Securing the Semiconductor Supply Chain

"The USAF Research Laboratory determined his malfunctioning DRS contained six suspected counterfeit Metal-Oxide Semiconductor Field-Effect Transistors (MOSFET), three suspected counterfeit serial flash memory chips, and a suspected counterfeit parallel flash memory chip."

- Air Force Times (Sep '22)

An F-16 pilot died when his ejection seat failed. Was it counterfeit?

Counterfeit microelectronics make it into our nation's most safety-critical systems

The $75B Open Market is the prime suspect

The open market is critical
for sourcing chips that are lower cost, faster lead time, or simply unavailable elsewhere.

High-reliability systems need this market
when single-source supply chains fail¹, especially for legacy chips such as in aerospace and defense.

Better inspection must be performed
to catch the latest counterfeit chips from overseas that flood the open market.

¹ Source (a16z - AI for the Physical World, 2024)

AI Chip Market Size Projections¹

(USD Billion)

$53B Fund for advanced semiconductor manufacturing, research and development

Securing the global supply chain is more critical than ever

As demand for advanced semiconductors grows exponentially

¹ Source (Precedence Research, 2023)

Automated, AI-driven inspection

for 100% test coverage

of mission-critical microelectronics

Our Approach

Chiplytics Microelectronics Inspection Platform (MIP)

Runs Power Spectrum Analysis (PSA), a rapid, generalized electrical test that detects subtle anomalies between parts

Turnkey automated electrical and visual inspection that handles high volumes and varieties of microelectronics

Chiplytics Power Spectrum Analysis (PSA)

Our Products: Thorough inspection, 10x faster

MSRP: $25k (90% PM) | Software: $10k / year

Sockets: $500 / part number

MSRP: $90k (90% PM) | Software: $500 / test

PSA is a novel electrical testing technique from Sandia National Laboratories that evaluates a component's unique response to a non-invasive signal to reveal subtle anomalies.

Advantages

Fast, non-invasive, and data-driven enables scalable 100% electrical test coverage
Reveals subtle anomalies such as differences in manufacturers, performance (e.g. binning), and degredation
Lower cost, more repeatable, and smaller form factor compared to traditional bench top lab equipment
Accompanying software enhances automation and scalability of data acquisition
Chiplytics provides low lead-time Quickturn Sockets to interface with any package type

Our Products | Chiplytics PSA

Quickturn

Socket

Available to ship

Cloud-based Electrical Testing

Includes PSA as well as electrical tests already used in SAE standards (AS6081, AS6171)

Our Products | Chiplytics MIP

Automation Platform

Adds automation and computer vision for comprehensive high-volume inspection

Socketless IC Probing

Enables immediate testing of components including complex package types with high pin counts

MVP ships May '24

Chiplytics Saves Brokers 2 Weeks of Lead Time

And about $1,000 per part number

Chiplytics enables microelectronics brokers to run SAE compliant electrical testing in-house rather than sending parts back and forth with third-party test labs, earning brokers more bids and higher profit margins.

Chip Authentication Market Size

Authentication for the Entire Open Market

Authentication for All Brokers

Authentication for SAE AS6081/6171 Brokers

TAM: Total Addressable Market

SAM: Serviceable Available Market

SOM: Serviceable Obtainable Market

Most of brokers' business (~80%) are from Contract Manufacturers looking for components that are cheaper and shorter lead time without any AS6081/6171 requirements. If inspection were fast and easy enough, brokers could test all components instead of relying solely on the trust of their suppliers in these cases.

Our beachhead market is brokers and test labs running inspection per the SAE Aerospace Standard for anti-counterfeiting (AS6081/6171), which is required by high-reliability aerospace and defense contractors².

Much of the $75B open market¹ operates online (Alibaba, eBay, and 1,000+ other online marketplaces). Chiplytics could charge a 10% premium for verification.

$7.5B

$100M

$500M

¹ Source (Semiconductor Engineering, 2020) | ² See Appendix for bottom-up market sizing

Early Traction

2021

100+ customer discovery interviews through FedTech Defense Startup Studio

2022

Company formed through Scout VC Incubator - $300k
PSA Commercial license secured along with Sandia funding for lab personnel - $40k
Chiplytics PSA prototype validated against Sandia equipment
Paid pilot run with U.S. Army DEVCOM - $5k

2023

Convertible note investment from Scout VC follow-on and New Mexico Vintage Fund - $375k
Research partnership with UMD's CALCE, leading institution for anti-counterfeit standards
Air Force Research Laboratory AFWERX Phase I STTR in partnership with CALCE - $110k
Fulfilled PO from Honeywell Kansas City National Security Campus (KCNSC) - $65k

2024

Commitment from KCNSC to budget for early version of the MIP - $80k
LOI from Astute Electronics to begin using the MIP in May - $10.5k/month

"The Chiplytics PSA system shows promise in being a screening tool for semiconductor technologies for use in commercial and DoD settings. The toolset was able to differentiate between differences in manufacturers, different date codes, and even different parametric qualities."

