Announcement PDF 4DS Memory Limited | ABN 43 145 590 110 Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271, West Perth WA 6872 +61 8 6377 8043 | [email protected] | www.4dsmemory.com ASX RELEASE 4 March 2024 4DS Australian Open Briefings Presentation 4DS Memory Limited (ASX:4DS) (4DS) (the Company), is pleased to attach the Investor Briefing Presentation for the Australian Open Briefing to be held this week in Sydney, Melbourne and Perth. The event host will be 4DS Executive Chairman Mr David McAuliffe, who will be joined by 4DS Chief Technology Officer Mr Ting Yen and Strategic Advisor to the Board Mr Peter Himes, who are both visiting Australia from the USA to update guests on 4DS Memory’s progress to date and plans for 2024. 4DS Interactive Investor Hub If you have any questions on this announcement or any past 4DS announcements, check out our Investor Hub. Like, comment, ask a question and view video summaries on important announcements. Shareholders can link through to the Investor Hub via: announcements.4dsmemory.com Authorised for release by David McAuliffe, Executive Chairman. ENDS Contact information Investors: About 4DS David McAuliffe 4DS Memory +61 408 994 313 [email protected] 4DS Memory Limited (ASX: 4DS), with facilities located in Silicon Valley, is a semiconductor development company of persistent memory technology, pioneering Interface Switching ReRAM for next generation gigabyte storage in mobile and cloud. Established in 2007, 4DS owns a patented IP portfolio, comprising 34 USA patents granted which have been developed in-house to create high-density Storage Class Memory. 4DS has a joint development agreement with Western Digital subsidiary HGST, a global storage leader, which accelerates the evolution of 4DS’ technology. 4DS also collaborates with imec, a world-leading research and innovation hub in nanoelectronics and digital technologies. The combination of imec’s widely acclaimed leadership in microchip technology and profound software and information and communication technology expertise makes them unique. For more information, please visit www.4dsmemory.com Disclaimer This release contains certain forward-looking statements that are based on the Company’s management’s beliefs, assumptions, and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of 4DS to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which 4DS will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. To the full extent permitted by law, 4DS and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this release (including, but not limited to, any assumptions or expectations set out in the release). You should not place undue reliance on these forward- looking statements. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward- looking statements. Page 1 of 1 MEMORY FOR THE AI AGE THE MEMORY THAT BREATHES MARCH 2024 Artificial Intelligence Nvidia Co-founder and CEO Jensen Huang described the emergence of artificial intelligence (AI) as the beginning of a new industrial revolution, emphasising that there’s an ongoing global ‘awakening’ concerning AI technology.1 He also believes that, over the next four to five years, a trillion dollars’ worth of data center infrastructure and hardware will be built across the world.2 TSMC founder Morris Chang recently revealed that customers have approached the company to build up to ten new fabs for AI processors, indicating a significant increase in demand for processors used in AI applications.3 Apple CEO Tim Cook, at the 2024 annual shareholder meeting, said his company is “investing significantly” in artificial intelligence.4 Sources 1. h ttps://www.businesstoday.in/technology/top-story/story/beginning-of-new-industrial-revolution-nvidias-jensen-huang-says-theres-an-ai-awakening-in-every-country-417256-2024-02-13 2. https://www.datacenterdynamics.com/en/news/nvidia-ceo-jensen-huang-predicts-data-center-spend-will-double-to-2-trillion/#:~:text=Nvidia%20CEO%20Jensen%20Huang%20believes,be%20built%20across%20the%20world 3. https://abachy.com/news/tsmc-founder-reveals-unprecedented-demand-10-new-fabs-produce-ai-chips 4. https://www.cnbc.com/2024/02/28/apple-annual-shareholder-meeting-2024-ai-investments.html 4DS: The Right Memory for the Right Market at the Right Time The New Age of AI Processing is built on decades of research into neuromorphic processing and Neural Net modeling These models