nanoTX USA ’08: “Accelerating Nanotechnology Commercialization”

1. nanoTX USA ’08:“Accelerating Nanotechnology Commercialization” Who will build it and will they come? Who will build it so they can come? Build it and they will come: But by whom and when? William J. Kroll President, CEO, and Chairman Matheson Tri-Gas, Inc. October 2, 2008 nanoTX ’08: Accelerating Nanotechnology Commercialization

2. nanoTX ’08: Accelerating Nanotechnology Commercialization

3. Outline • Nanotechnology is new but is following a business pattern. • Limits are being seen in the education skill base to support this. • Technology problems that are being addressed by nanotechnology are there. • Where are the centers for cooperative development in this area? • Here is the model we are using. nanoTX ’08: Accelerating Nanotechnology Commercialization

4. “Semiconductor Technology, A Convergence of Technology and Business Models” By Dr. Bernard S. Meyerson, IBM Fellow, VP Strategic Alliances and CTO nanoTX ’08: Accelerating Nanotechnology Commercialization

5. “Semiconductor Technology, A Convergence of Technology and Business Models” By Dr. Bernard S. Meyerson, IBM Fellow, VP Strategic Alliances and CTO nanoTX ’08: Accelerating Nanotechnology Commercialization

6. Nanotechnology: • Evolution • Revolution • or just plain good old Business? nanoTX ’08: Accelerating Nanotechnology Commercialization

7. Modern evolutionary theory teaches us: • Evolution proceeds via both small & large innovations (mutations). • Over long periods of time, there are vastly more small innovations than large ones. • Over long periods of time, the distribution of innovation "size" conforms to a power-law distribution. • Over short periods of time, evolution may be seen to be either gradual (dominated by many small innovations) or revolutionary (dominated by major innovations). • Major innovations tend to spur bursts of minor innovations. • Over time, the accumulation of a large number of minor innovations lays the foundation for later major innovations. nanoTX ’08: Accelerating Nanotechnology Commercialization

8. Phrases sound familiar? It has been used for: • Automobiles • Cell phones • Rational databases • Open intelligent networks • Light bulbs • and Nanotechnology nanoTX ’08: Accelerating Nanotechnology Commercialization

9. Perception versus Reality • Nano applications been in use for a long time • Old Paintings • Stained glass windows • London Fog • Commercial applications in coatings, inkjets, and electronics started over 40 years ago • It is already impacting the way we live nanoTX ’08: Accelerating Nanotechnology Commercialization

10. So Why the Hype? • Risk, Benefit Analysis • Replaces dot com as the new business venture • I need to improve my golf game or tennis score • This generation is getting older: • Need the drugs • Lighter tools, phones, furniture • Applications, benefits, and economics impact are becoming evident nanoTX ’08: Accelerating Nanotechnology Commercialization

11. Roadblocks to Nanotechnology Ultimately, nanotechnology is still suffering with the so-called “roadblocks” to the market. The primary challenge nowadays is to recognize commercial applications of research and to fill in the vocabulary gap of “nanotechnology ignorance”. Therefore, future roadblocks to successful application of may be: • Recognizing commercial application of research • Implementation of high volume manufacturing of nanotechnology • High costs of nano materials • Lack of interaction between science and market • Lack of qualified & professional staff for research at universities • Handling, transportation of nanotechnology material • Availability of instrumentation What is further interesting to note, is the opposition nanotechnology has received from traditional media outlets that talk about the potential negative consequences of nanotechnology such as Crichton’s “Prey”. nanoTX ’08: Accelerating Nanotechnology Commercialization

12. SIA Workforce Strategy Overview, David R. Ferrell nanoTX ’08: Accelerating Nanotechnology Commercialization

13. Nanotechnology: it’s not just for breakfast anymore! What are we missing? SIA Workforce Strategy Overview, David R. Ferrell nanoTX ’08: Accelerating Nanotechnology Commercialization

14. “If you can solve the education problem, you don’t have to do anything else. If you don’t solve it, nothing else is going to matter all that much.” - Alan Greenspan, former Federal Reserve Board chairman nanoTX ’08: Accelerating Nanotechnology Commercialization

15. “If you can solve the education problem, you don’t have to do anything else. If you don’t solve it, nothing else is going to matter all that much.” - Alan Greenspan, former Federal Reserve Board chairman CRS Report for Congress, “Foreign Science & Engineering Presence in U.S. Institutions and the Labor Force” (7/23/08) nanoTX ’08: Accelerating Nanotechnology Commercialization

