4 April 2022
BluGlass completes acquisition of Silicon Valley laser diode fab
BluGlass Ltd of Silverwater, Australia – which has developed proprietary low-temperature, low-hydrogen remote-plasma chemical vapor deposition (RPCVD) technology for manufacturing devices such as laser diodes, next-generation LEDs and micro-LEDs – has completed its acquisition of a 19,000ft2 purpose-built commercial laser diode production facility lease and manufacturing equipment in Silicon Valley for US$2.5m (comprising US$2m cash and US$500,000 in new BluGlass shares at an issue price of AUS3.3 cents per share).
BluGlass will now start moving into the facility and preparing its adaption for gallium nitride (GaN) laser diode production – a process expected to take several months. The acquisition should enable BluGlass to accelerate its longer-term growth strategy, bringing key fabrication processes in-house, to improve the quality and consistency of its GaN laser diodes.
“Our newly acquired laser diode fab is game-changing for our growth trajectory. It allows us to significantly scale our manufacturing and revenue generation capacity, improve the quality and repeatability of our laser diodes expected by our customers, and fast-track development timelines for higher-value products at extended wavelengths,” says president Jim Haden. “At the same time, it will eliminate supply chain complexity and halve our wafer production costs, paving the way for cash flow break-even,” he adds.
“For continuity, we will continue to work with our contract manufacturers over the next year and remain on track to launch our first laser diodes in mid-2022,” continues Haden. “The opportunity to acquire a fully operational manufacturing fab, accompanying equipment, and skilled team is incredibly rare, particularly at a time when semiconductor demand is outstripping supply. Our own fab provides the foundation for our future growth and enables us to execute on our strategy to take market share within a high-margin, fast-growing market.”
The acquisition was funded by a AUS$3.4m placement to new and existing institutional investors. A non-renounceable 1:4 entitlement offer to raise up to a further AUS$7.5m is underway for the ongoing operation of the production facility, additional CapEx for advanced manufacturing capabilities, and talent hire.