require huge amounts of data and are the result of billions of weighted matrix calculations There is an explosion of new processor architectures in development to overcome the speed, energy and memory bottleneck challenges The introduction of a new non-volatile memory with high speed and high density ‘would initiate a revolution in computer architecture’* 4DS is that memory, at the right time, for the most important market in the world *Source: Institute of Electrical and Electronics Engineers. Generative AI Transforming the Compute Industry AI refers to a long history of machine learning development that has evolved over the past 40 years in the industry Machine learning is in everything from your home thermostat to your car’s antilock braking to your Alexa connected device Generative AI refers to the subset of artificial intelligence techniques that enable machines to generate new content, imitate human creativity, and produce realistic outputs AI models are built on different types of neural nets which use very large sets of data to create predictive models for different tasks (text generation, image recognition or generation, code writing) The 4DS Advantages Persistent Memory at DRAM Speeds Tunable Retention from Seconds to Days Low Energy per Bit Scalable to Any Process Node Analog Programmability 4.7ns write for 1 hour read – no refresh needed Highest energy optimization for warm data applications For Warm Data and Persistent Memory Applications By time or voltage modulation Single Shot programming Can trade off long retention for reduced endurance Simple fab processing, compatible with standard tools Low-cost BEOL Integration, compatible to any advanced CMOS logic process An Overview of Memory Terminology SRAM DRAM 4DS ReRAM NAND Volatile, provides the fastest read time, used for immediate access by CPU. But also large in size and power (6 transistors needed per cell) Volatile, provides large data storage capabilities with fast read and write times. Architected for large data transfer at high speeds. Needs constant refresh to retain data Persistent, provides hours of retention with very fast write time. Operates at the same speeds as DRAM Non-volatile, provides lowest cost per byte of storage. Architected for very large data transfer and storage. Slow write compared to DRAM MRAM, PCRAM, Filamentary ReRAM Warm vs Hot Data CXL or Compute Express Link Non-volatile, provides high density alternatives to Flash for advanced node processes. Speed and energy vary but generally slower than DRAM Different classes of data needed on demand by the CPU or GPU De facto communications protocol to manage Storage Class Memory What is PCMO and why is it unique? Current is spread across entire interface area Low current densities lead to high cell endurance Top electrode Thin oxide layer FAST Super fast programming Perovskite layer comprised of: Praseodymium Calcium Manganese Oxygen Bottom electrode One Shot write Area based current High endurance material E Field injects or removes oxygen from PCMO vacancies What is PCMO and why is it unique? continued _ High O affinity by top electrode creates an oxygen depletion layer at the surface junction (oxygen vacancies in the PCMO lattice) Pulse of electric field pushes oxygen back into PCMO, filling vacancies (very fast response: EPIR) When the oxygen is present the cell conducts and is said to be SET This is a reversible process, creating the on/off resistance states of the memory cell Total current is a function of this oxygen distribution across the oxygen vacancies as determined by the one-shot programming ReRAM: Two Different Technologies, Two Different Memory Solutions 4DS PCMO OTHERS – Filamentary Area based, lower current density programming, high endurance Filament based, high current density, low endurance for reliable cell Up to 109 Endurance Endurance can be as low as 104 Analog characteristics Primarily designed for digital use Persistent – tunable retention from seconds to days Non-Volatile – but requires strong error correction or high energy to create multiple filaments Long retention and short retention can be integrated on same chip Extremely fast EPIR one-shot response to programming signal – 4.7ns write, well within DRAM window Ideal for in-memory compute or Warm Data storage Iterative programming needed for reliable cell Used as embedded NOR replacement or CXL-based storage