Sivers Semiconductors AB (publ) (SIVE) Earnings Call Transcript & Summary

Very welcome to this Sivers Semiconductors Capital Markets Day 2023. My name is Anders Storm, and I'm the Group CEO of Sivers. We're going to have a full schedule for you today with a lot of presentations, and I want to welcome, especially the audience here in the room, but also everybody online. So very welcome and hope you will have a fantastic day in here. So this is the agenda. We're going to go all the way to 5 p.m. We're going to have Q&A in the end of the session. And no Q&A. Maybe some questions during the way we'll see how much time we have, but the agenda is quite packed. So my name is Anders Storm. I've been with Sivers now for 9 years. I'm the group CEO, and I've been working within the data and telecommunication world for over 25, 30 years, and been part of the sort of turnaround of Sivers and making the company what it is today. Also, we have Lottie, Andy and Harish with us from servers today that will have presentations, and then we have some special guest GlobalFoundries with Anthony and Charlie from Ayar labs and Pawel from Thorium space, both Ayar and Thorium, our customers and GlobalFoundries is a partner to Sivers as well as to Ayar labs. So to give you a little bit of background for you who hasn't heard about Sivers before, the company is, of course, a semiconductor company. We provide chipsets within 2 business units, One is the wireless business unit and the other one is the Photonics business unit. We have about 60 customer engagement, ranging from everything from very large Fortune 100 customers, all the way down to very exciting startups in Silicon Valley that, for example, Ayar Labs represent here today. We're addressing a very large total addressable market, which you can sell chips into about $10 billion over the coming 10 years. So this is a very exciting market we've been addressing, mostly emerging new markets, all of it. We have our head office here in Stockholm, and we have also offices around the world. For example, our Photonics business is located in Glasgow. The team is 123 employees today, and we have a lot of PhDs that develop these really high technology things that we are giving to the market. We are today listed at NASDAQ mid-cap in Stockholm with 22,000 shareholders, and we have reached a very important milestone recently. Over the rolling 12 months, we passed $20 million, so SEK 212 million in revenue. And we have had a rolling growth of about 100% the last 12 months as well, which we're very proud of, and we're in a very interesting journey right now. So looking at the investment highlights. I'm going to take you through 5 important steps here. First of all, why is it sort of rapidly sort of expanding markets we're working in. Why is our technology in some way superior? And how could you think about that because this is hard material to maybe understand. The sales are now moving from sort of hardware sales into volume sales and a lot of the sales [indiscernible] sort of consulting or what we call NRE, nonrecurring engineering. And we have a proven go-to-market strategy here and a lot of very interesting blue chip industry partners like Intel, GlobalFoundries, NXP and Renesas, and why do we have that? And we have an attractive scalable business model being within sort of the semiconductor industry, which will sort of reach in product sales sort of ranges of 40% to 60% in gross margin just the target for the company. So what are we actually doing? The chipsets we are providing is taking the digital world into analog world. So we have chipsets that are what's called RF chipsets that takes it into analog RF signal or we have lasers that bring sort of light into life. And it could be in a cable or as a LiDAR or is a radar or a 5G or a SATCOM product. So our chipsets are all focused on that side of things, which is sort of analog devices. We have had a very exciting journey over these last 7 years. And in 2016, we put in a completely new strategy. We were, at that time, that spotlight and also called Aktietorget. And we had about $2 million in revenue and a market cap of about $20 million and 1,600 shareholders. We sort of moved that now to about $20 million in sales, 10x market cap is also almost 10x for $150 million. Shareholders is 22,000 and so forth. During this journey, we've done a couple of very important things. We've sort of created partnerships with customers that is fundamentally important for us. And there are companies like NXP and Intel and others that are doing technology around what we are doing that sort of integrates with us to be able to deliver some very interesting and challenging technology in SATCOM, 5G and in Photonics. We've also had a journey, of course, for the listing all the way from spotlight to First North and now main market. We have been growing quite a lot lately, and that is the fruits that we sort of have from all of the work we provided. And it takes some time to get the semiconductor company into sort of volumes because of the long lead times from sort of getting a design all the way to products. But we are now seeing that. And that is what we sort of going to see and focus on the coming 3 years. So if we look where we are today, we have about 30% of the revenue in product and 70% in NRE. We're going to move that to 80% in revenue in products and to 20% NRE. But of course, at the same time, NRE will be sort of maybe flat, but the hardware sales will increase and grow the company. And how are we going to do that? First of all, we have the 60 customer engagements a lot of those, and together with those, we doesn't actually need any more customers that could give us multiple hundreds of millions of dollars from the existing base we have. So even so we are actually adding customers on a basis, and we see a better sort of pipeline than ever. But just with the customers we have today, we have done a sort of a solid work to grow the company. And a couple of those that's going to come in, in 2024, where we've already seen orders now is, for example, in SATCOM with a $5 million order we got now very recently, I think it was August. And then we also have, of course, the Optical I/O, which Ayar Labs will talk about today, which will start coming in. And then 2025, we see even more acceleration in the high-growth market, also seeing 5G coming in more. Right now, it's more niche markets for 5G. And then we can also see everything from the Fortune 100 customers and everything growing during these years as well. So looking at sort of the last 12 months and what we've done over the last 7 years, we're very proud that we can see that we have been growing now 100%. And the last 4 quarters has been exceptional, with 113%, 130%, 68% and 107% growth. If we look a little bit longer back, we have actually a CAGR of 47% over these last 7 years, including the outlook we've done for this year. So what is driving this, and what's behind it? So there are a couple of sort of things that really driven our stuff the last 12 months. And we've taken in about $32 million of orders. We delivered approximately 50% of these orders so far since over the last 12 months. So 50% of this is still not delivered in revenue recognition. And we have a lot of orders that we don't announce normally. But all of these is sort of connected to SATCOM, 5G and our sort of Photonics business. And especially SATCOM has been very successful going forward, and I'm going to talk a little bit more about that, and you can see also the marked orders here with the boxes around that, that is product orders that are now coming in, especially SATCOM, the last couple of months, in that sense, we've got $6.5 million in orders for that. And just a little bit more on today's guests before I go into the detail. So we have then Charlie, who actually was with us last year as well, and GlobalFoundries. Together, they are sort of representing an extremely interesting area now within silicon photonics, where you can sort of make sure to deliver things of high-performance computers in the future, including how AI will be driven in the next generation. And they are delivering together with our chipsets, 4 terabit of data today, which demoed together with [indiscernible] companies like Intel. And other guest is Pawel from Thorium Space, who is sort of a very interesting company from Poland, who is sort of deep connections into the European funding area and the European Space Agency and so forth. And they are focusing on both the sort of ground terminal, but also on the sort of small satellites that they are working really hard on. And you will hear more from him today on exactly what they're doing. And this is a customer that Sivers signed up in, I think, March this year on a $1.8 million development contract. So the markets, I mentioned them already. We have the high-speed broadband with 5G and fiber. We have silicon photonics, which is sort of driving a lot of the photonics in this. We have the satellite communication. We have consumer sensing, which is with our Fortune 100 customers. Augmented reality also Fortune 100 customers we're working with, and that's mostly connected to our Photonics business. And then we have the autonomous driving for LiDARs and we could also do radars that we don't do today, for example. And this is, of course, high-growth megatrends that will sort of get to an unimaginable sort of TAM in the future. But the really interesting thing here is, of course, that this is sort of virgin markets where we're breaking into. So we have not really as many other semiconductor companies today, something to lose here in the market or any big stock out there or something like that. So we are sort of in a different place where we talk about this. Superior technology, what is it we actually do? And why are we sort of getting all of these 60 customers currently and sort of even the biggest type of tech companies in the world, why are they working with Sivers? So there is -- in our silicon photonics business, it is the marriage between silicon and Photonics. And photonics in this case, are indium phosphide lasers that we make. You can take those small little red dots there and put them straight on to silicon with the sort of patents we have today of marrying sort of the waveguides for the lasers together with the silicon. And that's a big step. And we work together with that, with all of these different companies, including IMEC and others to make that happen, including companies who actually can pick and place these lasers onto the silicon. So that is sort of the technology revolution that are changing how lasers can be built. This is completely new in that sense. The other piece within our 5G business is the how we actually can make technology work with steerable antennas, and we make RF chipsets and antennas for that. And that is used both for satellites today because satellites are much closer to earth and they are moving ahead over us. They're not geostationary anymore. So this technology is fundamental. And also in cases where there are track-to-train examples, for example, where we actually could get the trains to pass, and we can be gigabit speeds to the roof of the train from small base stations along the trains, which we now have been able to do in several countries. And of course, embracing this and enabling these convergence and all the different customers we have here and many investors always say, yes, but it's hard for me to understand the technology. Do I need to understand all the power or DBs or whatever? No, I don't think you need to care about that. It's our customers that care about that. And they are the biggest fortune tech companies and everything. And our technologies, we're not the technology startup. We are actually very far when it comes to the technology now, and people are deploying it or about to deploy it everywhere. So you might not have to think about that. It's our customers who have made the choice already that this technology that we have is working. And here is 3 examples on things that are semi working or demonstrating or in the market or just to get to hit into market. So these are sort of new emerging markets. So Ayar Labs will tell you more about that today. But they are well funded as well as backed by Intel, Nvidia, HP, Lockheed Martin, all space who does satellite terminals, they are about to launch in Q1, and that's why we got the orders for $6.5 million. And they are backed by SCS, Boeing, Inmarsat big satellite companies, and then we have a smaller company, airline that is backed by sort of the VC world in California that does 5G things that they just launched last year. So all of these things are now coming to fruition, and they're working, and they are sort of in the market. This is another thing we've been working on, which is sort of one of our big projects, and we're very proud of. We've been working with the Fortune 100 company. They have invested $70 million or about SEK 170 million now over 5 years to get to a sensor. Unfortunately, we can't talk about the name or what the sensor does. But this is for consumer electronic devices and the sort of the market is huge, and Andy will tell you more about these things. But they have recently got an order delivered to them for 30,000 chipsets, and we're getting closer and closer to the next phase of what they are going to do. So how do we going to move sales from 30% to 80% in 2026. So we can see here, of course, that we are sort of -- it's fueled by product sales, and it needs to be product sales. And all of these companies I'm talking about, they're going from development into products, and they are all at sort of a point where that's going to happen more and more. And here, you can see the quarterly take-up and so forth. But if we look at just the hardware now between -- from year-over-year in 2022, '23, we've actually grown the sales by over 100% when it comes to the hardware sales also in actual money it's grown. So even if we've grown the company 100%, we're also growing the hardware quite a lot. So that's a very good thing about that. If we look at more in detail, how will that happen now near term with satellite communications. So for example, 1 of the products we have is 1 of these beamformers for satellite communication, where this project has been finished, and we got the first volume orders now from Allspace. These orders are now coming out in the market, and they give us the orders to build these terminals. And the terminals are still just in fairly low volumes because they are ramping up. So this growth will be sort of 2 to 4 to 3 to 5 to 3 to 4 type of x growth going forward in that sense. So -- you can take the numbers we have now and then see them grow year-by-year, and that is a very, very large market and a very high content of chipsets in those terminals that we are selling. So these are sort of forecast by the customer. Then we also signed an extremely important contract with the same customer in December last year that we're delivering on. It's SEK 16.4 million, and there's 2 other chipsets, which is not sort of infringing sort of on the chip we're already doing with them. It's no chipset that would add value in the terminals and give us even more money for each terminal they sell. The plan is to have that ready by '24, but we're delivering a lot on that right now, and that's also supporting the growth in the company. And how much that would grow in '25 and forward? We don't know really. But the most value is actually in the project that is already now in volume. Thorium Space. We've done the first development project. We're about to do the second phase now on that project as well, which will then lead into new volumes in that sense. We have another customer, which is a SATCOM company where we're doing these things as well, or a satellite owner. So there's a lot of things that are going to happen over the coming 3 years in this that will support this heavy growth that we see in front of us. Another thing that is more niche is sort of the track-to-train applications that we have. They are now deployed and getting deployed more and more. So they deployed in the U.K. They're deployed in Spain, and we're now seeing also a deployment with Caltrain in California. And these things are, of course, even more exciting because they're sort of the first carbon-neutral communication system ever, and they will be that already in 2025, actually. So promoting this, and hopefully, we're trying to promote this in Sweden as well so we soon can get this to Sweden. And this will give you gigabit speeds with 5G onto the trains. Another thing that is really fueling everything in the future is generative AI, of course, and we were able to get an article into Wall Street Journal. You have the link there, you can read that, and that's together with AR and Intel and others in there. We've also written an insight article about how generative AI will drive and need to have these Optical I/O solutions, which is actually changing the way computers speak inside from electricity to light. And that's where our Photonics business comes in and it's going to be very vital to be part of that in the future. So the proven go-to-market strategy is based on that we have a lot of partners in the ecosystem, ranging from Intel, NXP, Renesas, GlobalFoundries and all of those. And we've done a very fundamental further work together with all of these to be able to deliver our technology into market. Because, as a semiconductor company, you cannot stand alone with just a chip somewhere. You need to have all of these partners, and this has been a fundamental part of our strategy. And that sort of makes it into the next phase of sort of the sort of business model. Why is it so attractive to have this business model? So in our Wireless business, we have the what's called the fabless model where you don't have sort of your own fabs, very light when it comes to CapEx and so forth. And there we have GlobalFoundries and other partners. And we are sort of designing and they make things from our design. In our Photonics business, we've had our own fab, and we're still going to keep our own fab, but we're also seeing a big, big flow of new projects there. So we've been looking at, and Andy is going to talk more about that today. But we also looked at something we call hybrid fabless there, where we have our fab, but we're also being able to outsource a lot of that to reduce the CapEx investments quite heavily. And all of this flexibility gives us sort of a light manufacturing strategy in whole. And also to understand the ecosystem within semiconductors, it's easy to put them up like this and see what the other company is doing. Some of these are our competitors, some are not. But in general, in semiconductors, the companies have something like 30% to 70% or 60-plus percentage in gross margins. And Sivers' target is to have the 40% to 60% here, depending on volume, depending on products and so forth and depending on if it's NRE or if it's product sales. So this is for the product sales target we have this. And then summing up a little bit. We have a very strong Nordic and EU active funding base, about 20% are institutional investors and long-term only. A lot of pension funds as well as Swedish governmental pension funds like AP2, AP3, AP4. AMF is here today as well. We have Swedbank and other funds that are part of Sivers and have been part of Sivers for quite some time. So we're very happy for the strong support we're having in this space. We also recently got the Swiss company investing in the company before. So -- but also, we're looking, of course, to widen this space for the future and in these kind of events, marketing ourselves. And of course, one of the thing is to get into the U.S. and get U.S. investors to look at the company that also understands the semiconductor industry quite well. And we have had a lot of meetings during the last year around that as well. So what did we say here in 2021? We said that we're going to have a strong organic growth, keep on doing what we're doing, but add more. So what did we do? Yes, we kept on growing, 46% in '22, 100% now over the last 12 months. We have been adding verticals in this SATCOM, optical I/O and so forth. We have increased our partnerships, but we also acquired MixComm, which was sort of evaluating that and getting to sort of adding verticals for that. So that has been sort of, I think, very successful on the plan and the strategy we have. What's going to happen in forward, and we will look at that? We'll keep on building. As you can see, we now have even more partners we want to build, but we also now really need to move in to deliver on product sales as well as other verticals and moving from 30% product sales to 80%. And also evaluating if there is sort of other interesting verticals that are sort of cash flow positive that we can add in via M&A or not. But this is sort of the overall picture that we see in the future that there's a lot of things that we're doing right now, and we want to keep doing that, of course. So summing this up rapidly expanding markets. Yes, we are in 6 megatrends that are enormous that we have a huge TAM, and we keep on building on our product sales into that. Superior technology, and we're very proud of the customers we have and a few of them will present here today, but there's very big markets that we will be able to sell in, and they've chosen our technology already and the technology is mature. That is not sort of something that might not happen. It is there. Sales moving to production volumes, yes, we can see that we are moving more and more and we're seeing customers coming to fruition and coming to market. So we're quite confident that we'll be able to move that in 2026, the target is to get 80% of the sales from hardware. A proving go-to-market strategy. We have great partners. We have Intel and NXP with us in Mobile World Congress in Barcelona this year. We have GlobalFoundries here today, which is sort of a large foundry and all the other customer engagements. And an active scalable business model. As I said, sales growth have grown 100%. We passed $20 million in revenue. We have product and gross margins that we see that is easy to get to scalable assets in the foundries that we have that we can actually grow the company without too much CapEx and now also trying then to end the year with a very positive 2023, where we have a plan to -- in our outlook to get to positive EBITDA. So that's a really important part here for what we're doing. So that is the investment highlights. I want to thank everybody now. I'm coming back later for Q&A. And with that, I want to introduce our CFO, Lottie Saks.

