Business Strategy

MicroPower’s business strategy includes the following steps:

1. Complete the key product engineering tasks and deliver prototype modules.

Though the science behind the MicroPower chip has been successfully researched and accepted, and a significant proportion of the routine engineering tasks have already been completed, certain process engineering, device engineering, materials engineering and customer engineering work remains to be done. These are largely routine tasks with routine solutions in the semiconductor industry.

As a result of extensive testing, and following a close inspection of the likely temperature requirements in the waste heat market, we have selected the Lead Telluride (PbTe or PbSnTe) family as the materials of choice to develop the first working prototype. Lead Telluride is a good base thermoelectric which operates comfortably around the sweet spot for waste heat applications of approximately 350°C, and will enable us to achieve our goal of delivering 20% efficient thermoelectric modules by early in 2011.

Development of the prototype chips will necessitate the use of specialist equipment and facilities, which are being provided by Texas State University who are partnering with MicroPower to accelerate the development of the first Lead Telluride working prototypes.

Future engineering work will optimize conversion efficiency for given applications, extend the operating temperature range and increase the product life. In addition, the best path to volume manufacturing, using well-established semiconductor processes, will be refined and perfected.

For further information on the Company’s engineering development plans, please see Engineering Development.

2. Primary focus on waste heat applications, and establishing relationships on every level of the supply chain.

Throughout the development process, we will maintain a focus on the large markets in the industrial and transportation sectors, where the market size is many billions of dollars annually. Technically, this will mean an initial focus on the Lead Telluride family of materials which are most suited to the temperature range associated with waste heat – approximately 200-450°C.

In addition, from the outset, MicroPower has focused on developing the necessary skills and experience to produce chips only. Though other areas of expertise – module assembly, sub-assembly and system assembly – will be required to deliver final products, MicroPower’s Chips will be the chief enabling technology, with concurrent financial rewards.

In terms of business development, we seek to engage and form relationships with businesses at every level of the market ecosystem – from module manufacturers such as current thermoelectric operators, to end users and potential partners such as E.ON, Boeing or Rio Tinto Alcan.

The use of joint ventures and strategic partnerships with major companies is considered the quickest and best strategy for penetrating very large but complex global markets, such as power generation, automotive and metal production.

3. Penetrate the existing thermoelectric market estimated at $200 million per annum.

The current thermoelectric market consists largely of consumer cooling applications and certain niche applications, such as generating power for cathodic protection of oil and gas pipelines where factors such as geographical isolation dominate the purchasing decision.

Though not a primary target market, given its price and performance advantages, we expect our technology not only to enhance or replace traditional thermoelectric products over time, but also to expand the market for such products well beyond their present niches.

Given the necessity of engaging their module manufacturing expertise, MicroPower already has the main participants in the thermoelectric systems market as potential customers, either to license the technology or to purchase products. There are strong indications that the performance advantages, coupled with reasonable pricing, should rapidly build our market position.

For more information on this market, please see here.

4. Develop and sell a family of high-value, performance-critical converters. These markets are estimated at several billion dollars per annum.

These markets represent early opportunities of outstanding potential, and we intend to deliver leading edge, high-value products, working closely with established manufacturers and suppliers who already have a significant market for their products – leading to swift adoption, and, consequently, revenue.

For government applications, MicroPower will select partners among entrenched suppliers who are also prime contractors for new equipment development. We intend to engage with technology adopters who have identified mission-critical, high-value needs and will work with these partners to develop custom sub-assemblies and assemblies that will be embedded in the partners’ own products.

MicroPower is in fact already working with partners of this type to develop solutions for two applications in this space - battery rechargers for the military, and aircraft heat reclamation systems.

For more on these opportunities, please see the Markets section of this website.