GOLDEN, Colo.-- Publicly-traded Isonics Corp. today (March 22) blasted its partner in isotopically pure silicon development and said it was continuing efforts to commercialize wafers based on the material despite a breakdown in its alliance with Eagle-Picher Technologies LLC.
Golden-based Isonics said it still expects to soon reach licensing or joint-development pacts with major microprocessor companies, which are interested in using the new wafer material.
In a letter to shareholders, Isonics president and CEO James E. Alexander accused Eagle-Picher of failing to deliver "any of the promised silicon-28 wafers," and he said his management team is considering binding arbitration in a dispute with the company for "significant amount of damages."
In 1999, Isonics struck a partnership with Eagle-Picher of Joplin, Mo., to produce bulk wafers based on silicon-28, which has demonstrated superior heat transfer properties compared to natural silicon, according to researchers. Under the agreement, Eagle-Picher planned to set up a pilot line to produce three to five tons of material a year in return for 18% of Isonics (see March 31, 2000, story). An immediate response from Eagle-Picher was not available today.
While Isonics is trying to end its relationship with Eagle-Picher, the Colorado company said it was moving ahead with another R&D partnership in Russia to develop techniques for isotopically pure silicon-28 (see Jan. 27, 2000, story).
Alexander said recent developments in new machines have demonstrated "several times the production capacity and are capable of utilizing a more convenient chemical form of silicon as raw material than used previously in Russia."
"As a result of this manufacturing breakthrough and new cost structure, we believe we will be able to meet cost targets for certain segments of our target market for silicon-28 prime bulk wafers and will be in an improved cost position for our present silicon-28 epitaxial wafer products," he said.
Isonics chief executive Alexander told investors that a previous commitment to sign licensing or joint-development pacts for silicon-28 wafers with major microprocessor manufacturers was still on track to happen before April 30.
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