Thank you, Anders. So Sivers is a company with fantastic opportunities, and our job as management is to turning that potential into substance. So as CFO, I'm really happy to provide the Q3 update where we see strong current momentum in both top line and profitability level. But to start, just a recap of the financial targets that were defined for 2023. So net sales growing 100%, a little bit variation over the quarters given the nature of the business. And turning EBITDA positive during second half. So how are we doing so far? In Q3, we had a revenue of SEK 58 million and a growth of 107%, and the Wireless business, a staggering growth of 210%. The Photonics business has a stable and strong growth of 38%, and if we look at year-to-date, we reached a growth of 96%, which is really close to the financial target of 100%. And to Anders' point, looking at the past 4 quarters, we are at 100% growth. One of the strength of Sivers' business model is the diversified sales into multiple segments. So Photonics is growing in optical I/O and data centers, and also in a good position for continued growth in the consumer sensing. And the strong growth that we see now in Wireless is driven by the increased demand in the SATCOM business. Another strength with Sivers' business model is the combination of development projects and product sites, where product sales provide resilience and the ability to scale. So that's why it's so important, and we're so happy to see in Q3 that we confirm an increased sale of products, both in terms of increased share of sales, but also the growth rate, 109% growth in the product segment. So we are growing fantastically in the development part as well. And the reason for that being primarily that we reallocate our internal development resources from last year more working on developing our own products, and now we're focusing on customer-funded development. So we're focusing a little bit our development resources. So -- but this is a really important key strategic signal in the quarter that we're able now to step up in the product sales. And our third view of sort of revenue segment is looking at the geographical distribution. And also here, we have a good split between the regions of Europe and North America. Right now, the growth is coming from Europe. And that's relating to the SATCOM growth in the Wireless business. But in Photonics, we're still growing in U.S. So year-to-date, we had a 35% growth or SEK 13 million. So zooming out a little bit and looking at the sales distribution. And this is something that is really important that we have these balances. We're not the 1 vertical, one-region company. We have a portfolio that balance and offset risk in our business. So we have the 2 business units, 60-40 split, quite balanced. We have the revenue type split, really important, and the signal that we now reached 31% share in third quarter. And, as Anders mentioned, this is a clear strategic target that we want to grow this to 80% or even more. And we have the geographical split, Europe, right now, being stronger than North America, but still a good balance. So revenue and growth is fantastic, but what about our ability to also turn that into increased profit? So looking at the quarter's year-to-date Q3, as we said, 107% growth in revenue. EBITDA grew 57% and adjusted EBITDA, 46%. So this is really important that we have a balanced investment in our future growth. So that also will let some of the increased revenue improve our profitability level. We are, at the same time, I would say, maturing the operation -- investing in the operation and building our capabilities and processes so that we are prepared for the coming scale up in product sales. But really good pattern. But really good pattern so far this year. And just to recap that, strong momentum, 107% growth growing in all segments. Year-to-date growth close to the financial target. Improving EBITDA and increasing the share of product sales. So if we put the year-to-date and the quarterly performance in perspective, so on the one hand side, looking at the business unit proportion of sales development and then, on the other hand then the revenue type development. So we have really strong growth in both business units from 2021. But as you can see right now, Wireless is growing at a faster pace than Photonics than also increasing the share of total revenue. So coming from in 2020, situation where Photonics was much stronger and much larger part of the total, so now it's a more balanced business in the company. And product sales, as we said, is growing. The share is still a little bit too little compared to where we want it to be. But again, we see an improvement now in the quarter. So to that point, and I would say this is probably the most important sort of financial KPI that we can be tracking. This is the quarterly sales from 2021, and the first thing you can see is it's clearly a step change for the past 4 quarters in the revenue level. So coming up from around SEK 25 million to now SEK 50 million and above. And as we want to point out here in Q3, picking up the share of product sales again to above 30% from a few quarters of the lower share, but maybe even more important the absolute value, SEK 18 million. If we look, it's the highest revenue from all quarters that we have been looking at from 2020. So assuming in a little bit in the segment reporting and the Photonics business. So as you can see, strong growth in 2023. On EBITDA level, we haven't really been able to turn that into an increased profitability. I would say that's primarily driven by the nature of the business that we have at factory. We have in operations, and we are now preparing that for the increased scale up for commercial volumes. So we are really well positioned, I would say, for what's coming next year. If we look at wireless specifically, here, it's a more clear view with a really sharp revenue increase and as sharp improvement in the profitability level. So as you can see, basically half the loss that was made in 2022 to the last 12 months now in 2023. So I would say in both business units, there is work ongoing of improving operations and making it more stable, including implementing ERP systems. And in a small company like ours, that's -- I mean, it's a big thing, but it's not a huge risky project that it can be in other companies. This is quite small scale, but it's still something that really is good and important and prepare us for the future. So another thing being a growth company. Of course, it's the access of capital, and how we work with our cash flow and funding. And given the sort of market and access to capital, we have taken a view now to, as we said, focus more on customer-funded development rather than maybe in the past few years, we have done a lot of development of our own products. So the capitalized R&D has come down and also both in absolute values and in percentage of sales. And that's a clear priority that we're making right now. And also in the total CapEx we're keeping on a sensible level. And I would say the CapEx that is non-R&D is also, to a large extent, driven by customer products. So it could be investments in IP that we need for the customer project, for example. And this area is something that, of course, it's absolutely central to us. And that's why also, Anders mentioned, we're now looking into not having to invest massively in new production sites for the Photonics expansion, but really looking at a hybrid solution, which is much less capital intense. So again, looking at our financial performance in perspective, growing revenue, improving EBITDA and most importantly, probably, we're reducing the burn rate and really showing, I would say, dramatic improvement now in our cash flow consumption in the last periods. So creating sort of a palette of our important financial KPIs and how these curves are looking. We are quite satisfied now with, as I said, the current momentum that we have, really strong growth, curve pointing in the right direction. The revenue in absolute value also increasing. The product share in percentage again in Q4 that -- in Q3, it's kicking back up in absolute value, which is not shown here, we're definitely satisfied with the improvement. EBITDA also turning the right direction, and the cash flow curves as well are improving. So to summarize that up, again, last 12 months, 100% growth. The company has a balanced and diversified sales distribution, really important. We are improving our capital efficiency. Capital-efficient profitable growth is really our -- what we're focusing on. So we're really planning our R&D and where we spend our resources. So the target now, the next step is to become EBITDA positive. And obviously, after that, is to scale up the business and also become cash flow positive, and we are on a good path towards that. So again, capital efficiency, a flexible business model, and we're working really with positive feelings forward ahead of us. Thank you.

Thank you, Lottie. We are a couple of minutes ahead of time. I hope we already have Andy McKee online. And we're going to go into our Photonics business that Andy is driving. So here we go, Andy. Over to you.

