Business Plans

FeRmi
2007 April V1.1
FeRmi

by Swee Yong Khim

E: sweeyk@ime.a-star.edu.sg
 Overview
Business Proposition / Mission / Value
FeRmi is a fabless semiconductor company providing integrated RF reader ICs and
reference solutions for low cost mobile RFID systems. FeRmi uses standard CMOS
technology in their designs for RF Reader ICs. These ICs conform to published standards
like EPC Class 1 Gen 2 and ISO 18000-6. This provides benefits to customers so that
low cost, integrated and mobile solutions can be realized. We aim to add value to our
partners in the RF Reader hardware market segment and enable leading edge solutions to
customers for portable applications in various industry segments such as HealthCare,
Pharmaceutical, Logistics, Security Market and in the markets we serve.
 Technology

Brief description:

0.18m CMOS
High Integration Level
World-wide frequency range
Meeting EPC/ISO standard
Flexible Operating Modes
Power Management Functions
SPI interface
Patents Pending
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Reader
 How it works / What it does?
Reader IC integrated a large number of components
Improved Design being fabricated mid April 2007
Design is highly matured and demonstrated in Reader application.
Ready for production. Antenna

Transmit Data 2
1 Band-
SPI PA Pass
Filter
Rx Data - I
MCU RW910
RW910
Rx Data - Q

20MHz Note:
Crystal 1. Optional
Oscillator 2. Instead directional-coupler can be used.

UHF RFID Reader Module based on Reader IC

 Drivers & Opportunities
Small size
Size reduction enabled by integration of components in a single chip
Possible integration into existing portable devices
Lower cost
Integration in RF CMOS technology affords low cost
Versatility/Flexibility
RFIC can support EPC Class 1 Gen 2 / ISO18000-6B/C protocols
Other custom/proprietary protocols can also be supported
Various short/mid/long range solutions can be crafted at system level
Adjustable operating parameters
860-960MHz covers worldwide operation
Programmable bandwidth and data rate
Dense mode & Listen before talk mode supported
Power Consumption
Lower than discrete and thus enable portable/mobile applications

Reader IC Portable/Mobile Mass Market

 Competitive Landscape

Features A*/IME Coy W Coy I Coy SP Coy SS

Integration High Lower Higher Higher Higher

Technology CMOS SiGe SiGe CMOS CMOS
Flexibility High Low Low Low Low
Power Mid High High High Low
Availability Jan 07 Oct 06 Mar 07 Mar 07 Not yet

Based on information available in open literature

best chip we have seen so far Customer Inputs

Commercial interest / Customer Base
Large IDM interest - Reader Makers
NXP Asis
Nokia Ariannegar
Texas Instruments Powersoftglobal
Imagemart
System Players Interest Calcards
Indentec ATID
AWID SmartID
Ipico
Avery Dennison End Users
Alien Michelin
Intermec MediaCart

China/Taiwan Players
Promatic
Pretide
 Management Team
YWG - 11 yrs exp SYK - 28 yrs exp
B.Eng (EE), M.Eng (EE)
Deputy Head for an IC
design & modeling group
of 50 staff
Successfully completed
several RFID related ICs
and other RFICs
Experience in
collaborating with
customers & industrial
partners
Many years of hands-on
experience in design of
RF IC, Analog and Mixed-
signal circuits
Experience in advanced
packaging for RFID
More than 20 publications
& 7 patents in RF, mixed
signal circuits & systems
Another experienced team
member.
B.Eng (EE), M.Eng (EE)
Founding Member of
UTAC. VP of R&D and
QRA.
Founding Member of
Infiniti Solutions Pte. Ltd.
Acquisition, M&A
experience. Off shore
operations experience.
Manager Texas
Instruments WW MOSM
packaging development.
Senior Member of
Technical Staff of Texas
Instruments (1988)
Failure Analysis
/Reliability/Calibration/
Chemical Lab Mgr
More than 40 publications
& 8 patents in packaging
and Test.
 The Team Currently @ IME

