IQE exercises exclusive option to acquire cREO(TM) technology and IP portfolio
16 March 2018
Cardiff, UK. 16 March 2018: IQE plc (AIM: IQE, "IQE" or the "Company"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, confirms that it has exercised its exclusive option to acquire and own the cREO(TM) technology and IP portfolio.
IQE will pay a consideration of USD 5 million, expected to be paid from either IQE's existing cash resources or from new ordinary shares of 1 pence each in IQE being issued to the vendor, within 6 months following the exercise of the option.
IQE announced on 15 September 2015 that it had signed an agreement with Silex Systems Limited's subsidiary, Translucent Inc. ("Translucent"), for the exclusive licence of Translucent's unique and innovative 'Rare Earth Oxide' (cREO(TM)) semiconductor technology.
The Agreement provided IQE with an exclusive 30-month licence for the commercialisation of the Translucent cREO(TM) technology and an exclusive option (exercisable solely at IQE's discretion) on the subsequent acquisition of the technology.
The Company has confirmed that it has exercised its option to acquire the cREO(TM) technology and IP portfolio.
cREO(TM) technology offers a unique approach to the manufacture of a wide range of disruptive Compound Semiconductor on Silicon products, including gallium nitride (GaN) on silicon (Si) for the burgeoning Power switching and RF technologies markets.
The original cREO(TM) technology is protected by a wide-ranging IP patent portfolio.
This portfolio has been further enhanced by IQE since September 2015, across a range of new application areas including RF Filters and silicon photonic applications and includes a number of new materials configurations.
Dr Drew Nelson, President and CEO of IQE plc, commented "We are very pleased to announce the exercise of this exclusive option to acquire the original portfolio of cREO(TM)patents from Silex Systems. This type of materials innovation is at the core of IQEs disruptive semiconductor materials solution strategy, as we move from a bespoke, customer specification led business model to a more broad based materials innovation led model which offers customers new opportunities to develop disruptive end market products."
The announcement from 15 September 2015 can be found at http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/IQE/12500372.html
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