BUSINESS MODEL FOR LAB-GROWN DIAMONDS
Produced by Microwave Plasma Chemical Vapour Deposition (MPCVD)
Team Members
Lim San San A0098499Y
Lin LinA0110239U
Alec LiuA0110166W
Wang Jun-Un EugeneA0098504Y
Mohammad KhalidA0098544R
Agenda
• Introduction
• Current & Potential Applications- Value Proposition
- Customer Selection
• Method of Value Capture
• Scope of Activities
• Method of Strategic Control
• Summary
Lab-Grown Diamonds
Lab-Grown Diamonds
• 80% of global natural-mined diamonds (135Mcarats or 27,000 kg) are used industrially
• Increasing demand for industrial-grade diamonds
• High-quality and low-cost lab-grown diamonds can address this market demand
• Established in 2005, with funding from the EDB for the first plant
• World’s largest MPCVD (Microwave Plasma Chemical Vapour
Deposition) diamond research facilities
• Industry leader in lab-grown diamond technologies
• Production of colourless, high purity and cost-effective lab-grown
diamonds for various industrial and scientific applications
• Complete technology value chain - from R&D, production, to cutting
& polishing
• Jewellery Business Unit: Gemesis
• Process to produce high-purity solid materials
• Microwave will energise the precursors decompose and deposit on the substrate.
• In the case of Diamond:– Carbon atoms from CH4 are reattached to diamond substrates, initiating the
natural crystallisation process
– Growth condition is difficult to optimise and maintain
MPCVD Diamond Technology
• Hardest and Most Thermally Conductive material in nature- 4x the hardness of Tungsten Carbide- 5x the thermal conductivity (2200W/mK) of Copper
• Low thermal expansion• High voltage durability very good insulator• Radiation hard high electron mobility• Wide optical spectrum
Superiority of MPCVD Diamonds
Current Applications
Consumer ApplicationsMechanical Applications
Mechanical Application
ApplicationValue
PropositionCustomer Selection
Mechanical Applications
Application Value Proposition Customer Selection
• MPCVD diamonds are applied on tools and equipment to improve machining performance and increase tool lifetimes
• High purity results in extreme hardness and allows toolmakers to achieve high precision in tooling design
Application Value Proposition Customer Selection
Single Crystal Diamonds-MPCVD
Higher Purity
Better crystal
structure
Higher hardness
More wear resistant
Longer tool life
Smoother surface
and edge
Sharper tips
Better thermal properties
Sustain higher pressure
Source: DiamTech
Properties of Different DiamondsHPHT Natural MPCVD
Hardness (MPa)* 1500 2790 2860
Impurity Metal catalyst Unpredictable foreign impurity
Almost none
Tool life (normalised)
1 Inconsistent 3 to 8(depends on application)
Propertyconsistency
High Low High
Supply consistency
High, with numerous suppliers
Low High, with few suppliers
Price (small diamond)
Low($25)
High ($50 - hundreds)
Moderate – high($50)
Price(large diamond)
High($1600-2000)
High(>$5000)
Low-moderate($500 – 700)
Applications General tooling High-end: Precision tooling, high-pressure, high-temperature resistance apps.
Application Value Proposition Customer Selection
Mechanical Applications
Application Value Proposition Customer Selection
Mechanical Application Industries
Precision Machining
Wood Machining
Grinding & Polishing
General Engineering
Crushing, Sawing &
Mining
Oil & Gas Drilling & Drill Bits
Road Maintenance
Stone and Concrete
Processing
Mining, Tuneling &Drilling
Value Proposition
Application Value Proposition Customer Selection
• Providing a wide range of extreme performance products and solutions to meet customer’s demands of the precision cutting, oil & gas, hard rock mining & tunneling, and road maintenance industries
Customer Selection
Application Value Proposition Customer Selection
• Precision Tool Makers
Customer Selection
• Tunnel Boring Machining (TBM) Companies
• Road Maintenance Machining CompaniesVolvo Construction Equipment
Application Value Proposition Customer Selection
Customer Selection
Application Value Proposition Customer Selection
• Offshore Deep-Water Drilling Companies
Consumer Application
ApplicationValue
PropositionCustomer Selection
Consumer Applications
Application Value Proposition Customer Selection
• Jewelry, Bridal Diamonds - Colourless
– Certified lab-grown diamonds purest Type IIa
• Fancy Coloured Diamonds
– World-famous diamonds are of fancy colours due to their rarity
• Others: Luxury brand goods, timepieces, implants
Consumer Applications
Application Value Proposition Customer Selection
• How different are they compared to mined diamonds?