CTO and also the Managing Director of the Photonics team over here in Scotland. Next slide, please, Anders. So today, we're going to start to talk about the Photonics business unit and try and give an overview of the markets that our products go into, and why we have a competitive edge in those markets and where our customers choose to work with us? Maybe just quickly go back to the agenda slide, please, Anders, which is Slide #2. So we'll go into a bit more detail about the markets that we participate in, not get too technical, of course. That includes silicon photonics is a very important area for us. Optical I/O that we've touched already in the presentations for generative AI applications, available technology, LiDAR, two very important areas for us. Talk a little bit more about the foundry capacity expansion project that we've embarked on over the last 6 months and then finish off with a summary. Okay. Next slide, please, Anders. So just a sort of top-level view of Sivers' Photonics. So we are the most advanced supplier of custom III-V semiconductor lasers. So we are based over here in the U.K. We are sort of relatively well-established business. We've been working for more than 20 years. We're very well known within the industries, both designing and manufacturing a broad range of III-V photonic devices. As Lottie just mentioned, we are slightly different to the wireless team in the sense that we have our own fab here in Scotland. We have a world-class 100-millimeter Indium phosphide wafer fab with a potential capacity of 5,000 wafer starts per year. So today, we offer to our customers a complete end-to-end chip solution from design through NRE development, prototyping, qualification through to volume manufacturing. So that's really where we sort of find a niche in the industry today. We're almost unique in terms of offering that full service across the supply chain. Today, we have 82 members of staff based here in Glasgow. And as Anders mentioned, we are a key strategic supplier to many Fortune 100 companies and Silicon Valley start-up customers. To that end, I think around about 75% of our sales are based in the U.S. Historically, we have produced a very broad range of devices within the fab. But now we're very much focused on indium phosphide-based lasers, and those lasers are getting to all of the applications and markets that we'll talk about throughout the remainder of the presentation. Next slide, please, Anders. Okay. So just some highlights over the past 12 months on the Photonics side. So we are sitting at year-to-date revenue of GBP 5.1 million after Q3. That's a 26% strong organic growth from last year. In terms of the orders pipeline this year, we're going to exceed financial year 2022 and all previous financial years. So that's a very strong trend on the orders front. In terms of customer highlights, we have now started on the sort of second development project with Ayar Labs. That's a $1 million development project working on next-generation laser arrays. We have a follow-on order with our U.S.-based sensing company of $1.3 million, where we're continuing to work on a partnership with them to develop such sensing technology. And then, of course, we have our historic largest customer, the Fortune 100 customer, where we're entering this next phase of the program of development, and we've got year-to-date revenues of GBP 3 million with those guys. So over the last 6 months, we've also kicked off this foundry capacity expansion project that we've touched on already. That really is evaluating potential partnerships and options to really sort of set up as a hybrid manufacturing capability expansion in anticipation of the high-volume production that we have visibility and forecast off already. Next slide, please, Anders. Okay. So today, Sivers Photonics, we are a critical technology company providing advanced laser sources for next-generation silicon Photonics applications. We are developing partnerships with world-leading silicon fabs, including IMEC and GlobalFoundries to provide customized laser solutions via established process design cuts, that's PDKs. We are supplying advanced laser arrays for high-performance computing, next-generation artificial intelligence clusters and applications, and that's through our partnership with Ayar Labs. We have a 5-year ongoing partnership with our U.S.-based Fortune 100 customer, which has generated, to date, $17 million in NRE revenue. And we see sort of rapidly expanding addressable markets across the optical comp space and optical sensing with a combined term of more than $5 billion in the 2027 timeframe. And we're developing partnerships to support the high-volume production to that end. Okay. So I'll quickly discuss the 4 main markets that our products are going into today. So the top, we have, obviously, the AI and machine learning sector. So we are supplying high-power DFB laser arrays into this market. Those arrays are being assembled into innovative high-speed interconnect modules. Ayar Labs have been a perfect example of that. So these modules are really sort of driving the sort of next generation of sort of cluster design that companies such as NVIDIA are deploying into the market just now. So that's a very exciting area to be working in. Of course, we're also working on sort of wearable technology. That, again, we're supplying high-powered DFB lasers into this area. When we say wearable technology, we're talking about watches, glasses, headsets, hearables, and this is very much sort of biometric consumer health care aspect to this. So you can imagine, obviously, the market size in this particular area and how that may be applied by some of the big companies in this space. We've then got the more traditional data center space. So this is supplying, again, hyper lasers into pluggable transceiver applications within the data centers today deployed by the hyperscale guys, and this is typically setting at 200G line rates. That's progressing up to 400G, 800G and eventually 1.6 terabit line rate. So we are supplying devices that can enable those transceivers to move up to higher data rates. And then we have the sort of 3D sensing and LiDAR market. Ultimately, that's driven by the autonomous vehicle market. That's by far the biggest end market for this application, for this technology. Again, we're supplying hyper devices into this market. So we see some of our customers looking at different more short-term markets to gain revenue, but it's a very exciting space for us. So ultimately, we have access to sort of very large terms across multiple end markets. It may appear that we're quite thinly spread and like focus, but that's certainly not the case. We're delivering fundamentally the same lasers into different end markets. So it's really the sort of key takeaway from that slide is the terms are huge for indium-phosphide lasers and all of these markets have the same laser requirements. They're looking for hyper lasers, high precision, high reliability, of course. And often, the lasers are delivered in an array format. And to that end, we've got a very strong competitive edge in these markets. So [indiscernible] Silicon Photonics, just to put that into context, where a lot of our commercial activity is driven by. Next slide, Anders. So Silicon Photonics is basically leveraging the sort of existing well established, high-volume, low-cost manufacturing of the silicon CMOS industry to fabricate photonic ICs. Now you can actually achieve a lot of optical functionality on a silicon chip, such as routing, muxing, demuxing modulation and also detecting. But critically, you can upgrade light on a silicon chip, and that's where our laser technology is fundamentally required. Without III-V lasers, silicon photonics would not exist today. So basically, our lasers illuminate and optically power these circuits. Next slide, please, Anders. So this slide is really just a snapshot of the companies that are publicly working in silicon photonics. You can see, for example, we have Meta, Microsoft, Google, Amazon, Apple, Cisco, some very large companies, of course, in this area. Also the foundries, TSMC are active in this space. We have GlobalFoundries in there who we'll hear from later in the session. And we are very much one of the key enabling tech companies in this whole silicon photonics ecosystem, delivering our custom laser devices. Obviously, we've got multiple fast-growing markets are supported by this technology, datacoms, optical I/O, the wearables and the LiDAR market, all very heavily dependent on the sort of evolution of the silicon photonics ecosystem. So this slide really visually represents how our lasers are used in silicon photonic hybrid integration. So we are the leader in this technology and have sort of granted patents protecting our IP in this area. We have multiple commercial customers using this integration approach. It's by far the most established integration technology and the most flexible. So what we can see on this chart here on the left-hand side, we have a gel pack of indium phosphide lasers. So we are fabricating these little red chips. We then shipping these chips out to our customers. So the customers then manage the assembly of the laser chips onto the fully fabricated 8-inch or 12-inch silicon photonic wafers. That's done by typically sort of outsourced partners, guys like Fabrinet in the optics industry, [indiscernible] will be another example of that. So they're using a very high precision [indiscernible] placement technology to put our chips very accurately down onto the silicon photonic circuits. The positioning is extremely critical, but that determines the optical coupling efficiency between our laser into the silicon photonic circle. So that's really sort of a critical part of the process flow. On the right-hand side, you can see our laser chips, which have been flip-chip assembled onto the silicon photonic platform. So we have an ongoing development partnership with IMEC. We've been working with them for about 5 years. we've got further developments that will be published in the short term. And it's been a very successful project with us and has generated sort of commercial activity based on the publications that we've made with them. Next slide. So again, we've spoken already about developing closer partnerships with the silicon photonic foundries. So what we have here is a sort of non-exhaustive list of those foundries. So today, our lasers are already being assembled into all of the main silicon Photonics platforms, but we need to develop an easier portal through the existing silicon Photonics PDKs to make it easier for the customers to access our laser technology. And we're actively doing that today with the assistance of PDK software companies such as Synopsys, a very large company in the sort of semiconductor industry. Okay. Optical I/O, let's talk about that. So if we dive into the space, we can see here, again, we've got a very fast-growing market size. This is driven by the sort of ongoing displacement of copper by fiber in the network. And that's due to a number of reasons, including some of bandwidth requirements, signal integrity considerations and also power consumption efficiency. One of the most interesting numbers on this chart is the large percentage of the bond, the bill of materials for these optical modules. So up to 50% of the bond cost is the laser itself. So clearly, it's a very valuable component within these systems. Okay. So this chart here really talks a little bit more about the sort of generative AI landscape and where it's all headed. So these large language model complexity clusters are -- they're really increasing at a computational rate, which is outpacing traditional optical pluggable I/O technology even up at 400 gigabits. So Meta have actually recently publicly stated that GPUs and these costs can be sitting idle for up to 33% of the time, awaiting on input data. I mean, it's a staggering statistic. So really Optical I/O technology, therefore, needs to show a step improvement perhaps an order of magnitude and bandwidth to support the requirements between the GPU accelerators within these large language model clusters and Sivers' lasers are being deployed into these innovative high-speed optical modules operating at 4 terabits and above today. So this chart shows the sort of overall AI landscape. We have the opening eye software tools on the left-hand side of the chart, a lot of publicity about some of those companies today, through to the laser suppliers on the right-hand side, where we sit. Now clearly, NVIDIA are at the heart of the overall hardware supply chain here, and with our existing partnerships, we are very well placed to sell into that supply chain. So that's very exciting for us. Now on the right-hand side, we've only got 3 laser companies listed here. We've got ourselves, we've got Lumentum, one of the big incumbents in the industry and also MACOM. So we believe there's very, very few companies that are actually capable of producing these very high precision laser arrays for the 4-terabit optical I/O solutions. So we're in a very, very strong competitive position, particularly within this marketplace. So we just got the one slide on the Ayar Labs activity. I'm sure Charlie will cover that in a lot more detail later on in the session. What we fundamentally supply to them [ 8x ] DFB laser array. So each laser is individually addressable. Each laser emits a different frequency. Ayar Labs then assemble those into their Supernova light sources. The [indiscernible] then split them into each individual fiber. So there's 8 fibers coming out of that module. Each fiber is all 8 frequencies as a carrier signal. And this is the first product based on the CW-WDM MSA that has been produced so far. So the output from Super Nova module goes into their terrify module, which then can produce a bidirectional bit rates and length of up to 4 terabits per second. Okay. So I mentioned the CW-WDM MSA. So we were actually invited to be one of the founder and promoter members of this MSA. We managed to influence the standard that's now being defined and issued, and actually all of our array development activities today are based on the standards. It's been a very powerful process for us. Now you can see on the left-hand side, some of the other large companies such as the incumbents in the industry, such as Lumentum and coherence. They were also involved. And then we've got some very large companies on the right-hand side as an observer members like NVIDIA, Broadcom, et cetera. So this is really a sort of a very strong endorsement of our capability and our standing within the industry that we were invited onto this consortium and has given us a lot of sort of very publicity over the past 2 years. In terms of wearable technology and LiDAR, with wearables, again, we see the sort of same strong growth productions for define wearables a watches, earphones, AR headsets, glasses and so on. Ultimately, lasers are at the heart of these advanced sensing technologies. So again, we're in sort of a very strong position to drive growth in these areas. This is a slide that Anders as I've shown previously, but let's just go through this again, because it's important we sort of reiterate the position that we are in with our largest customer. So -- within the past 6 months, we have delivered in excess of 30,000 devices for sort of qualification and system-level testing. So it's a very exciting juncture in the project. This has been a very successful project over the last 5 years, working in both custom lasers and detector technology for sensing applications. And it's at a position -- at sort of critical position in the sort of program where we're awaiting feedback in the system level test to define the next steps of the program as we move forward into next year. And just to reiterate, the RFP numbers that we've supplied, that's request for pricing ranges from the sort of $30 million per annum rate up to several hundred million dollars per annum revenue that we've submitted to the customer. So it's a very exciting project and a very exciting opportunity for us going forward. Okay. We move on to LiDAR. So again, we can see a fast-growing market for LiDAR. Our customer base is exclusively focused on FMCW LIDAR, which can achieve the most demanded requirements and meet the hardest specs in the industry, for example. What they want to do is develop technology that can detect our brick on the road at 300 meters in front of the vehicle in darkness or very bright sunlight conditions. And this actually can only be achieved using very high precision lasers with narrow line [ wins ] and long coherence length. So we can supply those today. So again, we're in a very, very strong position to address this market going forward. And the LiDAR applications, of course, autonomous vehicles is the key application for the technology with the biggest market by some distance, but that's still some years away. Most vendors, i.e. our customers, are still looking for other markets to generate short-term revenue, and those are listed above EG, robotics, logistics and 3D mapping. So again, a very exciting area for us. Just a couple of slides towards the end of the presentation here on the sort of foundry expansion project. This is something we kicked off around 6 months ago. So we've been engaged with a number of prospective partners to secure high-volume wafer fab processing capacity. So just to put this in context, we're currently processing just under 1,000 wafers per year through our fab we see volumes well in excess of that from the markets that we have previously discussed today. We have a short list of 3 companies that we feel can support the ramp-up in volumes that we're protecting. Each 1 has particular strength, of course, and of 2 U.S.-based companies were 1 Taiwanese company were evaluating the sort of the detailed technical capabilities and capacity of each of those with a view to taking that down to a short list of 2 partners where we will do a sort of technology qualification in the first half of 2024. So that will put us in a very good position to sort of realize the demand -- support the demand of the volume ramps that we see across the markets from 2026 onwards. This slide schematically shows where that would really take us. So on the left-hand side, we currently outsource our epi wafers that is a scalable supply chain. -- moving out into the future. So what we do is then focus on step 2 and 3. So those are the key proprietary steps in the process flow that we do today, and we will scale up this fab in order to support with some very modest CapEx investment. So really, the hybrid outsourcing will be supporting Stage 4 in the process. So the source partner will be supporting the wafer fab, test singulation and potentially even shipping the products out to a customer. In terms of capacity, we're looking at putting in place capacity, which is 40x the current run rate of wafer fab that we actually process today. So basically, what we're doing here is setting us up a high volume supply chain, but also maximizing the productivity of the existing site that we have here today, focusing on sort of key proprietary [indiscernible]. And my final slide, just to summarize what we've spoken about today, we see a sort of a potential $5 billion TAM across the datacoms in the optical sensing markets. We are a critical technology partner to some of the world's biggest tech businesses. The Indian phosphate lasers arrays are key enablers for next-generation technologies and applications. We are the world leader today and custom laser chips for the silicon photonic ecosystem. Ayar Labs and Sivers are developing innovative optical IO technology that will revolutionize high-performance computing and further release the potential of generative AI in the future. We have an ongoing partnership with our large Fortune 100 customer that's delivered a 5-year revenues of $17 million. We're developing closer silicon photonic foundry partnerships, which will accelerate scalable pick solutions into high-volume manufacture. And the high-volume foundry capacity expansion project will significantly increase our production capabilities to meet the demands that we see going forward. And with that, I will close and hand back to the floor and to Harish.

Thank you, Andy, for that deep dive into our photonics business. And now it's time for Harish Krishnaswamy, who is running our wireless business. Harish is also a professor at Columbia University within electrical engineering, and I'm handing over to you, Harish.

