Market environment

Canatu is a deep technology company developing advanced carbon nanotubes (CNTs) and related products and manufacturing equipment for the semiconductor, automotive and medical diagnostics industries. All three of the company’s focus areas are undergoing technological transformation. Canatu is in its view well positioned to support these transitions and provide high added value with its carbon nanotube solutions.

Semiconductor

In the semiconductor industry, the demand for developed chips is expected to grow strongly with the development of artificial intelligence and computing. Canatu estimates the semiconductor to grow to USD 1,098 billion in 2030, implying a 9 per cent average annual growth from 2023 to 2030. Within the same time period, the share of EUV semiconductors within the entire semiconductor market is continuously increasing. Sub-7 nanometre EUV chips are the fastest growing segment in semiconductor. Canatu’s carbon nanotube solutions are targeted at EUV lithography-based manufacturing processes for producing advanced microchips. In Canatu’s view, Canatu CNT solutions help microchip manufacturers and other customers in the semiconductor industry enhance the efficiency of their production and quality control processes.

According to Canatu’s management, the company’s addressable markets are carbon nanotube-based pellicles and inspection consumables for EUV masks. The market for advanced pellicle films, including carbon nanotube-based pellicle films, is still in the development phase, and Canatu’s management estimates that its size in 2024 is some tens of millions of euros. Depending on the adoption curve of advanced pellicles, this market is estimated to grow to approximately EUR 1–2 billion by 2030, which would correspond to an average annual growth rate of 24–54% between 2027 and 2030. Canatu’s management expects the market for CNT-based EUV photomask inspection consumables to grow by 33% per year between 2024 and 2030, reaching EUR 59 million in 2030.

For the semiconductor industry, Canatu mass manufactures CNT solutions targeted at EUV lithography-based manufacturing processes, which are used for producing advanced microchips. Canatu currently offers customers

CNT-based EUV photomask inspection consumables, i.e. predominantly nanoparticle filters
CNT reactors and related consumables for CNT membrane manufacturing for EUV pellicles required in sales agreements
CNT membranes/technology, which are a key part of CNT-based EUV pellicles.

Expected development of addressable semiconductor market (EURm, 2024E-2030E)³⁾

Note: 1) Includes Inspection membranes market size of 36 EURm in 2027E and 59 EURm in 2030E. Assumes CNT-based pellicles are adopted in logic chip production (mostly high-wattage machines) towards the end of the decade but are not commonly used for memory chips (CNT-based pellicle technology does not achieve the required financial feasibility levels). EUV lithography is always used in the manufacturing of advanced logic chips, while advanced memory chips can also be manufactured using alternative technologies; 2) Includes Inspection membranes market size of 36 EURm in 2027E and 59 EURm in 2030E. CNT-based pellicles demonstrate their efficiency improvement potential and are fully adopted across EUV lithography in logic production and moderately for memory – they prove to be a strong alternative to composite pellicles and increase overall pellicle use adoption among chip manufacturers. If inspection membranes would be used beyond patterned mask inspection, the other quality control phases are estimated to expand the inspection membrane market by 2-5x, resulting in a total market potential of approximately EUR 120-300m in 2030E; 3) Canatu’s management’s view based on the Market Study.

Automotive

In the automotive industry, Canatu currently focuses on offering carbon nanotube-based film heaters for LiDAR sensors and cameras. Canatu expects the optical performance of LiDAR heaters and camera heaters to become increasingly important when vehicle manufacturers pursue increasingly adopting higher autonomy-level Advanced Driver Assistance Systems (ADAS) in their vehicles.

Canatu estimates the total size of the targeted film heater market to grow from EUR 50 million to EUR 813 million between 2024 and 2030, implying an annual growth rate of 59%.

Carbon nanotube-based film heaters for whole windshields and headlights as well as solar cells are potential future expansion areas for Canatu.

The market for windshield heaters is expected to grow strongly due to the growing number of battery-electric vehicles with heated windshields and due to their electricity consumption savings targets. The market is estimated to grow from EUR 32 million to EUR 602 million in 2030, implying a 63 per cent average annual average growth from 2024 to 2030.

Expected double-digit growth in the medium term, Canatu’s total addressable film heater market (EURm, 2024E-2030E)^{1, 2)}

Note: 1) Canatu’s addressable automotive market includes LiDAR heaters, Camera heaters and Windshield heaters (potential future extension for Canatu); 2) Canatu’s management’s view based on the Market Study

Medical diagnostics

For medical diagnostics, Canatu currently develops carbon nanotube-based biosensors for electrochemical biosensor solutions, aimed to enable a quick and potentially inexpensive alternative to current diagnostic methods (e.g. laboratory tests). CNT-based biosensors can be utilised to detect a variety of analytes that leave biomarkers (e.g. DNA mutations, pathogens, hormones and drug molecules) and test multiple biomarkers from a single sample simultaneously.

Canatu’s current focus is on the development of testing solutions for detecting paracetamol overdose and lung and breast cancers. The company has also identified dozens of other potentially applicable use areas for test solutions. Highly sensitive point-of-care testing is not yet an established industry and there is currently no verifiable relevant market for it. Assuming that Canatu’s carbon nanotube-based biosensors fulfil technical and regulatory requirements, the company estimates the total addressable market in testing breast cancer, lung cancer and paracetamol overdose to range from EUR 442 million in 2024 to EUR 1,064 million in 2030.

POC testing market size expected to reach EUR ~400-1,000m by 2030³⁾

Note: 1) Assumes Canatu’s CNT-based solution replaces current testing cycles in tests for breast cancer, lung cancer, and paracetamol overdose; 2) Assumes Canatu’s CNT-based solution replaces current testing cycles as indicated previously, but in addition, it is used by a larger group of people screened and used more frequently in treatment monitoring with both breast cancer and lung cancer. Furthermore, for lung cancer patients, the participation rate is expected to be higher; 3) Identified by Canatu management

All estimates on market size are Canatu’s management’s view based on a market study conducted during the spring and early summer of 2024 by a third-party international management consulting firm. Other views are based on the current views and expectations of Canatu’s management, unless otherwise stated.