• Price
Value Proposition
Application Value Proposition Customer Selection
• Providing consumer eco-friendly and conflict-free diamonds that are of same as or better quality than mined diamonds at more competitive costs
Customer Selection
Application Value Proposition Customer Selection
• Jewelry dealers / Pro conflict-free diamonds
• Luxury goods manufacturer
• Direct to general consumer via e-commerce
PotentialApplications
SemiconductorWater purification
Water PurificationApplication
ApplicationValue
PropositionCustomer Selection
Water Purification - Disinfection Stage
Application Value Proposition Customer Selection
• Primary treatment, secondary treatment, tertiary treatment (disinfection)
Water Disinfection
Application Value Proposition Customer Selection
• Primary treatment, secondary treatment, tertiary treatment (disinfection)
• Wastewater treatment using MPCVD diamond electrodes for refractory chemicals
– Reducing the cost to purify water
– Higher efficiency
Diamond as Electrodes• Eg.
– Breakdown of chlorobenzene
– Breakdown of 1,4-dioxane
Application Value Proposition Customer Selection
Platinum electrode: less breakdown in 8 hours
Diamond electrode: more breakdown in 6 hours
94.5% breakdown of chlorobenzene
Diamond electrodes have 5x the 1,4-dioxane removal efficiency of platinum electrodes
Platinum electrode: 17% removal efficiency
Diamond electrode: 85% removal efficiency
Electrode PropertiesElectrode Material
OxidizingPower
Resistance Potential Window
Overpotential Hardness Others
RuO2 + ++ ++ ++ ++++ NA
IrO2 + ++ ++ ++ +++ NA
Pt ++ ++++ ++++ ++++ + Heavy metal pollution
PbO2 +++ +++ +++ +++ ++ Heavy metal pollution
SnO2 ++++ ++ +++ +++ +++ NA
Diamond +++++ +++++ +++++ +++++ +++++ NA
Application Value Proposition Customer Selection
Diamond electrodes 1. More physically/chemically resistant2. Longer lifetime3. Disinfect more effectively4. Do not produce heavy metal pollutants
Application Value Proposition Customer Selection
Trend & Market Info • More stringent legislations on water discharge
• Push for electrode use in water disinfection aided by shift
away from chemical treatments
0
0.5
1
1.5
2
2.5
3
3.5
2012 2019
Mar
ket
Rev
enu
e ($
b) 6% CAGR
$1.94 billion
$2.96 billion
Revenue forecast for Water, Wastewater Disinfection Systems market
Source: Frost & Sullivan
Value Proposition
Application Value Proposition Customer Selection
• Providing customers with high-quality boron-doped diamonds to achieve efficient disinfection of waste water according to their specific requirements.
