Korea has well balanced three pillars of flexible display technology. Asia is the hub of consumer electronics in manufacturing and consumption Korea has full line front and backend base for Smartphone & mobile devices Germany is technically mature but brand and marketing wise immature Japan is also technically mature but totally isolated and finally become Galapagos

1. Why Flexible Display comes from Korea?
July, 2013
-Other than Japan, Germany or USA

2. Executive Summary
• Smartphone has business opportunities in mechanical parts & materials
• The blue ocean of Smartphone value chain is HW components with novel materials
• Production R&D process is the key to HW components business success
• Without industry cluster support, a product can not be well commercialized
• Smartphone has only two areas left profitable, its components and DCS
• Korea has well balanced three pillars of flexible display technology
• Asia is the hub of consumer electronics in manufacturing and consumption
• Korea has full line front and backend base for Smartphone & mobile devices
• Germany is technically mature but brand and marketing wise immature
• Japan is also technically mature but totally isolated and finally become Galapagos

3. Opportunities for smartphone
iPhone 4S bill of materials (BOM)
Source: IHS iSuppli (October 2011), Mirae Asset Research
Greater China Smartphones and Components
Market
Smartphone has business opportunities in mechanical parts & materials

4. S/W component
(Embedded S/W)
H/W component
H/W component
manufacturing
process
Source: Adapted from http://www.ericsson.com/ericsson/corpinfo/publications/ericsson_business_review/pdf/307/breaking_up.pdf
H/W component
development process
Generic Component
Provisioning
Specific
Component
Provisioning
S/W Application
& OS
Platform
Device
Provisioning
Product
specification
Design
Integration
Manufacturing
Distribution
Consumer
Brand value
Definition
Marketing
&
Sales
After
Sales
Services
Smartphone value chain
Market
Blue ocean of Smartphone value chain is HW components with novel materials

5. Physical,
electro-
chemical
performance
Electro-
chemical &
mechanical
production
process
Positive
effect
Negative
effect
Lab. R & D Process
Production
R & D Process
Commercialization
Process
Packaging
Material pool
Production
technology
pool
R & D Lab. Production R & D company
Manufacturing
company
Tests
Optimal
Effect
Smartphone H/W component value chain
Market
Production R&D process is key to HW components business success

6. Implication of Smarphone value chain
Source: adapted from
http://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/High%20Tech/PDFs/Making_smartphones_brilliant_March_2012.ashx
1 CMs = contract manufacturers; ODMs = original design manufacturers; OEMs = original equipment manufacturers
2 DCS = digital contents and service
Component
players
CMs/ODMs
/OEMs1
OS/app
providers
DCS
providers2
Operators
• Higher component
pricing
(New batteries,
Display panels )
• Increased
consolidation
(e.g. Chipset
players)
• Increased smart
device penetration
PositiveNegative
• Increased smart
device
penetration
• Increasing OEM
fragmentation
• Increasing
competition
from ODMs
• HTML5 disruption
of OS layer &
native apps
• Increased adoption
of mobile contents&
services
• New business
models
• Increased data
penetration & ARPU
• Decline in message &
voice revenues in
developed countries
Market
Smartphone has only two areas left profitable, its component s and DCS

7. Three pillars of flexible display
Flexible display panel technology
Industry clusters, universities, technical resources, R & D resources
Korea’s Industrial Advantage
Korea has well balanced three pillars of flexible display technology
Chemical
engineering
Electrical /Electronic
engineering
Mechanical
engineering

8. Korean Industry Cluster
Korea’s Industrial Advantage
Without industry cluster support, a product can not be well commercialized
DEVELOPMENT OF MATERIALS
MANUFACTURING OF NOVEL MATERIALS AND COMPONENTS
MARKETING OF COMMERCIAL PRODUCTS AND APPLICATIONS
With world's leading chemicals corporations, such as LG Chem and SK chemical and world market
leader in electronic components such as LG Innotech, SDI & others, Korean industry clusters have
excellent industrial expertise in novel material and electronic components development.
Leading companies are active in Korean clusters to produce novel materials and electronic components
The commercialization of new technology is also well represented in Korean clusters. Samsung and LG are
not only producing but also marketing various electronics products. Other small and medium size electronic
components and product manufacturers are active as well in Korean industry clusters
Source: adapted from http://www.innovationlab.de/en/research/excellence-cluster-forum-organic-electronics/excellence-cluster-forum-organic-
electronics-background/cluster-partners-value-chain/

9. Source: http://unstats.un.org/unsd/trade/s_geneva2011/refdocs/RDs/GVC%20in%20Electronics%20Industry%20(Sturgeon%20-%20Sep%202010).pdf
Asian industry cluster
Korea’s Geographical Advantage
Asia is the hub of consumer electronics in manufacturing and consumption

10. Korea’s Geographical Advantage
The biggest smartphone market
Handset forecasts – emerging vs. developed markets
Source: IHS iSuppli (October 2011), Mirae Asset Research
Greater China Smartphones and Components
Emerging market has more growth potential than developed market

11. Industry clusters, universities,
technical resources,
R & D resources
Korean advantage
Korea has full line front and backend base for Smartphone & mobile devices
Mechanical
engineering
Korea’s Competitive advantage

12. Korea’s Competitive advantage
German Mystery
Mechanical
engineering
Industry clusters, universities,
technical resources,
R & D resources
Technically mature but brand and marketing wise immature

13. Japanese Isolation
Technically mature but totally isolated and finally became Galapagos
Korea’s Competitive advantage

14. Who we are?
Materials and System is Silicon Valley based high tech manufacturing startup

15. Nanofiber flexible display material
Materials & System develops revolutionary nanofiber flexible display material
Conductive
Ball

16. e-Hybrid spinning technology
Revolutionary nanofiber production technology
Materials and System has revolutionary nanofiber mass production technology
Electro spinning Rotary jet -spinning

17. Thank You!
Tel: 408-519-2267
eMail: jayhah7@gmail.com
Skype: jayhah7
3003 N. 1st Street, Suite 221
San Jose, CA 95134, USA