- Josh Hartsell, Engineer, U.S. Army DEVCOM

Today

Pre-seed

Next

Milestone

Seed

Fundraise $675k | Burn $35k

Customer Focus

DoD labs and research institutions in search of the latest advanced counterfeit detection

Fundraise $3M | Burn $165k¹

Customer Focus

Brokers and third-party test labs seeking high-volume electrical inspection

Revenue⁴

Hardware: $2.2M
Software / Testing: $4.9M/year
"Dozens of MIPs on the assembly line" (KCNSC), 4 brokers (SMITH, Velocity, Astute, Spirit)

Growth

Series-A

Fundraise $20M | Burn $500k

Customer Focus

Scale broker offering including platforms that don't currently authenticate chips

Revenue

Hardware: $10M
Software / Testing: $30M/year
5 DoD Trusted Suppliers, scale broker offering by 5x, ecommerce platform (e.g. eBay)

Roadmap

¹ See Appendix for Budget | ² KCNSC Budgeted | ³ Astute LOI | ⁴ See Appendix for Projections

Grants $110k (AFWERX Phase I STTR)

Revenue

Hardware: $70k (earned) + $80k (projected²)
Software / Testing: $125k/year (projected³)
U.S. Army DEVCOM Pilot, KCNSC PO for 5 PSA Systems, KCNSC 2024 budget, Astute LOI

Grants $3.6M (AFWERX Phase II + TACFI match)

Grants $5M (Expand to U.S. Army, DHS, DARPA)

Steven Dourmashkin

Matthew Skeels

Stephen DiBartolomeo

CEO

Former Founder & CEO of consumer electronics startup, Specdrums (Acquired 2018)

Masters Mech Eng - Cornell '15

CTO

5+ years experience as Hardware Engineer at Amazon Prime Air Drone Delivery
B.S. Mech Eng - Cornell '16

President

Former Navy Cryptologic Warfare Officer

Principal at Scout Ventures

M.S. Finance - JHU '17
B.S. Quant Econ - U.S. Naval Academy '16

A Team of Entrepreneurs, Engineers, and Leaders

Chiplytics is seeking investors for a $3M Seed Round (June 2024)

Committed to date: $700K

Contact: steven@chiplytics.io

APPENDIX

Seed Round Budget

Burn Rate:

$165k/month

$2M/year

Full engineering team will develop scalable MIP hardware and software
Head of Marketing & Sales will help execute go-to-market strategy
Research Scientist will lead government research, grant writing, and incorporating PSA into the anti-counterfeiting standards

Seed Round Revenue Projections

Broker	Labs	Tests/month	Hardware¹	MRR²	ARR
SMITH	5	600	$450,000	$300,000	$3,600,000
Velocity	3	150	$270,000	$75,000	$900,000
Astute³	4	30	$360,000	$15,000	$126,000
Spirit	1	25	$90,000	$12,500	$150,000
			$1,170,000	$402,500	$4,830,000

¹ Assuming one MIP ($90k) per lab | ² Assuming $500/test | ³ LOI signed April 2024 | ⁴ Fixed annual software fee for DoD

DMEA Trusted Supplier	# Units	Hardware	MRR⁴	ARR
KCNSC	12	$1,080,000	$9,000	$108,000

Chiplytics Bottom-Up Market Sizing

Number of AS6081 brokers / test labs	100
Average number of locations per broker / test lab	2
Average number of part numbers electrically tested per month per location	20
Projected sales revenue @ $90k/MIP	$18M
Projected recurring revenue @ $500/test	$24M / year

Chiplytics Microelectronics Inspection Platform (MIP)

Number of DMEA Trusted Suppliers	82
Average number of units per supplier	10
Projected sales revenue @ $25k/PSA	$20.5M
Projected recurring revenue @ $10k/year	$8.2M / year

Chiplytics PSA System

Electrical testing is generally ¼ the total costs of AS6081/6171 testing → SOM = ~$100M / year

Traceable

Destructive

X-Ray

Infrared

Electrical

Visual

✅ Fast and automated ✅ No SME required	✅ Very Thorough ✅ Can isolate defects	✅ Thorough ✅ Automated	✅ Thorough ✅ Automated	✅ Fast and automated ✅ Detects repackaging	✅ Very Thorough ✅ Data-driven ✅ Detects recycling
❌ Can miss recycling, repackaging, and tampering ❌ Requires coordination with OEM	❌ Part no longer usable ❌ Requires SME and chip design files	❌ Can miss recycling ❌ Requires SME and chip design files ❌ Slow	❌ Can miss recycling ❌ Requires SME and chip design files ❌ Slow	❌ Can miss recycling and tampering ❌ Requires golden sample	❌ Requires SME ❌ Custom sockets for each package type ❌ Manual

