AGM update, page-5

I was also at the AGM. My points are as follows:


Timing
- a few weeks away from new wafer and there have a number of wafers at all different stages.
- from this if proven successful, 3-4 weeks of testing
- another month of so for packaging.
- the intimated that they would publish the results from the testing if successful
- from what they were mentioning and the steps still to play out to get a working chip onto a board for a roadshow (6-8 months).
- After Fred's previous imminent call I think they are now sheepish on timeframes and so they should be.

Results
- it appears the stiction issue is behind them, virtually a chip with no stiction issues.
- as we know we are now more about sound quality
- they had 4 wafers with all slightly different measurements on certain layers still although the one with the layers as they believed to provide the outcome they wanted was the one destroyed after a computer crash and when the computer reset it simply broke the wafer as the prober was engaged on the crash.
- Algorithms and packaging have been tested for certain drop and real world environment. Packaging is in Germany and once(if) full scale production is to occur, they have already spoken about moving packaging or having their own packaging local to where the chip/wafer is manufactured.
- half structures are still years away as a secondary product

General comments - takeouts
- Yuval is based in Sydney, although travelling between frequently (I asked him post meeting).
- Tower Jazz are putting a large resource into this as they have lowering capacity/production coming in the next 12 months and they are keen to fill the gap.
- from start to finish a wafer take approx. 4 months to produce. Layers/processes are approx. 12, but compared to other mems this is not high which for other chips CMOS can be 35.
- asked if they could release even sound examples to date, they said they contemplated but didn't want to until they were 100% happy with the measured output.
- Tower Jazz has large number of wafers at all different stages and if they are comfortable about processes in totality, they can simply have wafers coming through weekly for testing, display etc
- if another fab had to start producing, to collaborate everything to what Tower Jazz has already rectified, it would be a 12 month timeframe for another fab producer to come onboard.
- given complexity of the chip and the new processed, they have confirmed, all 120 people who have signed NDA are still happy to engage discussions when measurements are available from a fully functioning chip and Tower Jazz are happy to keep the manufacturing costs at the original agreement (no disclosed at the meeting).
- power usage compared to a current microphone is 20 times less, hence why it may be so vital on power usage alone compared to current speakers in say a mobile phone, equivalent to the usage of headphones rather than the load speaker.
- roadshow is on hold given what ahs occurred, but Fred said this could start again if results start coming in that are positive in the coming weeks. Essentially confirming that large amounts of capital would be needed for mass production but unless price of share are reflective of the completion of the process, they don't want this to occur.

There are other things people may comment but I have to go to a meeting. Im still highly positive but not certain in any way to say that it will be a month before we know positive news or a year. Stilling holding DYOR.

Good luck all.