XTPL starts selling its solutions in China and is to supply its Delta Printing System
XTP S.A. (WSE: XTPL), a global supplier of ground-breaking nanoprinting solutions for the world’s modern electronics market, has just entered the Chinese market by selling its Delta Printing System (DPS). This is another DPS device sold by XTPL to companies and scientific institutions around the world. The buyer will receive the device via XTPL’s Chinese distributor Yi Xin Technology (溢鑫科创). The client for the DPS is a leading Chinese R&D centre, which will use the device for work on advanced packaging in the semiconductor technology. The Delta Printing System is a device developed by XTPL for rapid prototyping in the printed electronics sector.
XTPL’s Delta Printing System will be used by a leading Chinese R&D center from Beijing for work on advanced integration of semiconductor components in a new class of More-than-Moore (MtM) devices. MtM is a new area of micro and nanotechnology that goes beyond the boundaries of conventional semiconductor technologies and applications. The device will be delivered to the client through the Chinese company Yi Xin Technology, which is the distributor of XTPL’s technological solutions in China and Hong Kong. The first revenues from this deal will be reflected already in the third quarter of this year.
„I’m happy about the first sale of the XTPL solution in our market, and above all, I’m happy for our satisfied client, following the successful demonstration and testing of the XTPL technology. The first sale is always the biggest challenge, but it will open the way to new deals and will support the current advanced sales processes,” says Simon Hao, Managing Director of Yi Xin Technology. “The breakthrough and unique XTPL solutions attract a lot of interest from the largest electronics manufacturers in China and are already appreciated and tested by other potential clients from the display, semiconductor and PCB sectors in our country. We’re currently conducting other sales processes for XTPL, and I hope to see more transactions being made in our region,” Simon Hao adds.
XTPL’s Chinese distributor Yi Xin Technology (www.micro-nanotech.com), which started cooperation with XTPL in April 2021, has been operating since 2011 and specializes in additive technologies and searching for innovative solutions dedicated to the printed electronics segment. Yi Xin Technology has an extensive network of relationships with major Chinese research institutes and industrial manufacturers from the modern electronics sector.
„The sale of the Delta Printing System to China is a breakthrough event for us and a significant step towards bringing the technology to the very wide and promising Chinese market. It was possible thanks to the effective cooperation with our partner in China: Yi Xin Technology and its strong team. We hope that the first transaction, whose preparation and finalization usually takes the longest, will open the way to further sales of DPS devices and other XTPL solutions to clients in China,” says Filip Granek, PhD, CEO of XTPL S.A. “So far, we’ve sold DPS devices to clients directly, but this time the transaction was made through our distributor. The success of the deal in the Chinese market confirms the effectiveness of our commercialization strategy in terms of building a network of distribution of XTPL solutions in the most technologically important regions of the world, which makes us very happy,” Filip Granek adds.
In accordance with the XTPL commercialization strategy, the purpose of the distributor network is to actively expand the range of XTPL technologies and products in the Company’s key markets where it has its end clients: the largest market players in the area of modern electronics manufacturing. It is possible thanks to the experience, knowledge and, above all, the strong network of business relationships established by XTPL distributors in their respective domestic markets.
XTPL is consistently developing the business line of prototyping devices for the microelectronics industry. So far, the Company has delivered those devices to a selected group of clients, that is research institutes, whose progress in R&D and the technologies used in the process are closely watched by global industrial market players.
The market of electronic prototyping devices is to see CAGR of about 31% in the years 2021–2031 (source: Transparency Market Research). Analysts from Grand View Research estimate that in 2021 the prototyping segment led the market of additive manufacturing, accounting for more than 55% share of the global revenue (approx. USD 7.61 billion). As they noted in their report, prototyping is widely used by many industry verticals (particularly automotive, aerospace and defense) in the processes of precise design and development of single parts and components, and entire complex systems. Global annual sales of printers for R&D, rapid prototyping and small-lot production in the area of the broadly understood printed electronics sector amount to approx. 250–500 devices per annum, at a price of approx. EUR 50–500 thousand per device.
STEADY GROWTH IN REVENUES FROM COMMERCIALIZATION OF XTPL SOLUTIONS
According to the preliminary data published on 23 July 2022, in Q2 2022 and H1 2022 XTPL generated revenues of PLN 2.04 million and PLN 2.97 million, respectively, from commercial sales of its products and services. This represents more than 20-fold increases compared to the same periods last year. The amount of estimated revenues for the first half of this year already accounts for 143% of all last year’s sales. Such significant increases were mainly helped by the implementation of projects with industrial partners. Currently, XTPL conducts nine advanced projects whereby clients confirm the possibility of using in their products the innovative method of applying microscopic conductive structures to electronic components. One of those clients is the Israeli company Nano Dimension, which started cooperation with XTPL at the beginning of the year. The second stage of the cooperation with Nano Dimension was already completed and accepted, triggering the second payment tranche for XTPL.
The XTPL technology is a response to the three megatrends in the production of modern electronics. The industry is currently strongly focused on further miniaturization of the size and weight of electronic devices, modifying their forms and properties, and moving towards an increased flexibility and three-dimensionality. The recent global trend is also environmental protection by efficient use of limited resources while reducing the production waste, which is enabled by additive technology. XTPL develops its proprietary innovative nanoprinting solutions that support those trends, offering them to global players in the rapidly growing printed electronics industry. In 2020, its value was USD 41.2 billion (+11.0% YoY), and in 2025 it is forecast to grow to USD 63.3 billion, while 2030 it is expected to reach even USD 74.1 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 9.0% in 2020–2025.