribution Customer

Ned to have transparent potting for general lighting Product : Dow Corning Sylgard 184

Customer: European Distribution Customer

Transfer heat from a band of low power LEDs to the heatsink for arcade machines Product: Dow Corning TP-1500 Thermal Pads

Success: Application Wins

What are the applications that we can win?
Customer: European Distribution Customer
Large outdoor video display panels used in stadiums, exhibitions etc... High intensity LEDs (Blue, green and red) are used as base pixels for live video displays. Protection of LED assembly from outside environment Product: Dow Corning 3-4207 tough gel (pigmented black) for Led encapsulation & Dow Corning 744 sealant for back panel assembly

Customer: European Distribution Customer

LED Traffic light to protect the assembly of LEDs and circuit board against humidity and environmental ingress Product: Dow Corning 3-4207 tough gel with Black pigment (selected because of good adhesion and fast room temperature cure). Other products that could be considered: Dow Corning SE 1816 CV or Dow Corning SE 1817 CV

Why Silicone? What products are recommended from Dow Corning within LED applications?

Why using Silicones (1)

Features
Excellent Optical Properties (high light transmittance)

Benefits
Well-suited for IR, visible, or UV wavelength applications

Excellent optical stability across broad wavelength

Excellent thermal stability ( -40C to >260C) Variable Modulus (typically less than 1Mpa)

Resistant to yellowing at blue wavelengths and high flux white light

Enables packages to pass common industry reliability and lead-free reflow temperatures Design flexibility to absorb stress within the package

Why using Silicones (2)

Features
Excellent adhesion to a variety of substrates

Benefits
Improved device reliability because of delamination resistance

Low moisture uptake

Packages can be designed to conform to industry reliability standards

Efficient automated assembly process

Dispensed or molded by a variety of techniques

Wide range of viscosities available

Reliable dispense and molding processes

Low ionic contamination Minimized corrosion potential (typically less than <1 ppm)

Success: What materials to win?

Product
SE 1740

Function
Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly Protection & Assembly

TOP :

160 SILICONE ELASTOMER 170 FAST CURE 182 SILICONE KIT 184 SILICONE ELASTOMER KIT 186 ELASTOMER KIT 255 PRIMERLESS KIT 3-4207 DIELECTRIC TOUGH GEL KIT 567 PRIMERLESS ENCAPSULANT KIT SE 9217 / SE 9189 / SE 9187

SYLGARD 164
SYLGARD 170 ELASTOMER

Protection & Assembly

Protection & Assembly Protection & Assembly Thermal Management protection, light extraction, optical parts fabrications

Conformal Coatings Thermal Management Materials JCR-xxxx, OE-xxx, EG-xxxx, SR-xxxx

How deep do YOU know these materials ???

What Next?

Goals: LED evolution

Phase 1: Q2, 2007
CPs presentation on Distributor Event, June , 2007 Request for Application Stories Collect CPs feedback Irina/Eric Irina/IS Irina/IS

Phase 2: Q4, 2007

Sample Tool Kit Distributing Application Stories Customer Sales Presentation LED sell brochure (format to be clarified) Mkting/AETS Mkting Mkting Mkting/Marcom

(do not forget Lab Session and rap-up discussion tomorrow.)

MUTUAL Action Plan

Distributors identify LED assembly opportunities in their region (expect large amount of players) and introduce Dow Corning product line. Conduct opportunity analysis.
Dow Corning technical support via normal routes Dow Corning pricing via normal routes Dow Corning Marketing support - > Irina

Distributors report back on market insights and TGOs (comprehensive opportunity analysis overview) in this field in report form by year end. Distributor communicate to Dow Corning Marketing its needs/ideas/views on LED promotion/advertising and help Dow Corning to create marketing instruments to support LED market development

THANK YOU VERY MUCH!!!!

QUESTIONS?????

QUESTIONS TO THINK ABOUT:

- How I see the selling tools that will help me to increase sales in LED segment? - Do I need printed materials to promote LED materials ? - What should be included in printed materials? - What kind of support I need from Dow Corning as a next step? - Do I want to get regular success stories on LED and am I ready to share my stories?

THANKS !!!!