Thank you, Anders, and it's very nice for me to be here to represent Sivers wireless and tell you a little bit about how our business has been doing over the last year. If we can move to the next slide. So Sivers' Wireless today, especially through the acquisition of MixComm in February of 2022, has the broadest millimeter wave portfolio on the market. And I'll tell you a little bit more about that as we go down the slides. And this broad portfolio that also has the highest performing ICs and module solutions on the market has enabled us to have a very strong pipeline of design wins across our 3 verticals, namely SATCOM, 5G millimeter wave and 60 gigahertz. We're very excited to see that our lead SATCOM customer is ramping the volume production as we speak. We've received several orders that are in the millions of dollars in value and millions of chips in quantity that we are delivering on as we speak, and we have several more customers behind that we expect to ramp the volume production over the next couple of years. Also critical is, of course, our partnerships with key players in the ecosystem, and these include GlobalFoundries as the leading specialty foundry for the types of chips that we manufacture, but also Intel, NXP, Renesas, these are really blue-chip ecosystem partners that enable us to go to market in these different verticals and serve these design wins. And all of this is being reflected in our revenue growth over the last 4 quarters. So over the last 4 quarters, trailing 12 months, we have booked revenue of -- we have shown revenue of SEK 122 million, which represents 272% growth over the previous 4 quarters, which is certainly impressive growth. But we also have order bookings of the order of SEK 270 million, which guarantees future growth for 2024 and beyond. We'll go to the next slide. So what do we do in Sivers Wireless. So we serve the need for high-speed broadband wireless everywhere, which is something that we see growing within society without any bounce. Every year, the wireless capacity that society needs grows exponentially. And millimeter wave uniquely has the ability to serve that capacity. There are 3 different verticals through which wireless can be delivered to society, and that is through the 5G ecosystem, 5G millimeter wave FR2. It can also be served through the unlicensed 60 gigahertz band, which is sort of part of the WiFi ecosystem. And we also see nonterrestrial satellite communications beginning to serve that societal need. And we're active in all of these verticals. And really, what enables us to be active in all of these verticals is our foundational underlying technology. So all our solutions are built on high-performance silicon millimeter wave beamforming technology, which equally applies in each of these verticals. And so while we have different products for these different verticals, they all are based on the same underlying technology, the same highly differentiated IP and the same skill set that we bring to the table. The other megatrend that really supports our business is the resurgence of interest that we are seeing within the semiconductor industry. And so we've seen that across the world, whether it's in the U.S. or in Europe or in India or in Japan, for instance, there is a recognition that semiconductor manufacturing needs to be supported at the federal level that governments and countries need to invest in semiconductor manufacturing as well as chip design. And we're seeing a lot of investment through the form of these CHIPS Act being made into the semiconductor ecosystem. And we are already benefiting from this investment, both in terms of the strengthening of the ecosystem more broadly, but also in terms of funding directly into Sivers Semiconductors. And this is enabling us to address a very exciting market. So this is a view of the total addressable market for Sivers Wireless in the millimeter wave space. We see that today's SATCOM in 2023 is a $400 million market. 5G millimeter wave has been a little slower to materialize than what folks had anticipated and is currently roughly a $50 million market. But both are projected to grow, and we're already seeing evidence of this, not only through market reports, but actually through engagements with the customers at a compound annual growth rate of 53% for 5G and 15% for SATCOM, reaching levels of $400 million for 5G millimeter wave in 2028 and $800 million for SATCOM. So in 2028, basically 5 years from now, we will be addressing a $1.2 billion market, which is a very exciting opportunity given our positioning within the competitive landscape. And this exciting technology is summarized on this slide here. We have the broadest millimeter wave portfolio on the market. We have beamforming ICs for the 5G millimeter wave space. You see that on the top left. We have similar beamforming ICs, both bespoke as well as broad market chipsets for SATCOM in the Ka-band. And then we have highly integrated RFICs as we call them, for 5G as well as 60 gigahertz. But we do more than just chips. We also work on modules in which this chip is integrated, and we find that this approach of building modules around our chips both allows us to increase the value creation that we're bringing to the table, but also allows us to accelerate the time to market for our customers because they're able to take our modules and immediately put a system solution around that. And so on the system or module side, we offer antenna modules for 5G millimeter wave and 60 gigahertz as finished products, but we also offer them as reference designs for base stations, CPEs as well as repeaters. And we also work on algorithms that boost the performance of the overall system that would be designed into modem solutions offered by our partner. And in this regard, this broad portfolio is really unmatched within the competitive landscape. So on this slide, we're looking at a comparison of Sivers Semiconductor, Sivers Wireless to a variety of our competitors on the market. This includes very large semiconductor companies, such as Qualcomm or an analog devices as well as smaller privately held companies such as an Anokiwave or a Movandi. And you can see that other competitors are able to address a portion of the portfolio. Some have beamforming ICs, while others perform more integrated RFICs. Many of them do not do modules. Many of them are not active in SATCOM or in radar. Most are not active and repeaters. Given our ability to offer customer solutions across this entire horizon of offerings, we find that this enables us to get to design wins and offer full solutions to customers in a significantly advantaged way compared to the competition. But it's not just about the breadth of our portfolio. Each individual product is also the top-performing product within that category. So on this slide, we're comparing the output power and the efficiency of our beamforming ICs to competitors on the market. And you can see these competitors being color coded here based on the technology that they're implemented in. We have a couple that also use RF SOI similar to what we do. We have a couple that use silicon germanium and couple that use both CMOS. Across the board, we have 10x higher output power as well as 3 to 5x higher efficiency than our competition, which leads to a significantly better products for our customers. And this is something that is not just the product of our own competitive analysis, but we have seen this validated in print by our customers as well. A little bit about how we serve the market and what the ecosystem around us is. So we are a fabless semiconductor design company. So we designed chips that these chips are manufactured at external semiconductor foundries. We are partnered with IHP as well as GlobalFoundries, GlobalFoundries being the leading specialty foundry for the types of processes that we use. After manufacture of the chips at the foundry, they would typically be tested to ensure that they work as well as assembled into a package. And so this test and assembly process is typically done at overseas assembly and test houses, or OSATs, as they are called. And here again, we're partnered with the largest OSATs in the ecosystem, whether it's Amkor, ASE or JCET. And our foundry partner GlobalFoundries actually often handles test and assembly in a turnkey fashion. Once tested and assembled, our chips are then sent to the customer and the customer would handle the integration of our chips into the final end product, followed by selling of those products to the eventual customer who would essentially consume the product. So if you look at this slide, this really summarizes our various ecosystem partners were all critical in various aspects of our go-to-market strategy. So you see, of course, several big existent players here, as mentioned before, GlobalFoundries, Intel, NXP, Renesas. Many of these -- GlobalFoundries is of course, is our foundry partner, but the engagements with Intel, NXP, Renesas as well as WiSig Networks, as an emerging startup, MaxLinear as well tend to be engagements with companies that can provide a modem solution, which, when coupled with our RF solutions, can offer the full system. But we also have other very important partnerships. Richardson RFPD is the global distributor of our components across the world. Rohde and Schwartz is our test partner or in-house testing, et cetera. And so all of these partnerships as well as products have really led to the tremendous growth that I mentioned earlier. As I mentioned, looking at the last 4 quarters, we are seeing generally across the board nearly 200% growth over the previous 4 quarters. And aggregated, as I mentioned, we have 272% growth for the trailing 12 months. But not only that, we have an exciting pipeline of wins that builds revenue for the future. So if we go to the next slide, this is a summary of some of our major wins and milestones since the last Capital Markets Day. Most exciting is perhaps the fact that we have received several -- 2 volume orders from our SATCOM lead customer of value $1.4 million and $5 million, one in October of last year and the most recent one in August of this year. And so this really is supporting the volume ramp of this customer, but it's just the beginning. We're expecting more POs for the rest of 2024 and beyond. And so this will be a significant driver for our business. Of course, this customer also funded the record order of $16.4 million for the development of new chipsets for their next-generation terminal. But we also have customers behind them. Thorium Space is a customer that we're particularly excited about, and you'll hear their CEO, Pawel, present later in the Capital Markets Day about the exciting work that they're doing, but we're developing a custom chipset for them, which has been funded by them earlier this year. You'll hear a little bit more about that later today. And so I'd like to actually spend some time talking about what our unique offerings are in SATCOM as well as 5G and look at a couple of these customers as case studies. So in SATCOM, we actually had offered several unique features that allow our customers to then use those features to differentiate their products on the market. One feature is the formation of multiple beams. So of course, all our products center around beamforming, but in SATCOM, 1 of the unique things that we are doing is building chips that can form many beams at the same time. And this is particularly important for what's called make before break where you want your terminal to be able to connect to the new satellite before the connection to the old satellite is broken because it's leaving the field of view. And then when you go beyond 2 beams to 3 and 4 beams, you can also have terminals that can form simultaneous links with multiple orbits, not just LEO, but also MEO and GEO as well. And so that's a very unique feature that one of our customers exploits. Another very important feature in SATCOM is the ability to operate with very, very little noise as well as very high output power and efficiency. This is particularly important because, of course, terminals are communicating with satellites that are extremely far away. Here, it is universally recognized that our products have the best performance along these axes, and that is 1 of the reasons why customers come to us. And then one of the new features that we're looking to offer in future products is the ability to share the antennas or the aperture between transmit and receive. This also significantly reduces the size and the cost of satellite terminals and, hence, is very attractive to our customers. And so let's look at a couple of case studies. So our lead customer presented at our Capital Markets Day last year. They exploit the multi-beam feature of the chips that we build for them. And that's what really leads to differentiation for their products. As I mentioned, the beam-forming ICs that we have built for them are ramping into production as we speak. We already have 1.5 million chips totally that have been ordered and that are being delivered by us over the next few months. But we also have a very large development program for new chipsets for their next-generation terminals, which we expect to ramp to production in 2025. We're very excited about our next-in-line satellite customer, which is Thorium Space. and I don't want to steal too much of Pawel's thunder. He's going to present later today. But we are developing custom chipsets for them as well. We announced the development program for that in March of this year and that work is proceeding exceedingly well. One of the unique things about the work that we are doing with Thorium Space is we're building these beamforming chips not only for the ground terminal, but also for the satellite terminals that are in the space side on the satellites. And so this marks the first foray of Sivers Semiconductors into building space-grade chips. And we think that, that will be an exciting in the future. In the 5G space, the unique thing that we offer is that we have chipsets that can address all the different verticals. So if you look at this slide this is showing the different kinds of devices that are built for 5G millimeter wave, starting with user equipment such as phones and tablets, moving to CPE devices, customer premises equipment devices, which are the gateways that bring the Internet into your home and then going up to small cells and repeaters and then finally, base stations. As you go from left to right, the device becomes more and more complex with more antennas and, hence, higher unit cost. Of course, the volumes proportionately get smaller where, of course, smartphones and tablets are extremely high volume. CPE devices are still high volume because you have 1 for every home. And then, of course, as you get towards repeaters and base stations, the volumes become more moderate. And as a result, the chips that they demand are actually quite different. On the left-hand side, the user equipment and the CPEs require devices that are extremely low cost, but highly integrated and the performance can be moderate, while for small cells, repeaters and base stations, the chip cost can be a bit higher. But what is critical is to have extremely high performance in terms of output power efficiency, et cetera. And we offer solutions across the entire gamut of requirements and product lines. Our TRB series of chips are highly integrated transceivers that can be used in CPEs and user equipment, while our Summit beamfarming IC family is appropriate for the larger arrays that you see in small cells repeaters and base stations. And you see that reflected in our customer base as well. So I'm showing again 2 case studies here. We have our Tier 1 infrastructure vendor. This is an engagement that has dated back to the MixComm days, March 2019, and the product development is still going strong. Of course, it's taken a while because these are extremely complex systems, as you can see on the right-hand side. Where we are today is that our first-generation prototype has been evaluated. The second generation build is actually ongoing as we speak. We announced prototype orders received for that build in August of this year. And all of these are important steps towards the volume ramp that we see in the future. Another key customer is sort of an emerging startup company called WiSig Networks in India. India is an exciting market for 5G millimeter wave because the spectrum auctions happened recently, and there are lots of opportunities in India for a millimeter wave to serve use cases, which don't have a solution today, for instance, the distribution of Internet to rural areas. And that's literally the application that WiSig Networks is targeting. So we announced an engagement with them in December of last year to build a prototype CPE unit that uses our TRB modules and a WiSig modem that runs on an Intel Agilex platform, this so-called infra UE CPEs meant to be a backhauling unit that will be used to distribute sub-6 gigahertz signals to rural and underserved parts of India. And really why wireless is exciting for this is that it is very cost prohibitive to sort of lay fiber all over the country in India because that infrastructure doesn't exist. Where we are today is that the project concluded last quarter. WiSig Networks is then using the prototypes that we delivered to them to do POC trials, which are planned in 2024. And in parallel with that, we will have an effort towards the industrialization and commercialization of these initial prototypes. And so that brings me to the end of the presentation. Hopefully, what I've shown you is that we not only have the broadest portfolio on the market, but also the highest performance chipsets and modules across 5G millimeter wave, SATCOM and 60 gigahertz. This unique and highly differentiated set of offerings is keeping the stream of design wins going. We see consistent wins that we are getting with lead customers because it's allowing them to offer differentiated products. We are seeing the ramp to volume from our lead SATCOM customers with other customers behind them to follow. And this ramp to volume, along with other large development contracts, has really shown tremendous growth in revenue as well as order bookings, which ensure future growth looking to next year and beyond. Of course, what's important to be able to deliver on this are strategic partnerships with ecosystem players, which we have put in place. And then finally, I'll leave everybody with 1 thought, which is we -- this underlying foundational technology goes beyond these 3 verticals. It has the potential to impact other areas as well. And examples include the automotive sector, radar applications as well as new bands that are being considered for 5G plus and 6G such as FR3, which is in the 7 to 20 gigahertz range as well as the beyond 100 gigahertz or so-called terahertz. Of course, this is early stages for this type of research, but we're actively engaged in this as well. So that brings me to the end of the presentation. Let me turn the floor back to Anders, and it's been a pleasure to tell you about Sivers Wireless.

