Author – Jim Feldhan

Presented by David Ford 3/16 with permission from Semico Research Corp.

March 9, 2009

Recession Frame of Mind

Some will emerge stronger

Long or Short ?

Shallow or Deep ?

Uncertainty

Recovery

Doom and Gloom

Recessions present opportunities

Cut selectively to invest strategically

Become indispensable to your customers*

*Be seen as valuable to your target employer

Fly Me to the Moon

• 3 former Presidents

• 168 Corporations

• Individuals

Buying land on the moon!

CRAZY?

• It is estimated there is 1,100,000 metric tons of He3 on the lunar surface

• 1 million metric tons of He3 would generate 20,000 terawatt-years of thermal energy

• 25 tons of He3 would power the U.S. for 1 year at current consumption. That is the max space shuttle payload.

• Could power the US for 10,000 years

Crazy or

Thinking Outside of the Box

“But the time has come to inquire seriously what will

happen when… the coal, the iron, the oil, and the gas are

exhausted, ……”

Green Markets are They New?

“Our natural resources are being consumed, wasted, and destroyed at a rate which threatens them with exhaustion…the coal, iron, oil, gas, and the like, does not reproduce itself ”

Theodore Roosevelt

1908 Governors Conference

“The exhaustion is certain to come in time. We can trust that

it will be deferred long enough to enable the extraordinarily

inventive genius of our people to devise means and

methods for more or less adequately replacing what is lost;

but the exhaustion is sure to come.”

Crazy or

Thinking Outside of the Box

• Synfuels International Inc. producing a high

octane gasoline from methane. Conceived at

Texas A & M, cost $25 per barrel.

• AlGa– Hydrogen on demand by adding water

• Solar power plastic

• Virus Li-ion battery

• Algae farm in Mexico ethanol from algae 6,000

gallons/acre/yr, corn's rate 370 gallons/acre/yr

sugar cane's 890 gallons/acre/yr.

New Applications Still Emerging

Wireless Recharging

• MIT successfully demonstrated at 3‟ & 6‟ distances

• Ultimate in recharging convenience in home and office

• Wirelessly powering pacemakers and artificial hearts

Futuristic Windshield

GM researchers

are working on a

windshield that

combines lasers,

infrared sensors

and a camera to

enhance the road

safety.

Fuel Cells to Samsung

• Direct Methanol Fuel Cell Corporation

(DMFCC) will deliver disposable methanol

fuel cartridges to Samsung for integration

into portable electronics like notebook

computers, mobile phones and small

portable power stations.

• Toshiba also taking delivery

• Other technology Solid Hydrogen Storage

4G and WiMax – Its Here!

• 4G Long Term

Evolution (LTE) service

with the aim of

launching commercial

service in 2010

– download rates of 50 to

60 megabits per second

• The 700 MHz spectrum

previously used for

television signals, was

acquired by Verizon,

AT&T and others

„Super' Batteries and Capacitors

• MIT Technology Review is

reporting on a breakthrough

in manufacturing thin,

dense films of carbon

nanotubes that could

improve electrodes used in

'super' batteries

The World of Semiconductors

What‟s Different This Time Around?

2000/2001 vs. 2008/2009

– Growth rates, inventories, market reactions• 2000 tech bubble that burst in Q4 2000

• Dramatic capacity increases

• Increased inventories for 2 years and ignored the build-up

• Many Dot-com companies disappeared in 2001

– 2008 was a down year• No tech bubble

• Inventory reduction started in Q3 2008

• Little capacity expansion

World Semiconductor Market

0

50

100

150

200

250

300

350

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2013

$ in Billions

Inventory Excess

Recession Forecast

2012

Other Semico Summit Info

• For the 1st time, in 2008 there were more pings

for social networking…..

• Unlike other trade organizations, shows,

conferences; this Summit had 100 C-level and

20 non-C attendees, 10% MORE than 2008‟s

Summit

• All the major fabs (and vertical companies with

in-house fabs) raised their forecasts in the last 3

weeks

More…continued

• Virtually all the CEOs reported that their

major layoffs are done and expenses are

now below (low estimated) revenue.

– Company healthy now (tough but needed)

– Upturn in $ will result in profit

• Innovation continues – talent required!

Summary

• The recession will end so enable YOUR

recovery.

– Right ZIP teams/training

– Networking

– Education

• We need to think and act creatively to

promote our value and innovations

• Smart investments in our time will win