GOLDEN, Colo.--Semiconductor materials developer Isonics Corp. here today announced it has licensed silicon-on-insulator (SOI) wafer technology from Silicon Evolution Inc. of Vancouver, Wash., for 500,000 share of stock. The licensing agreement is an initial step towards Isonics buying the SOI business.
"Because of the tragic events of Sept. 11, which have caused uncertainty in the capital markets, we have decided to take an incremental approach to acquiring SEI's SOI wafer business," said James E. Alexander, chairman and CEO of Isonics. "We have locked up the technology through the license and have options to enter SOI wafer business by taking over SEI's existing operations when the conditions are appropriate."
Based on Isonics' share prices, the licensing agreement was acquired for about $400,000 in stock.
"Before we take on the financial responsibility of operations, we must put the proper capital structure in place," said John Sakys, vice president and chief financial officer of Isonics. "We are presently negotiating with a number of potential strategic investors and financial institutions and plan to have the funding in place by the end of the year for capacity expansion and working capital."
Silicon Evolution is a privately funded wafer technology company specializing in SOI wafers for optical chips, micro-electrical mechanical devices (MEMS) and digital signal processors. The company's technology has been applied to the production of thick-film SOI wafers, according to the company, which created with a spin-off from a major silicon wafer company in 1999.
Isonics officials believe SOI technology is compatible with the company's silicon-28 isotopically pure chemicals and wafer technology. "We believe that the higher thermal conductivity provided by silicon-28 will be desirable in numerous micro-optical electro-mechanical devices and high frequency electronics applications, both of which require SOI wafers," Sakys said. "Having the in-house capability to produce these wafers will help control costs and provide a substantially larger target market for silicon-28."