Thank you so much, Harish. We have now concluded the part of the internal presentations from Sivers, and we're going to get some 3 very exciting presentations. While we here take some coffee break, and we're going to be back in about 15 minutes, and there's going to be some videos for you online or you can go make your own coffee and then we see you soon. [Break]

Welcome back from this coffee break. My name is Anders Storm, and I'm going to present to you now the external speakers of this Capital Markets Day, and I'm very happy to announce Thorium Space CEO, Pawel Rymaszewski, who is with us here today, and we have about 20 minutes of that and a total of 140 minutes, I think, left. So very welcome, Pawel, and take it away.

Good afternoon. My name is Pawel Rymaszewski. I'm Founder and CEO of Thorium Space. As you see on the slide, we are a space company mainly, and that's what we focus on. Can I have the next slide, please? So we have been founded in 2017. So now it's 6 years' time. And during those 6 years we grow to more than 50 people, 45 engineers at the moment, about 10 of them is PhD. Also, we are really focusing on the new technology in satellites or in satellite communication. Historically, I came from big operators. Some of the other guys in the team also, they came from the big operators, the main ones. And we are at the moment in 3 locations. So we are in headquarters in Wroclaw, which is in south of Poland, where is the main lab there, and I'm now in Warsaw office, which is like small lab and business office. And there is the third one, which is on the seaside, the best one, that is the antenna and RF engineers mainly sitting. This, the third one is growing really, really strongly now. And if we can get another slide. We managed to come to solution to change the market a bit through different R&D projects. So at the moment, we are shifting from R&D company, which purely R&D company, which was doing only R&D projects, to the company which is providing products. And our all knowledge and IP knowledge which we have, it came from 5 different projects, which have been supported by mainly the EU funding also MOD funding. So in total, roughly took more than EUR 30 million. And we managed to come to the point, when we become very good in antennas, in arrays, starting from E-band, so it's like H gig and going down to the Ka-band. Then we discovered that we need something better, and this is the story with Sivers because we managed to find out that we need some special chips. We need somebody, we need some partner who will help us to give us this technology or to make it as we want. And we start working for more than a year now. It started with 5G, then it moved to the SATCOM. And this is where we are. As you see on the slide, there is something somewhere 5G, but we are -- maybe not giving away, but we are shifting away a bit from it. So we focus on 2 things. One is the space, as it's been said in some minutes ago by Harish. We mainly came for the chip which can work in space. So space grade chip, which will be a very big adventure for both of us, I mean, for Sivers and for the Thorium. And then, of course, the chips for the terminals, which we are doing for the ground segment. So if you can skip to another slide. So our terminals are active arrays, of course, double beam active arrays. We already managed to build the terminals. We already have a product for Ka-band, which is not using Sivers chipset or Sivers Thorium chipsets, it's using different one. And it's already been tested and it's like in production version. The difference, which we wanted, it was make it before break it on both up and down. So we need a special chip, and this is where we work together. We already know we will invest -- this is important message probably for you, for all the investors in Sivers. We will invest quite a lot of money for the next year or more, or probably more than a year in cooperation with Sivers because we need second generation. We need some agreement changes. But we got some road map, which we want to follow and work with teams -- between the teams from my perspective, it's fantastic. There are no delays. We work pretty well. We managed to get what we wanted, even more than what we wanted at the beginning, and this is cutting edge technology. And now we're just pushing harder and harder in space. That will be very interesting. And I will say that at the end, why. So if you can skip another slide. So one of the things is the terminal. The most important for me personally is because I spend all my life in the big satellites is the payloads based on active arrays. There was a problem -- or there is a problem still today. There is lack of devices which we can use for arrays -- active arrays on the satellite side because it's a mirror frequency of course. So this is where we we've been pushing for that. This is what we've been having the results already of the work together. We already know this payload will be absolutely game changer on the market, and it's becoming because what we are simulating and calculating it's showing lots of changes in the way the system works. And it opens up the cooperation with you guys with Sivers. It opens up additional opportunities and thus of course to growing much bigger. So we managed to combine the cooperation with you and the cooperation with Teledyne and some other guys and build a special system, which is, we call it like flat satellite, which is not really true, but it looks like flat. So there are only arrays, direct radiating arrays, And this is where we're targeting as a main product at Thorium. And I think we are on a good way, which is digital beamforming and hybrid beamforming using the subarray based on work with Sivers. So if you can skip another slide, yes. So part of it, so it's like a side effect of our cooperation and these chips for the terminals, it's the way we can provide solution, critical solution for defense market. We are still Thorium Space. But in a few weeks, we will become Thorium Space and Defense. This is where we are changing now slowly because of this. So we will be providing very small terminals kind of modules, let's say, for the drones, for the medium- and long-distance drones. And that's mainly because we are in a situation where it's extremely needed and that's the only good solution where you don't lose the connectivity and you don't risk the guys on the ground. That's purely defense business. We've been not trying to go there by ourselves at the beginning, but that's the life. It became like very important part of us, and we already start working with big vendors. We shouldn't tell who is that, we won't, but let's say, the big ones. And that's one of the likes, which has been separated from us. So we split -- we really split the company in two things; one, which is really satellite or space there outside the earth and the other one is terminals on the earth. The third one, what we call it is the chips because that is a part of the team, which is working with Sivers mainly, not only Sivers, let's say, 70% with Sivers on the [Indiscernible] chips, and we work also on the digital side. So if you can go another slide, this is something which comes to critical part of Thorium. What we started a few years ago and the reason why I made this company happened, it was the way the new satellite should look like. So it should be software defined. It should be smaller. It should be generic, which means whatever you want to do with it or if it's commercial or [Indiscernible] or military or whatever, this is the same hardware. It's just the applications and the software you use differently. So we managed to come through many, many years, starting from 2019, we start working on the payload to come to the solution, which is already validated by ESA. So it means we have been given the teams from ESA for free really at some stage to help us to develop new technology. And because of those work and those hard times where we've been checking if it's really working and if it's not working, how it will be, we managed to get involved in a national program and to get involved in ESA ARTES program, which will be announced, we already know, but officially end of month. We will join big program as a company, and we will start doing or building the real pilot. That's -- for us, it's a huge step because that's the payload, which is for the [indiscernible] satellite for GEO orbit, not even LEO. So it's -- we're going with the full power now. And what we want to do during this time, it will take probably 5 years' time -- so during the 5 years' time. So what we will have is we will try to get those chips done together, certified and get space [radiation] ready and tested because we want to focus on that in our payload. So it will be in use there. So that's very good times coming to us because that's challenging for sure because space is hard -- that's really hard, but that's something which push us a bit. And what is going with this is the new market. I mean we're becoming one of few on the market in Europe who can provide the payloads, SATCOM payload. And 1 of 2 probably in Europe who can provide -- may be 1 because we managed to work with somebody, to provide very small satellite, which the big ones doesn't have. And that opens up new story in Thorium. So the next year will be a bit different. This is where we are. We don't want to go in other markets. For sure, we will move a little bit from RF to the digital RF, and this is what we are doing really with the Teledyne and some other [Indiscernible] and the NanoXplore through ESA. And we want to focus on this. You can see some new features, which will happen on the payload. So we have beam hopping, again demonstrating beam shaping interference, localization and all that stuff. This is all the technology we develop in-house. We all develop in house, not the chip, not -- and the rest is ours. And that give the new way the satellite can work, and this gives the new tools for the very critical communication. And also just to mention, we are added to the IRIS2, European constellation for the secure connectivity as one of you who can provide the technology. So this comes with the chips for the space, mainly. That was the interest. So this cooperation, which started more than a year ago, in [indiscernible], it started really in Poland, then become for us, this is the most important factor now. The most important milestone at company really because we shift completely to beam steering and the space, et cetera, with the nice partner who can provide us devices, which we couldn't get from the market at all because they didn't exist. And that would push us to the new life really. And yes, and this is how it goes. So we will be working more with Sivers. What we see will be also trying to get more with Sivers Photonics with [the lasers] because we need them for digital. That's something which not many people know that we do that. And that gives us very nice opportunity that it's still in Europe. That was what we've been facing because we didn't want to go outside Europe. We want to focus on the partners in Europe mainly because of some governmental projects. And now it's possible. And because of that, we got what we wanted at the beginning, just rough figures. It's more than [EUR 30 million] payload, which will be a big step, and it will be all done in Poland. So if you can skip another slide, I think this is the -- yes, this is what -- what shows here, it's also kind of what will happen during this development. So we will give the payload, which can connect with any different type of network really, and protocols and wave forming systems, et cetera. And this is like a [indiscernible] router can connect anything. And that gives really agile connectivity and it gives the unlimited possibilities really which can make from it. And again, the missing element, which we've had for many years, was the very small beam former, which can do the basics [indiscernible] stuff on the satellite, which means the opposite frequencies than the ground segment. And all the work which we are doing now, it was -- or it's possible because we will include that. Just to tell you rough figures, that's from interest, it's whenever we will use this technology, we can reduce the power on the satellite almost -- or more than 10x really to get the same functionality. And that's a very huge impact on the cost of the satellite and the weight of it. And this is what we will push starting from the end of the year very aggressively also on the market. So it will give for the Thorium, yes, for sure, it gives because we already are talking with the customers about that, but also for the for the partners, it will give a bit of advantage, and we will need much more of work from on both sides. And of course, it gives the money. So I want to thank you for the trusting in us at the beginning that when we came with the SATCOM chip, I know you didn't want to really look on it because it was just crazy a bit, the one which is on the space side, but it opens up a new chapter here and now it's validated on as a system level design, it really makes sense. So for us, this makes sense completely. And we look forward in the future, really. So that's the message from us. It's just the beginning of the big longer cooperation. So yes, this is just the business model. So this comes with the payload. We also will be providing Satellite-as-a-Service. That's our idea. That's still in the negotiation, but probably will happen with the first one. So you don't need to be really experienced with the satellite. You can get all the support and the services based on that. But that's the future. We have some years to do that. There are already sponsors for that. So it's kind of good times. And of course, because of that, we will need much more from you. So yes, definitely, we will need much more from you. So thank you again for inviting me for this meeting, and thank you again for the really nice cooperation up to now.

Thank you so much, Pawel. Thank you for that. And we are now coming into the next speaker. I'm checking here to see if there is people online. Yes, thank you for that. So we're starting a little bit early here, and it's Charlie from Ayar Labs, who was here last year as well, but now we're going to talk a little bit more about AI and actually how Ayar Labs is a vital part for the future there. Welcome, Charlie.

Thank you, Anders. Can you hear me okay? Just sound check here?

Yes.

