Translucent cREO™ Semiconductor Technology

Overview

Over the past decade, Silex subsidiary Translucent Inc developed a novel set of semiconductor materials known as ‘crystalline Rare Earth Oxides’ (cREOTM) for application to the manufacturing of next generation devices in the semiconductor, digital communications and power electronics industries.  Following the extensive pursuit of business development options for Translucent, an exclusive License and Assignment Agreement was signed with UK-based IQE Plc (LON:IQE) in September 2015.  IQE is the global leader in the design and manufacture of advanced semiconductor wafer products.


The Translucent - IQE Agreement

Following the signing of the exclusive License and Assignment Agreement with UK-based IQE in September 2015, an initial license fee of US$1.4 million was paid by IQE in March 2016 following the transfer of the cREOTM technology to IQE’s Greensboro, North Carolina manufacturing facility.  In accordance with the agreement, the product development and commercialisation activities are to be conducted by IQE during a 30-month option and license period. Should IQE elect to exercise the right to purchase the technology within this period, the payment of a further US$5 million will be made. 
  
More importantly, the potential commercial applications that IQE have identified for the technology may result in an attractive perpetual royalty of up to 6% of revenues generated by IQE from use of the cREO™ technology.

Following the successful transfer of Translucent’s unique epitaxy equipment and associated cREO™ technology to IQE’s North Carolina production facility in 2016, effort and focus has been applied to product development for several applications of the unique cREO™ technology.

IQE have continued to make good progress and are meeting target development milestones for initial products utilising the cREO™ materials. The product development program involves using two of Translucent's production reactors to produce various cREO™ templates on silicon wafers for trialling within the IQE Group and select commercial partners, with initial focus on wireless communications devices and power electronics devices. In light of this progress, IQE has determined an optimal route to commercialisation within a 2 to 3-year timeframe.

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