Customer Selection
Application Value Proposition Customer Selection
• Early adopters in the water purification industry
• Industries switching from chemical to electrical disinfection
• End-user criteria: – Cost advantage
– Efficiency
– Compliance with EPA guidelines
– State environmental regulations in place
– Pilot facilities or large budget for new treatment systems
Customer Selection
Application Value Proposition Customer Selection
• Largest Water Companies
Semiconductor Application
ApplicationValue
PropositionCustomer Selection
Application Value Proposition Customer Selection
Semiconductor applications
• Mobile phone base station• Communication satellite• Radar• RF amplifier
High PowerHigh Frequency
Application Value Proposition Customer Selection
Diamond
https://www.ntt-review.jp/archive/ntttechnical.php?contents=ntr201008sf3.html
Semiconductor applications
Application Value Proposition Customer Selection
Modern Semiconductor Devices
• Bipolar Junction Transistor (BJT)• Heterojunction Bipolar Transistors (HBT)• Metal-semiconductor field-effect transistor• High electron mobility transistor (HEMT)
Si, SiC, SiGeGaAs, GaNInP
Modern Semiconductor Materials
Diamonds in semiconductor
Application Value Proposition Customer Selection
• High thermal conductivity• High carrier mobility• Wide energy bandgap• Long carrier lifetime
Application Value Proposition Customer Selection
Example: GaN on Si GaN on Diamond
Application Value Proposition Customer Selection
http://www.i-micronews.com/compound-semi/
Application Value Proposition Customer Selection
Value Proposition
• Providing customers with semiconductor-grade diamonds according to their specific application requirements to achieve high power, high frequency, high temperature and long lifetime
http://www.i-micronews.com/compound-semi/
http://www.digitimes.com/news/a20140324PR202.html
http://www.i-micronews.com/reports/Diamond-Materials-Semiconductor-Applications/3/402/
CAGR 14%
Customer Selection
Application Value Proposition Customer Selection
TriQuintSemiconductor is a
semiconductor company that designs, manufactures, and supplies high-performance RF modules, components and foundry services.
- Semiconductor design house- Semiconductor fabrication plant- Research institutes
Method of Value Capture
Value Map
IIa Technologies
Raw Material
Tooling Suppliers
Research Labs
Gemesis.com Consumer
Consumer
Innovators & Early Adopters
Consumer Jewelry Segment
Purchase
Product
Product
Purchase Mechanical & Tooling Segment
Semiconductor & Water Disinfection Segment
Payment Materials
Prototype Licensing
RCA
RCA: Research Collaboration Agreement
Custom Product
Custom Product
Custom Product
5
Money
Money
Money
Value Capture – Value added Production
IIa Technologies
Raw Material
Tooling Suppliers
Research Labs
Gemesis.com Consumer
Consumer
Innovators & Early Adopters
Purchase
Product
Product
Purchase
Payment Materials
Prototype Licensing
RCA
RCA: Research Collaboration Agreement
Custom Product
Custom Product
Custom Product
5
Money
Money
Money
Mechanical
• Impurity level
• Crystal orientation
• Optional doping
• Size and dimensions
Consumer
• Loose diamonds in different sizes and shapes
• Colorless, fancy colored.
Water
• Doping levels of boron
• Substrate selection
Semiconductor
• Quality and thickness
• Impurity level
• Crystal orientation
• Substrate selection
Scope of Activities
Scopes of Activities
Operations
• Diamond production
• Equipment building and maintenance
• Quality control
• Inventory control
Sales & Marketing
• Build distribution channels
• Product promotion and branding
• Identify potential market segment
• Technical customer service
R & D
• Diamond applications R&D (processimprovement, customer services)
• Collaborations (R&D and marketing) with external parties
Strategic Control
Strategic Control
Strong IP Management
• IP Strategy: To patent customized equipment and sub-processes
• Trade secret for the ‘recipe’ MPCVD
Branding & Education
• Awareness of lab-grown diamonds – consumer diamonds
• Trade shows and research collaboration
Asset Management• Acquisition: to compliment the
product, process and service
• Vertical Disintegration.
R & D• New product development for
new applications
• Process optimization
• Encourage open innovation through collaboration
Sustaining Profitability
Summary
Summary
IIa Technologies capable of producing excellent lab-grown
diamonds
Current applications of diamonds in industrial and
consumer areas
Potential applications in Water disinfection and
Semiconductor
Value Proposition:
The ability to produce diamonds customized to specific
customers’ needs
Growing company with potential growth and sustainability
QUESTIONS?