Okay. Very good. And you'll be presenting my slides, and I'll just tell you to advance as it proceeds. So first off, my name is Charlie Wuischpard, I'm the CEO of our labs, and I want to thank Anders and the Sivers team for inviting me back to the Capital Markets Day. I'm actually on a holiday here in Mexico. So if you hear children in the background, hopefully won't, but you'll have to forgive me, but I did want to participate this morning -- or this afternoon for you. We've had a long-running relationship with Sivers. And so what I thought I'd do in sort of big pictures, show some of the progress. You'll be hearing from 1 of our partners, GlobalFoundries after me, which has been also a key participant and partner in this journey for us. But first, just an overview of Ayar Labs. The company was founded in 2015 based on research that went all the way back to 2010. And remember, we're focused on silicon photonics for data communication here. We're based in the San Francisco Bay Area. We have 2 locations. We're actually now over 130 employees, mostly still engineering and advanced degrees, more than half are PhDs and various science disciplines. As you can see, we spent quite a bit of time covering all aspects of our solutions from a patent and IP perspective, and we've raised substantial funding. I'd show a couple of -- not all, but some of the notable financing sources. And I've separated in the top row, which our financial investors primarily and have come in at various stages and mostly have all participated through multiple rounds. The bottoms may be a little more interesting, which is the strategic investors we have, and you can see it's quite a list in the industry, in the semiconductor industry. And it's -- in my experience, it's relatively rare. I will add that TSMC also invested just this summer. We don't have them on the page, but quite a broad collaboration and part of this is because we feel that for a technology like this to truly come to market successfully, it needs the help of all these partners. If you'd advance to next slide. Again, a little splash page here of awards and recognition we've received. We've actually got quite a bit more than this. But the nice thing is it's -- we're definitely a known quantity in the semiconductor industry and closely watched by both investors and participants in the industry. Next slide. So the way I try to describe this, and I'll show a few slides and kind of relate back to AI a little bit as that -- if you boil it down, the fundamental problem, the physics problem we're facing is that the energy required to move increasing volumes of data, even over short distances, over copper, starts to exceed the energy available to compete on the data. You're starting to see this today, and you can see how the industry is reacting by building much more powerful data centers, rack densities are going up, but you know that this cannot continue forever. And the opportunity really is that if you replace these short-reach copper links with optics, then it unleashes a whole host of benefits that can be had at the system level by creating different system architectures, new energy-efficient improvements and so forth. And this 1,000x is actually a customer statement to us and sort of design points we're working on with our customers, not something we just invented. But that's the fundamental problem. If we go to the next slide, that starts to translate in the -- this starts to translate into challenges we're seeing even today. And certainly, now with the explosion of interest in demand around generative AI just in the last year, it's really put a spot light on technologies like ours. And you can see that one of the problems here is that -- and there's lots of slides like this, but one of the problems is that, the communicate -- the percent of time spent in communication across some of these large innervate AI clusters. It's starting to be quite substantial to the point where it's becoming one of the major bottlenecks in the efficiency of these new architectures. It's one of the reasons we have such interest in the industry by the largest players. And so this is here today, and it's certainly, as model sizes continue, it's not going to get any easier. We advance to the next slide. And we've actually sized this market. And this is a slide we've adapted from a presentation a few years ago that actually Cisco gave. But the idea and what we often talk about is that optical communication has been replacing copper for decades really, first, at long distance, and then at shorter and shorter distances as data rates rise. We're talking about short-distance interconnect. So you often see this on a motherboard on a system, or you see it going between a base station and a tower in a telecommunications environment, but we're talking about distances that range from centimeters to meters. Now our technology is tested out to 2 kilometers, but we've really focused on this much shorter reach, which today is predominantly served by copper and is in that transition phase. And in that sense, you can think of it as a brand-new market opportunity, a brand-new TAM for not just us, but others like Sivers and so forth. I mean, until 2030, we've sized it to be quite a substantial market opportunity. And if you do your research, this has been validated by a number of industry watchers as well at various relative sizes, I would say. But this gives you an idea of the focus. Next slide. And so we call it Optical IO, and I think that's really started to stick in the industry. Now there is another category called co-packaged optics or CPO, that's really been more associated directly with Ethernet implementations. And this is actually a little bit different, but very similar in characteristic. And it's delivered as, today, 2 pieces. One is a silicon photonic chiplet that we call TeraPHY. And I've noted that, that is manufactured in the GlobalFoundries' 45-nanometer photonic process. You'll hear from Anthony, the General Manager of that group here after me. And the other is the SuperNova light source. And you can see that the chiplet is embedded as an embedded device associated with compute ASIC or memory module. And the light source sits external. And I'll talk a little bit about that in more detail. So -- by the way, my screen is half cut. So I don't know if that's -- I'm only seeing part of my slides, but maybe that's not the way for everybody, but I'll try to put this in context of the common devices you see in the data center today. So what I'm showing -- those 20 devices I'm showing on the right are our 100-gig transceivers, something you would see and that's why the deployed in data centers today. And those are the pluggable devices that sit on either side of an optical cable. And I'm trying to draw -- I draw a relationship between that optical technology that exists today and it's moving to 400 gig, 800 gig, 1.6 tera. So there is a road map for these pluggable devices, and I compare it to our first product, the TeraPHY chiplet, which today is doing 2 terabits in a very small 6-millimeter by 9-millimeter form factor. And you can see that the technologies obviously are quite a bit different and the benefits and requirements are different. I mean, the devices used in those transceivers would not actually fit or be applied to the application that we're serving today. And you can see that we measure it in terms of aggregate data rate, energy efficiency, latency is very important and also cost reduction. I mean, there has to be an economic benefit, both in terms of performance and price performance at the end of the day. If we move to the next slide. So the way we've -- I've tried to just -- it's quite a bit different -- these slides are different, Anders, than my slides. But I've tried to show here -- there's a -- there should be a blue background with some words, but I'll try to describe what we're looking at here, which is, the way the architecture works in general, is that you've got a -- let's say, that SoC would be provided from Intel, NVIDIA, AMD, could be a host of others. And what you're seeing are 4 of our silicon photonic chiplets manufactured at GlobalFoundries that are right around there with fiber attached. Now I am also showing the external laser, and you can think of that as an external power supply really providing the multi-wavelength light source into the solution. And then the fiber that's going up to the upper left is really the transmit/receive fiber. So we're sending light in via the Sivers' manufactured laser solution that we're using. And then we're transmitting and receiving through this electronic photonic chiplet, like I said, is manufacturing at GlobalFoundries. One reason we do this is because we could have chosen and some try to put lasers embedded in the SoC. That's a very high temperature environment, and lasers tend to suffer in terms of reliability and efficiency at high temperatures. And so I think if you were to do the research, you'll find that it's often the case now that this concept of an external light source is the preferred course. So I have a few pictures kind of following here. The next -- if I go to the next slide.

Hello Charlie, can you hear me?

Yes.

There is a cut and paste here. That's why the slides are looking a bit strange, but we're going to change that for Anthony afterwards; unfortunately, right now. But I think you know your slides well. So hopefully that works...

I can -- there's a little word up in there that are missing -- no, it's not a problem. I show a picture that Intel shared publicly just recently as an example, I will show some pictures to try to put things in context. And then I think, Anthony, who follows me, can really talk about sort of how important silicon photonics is for the future and the future of computing and the capabilities that you have developed. But this gives you an idea of some of the different multichip packages that are possible, and this is the whole promise of chiplet-based architectures going forward is that you can mix and match various functionalities without changing the core compute silicon, if you will. And this is the FPGA road map. But you can see in purple there are the addition of optical chiplets and some of them are coupled in the upper right with analog digital converters on the other side for various RF applications. There's other in the bottom right that's coupled with AI, ML accelerators and HBM, or high bandwidth memory, and those will be more sort of compute focused applications. But you can see that part of the road map here is to add this capability of optical IO going forward. So I just want to put that in context. Now if you go to the next slide, the next few are -- oh my goodness. The next few or various pictures of our technology. And the writing in the upper left, it's kind of blanked out by white there, really is showing the capability of what we're demonstrating -- what we've demonstrated more recently. And I had 3 bullets. And it was really that this demonstration that we showed, which is this form factor is a common form factor used in data centers called a PCIe card. So if you opened up your generalized NVIDIA box or Intel box, you'd find a number of these compute accelerators of various types. And what we showed was really air-free transmission, which translates to latency, means we don't have to do -- we don't have to correct any errors in transit, which adds overhead and latency. What we're showing actually here in this demonstration is 8 terabits of full duplex communication at less than 5 nanoseconds latency, consuming 5x lower power than other technologies. And keep in mind, the road map you often hear about in optical communication is the 100-gig transceivers than the 400 gig, the 800 gig. And here, we're showing 8 terabits across really 2 chiplets. So a game-changing level of communication efficiency and bandwidth out of these very small chiplet devices. If you go to the next slide, I think I've got kind of an explosion here that shows the inerts of it. And I've drawn some -- and what you're looking at here, first is the Intel FPGA. That's the one with the lid on and the expanded picture below. And you can see in circled in red, there are 2 of our photonic chiplets that are under that lid. On the right-hand side, you've got the 2 lasers powered by the Sivers' laser arrays. And so what you're really looking at is that the lasers are feeding the optical power around fibers on each on the top and bottom of that card, comes around, the fibers are heading into the chiplets, and then the transmit/receiver the IO is coming out to the connectors on the far left of that card. But what you're looking at here has never been accomplished before. So this is an industry first. It really shows what's possible in terms of capability for the future. And it's been very exciting. In fact, if we go to the next page, I'll show just a few more things. And I kind of touched on some of the high-level integrations. And when you see -- I don't want to show the expanded picture too is that we're showing a 500-meter cable that's showing the connectivity because people often -- for the longest time, people didn't know if this was possible, and they didn't know if it's possible to any sort of distance, and we certainly wanted to prove that. But in terms of just some key innovation areas, I mean, for the chiplet, it's really the silicon photonics fabrication process and PDK that we've worked with GlobalFoundries for so long, but that's actually fundamental to the technology we've developed. The new devices that we've developed, these are based on a micro ring resonator structure, which we could spend a lot of time. The fact that this is a monolithic chiplet, meaning we're combining all the electronic, digital, analog, mixed signal and photonic devices in one piece of silicon, and the fact that we're employing advanced packaging and fiber attached technologies. On the SuperNova side, we chose to actually use proven laser technology. We've got it now able to be delivered in multiple form factors depending on the application. And we believe that this is already a high-volume manufacturing cost optimize, and we're continuing on that journey, but there's quite a bit that goes into this solution. Now if I go to the next slide, we were -- it's a little advertising here. We were blessed to be chosen by the U.S. government, the White House. There was a Demo Day 2 weeks ago. This demonstration was showing the best of American made technology that's been partially funded by the government. And we were 1 of 6 demonstrations in the microelectronics regime. So nice accolades and good visibility for the continuing work that we do with the U.S. government and others in the industry. I'm almost done, I have like 2 or 3 more slides. But I wanted to sort of give you a feel for where this -- where we've come on this journey. It starts with -- it starts with, back in 2018 -- I joined the company in 2018, coincident with the first substantial financing what I would say is the Series A financing. And so a lot of the early work was done on the actual devices, the micro ring resonators, the photonic process that we use with GlobalFoundries just sort of refining the design. In 2020, we had our first samples of both chiplets and lasers and then started to show full integrations and started sampling starting in 2022. And it's continued into this year with various levels of integration. Where we've been spending a lot of time over the last 12 months is really refining the manufacturing process, qualifying the technology for high-volume manufacturing, working on all the things that are important for commercialization, yields, costs, quality and reliability, sort of failure and time statistics. But certainly, this technology, it's nice to build one, which no one's ever done before, except IR, but more important is the capability of building these in the millions and building them reliably and working very closely with our supply chain and our customers to enable this technology. We believe this will be fully production ready by end of year '24. And however, we see the large volume ramp starting in the '25, '26, '27 timeframe. Although as of this year, we've already shipped over 6,000 units. We just received another order for 1,000 last week, and we've tested over 100,000 units thus far as part of our statistical analysis and testing and qualification. So quite a bit of activity in that range. And then if I go to the last page or the next to last page, I'm giving a sense of the road map. So what -- we've been working with to date is really in the 4-terabit chip, which think of -- we have 3 sort of scaling vectors, if you will. Macros can be associated with the number of fibers that are used -- that are connected to each chiplet and that are powered. The number of lambdas or wavelengths or the number of wavelengths per fiber, the laser that's powering those is provided by Sivers, as I've mentioned. And then the data rate per wavelength of life it's carrying. And so you can see that we've got quite a bit of scaling that can be done across all 3 of those vectors. And our customer interest is kind of lays across the spectrum. One of the big volume areas I believe we'll see is in the 8-terabit domain where you have 8 to 16 fibers running 8 to 16 wavelengths and running at 32 plus gigabits per second. And that's one of the design points and one of the designs we currently have underway. We are receiving already and working through test on the 22 and 24 generation chiplets. But I think the important thing is to see that in the world of semiconductors, you can't just build one solution and call it done. Things are moving so quickly. You have to have a road map of capability, and that's certainly what we're showing here. And I guess the last slide is really just a statement from one of our investors -- important investors NVIDIA that it really recognizes that the next generation of speed up, the advancement of Moore's Law, as we know it, really requires new technologies. And optical IO is certainly one of those that's been selected as that is that high-promise technology for the future. And so I'll stop there, and thank you for your time, and I think Anthony is after me, so you'll probably hear now the rest of the story.

Thank you so much, Charlie. I'm sorry about the slides. We exchanged them when we get it up on the Internet afterwards, so you can see the nice slides you made. And I wish you a very good vacation now and you can go back to the [indiscernible] hopefully some margaritas or something like that.

Well, thank you. Actually, Anders, if you don't mind, I'd like to stay and listen to Anthony's and then I'll drop.

Yes. Okay. That's fine. They can wait for 20 minutes, I assume. Now we have Anthony Yu from GlobalFoundries, who is going to have a 20-minute presentation. Thank you, Anthony, and very welcome to Sivers' Capital Markets Day.

Thank you very much. Can you hear me?

Very much so, yes.

Okay. So I can go to the -- do you want me to present or are you presenting the slides...

I am moving them ahead here.

