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Nanotechnology

A big future for small things? Global Investor Focus, 02/2005 Credit Suisse

A big future for small things?
Global Investor Focus, 02/2005
Credit Suisse

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GLOBAL INVESTOR FOCUS<br />

<strong>Nanotechnology</strong>—19<br />

Rita Hofmann, Head of Research and Development, Ilford Group,<br />

Switzerland: “Nanoapplications will fill particular gaps, but they are not the<br />

solution to all of today’s problems.”<br />

Viola Vogel, Head of the Laboratory for Biologically Oriented Materials at the<br />

Swiss Federal Institute of Technology, ETH: “We scientists have to play a<br />

far more active role to help society discriminate between science and fiction.”<br />

Maria Custer: What does the change “from solid state to molecular<br />

components” mean? Are there examples?<br />

Hans-Joachim Güntherodt: In the past, we observed the<br />

change from vacuum or radio tubes to transistors, later the field of<br />

solid-state integrated circuits was introduced. Today, lower dimensions<br />

in the micrometer range are state-of-the-art. Smaller dimensions<br />

are not accessible by lithographic processes or limited by<br />

physical laws. Therefore, in the future transistors might be replaced<br />

by molecular components.<br />

Heinrich Rohrer: Molecules are the smallest, nanometer-sized<br />

functional components. One objective of macromolecular chemistry<br />

is to synthesize molecules of increasingly complex functionality. In<br />

many nanotech applications, the electron or ion currents become so<br />

small that we have to count electrons and ions instead of measuring<br />

currents. Using molecules as counting components seems to be a<br />

natural approach, as nature uses them abundantly, for example, molecules<br />

as adjustable holes for transfer of single ions through cell<br />

walls. Dreaming of the distant future, molecules are envisaged to<br />

serve as basic building blocks for self-assembling increasingly complex<br />

functional units and systems.<br />

Arthur Vayloyan: Will large, well-established companies control<br />

the market or is there room for smaller companies and start-ups?<br />

Rita Hofmann: There is a market now for start-ups, primarily<br />

in the equipment and medical sector, and in cases where investments<br />

in very expensive equipment are not needed. However, most<br />

of the activity will be in traditional industries and with big industrial<br />

players that invest in nanotechnology. For example, digital manufacturing<br />

and manufacturing-on-demand use manipulation on a fine<br />

scale. It is my guess that every major chemical company, every<br />

electronics company and many manufacturing industries have nanotechnology<br />

programs. There are also start-up groups in traditional<br />

industry.<br />

Heinrich Rohrer: There are opportunities for new companies,<br />

and they will appear. Just look at the developments in the data processing<br />

industry since 1960, thanks to microelectronics.<br />

Hans-Joachim Güntherodt: Today, there are examples of<br />

activities for both alternatives. Several well-established companies,<br />

such as IBM, Hewlett-Packard, and Hitachi, hold patents. Some startups<br />

are also already making profits. The start-ups in the field of scanning<br />

probe microscopy can all be linked to universities working in this<br />

field. Therefore, it is hard to speculate on who will control the market.<br />

Arthur Vayloyan: What are your views on nanotech programs<br />

in large companies compared with small start-ups coming from the<br />

academia?<br />

Rita Hofmann: Start-ups have the disadvantage of having to<br />

develop new products for markets that might not yet exist to assure<br />

their living. For example, commercializing a new industrial product in<br />

my industry can cost anywhere from CHF 4 million to 10 million. This<br />

covers only technical development, not investing in any infrastructure<br />

or manufacturing equipment for longer-term sustainability. If startups<br />

have this kind of money available to them, they have a chance.<br />

Start-up groups in large companies do not have access to external<br />

funding.<br />

Viola Vogel: Not all products derived from nanotechnology are<br />

targeting new markets. Many start-up companies in the US are targeting<br />

existing markets with new products.<br />

Hans-Joachim Güntherodt: I believe the topic of start-ups is<br />

linked to the academic environment. In large companies, the programs<br />

are much more focused on the extension of existing products<br />

towards the advantages of the nanoscale.<br />

Maria Custer: So, the expectation is that larger companies will<br />

be the first to successfully introduce nanotech products, and smaller<br />

companies with great ideas will most likely need to collaborate >

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