Solved using Chiplytics MIP combined electrical and visual automated inspection

Microelectronics Inspection Landscape

Other Noninvasive Inspection

Electrical Inspection

Manual

Automated

Memory Testers

Custom Socket Fixtures

Nokomis ADEC (RF Emissions)

Electrical Inspection Competition

Benchtop equipment

Cybord Kingfisher

(General Visual Inspection)

Keyence (Detailed External Visual Inspection)

Creative Electron

(X-Ray)

MIP

(Electrical + DEVI)

PVA TePla

(Scanning Acoustic Microscopy)

Battelle Barricade

Priority Labs CT625

RTI

ABI Sentry

Bowman (XRF)

Global ETS (3P Test Lab)

I-V Curve Tracers

PFP Cyber Chip Authenticator

Most come from overseas and are recycled off of old electronics products and repackaged to look new or have higher specifications (e.g. military vs. consumer grade)
Some are explicitly cloned or tampered with.
Counterfeiting is generally performed for financial gain, although occasionally as malicious attacks on organizations and national security¹

¹ Source (The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies, Bloomberg, 2018)

Where do counterfeit chips come from?

Climate Impact

Chip manufacturing uses massive amounts of water:

About 2,000 gallons of water required to manufacture a microprocessor¹
TSMC uses approximately 51 million gallons of water per day²
The global manufacturing industry uses 264 billion gallons per year³

Global semiconductor manufacturing emitted 77 million tons CO2 in 2021⁴

Chiplytics Power Spectrum Analysis (PSA) could be used to verify health and quantify lifetime remaining of used parts for legitimate recovery and reuse.

Chiplytics is in talks with IC Recovery, which has a proprietary solution for non-invasively removing chips from printed circuit boards.

x10

Lake Union, WA

Per Year

Intel Processor

Bathtub

Steven Dourmashkin

Matthew Skeels

Stephen DiBartolomeo

CEO

Former Founder & CEO of consumer electronics startup, Specdrums (Acquired 2018)

Masters Mech Eng - Cornell '15

CTO

5+ years experience as Hardware Engineer at Amazon Prime Air Drone Delivery
B.S. Mech Eng - Cornell '16

Advisors

• Dr. Guillermo Loubriel - Former Manager of Test & Failure Analysis at Sandia

• Brandon Smith - Former Deputy Director Defense Microelectronics Activity

• Greg Crouch - Former National Instruments Sales & Business Development Director

• Dane Reynolds - VP of Operations at Astute Electronics Inc

Engineering Team

• Tom Mikolyuk - Product Development Engineer (UW '23)

• Connor Dempsey - Electrical Engineering Consultant (Ph.D. UCSB '24)

• Aung Myat - Robotics Intern (UW '24)

• Aish Venkatesh - Software Engineering Intern (UW '23)

President

Former Navy Cryptologic Warfare Officer

Principal at Scout Ventures

M.S. Finance - JHU '17
B.S. Quant Econ - U.S. Naval Academy '16

Full Chiplytics Team

Chiplytics Deck May '24

By Steven Dourmashkin

Chiplytics Deck May '24

Chiplytics Pitch Deck

Securing the Semiconductor Supply Chain

Counterfeit microelectronics make it into our nation's most safety-critical systems

The $75B Open Market is the prime suspect

AI Chip Market Size Projections¹

(USD Billion)

Securing the global supply chain is more critical than ever

Automated, AI-driven inspection

for 100% test coverage

of mission-critical microelectronics

Our Approach

Our Products: Thorough inspection, 10x faster

Our Products | Chiplytics PSA

Our Products | Chiplytics MIP

Chiplytics Saves Brokers 2 Weeks of Lead Time

Chip Authentication Market Size

Authentication for the Entire Open Market

Authentication for All Brokers

Authentication for SAE AS6081/6171 Brokers

$7.5B

$100M

$500M

Early Traction

Roadmap

A Team of Entrepreneurs, Engineers, and Leaders

Chiplytics is seeking investors for a $3M Seed Round (June 2024)

APPENDIX

Seed Round Budget

Seed Round Revenue Projections

Chiplytics Bottom-Up Market Sizing

Microelectronics Inspection Landscape

Electrical Inspection Competition

Where do counterfeit chips come from?

Climate Impact

Full Chiplytics Team

Chiplytics Deck May '24

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