Very good. Well, first of all, good afternoon, everyone. I'm Anthony Yu. Very pleased to be here as part of Sivers' Capital Market Day. I'm based in New York. And I managed the Silicon Photonics product management offering within GlobalFoundries. If you go to the next page, a couple of introductory slides. GlobalFoundries, it's a little bit cut off. I think I have the same problem as Charlie, but I think the relevant facts are there. GlobalFoundries is the third largest foundry in the world. In 2022, we did about $8 billion in revenue, shipped about 2.5 million wafers. We are a very focused foundry. I'll explain in subsequent slides how we select our business and our customers, of which silicon photonics and in particular, optical chiplets are a main focus point for us. We've got about over 200 customers in 2022, with over 13,000 employees and a very IP-rich innovation-centric company with more than 9,000 patents. Let's go to the next page, please. Our manufacturing facilities, our silicon wafers are basically based in 4 locations from the bottom to the top Burlington, Vermont, which is a former IBM facility, IBM Microelectronics, was acquired by GlobalFoundries in 2015. That's actually how I came to join GlobalFoundries. We have a 200-millimeter factory in Burlington, Vermont, mainly focusing on mixed signal and RF technologies, RFSOI, silicon germanium, and wide band gap gallium nitride are the main technologies in our Burlington facility, to about 250,000 wafers per year of 200-millimeter out of our Burlington site. In Europe, we have our 300-millimeter factory based in Dresden, Germany. There, we have the capacity of close to 700,000 wafers per year. Our main technology in our Dresden facility is our extreme low-power technologies called FDX, that's fully depleted SOI technology as well as NVRAM and BiCMOS light technologies coming out of our Dresden and very innovative facility in Germany. We also have both 300- and 200-millimeter facilities in Singapore with capacity, respectively, of 730,000 wafers and about 400,000 wafers. We've got a variety of technologies there, including a little bit of silicon photonics, but I'll be end of lifing that as we center our photonics solely in New York. But Singapore has a variety of technologies that are listed there, including RF and silicon germanium as well as some high-voltage technologies. But the site that is of note for this presentation and of note for me is the New York facility. That's where I am right now in our Malta New York factory. That's our 300-millimeter factory. Brand-new facility or a fairly new facility and certainly the flagship facility of GlobalFoundries. There, we can do over 400,000 wafers per year. It is our leading edge technology in the sense that we do 14-nanometer and 12-nanometer FinFET technologies, NVRAM, RFSOI, and we have a very exciting and flexible corridor for silicon photonics. Silicon photonics development as well as high-volume manufacturing will be in our multi-facility. We have plenty of capacity there to scale to the manufacturing volumes that you heard my good friend, Charlie predict will happen as we look into this exciting market that will leverage the photons in the media of fiber. So go to the next page, please. As I said, we are a very focused technology. If you go on to the web, or if you listen to our CEO, Tom Caulfield talk publicly about GlobalFoundries, our focus is on differentiated technologies. So as opposed to a foundry technology that we used to have, which was based on who could get to the smallest node fastest, moving to 7-nanometer, 5-nanometer, 3-nanometer, there's beauty and honor in that business model. We've chosen to work on a strategy based on highly differentiated silicon features. And it's really more guided by the megatrends that we see occurring in the world, in society. And I use those broad terms very, very specifically. Right -- from left to right, you're seeing many things happening in the world today, including most recently with all the hub, hub around things like OpenAI, but you're seeing then a real veritable explosion of data. In 2026, they're projecting billions -- I think the number here, it's 42 billion devices at the very edge of the network, generating about 180 zettabytes of data annually. So this is creating a real need for more capacity and more computing power within these data centers that are increasingly serving as a place where people monetize data. So business models are changing. Data centers are changing. Back in the days of the pandemic, we were using data centers to work from home, go to school from home and entertain ourselves at home. Now we're in an area where data is being manipulated and companies, especially in areas of things like OpenAI and ChatGPT in terms of how to manipulate this data with very low latency and be able to create these very -- these very high demanding large language models. Now as a companion to that, all this work that's happening in the data center is creating enormous pressure on the amount of power that's generated within the data centers themselves. I spent a lot of time on the West Coast with the name brands like Facebook and Amazon and Microsoft, and they all are very, very concerned, as everybody is concerned with the amount of power that the data centers are taking up. And tie it back to the enormous consumption and power linked to the explosion of data, there are doomsday scenarios, which are somewhat illustrative that says that we may run out of electricity at our current rate. Because by 2040, computing within these data centers may consume a significant percentage of electricity. Personally, I don't believe that 100% of the power is going to be going to data centers, but a large percentage of it is going to the incredible compute demands that are placed upon these data centers by these new applications and these exponentially growing number of devices, feeding into the data centers from the edge of the network. That's creating a change within the semiconductor industry itself of which GlobalFoundries is a part of. We're coming back to the change in business model that we pivoted away from in 2018, the scaling law known as Moore's Law is changing relative to nobody can now continue both from an affordability standpoint or even from a scientific standpoint to continue to proceed down the path of simply scaling to achieve more computing resource or power. And that's driving new architectures, many of which Charlie referenced in 1 of his -- couple of those fine slides, looking at things like heterogeneous integration and putting multiple chips of different functions with the same package and allowing room for new technologies such as photonics to pair with computing chips built in traditional FinFet to provide these incredible solutions driving the fourth megatrend that were happening here, which is the growth of artificial intelligence, machine learning and large language models. It was -- it just seems like -- you're seeing -- I can't believe it was a year ago. A year ago, today, I was showing my wife this interesting thing called GPT3. But since then, generative pre-trained transformer is a language model that's producing incredible innovations and incredible demand. I think NVIDIA will announce their earnings today, but we're seeing tremendous demand and tremendous growth in terms of meeting the hardware requirements for this new era that we're living in based on AI and ML. So these 4 trends are kind of driving what we've done, and I'm the architect of silicon photonics within GlobalFoundries. We were fairly fortunate in the sense that we started to invest and build this technology in 2018. But since then, these 4 very powerful megatrends have kind of propelled us forward into the right time in the right place. And I believe that working with Sivers, we will provide a really very powerful solution into these 4 trends in the next few years. Go to the next page, please. So as I hinted at, the main space for silicon photonics and in particular, the work that Anders' company is doing is relative to how do we change the data centers? Now data centers has been around for a while, and frankly, Photonics has been around for a while. Photonics was really amply used to communicate between data centers across long distances. But now we're seeing the photonics being applied, not just between data centers, and there'll always be between data centers, but not just between racks either, but now within the rack themselves. Data centers, the primary problem that they used to have is how to connect racks from rack to rack across these football field size data centers. Now we're seeing, again, part of the benefit of the AI, ML, large language models trend is trying to actually connect GPUs together to form a compute fabric. That's what Charlie was referencing when he said that co-package OpEx is mainly directed towards the applications for Ethernet. But we're also seeing now an explosion of a new market to connect GPUs together to be able to create the computing fabric necessary for these large language models. So generative AI is driving a complete reconfiguration and disaggregation of the data center, how well can you proportion workloads across computing facilities, across computing racks, across storage racks and across memory racks, but also how well can you connect GPUs in hundreds, if not thousands of GPUs to be able to support these large language model demands. From a standpoint of electrons versus photons, photons wins. My good friend, our CTO within GlobalFoundries, Ted Letavic has a 2-word slogan pinned up over his desk. We're nerds, I'll admit it. It says physics wins. Because you can't get any faster than the speed of light. So data -- from a standpoint of latency, data transported at the speed of light is way faster than copper. And more importantly, you have this effect within copper called joule heating, which is the interaction of electrons with the copper as it travels, which creates heating, which creates less power efficiency. We have the ability, as demonstrated with Ayar Labs and Sivers, to be able to put multiple carriers on a fiber without interference. You saw on Charlie's chart, he talked about 8 wavelengths per fiber, 16 wavelengths per fiber, 32 wavelengths per fiber on his road map chart. You simply cannot put 8 or 16 signals of copper on a single wire. That doesn't work. So multiple carriers in a fiber allows a very unique attribute to Photonics, which is brought about by working with GlobalFoundries silicon, Ayar Labs design and Sivers lasers for having a bandwidth multiplier and allowing you to very reliably and very neatly relative to power efficiency, scale bandwidth while keeping power efficiency and keeping power very, very, very low, treating that megatrend that we have in preventing data centers from consuming all the electricity in the world. Let's go to the next page. So here is a marketing chart of the silicon photonics technology that I offer. It's been branded -- if you were able to see the top of the chart, you can see the trademark that we call this. This is called GF Fotonix, with an F, F-O-T-O-N-I-X. That's the brand name of it. We've actually qualified this technology about 1.5 years ago. And we are very proud to be working with Ayar Labs to be featured at the White House, to be featured at various conferences and to be 1 of the 6 best technologies highlighted by U.S. government recently as -- ability to produce the most amount of data, bidirectional, 8 terabits, using this technology with the Sivers laser providing the light from the outside. From top to bottom, again, you really can't see the names on the chart, at least I can't. But you can see the various unique attributes of the technology, which included the types of devices that you heard Charlie talk about. The workhorse of silicon photonics from a transistor standpoint, the analogy to a CMOS transistor is called a modulator. So you can see the 2 different types of modulators that Charlie talked about, the Mach-Zehnder modulator and the ring-based modulators. These are all constructed with silicon, [ would introduce ] new materials to allow you to control photons on silicon just as we have been able to control electrons on silicon for the past 50 years. So this is an application of CMOS technology, of high-volume CMOS manufacturing in our factories within GlobalFoundries, but now instead of controlling electrons, you're controlling light as it passes across the chip with minimum loss. So you can see we also have a variety of passive devices like waveguides, which allow us to control the photons, steer the photons and control the polarization of photons, that's what's occurring at the 1:00 to 5:00 part of this chip diagram. And you can see in the chip the green cylinders with the 2 arrows, that will be the fiber that will be bringing the light from the Sivers laser, providing the light into the chip and controlling the photons as it works itself across the chip itself. On the left-hand side, in orange are the electronic elements. And this is what Charlie talked about. What's unique about our technology is it's a system on a chip. That includes the photonic elements, which is the photons coming in from the Sivers laser, with the CMOS, the high-performance CMOS to actually control and capture the photons, convert them back and forth from photons to electrons, electrons to photons. So this is our workhorse technology. This is our manufacturing technology that will be used to scale to the different products and volumes that you've heard so much about in the Capital Markets Day. Next page, please. So what is this thing called co-packaged optics? What does it look like from a manufacturing standpoint? And what are the innovations that we are investing in, just as Anders is investing in at Sivers? Well, as I mentioned on the left-hand side of the chart here, we've invested in a unique -- this is the only product offering in the world among our different Foundries technologies that have the monolithic integration, which is the same chip integration of CMOS FETs, high-performance RF CMOS FETs with photonics. The advantage of putting the electronics on the same chip as the optical components is you get better performance. You get a higher signal-to-noise ratio, which you need as you scale this thing up. So monolithic integration, by virtue of reducing the capacitance there, allows you to get a higher performance, less bit error rate. Remember, Charlie talked about the 8 terabits bidirectional, you don't want any errors there. You don't want to have any dropped bits or any mistakes that have to be corrected, and monolithic integration provides the highest level of bit error rate and performance across any of our competitive offerings. In the middle there is the critical thing. To take Anders' laser and deliver the photon seamlessly and cleanly without what we call insertion loss into the chip requires a very, very steady and very, very highly precise alignment of fibers with the light and directed into the waveguides within the chip. And then on the right-hand side, the innovation that Charlie talked about, where we have partnered very closely with Ayar Labs is to develop very, very powerful transmit and receive applications using microring resonators to be able to handle the 8 different wavelengths per fiber and moving to 16 and 32 next. These are smaller devices, they're less power hungry, and they are very, very fast and very, very active. So as we move toward optical scale-out, which I said was the key differentiator between photons and electrons, we'll be relying on these types of devices like microring resonators, which are about 5 microns in diameter. But -- so they're much smaller than Mach-Zehnder, which allows you to do a more efficient chip. Next page, please. So this is a picture from a publication called Applied Physics Letters, which is a nice depiction of what I'm seeing in the foundry world as this evolves. So this is a depiction of -- it's for co-packaged optics, but it basically depicts the trends that we're seeing, which are moving quite rapidly. So if you look on the upper left-hand side, that's Gen 1, which is so prevalent in the industry today. And what you see there that dark brown color chip sitting within the rack is feeding electrons out on those orange links, all the way out to what's called the faceplate of the unit, which basically converts the orange electron signals into photons, and then it would be passed out through the fiber coming out of the Gen 1 front part of the faceplate. That's what called pluggable optics, and that's pretty much primarily in the data centers today. What we've moved to in the last few years is called on-board optics. We can see the difference there as within the rack itself, you've got the ASIC in the middle there still, but now moving closer to the ASIC now are the transceivers. Those are those silver-colored rectangles. So you move that closer because as the data rate increases coming out of the ASIC, the rate of compute, you tend to lose a lot of signal as you move across those long traces shown there in Generation 1. So they move to a higher bandwidth. You have to move the transceivers closer to the ASIC to avoid signal loss and actually allow you to keep the power lower. That's called Gen 2. Where we are today is we are now seeing the first input of what's called Gen 3, and that's the work that we're doing very closely with Anders and with Charlie's company, with Ayar Labs, and that's called 2.5D co-packaged optics. So there, you can see the difference, if you squint hard, you'll see that actually on the ASIC package itself, you now have the transceivers, the optical chiplets, similar to what you saw in Charlie's chart, sitting on the same package as the ASIC. So you've got them almost adjacent to the ASIC itself, which allows you to have very, very high bandwidth, very, very low power, so very good power efficiency and relying on many of the features that I showed you in previous slides within the foundry itself to be able to support the features within the optical chiplets for co-packaged optics. Moving to the right is where we're probably headed to in the next 2 years, which is 3D co-packaged optics, where everything is going to be on one chip. The optical chiplets and the ASIC will all be integrated together. But right now, I think the dominant space where we'll see the volumes come out, as Charlie indicated, I agree with him, probably in the 2026 time frame will be in the form factor of the 2.5D co-packaged optics. Next page, please. So in summary, it's been my pleasure to be here today and kind of describe the world as I see it within the foundry. Now foundries, we only survive and make money if we can see volume. We are a capital-intensive business, and we are interested in high volume to take advantage of the large number of wafer capacity we have in these incredibly expensive billion-dollar factories. But I think that this inevitability, based on the trends that we described on our first couple of charts, we think that if you look at the important metrics of data transport within the data centers for things like generative AI, the key metric is going to be how much data can you actually stream out of these ASICs, that would be measured by gigabits per second, per chip size, so you have to normalize that by millimeters divided by your energy efficiency, which is number of picojoules per bit. That's a very, very wonky way to describe it. But the best way to describe it is you want to have maximum bandwidth for minimum energy. And you can't get that balance without moving toward photonic solutions. There's no other way to do that based on physics. So to solve the problem that we have at the end user, which is the data center, the only way to solve this is with photonics. So you have to be able to break the electrical reach limitation. You saw that happening with my depiction from the Applied Physics Letter diagrams. As you've got to be able to get around the fact that you can't get to those data rates with long reaches without losing lots of signal. So if you do this with Photonics, it allows you to be able to basically reengineer and re-architect through data center architectures. I think this thing called artificial intelligence and large language models is not a fad. It's here. It's going to transform the way that we live, to transform the way that we work and transform everything in ways that we actually can't describe today. But I think it's going to likely require both photonics and co-packaged optics, and I would actually modify this chart to say optical chiplets, to be able to address what I described before, which is the way to link hundreds, if not thousands of GPUs together to handle these large language model computing problems. So there's a whole set of innovation knobs that I've tried to describe in a couple of charts in terms of how we at GlobalFoundries are going to bring in new optical materials to work within the confines of our existing CMOS factory, which allows us to scale this with high manufacturing yield and high volume, but bringing about enhanced performance. So that's actually my trick that I have to do is basically work within the CMOS factory, take advantage of the learning and the scale there, but bring in new innovative materials. You've heard about all kinds of cool stuff, I'm sure, earlier from Anders himself, the fine works they're doing at Sivers. You've heard Charlie talk about the innovation within the chip design itself and what they're doing with their product. We have done the same thing within GlobalFoundries. We've innovated as well. And so my closing statement here is I'm really proud to work with people like Ayar Labs and especially proud to work with Sivers to develop an ecosystem that's going to meet the challenge of this as this thing rises to volume over the course of the next couple of years. Thank you very much for the time today, and it's been a pleasure.