The Technical Team consists of 6 IC designers and 2

Senior Managers.
More than 10 years of RF experience on average
More than 5 years of experience on RFID on average
Invented/co-invented more than 10 patents.
Also backed by IMEs IC design & modeling group
and pool of patents.
 Past Experience of Core Team
Design RFID Related
First
d s
rl
Wo
u s try u s try
I nd I nd 2.45GHz Tag

2.45GHz On-Chip
UHF/2.45GHz Tag IC UHF/2.45GHz Tag IC Antenna Tag
(0.35m CMOS) (0.25m CMOS) (0.13m CMOS)

Other RFICs Packaging/Integration Modeling

Transmit path Receive path

s try
In du
Companion Reader for 2.45GHz WCDMA IF Multi-chip Module RF & HF Test Chip
On-Chip Antenna Tag (0.35m CMOS)

try s try s try

u s
In du In du
I nd
2.45GHz Cordless
Phone Transceiver Bluetooth Transceiver
Reader IC for 2.45GHz
(0.35m CMOS) (0.35m CMOS)
RFID (0.35m CMOS)
 Use of Investment
US$5M - Series A $2M and Series B $3M

1. Develop markets
2. Establish Supply Chain
3. Build Design Team
4. Establish a product portfolio and product roadmap
5. Design Wins and Generate Sales
 Financials
All in US$ Year 1 Year 2 Year 3 Year 4 Year 5

Sales Volume 10,000 40,000 105,000 320,000 500,000

Revenue 300,000 1,000,000 2,250,000 6,180,000 10,600,000

Gross Margin 80% 80% 80% 80% 80%

Operating Expenses 700,000 2,000,000 2,700,000 3,200,000 5,600,000

Profit (400,000) (1,000,000) (450,000) 2,980,000 5,000,000

14000

12000
UHF Reader IC 10000
Shipments growing at
HF Reader IC
In 1000

8000
CAGR of 135% 6000
UHF Reader IC

Source: ABI Research 2005 4000 Microwave

Reader IC
2000

0
'04 '05 '06 '07 '08 '09
 Product Roadmap
QFN low Profile
Product
-low cost
RW950F
-48/56 lds
Flip-Chip to RW930F
enable SD
applications ARM hi performance
80C51 low Cost RW950
RW910F
RW930

USB/Enet/Serial I/F
RW910

Development UHF + HF Reader IC

(security)

UHF + HF Reader IC
UHF Reader IC (low
cost, baseband
integration) Cost Down Version 2 4x4
Cost Down Version1 5x5 drop unused/EMM
drop Ind
Y1 Y2 Y3
 Summary
Products
- RF Reader Single Chip -> baseband

TEAM
- Experienced team and backed by A*STAR/IME

Market Opportunity
- Growing Market, driven by low cost tag and
low cost reader/ubiquitous application

Funds Required - $5M US

UHF Reader built with Reader IC

8cm
TQFP 100pins
Smaller than credit card with 2-layer board
Press Coverage
 Growth Phases

Break-even
Phase 3 Staff No 8 to 20
Full Team Full chip-design team in place
70K units sales / $2.25M

Increase Staff No 5 to 8
Phase 2 2nd Gen product ready for sampling
(12 to 24 mths) Technical work thru RCA with RIs
Generate 40K unit sales / $1M Revenue
Sales

Get the chip to market

Phase 1
Minimum Staff 3 to 5
(6 12 mths) Technical work thru RCA with IME
10K units sales / $300K Revenue
Key Activities and Milestones
Test Program Development
Finalize Design Improvements
Start Wafers
Qualify Assembly Subcontractor
Qualify Test Subcontractor
Qualify Package and Device
Qualify Flip Chip
Handheld Demo Unit
RFID Show
Target Design Wins
Roadmap to Mass Market
Close Fund Raising