memory AI is Driven by Deep Neural Nets Data Pre-train Please write a story about a cat. Instruction I1 Prompt Generative AI Models Decode Result R1 Dog Once upon a time, there was a cat named Jesse... Neural Nets are an approach to modeling how the brain builds recognition and recall They are a Digital approximation of the Analog process that goes on in the brain Post-synaptic neuron Action potential Axon Action potential Axon Dendrites Dendrites Pre-synaptic neuron Synapse The energy cost of AI: 70-80% of the AI operations are due to the weighted calculations Moving the data in and out of the GPU takes 5x the energy of the operation itself, and bottlenecks the speed of the GPU Source: B.Fleischer, VLSI’18. The energy cost of AI: 70-80% of the AI operations are due to the weighted calculations continued The global demand for electricity may see a huge surge because of AI processing Global electricity demand from data centres, AI, and cryptocrurencies, 2019-2026 Low case Base case High case Notes: Includes traditional data centres, dedicated AI data centres, and cryptocrurency consumption; excludes demand from data transmission networks. The base case scenario has been used in the overall forecast in this report. Low and high case scenarios reflect the uncertainties in the pace of deployment and efficiency gains amind future technological developments. Sources: Joule (2023). de Vries. The growing energy footprint of AI: CCRI indices (carbon-ratings.com); The Guardian, Use of AI to reduce data centre energy use; Motors in data centres; The Royal Society, The future of computing beyond Moore’s Law; Ireland Central Statistics Office, Data Centres electricity consumption 2022; and Danish Energy Agency, Denmark’s energy and climate outlook 2018. A Major Driver for new AI architectures: Moving Memory Close to Central Processing Unit (CPU) In-Memory Computing is the defining feature of all emerging AI engines Conventional computing system Sources: Mutlu et al., “A modern primer on processing in memory”, (2022). Near-memory computing In-memory computing SRAM has been the approach for In-Memory Compute, but Running out of Steam Nvidia’s A100 processor has only 40MB of on-chip memory, an order of magnitude lower than what is required AI and Memory Wall Which is driving a golden age of emerging processor architectures and Integrated Circuit (IC) growth Global Semiconductor Market Growth and Forecast Global Semiconductor Market Size (USD Bn) Forecast Source: World Semiconductor Trade Statistics and Mckinsey’s projected yearly growth. Past performance is no guarantee of future results. Not intended as a recommendation to buy or sell any securities mentioned herein, or any call to action. For illustrative purposes only. Actual future semiconductor market growth is unknown. Which is driving a golden age of emerging processor architectures and IC growth continued Artificial intelligence (AI) chip market revenue from 2022 to 2027 Nvidia market capitalisation Source: ©️ Statistica, 2024 Source: S&P Capital IQ. By The New York Times A need for a New Memory Solution Exists “Difficult challenges gating development of beyond-CMOS devices include those related to memory technologies, information processing or logic devices, and heterogeneous integration of multi-functional components, a.k.a. More-than-Moore (MtM) or functional diversification. One challenge is the need of a new memory technology that combines the best features of current memories in a fabrication technology compatible with CMOS process flow and that can be scaled beyond the present limits of SRAM and FLASH. This would provide a memory device fabrication technology required for both stand-alone and embedded memory applications. The ability of a chip to execute programs is limited by interaction between the processor and the memory, and scaling does not automatically solve this problem. The current evolutionary solution is to increase cache memory, thereby increasing the floor space that SRAM occupies on a chip. However, this trend eventually leads to a decrease of the net information throughput. Volatility of semiconductor memory requires external long-term storage media that tend to be slow to access (e.g., magnetic hard drives, optical CD, etc.). Therefore, development of electrically accessible non-volatile memory with high speed and high density would initiate a revolution in