Thank you so much, Anthony. And I just want to say to you that everybody have seen the slides well here, even if you couldn't see them correctly. So -- and we will make sure that the slides looks really well. So thank you so much for that. And we're now going to go over to the Q&A session.

So thank you. And me and Lottie is coming up here, and we're going to take some questions in the audience as well as we're having questions coming in from the online viewers. I've heard we have as much as 180 people online here. So that's really encouraging, I would say. So let's start with the first question. What is the biggest challenges for the coming years? And I would say that what we've been talking about today is to go from the 30% to 80%. So in itself, it's not a challenge to do that, but the challenge is, of course, to make sure that our sort of fabless things that works and we're getting to a fruition and, of course, that our customers also becomes as successful as they need to for us to be successful. So that, I think, is sort of where we are in that piece. Another question, can your technology somehow be used in microLED screens? And I would say that you could probably do things in that direction, but that is nothing we are doing today. Let me see. Is the TAM value a yearly market cap or a total value of the market? So yes. So it is a total value of the addressable market for these kind of chips or these kind of lasers and so forth. So it actually describes how much everybody can sell into a market like that in the future. And sometimes it's used for many years. It could be used for one specific year basically. In the slide, it says hearable, can you please tell me more about that? And that was in Andy's slides where we see some future where consumer electronics needs to use different lasers, for example, you can use them for touch or near touch or something like that to be able to sort of steer where your headphones are doing, for example. Standards should be important. How you work with these? So yes, so if we look at the Wireless business, there is standards for 5G, for example. There is -- and there are also standards for WiFi and so forth. So all the chipsets and things are done according to those specific standards. If we look at what Andy said today, this is a very long abbreviation, there is a standard for how the lasers will actually sort of send the light and which frequencies and that sort of thing. So yes, it is very important, and we are part of standardizing these things, especially in the laser side of things. In the 5G things, there are many others that do that, and we more follow on that end. When do you think you need an answer for the Fortune 100 to get into full production? And I would say that answer is changing a little bit with the very good news now with the hybrid manufacturing stuff we're looking at. So I don't have a direct answer right now how much it will take and how long time it will take. But at least it will be much shorter for us to get to full production with this hybrid part than if we do it otherwise. And then when will the new photonic product line be ready for production? And I think we need to come back to that as well. But in a sense, we have the production lines and our customer or our sort of new outsourced partners have production lines already that we can sort of use. It's going to be more of work when it comes to sort of qualifying our chips on those production lines. And that is, of course, a task we now look at and specifically with those customers, and the ones we will choose will be quite important. You're welcome to write more questions. But do we have questions in the audience here? We have a mic over there. Yes, [ Johan ], Danske Bank?

Can you hear me?

Yes.

Great. I have a small timing question on the first Fortune 100 customer in terms of the hybrid solution. Right now, you have shipped 30,000 chips to this customer for qualification and system tests. How long would it take for the potential hybrid manufacturing supplier to also perform the system and qualification tests that I assume is required? And a follow-up on that is in terms of product release window. How would you say that the 2024 product release window -- is that window closing for a hybrid solution? Or I know we're more looking towards a 2025 product release for that.

So if we look at sort of our outsourced possibilities in the hybrid environment, of course, there is more of a qualification issue. And depending on the qualification -- exact qualification hours for that customer, I would say it's up to something like 6 months for full qualification on a new process in a new fab. When it comes to the window for getting something out in '24, I think that window is, of course, challenging, and I don't see that they have sort of either talked about anything in that direction currently. So I don't think we see a sort of a product window that will fit for '24 actually.

All right. And then I have a question about the SATCOM customer that you have. You received $5 million order for that. How far in advance would GlobalFoundries need to book capacity for potential follow-up orders from this customer?

So it depends a little bit. But I would say that the minimum is something like 8 to 12 weeks when you get an order that you can deliver. But it's, of course, our friends at Global who -- depending on what they have. Therefore, we're also looking at these kind of things that Anthony mentioned in general, not just for the photonics. But also, since we are using our 5G and SATCOM development also in their fabs, in 2 of the fabs he mentioned, it's important to make what's called a corridor to sort of address capacity in those fabs. So depending on how you do that and if you do it correctly, but it doesn't need to be 6 months or 12 months. It could be as little as down to 8 weeks, but it also depends what is available. But normally, I would say 3 -- more 3 months, in that sense.

All right. And I have one more question in terms of financing for this hybrid solution. I assume you still need to do some kind of investments in your own facilities. How -- if you look at other companies in the semiconductor industry, it's not unusual that they receive, like, prepayment from customers, in this situation, would be the Fortune 100 customers. How do you view on that the potential of receiving that kind of aid from -- or prepayment from your customers?

We haven't entered that discussion yet with that specific customer. I would say that there are possibilities to do that, if they're willing to, but it's too early to say, I think. What was the first question, sorry, I just like...

No, I think that was it.

That's it. Okay. So yes, we have to come back to that, I think, when we can see the sort of the next phase and what they're saying in that sense, yes. Okay. While we're changing over the mic, we have some other questions here. Tell us how things are going and developing in India. Thank you. So I think Harish went through that quite well in his presentation, but we have already delivered our piece on this. They are finalizing their technology, and they're going to do proof of concepts now I've heard late this year, but also starting early next year and so forth. We have Jesper from Redeye here as well for a question.

So regarding SATCOM, you're obviously excited about all your customers and so on. And like looking into the next quarter and also years, it seems like ALL.SPACE could ramp up quite significantly. And yet you say that you're particularly excited about Thorium Space. So could you just like talk about how you view the potential on both of these customers?

I think we are as excited by both of them and they're sort of different excitements. I think short term, it's what Pawel was talking about for Thorium is that the space side of things and what they are doing is quite exciting per se and also from the beginning now, it's a lot of sort of development partnerships with European space agencies and everything that Pawel soon is to announce what they are doing. So that is a very exciting piece on that side. When it comes to ALL.SPACE, we are in sort of 2 large ongoing project where the first project is now ready, and we see volume production coming in. And of course, one of our main goals is to get to a lot of volume production. So that is, of course, an important piece here, to see that ramping, and we're just sort of scratching the surface on that ramp, and the possibilities are very interesting in the piece with ALL.SPACE from that perspective. And then, of course, in the longer term, we'll also see that from Thorium.

All right. And then also, one from my side about the potential ramp-up of the first Fortune 100 customer. I mean could that potentially start in like low volumes on your existing fab assets, kind of like ramps up in just small volumes? And then like alongside that, you will make the system test for the new hybrid solution. Could you just elaborate?

Yes. I think that the ramp probably could start like that. So I mean we provided now 30,000 chipsets. As Andy mentioned, we have a possible capacity of maybe 5,000 wafers a year in that fab. We're using maybe 1,000 wafers a year currently. So we have excess capacity there. But of course, seeing the total numbers they're looking at and depending on the sort of 2 different volumes we've seen in the RFP, it's going to be sort of interesting to see what kind of device and how that ramps and what their needs are. But I think that the big -- the absolutely biggest volumes are, of course, further away and more connected to smaller devices in bigger volumes.

All right. And then just one last about CapEx need. I mean say that if you were to like buy a new fab, say that the cost would be something like SEK 1 billion, and this would dramatically reduce that CapEx needed. Like ballpark numbers about the investments for even a hybrid solution?

So it's a vastly different cost. And I think it's even that we can fund that sort of with sort of cash we have now and the cash we're going to generate in the future. So the preliminary numbers we have now, which is not sort of finalized in a way, shows that it's sort of a very minimal thing to actually get what we're doing in the step 1 -- step 2 and 3, which is still going to be internal in the sense to -- rather, the external step, which is the sort of $100 million investment to get to 30,000 wafers a year. Fortunately enough then, we have 3 different sort of outsourced opportunities here who have done that investment already. So we would not have to do it.

All right. And then just about, I mean, cash or the eventual need of cash for any investments. It seems like if this hybrid solution would fall into place, do you see any other like big investments that you would need to do except for eventual M&A and so on, like, before you reach positive cash flow?

No, not what we see right now. And we're making the plans for '24 as we speak, and I don't see any sort of specific need, and we're sort of trying to reduce and only do CapEx when absolutely needed. And the plan is, of course, to make sure that we can sort of do what we want to do and need to do with the current cash we have at hand. But Lottie, if you want to say something?

No. I mean just echoing that we are planning right now as we speak, but we have no initiative sort of in front of us in terms of equipment or CapEx need other than what you talked about that we are planning for. So...

Okay. Thank you, Jesper. So it's -- we have some more questions coming in here, and I need to translate from Swedish to English immediately. For a while ago, you talked about building fabs in the U.S. and that's sort of one of the hottest thing that could happen. And why are you not doing that? So yes, one of the big reasons, of course, is that we don't see that -- if we don't have to, we don't need to do a CapEx investment in this. So it's a huge project and it's a huge risk to do that, of course. We might do it long term in the future, but right now, we don't have to take that risk. And in the current market, that type of risk is absolutely something that people are not sort of willing to invest in, I would say. Another Fortune 100 question. Are they all or mostly developing photonics application within different areas compared to other F100s. Thank you. I would say that there are multiple things that these Fortune 100 customers do, but they are, of course, using a lot of photonics application in different ways. When -- if we look at the top 10 companies in the world when we talk about, they all do data centers, they do technology, and they need to use, as we've seen here today from Ayar Labs and GlobalFoundries, they need to use lasers in different ways. So that's been the part where we've been really successful. Many of the Fortune 100s that we are seeing today are not so much into 5G or SATCOM. So that's why we're so much in the Photonics business, I would say. Do you believe that you will get both the sender and an emitter -- or the emitter and the receiver for the Fortune 100 customer? It's hard to say. I mean there -- we're still in the RFP process and everything, but there is definitely a chance for that since they have invested quite heavily in both chipsets. You are talking about 60 customers engagements today. Do you think that's enough for your future earnings? Is there any bottlenecks to bring in more customers? So no, not really. And I think that's one of the sort of efficiency in our model that if we have these solutions with the fabless and the hybrid fabless solution. And there's a lot of chipsets that can be sort of reused in different verticals. It doesn't create the bottleneck. And we have definitely seeing a very exciting pipeline on new customers coming in. So we can definitely add to that [ safe ]. How is the status for Fortune 100 customer 2 and 3? Yes, those are still sort of research type of projects. It are long times -- as you've seen with these customers, it's taking 5 years. I think those customers have been in the pipe and discussion for around 2 years now. So we are sort of waiting -- in a waiting mode if they're going to go further or not. So we don't really know yet what's going to happen there. Do you expect more orders from ALL.SPACE or the Fortune 100 this year? Good question. Maybe, maybe not. We'll actually see. But I mean it's a short time to the end of the year. So we'll do that information when it comes. What's your expectation on Ayar Labs and how large orders from them? I mean we got sort of an NRE order here in -- I think was it July, August, somewhere. And that is, of course, to get to a phase where we get to volume. So from that perspective now, we are sort of going to deliver on that $1 million order. So we don't foresee orders sort of short term in that sense. What are the expectations -- no, it's same again. Yes, there's more questions around the same here that we already answered around what -- do you need more money in the near 12 months. That's not the plan, as we said. When will we hear about the forecast for '24? We have no plans as of now to give a forecast for '24. We're looking internally how we'll do forecasting in the future. That was the first time -- we did the forecast now for '23. We're going to look at if we do midterm, long-term or short-term forecast. So it's a bit early to actually say. I can also see now that we're actually 5 minutes past, and there's many questions here, but I think we answered as many as we could. And I would like to thank you all for joining us here today, and I want to thank Lottie also for participating and everybody coming.

Thank you.

So thank you so much, and have a great day. Thank you.