16. Why things don’t scale (Myerson IBM) Moore’s Law requires smaller transistors to be made, where each dimension of that transistor is reduced generation after generation • Some layers in transistors are now only 5-6 atoms thick, and can no longer be correctly scaled • The failure of proper scaling results in transistors producing far more heat than can be tolerated • New materials and processes must thus be invented at each new technology node to enable continued progress in semiconductor technology nanoTX ’08: Accelerating Nanotechnology Commercialization

17. “Semiconductor Technology, A Convergence of Technology and Business Models” By Dr. Bernard S. Meyerson, IBM Fellow, VP Strategic Alliances and CTO

18. Next Generation Switch “Semiconductor Technology, A Convergence of Technology and Business Models” By Dr. Bernard S. Meyerson, IBM Fellow, VP Strategic Alliances and CTO

19. nanoTX ’08: Accelerating Nanotechnology Commercialization

20. “Semiconductor Technology, A Convergence of Technology and Business Models” By Dr. Bernard S. Meyerson, IBM Fellow, VP Strategic Alliances and CTO

21. From IBM/NEC release: IBM's other joint dev. partners include: Chartered, Freescale,Infineon, Samsung,STMicroelectronics Toshiba 9/10/08: IBM & NEC announced joint Development at Albany NanoTech

22. Drivers Perhaps we should view Moore’s Law as innovation driver for: • Directed assembly, which may enable extensibility of affordable CMOSfabrication to ~10 nm • Enhanced patterning functions, beyond masking, such as 3D nanofabrication and deterministic placementof electronically useful nanostructures • Materials-by-design, including engineered interfaces and the heterogeneous materialsintegration onCMOS • Predictive nanomaterials models, which concurrently optimize nanomaterial performance and ESH impact We need materials options that circumvent Moore’s Law nanoTX ’08: Accelerating Nanotechnology Commercialization

23. Nanopillars nanoTX ’08: Accelerating Nanotechnology Commercialization

24. NSF & NNI: Long-term View for Nanotechnology R&D (Mike Roco, NSF-NNI) From "From Vision to Reality: The NNI at Five Years“ by Mihail " Mike" Roco (2006) http://www.nanohub.org/resources/1230/ Today, nanotechnology is expanding at the global level and on an accelerating path: • from passive nanostructured components to active nanosystems • from scientific discovery to technological innovation: • in areas such advanced materials, electronics, and pharmaceutical • to new areas of relevance such as biomedical, energy, environment, agriculture & food systems, and controlled molecular architectures for manufacturing For this reason, it is essential to: • have a robust R&D program • select most suitable investments • anticipate possible scenarios • address societal aspects from the beginning of large R&D investments. nanoTX ’08: Accelerating Nanotechnology Commercialization

25. Nanophotonic YORKTOWN HEIGHTS, NY - 17 Mar 2008: IBM (NYSE: IBM) scientists today took another significant advance towards sending information inside a computer chip by using light pulses instead of electrons by building the world’s tiniest nanophotonic switch with a footprint about 100X smaller than the cross section of a human hair. • The switch is an important building block to control the flow of information inside future chips and can significantly speed up the chip performance while using much less energy.  • Today’s announcement is a continuation of a series of IBM developments towards an on-chip optical network: • In November 2005, IBM scientists demonstrated a silicon nanophotonic device that can significantly slow down and actively control the speed of light. • In December 2006, an analogous tiny silicon device was used to demonstrate buffering of over a byte of information encoded in optical pulses a requirement for building optical buffers for on-chip optical networks. • In December 2007, IBM scientists announced the development of an ultra-compact silicon electro-optic modulator, which performs the job of converting electrical signals into the light pulses, a prerequisite for enabling on-chip optical communications. nanoTX ’08: Accelerating Nanotechnology Commercialization

26. Innovation is Evolving • Seeing a lot of talk but looking for the walk • It makes business sense • When your investors ask when are they going to see a return in the market place • The answer should be “you already are” • Innovation is a food chain • Is Innovation on an internal basis creating the value? nanoTX ’08: Accelerating Nanotechnology Commercialization

27. Matheson Tri-Gas Technology Vision “Do not seek to follow in the footsteps of the wise. Seek what they sought.” Basho We recognize that our path is different from our traditional competitors, and that this difference is our strength. We see ourselves as a flexible & responsive supplier of unique products and technology that will give our customers the competitive edge they need in order to thrive. nanoTX ’08: Accelerating Nanotechnology Commercialization