computer architecture. This development would provide a significant increase in information throughput beyond the traditional benefits of scaling.” Source: IEEE, The International Roadmap for Devices and Systems: 2022, “Beyond CMOS”, chapter 1.2.2. Emphasis added. The Speed Advantages of 4DS Memory 4DS has demonstrated reliable, robust ReRAM programming with a single 4.7ns write pulse This improves on our previously reported 9.5ns The sub 5 nanosecond speeds are due to Electric Pulse Induced Resistance switching, which enables single shot programming in the 4DS cell This switching is faster than the DRAM write window of 30ns and directly translates to lower energy per bit writing for the 4DS cell Disclaimer: these graphs are based on best publicly available data and may not reflect actual state of the art for each technology. The graph for the 4DS cell is estimated for the 20nm cell, based on scaling from 60nm actuals. Persistence + Speed = Energy Savings For permanent offline storage, traditional NVM offers the best solution For long persistence data 4DS offers a low energy alternative DRAM needs constant refresh 4DS needs no refresh within its persistence window, and then can be ‘refreshed’ within the DRAM window (‘hidden refresh’) Disclaimer: these graphs are based on best publicly available data and may not reflect actual state of the art for each technology. The graph for the 4DS cell is estimated for the 20nm cell, based on scaling from 60nm actuals. Reference for this data: K, Prall, “Benchmarking and Metrics for Emerging Memory,” 2017 IEEE International Memory Workshop (IMW), Monterey, CA, USA, 2017 Why Important? Warm Data Applications Advanced computing always needs DRAM for constant read and write (Hot Data), but emerging Inference Engines for AI need data at DRAM speeds that doesn’t change over time (Warm Data) Storage Class Memory – data storage that is peripheral to the main processing data but not in bulk storage – has consolidated behind CXL or Compute Express Link This supports many classes of memory behind a standardized communications protocol CXL is considered ‘Slow’ data when compared to DRAM Why Important? Analog Compute in Memory Using SRAM is the common way of tackling the bandwidth problem in AI processing SRAM is the fastest memory for such uses However the number of weights is limited by SRAM cell size (6T) and # bits per weight needed A scalable analog alternative could increase total number of weights and simplify the vector operations Conversion back to the digital domain will still be needed Source: Chih et al., ISSCC (2021) 4DS welcomes Advanced AI processor companies to explore these ideas with us Corporate Summary ASX Symbol: 4DS 4DS Memory 12 month share price graph Shares on Issue 1,762,834,918 Options on Issue 47,207,184 Cash on hand ~ $10M Share price (1 March 2024) 0.110 Market Cap (at 0.110 share price) $193M Top 5 shareholders own 10.39% (at 1 March 2024) Citicorp Nominees James Dorrian KZ 3 Pty Ltd Mr John Clement Cowie Love Mr Sam Huu Hai Nguyen 3.36% 2.57% 1.62% 1.52% 1.32% Board and Management David McAuliffe Dr Guido Arnout Howard Digby Ting Yen Non-Executive Director Chief Technical Officer Experienced company director 30+ years in commercialising electronics technology Former senior roles at IBM, Adobem Gartner and the Economist Group 30 years experience in commercialising memory technologies Director of Cirralto Ltd, Elsight Ltd and Singular Health Ltd Various roles at Integrated Memory, Netlogic, Integrated Device, Cypress, Paradigm and Philips Research Executive Chairman Involved in numerous capital raisings and in-licensing of technologies Founder of several companies in Australia, France and the UK, many of which are now ASX listed. Non-Executive Chairman of Invex Therapeutics Ltd Non-Executive Director Successes include Power‑Escape, CoWare, CrossCheck Technology and Silvar-Liso Advisor to a number of technology companies Peter Himes Strategic Advisor to the Board Experienced senior executive in high grown technology firms Strong focus on innovation systems and strategic alliances 4DS: THE RIGHT MEMORY FOR THE RIGHT MARKET AT THE RIGHT TIME FOR MORE INFORMATION Registered Office Level 2, 50 Kings Park Road West Perth WA 6005 USA Office 3155 Skyway Court Fremont CA 94539 Postal Address PO Box 271 West Perth WA 6872 Phone +61 6377 8043 Email [email protected] Web 4DSmemory.com