Enovix Corp at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Great. You kind of alluded to it, but you've worked in mobile and a couple of different parts of your career. I guess trying to get a feel for how after spending some time now at Enovix, presumably with a lot of the same customers. What has been the feedback along your view of the opportunity and I guess, comparing and contrasting this opportunity with other products that you've been supporting.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Great. obviously, before your time, the Enovix team talked about the addressable market. It was kind of bucketed across different sectors. But I guess how do you view the addressable market as you see it today? And how are you staging each of these market opportunities?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Yes. just tying the technology, obviously at a tech conference. When you think about your customer interactions, what kind of technology you're trying to enable? What are you trying to enable for your customers? And I think in the past, you guys have talked about trying to have like semiconductor like margins in a space that really hasn't seen that. I mean what gives you confidence that these customers are going to be wanting to pay for that?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. We'll get to the technology, I guess, the cost side later on, but we have a question here. I guess the ultimate is kind of related to competition, but it basically says, what optionality do you have, your customers, you may have to wait for 1 or 2 years to get your batteries. Why would a customer wait 1 or 2 years for a next-gen device and would a JV with maybe 1 of these big consumer electronics companies make for a quicker installation?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Great. And somewhat related to the prior question about manufacturing is going to be maybe a few years before you're reaching high volume. How do you view the competitive landscape today and maybe how that evolves over the next few years, given that really your revenue wrap doesn't really occur in a big way, maybe in a year, 1.5 years, 2 years. What do you see in the rise is coming from the different, whether it be solid state or silicon anode or graphite or whatever the case might be, there's still competition. So how do you view that thing?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Great, want to move on to sort of the manufacturing, first starting Fab-1, which is you're sampling out of the site. So you talked about 180,000 units, where could this be like why not, could it be higher, I guess? What are you assuming for the manufacturing strategy of that site? And I'll just ask a second follow-on. The importance of the Agility line, how should we think about that in terms of its importance and also how that relates to Fab-2.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Yes. Just clarifying. So 18,000, that's second quarter, right?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : We're targeting 180,000 units for the year. Let's move on to Fab-2. You announced Malaysia. I think coming on the last call, I think you were commenting about trying to match supply and demand. What is -- I guess, what is your philosophy on capacity planning, when can we see additional lines? How should we think about the rollout of these lines? And I suppose it probably depends on the applications you're working on as well. So yes, telling the capacity versus demand side, please? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 23, 2023 / 2:10PM, ENVX.OQ - Enovix Corp at JPMorgan Global Technology, Media and Communications Conference

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Great. A couple of questions online, and I'll tie it to one of my own, it's related to YBS. So why work with YBS. Like how does the mechanics work with Malaysia broadly on the funding for Gen2, Line 1, and then 2 specific questions on the line are can you provide an update on the closure, when can we expect an announcement?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. Where are we in terms of the Gen2? You have talked about factory acceptance. You probably have some tools delivered late this year, more in early next year. Where are we in the process? And are we on time for the -- you said the launch around April next year?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. I want to pause and see if there are any questions from the audience before moving on. Okay. Let's pivot to EV strategy. We haven't really heard as much on that recently. I've attended some of these battery conferences with your team that works on that, want to get an update on your EV strategy, and there's kind of this like is there any activity regarding licensing of your battery technology to an EV maker or a battery maker. But maybe just can you provide an update on where you stand on your thoughts on the EV market?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. There's still a lot of questions coming in online. Kind of this 1 sort of ties back to the prior 1 about Fab-1. So how many batteries will Enovix be manufacturing per month by the end of the year? And when will Enovix announce a firm purchase order for its batteries?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. Another 1 is coming to just kind of the current competitive landscape and they're saying, maybe batteries today cost $1.50 to $2 if you talk 100% premium that in for like $3 to $4, but you guys have talked in the past maybe even like $5 to $10. So basically, have customers agreed to that sort of pricing that you guys have talked about? I mean you just mentioned you have companies that are maybe putting products in the market later this year, but just want to confirm the...

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. Great. This is some -- actually we haven't seen before, it's an interesting question, but any plans for recycling used or spent batteries? I mean, I suppose you're already onto the process, but in a broader scheme of things as more of these are in the market that probably becomes more important.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. This one is talking about another competitor. I guess without naming the name, they tend to be focused on like aviation opportunities in silicon anode, basically they're saying they may be also a gigawatt scale in the middle of the decade. But essentially, you engaged in other applications beyond what you mentioned, in particular, you're talking about aviation or (inaudible).

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. Getting close to the end, but maybe you can just kind of update us on the technology development, you alluded to earlier, 1.52 BrakeFlow, where do these fit in? And how -- when should we assume that they're going to be available for customers to sample and so forth.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Well, we could have covered a lot more, but unfortunately, we're out of time. But Raj, I appreciate your time supporting the conference. This is really insightful. Thank you.