"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."
An F-16 pilot died when his ejection seat failed. Was it counterfeit?
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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.
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
¹ Source (a16z - AI for the Physical World, 2024)
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
$53B Fund for advanced semiconductor manufacturing, research and development
As demand for advanced semiconductors grows exponentially
¹ Source (Precedence Research, 2023)
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
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
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
Chiplytics Power Spectrum Analysis (PSA)
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
Chiplytics provides low lead-time Quickturn Sockets to interface with any package type
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Quickturn
Socket
Available to ship
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Cloud-based Electrical Testing
Includes PSA as well as electrical tests already used in SAE standards (AS6081, AS6171)
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 June '24
Robot automation demo (SOIC-14)
Socketless probing demo (BGA-169)
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And $1,000 per electrical test
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.
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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.
¹ Source (Semiconductor Engineering, 2020) | ² See Appendix for bottom-up market sizing
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2021
2022
2023
2024
"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
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To-Date
(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 $165k³
Customer Focus
Brokers and third-party test labs seeking high-volume electrical inspection
Revenue³
Growth
(Series-A)
Fundraise $20M | Burn $500k
Customer Focus
Scale broker offering including platforms that don't currently authenticate chips
Revenue
¹ KCNSC Budgeted | ² Astute LOI | ³ See Appendix for Proposed Seed Budget and Projections
Grants $110k (AFWERX Phase I STTR)
Revenue
Grants $3.6M (AFWERX Phase II + TACFI match)
Grants $5M (Expand to U.S. Army, DHS, DARPA)
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
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
Committed to date: $700K
Contact: steven@chiplytics.io
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
Burn Rate:
$165k/month
$2M/year
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 |
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© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
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
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
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
Other Noninvasive Inspection
Electrical Inspection
Manual
Automated
Memory Testers
Custom Socket Fixtures
Nokomis ADEC (RF Emissions)
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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
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
¹ Source (The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies, Bloomberg, 2018)
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.
Chip manufacturing uses massive amounts of water:
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
=
x3
Lake Union, WA
Per Year
Intel Processor
Bathtub
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
© 2024 Chiplytics Inc. Proprietary and Confidential. All Rights Reserved.