News

5 October 2009

 

IQE to buy GaN substrate firm NanoGaN for £3.6m

Epiwafer foundry and substrate maker IQE plc of Cardiff, Wales, UK is to acquire gallium nitride substrate firm NanoGaN Ltd of Bath, UK for up to £3.6m ($5.8m). This includes an initial consideration of £0.4m in new shares and cash, plus future milestone payments in shares or cash based on achieving milestones relating to the commercialization of NanoGaN’s intellectual property. Completion of the acquisition will take place upon admission to trading of the new shares (expected on or about 7 October).

NanoGaN was founded in February 2008 by CEO professor Wang Nang Wang and chief technology officer Sergei Stepanov with £250,000 ($350,000) in seed funding from University of Bath’s ‘Sulis Foundation’ commercialization fund. In June 2008, the firm raised £500,000 more from private investors. Funds were partly spent on a vertical hydride vapor-phase epitaxy (HVPE) reactor (built by a commercial MOCVD equipment maker according to NanoGaN’s own patented design), joining an existing Aixtron 200HT MOCVD reactor.

NanoGaN has established what it claims are unique processes and intellectual property relating to GaN materials and devices. This includes its proprietary Nanocolumn Technology (invented by Wang) for producing high-quality, 2-inch free-standing GaN substrates, which are critical for manufacturing high-quality blue and green semiconductor lasers and ultra-high-brightness LEDs for solid-state lighting (SSL). “Nanocolumn technology provides a unique approach to overcoming the challenges facing the advancement of blue and green laser technology, high-density optical storage, and ultra-high-efficiency solid-state lighting,” claims Wang.

NanoGaN’s method involves using a multiple bubbler vertical matrix showerhead HVPE reactor configuration for pendeo-epitaxial growth of a buffer layer of GaN nano-pillars, which can accommodate the lattice-mismatch-induced strain between the substrate (SiC, silicon, or sapphire) and subsequent growth of bulk GaN. Once a complete boule is grown, individual wafers can be sawn off and polished.

In June, the University of Bath’s Duncan Allsopp (acting as consultant) said that NanoGaN had demonstrated reduced defect densities of 107cm-2 compared to the 1010 defects per cm2 typical of GaN grown on sapphire substrates.

IQE says that it has a long-standing association with NanoGaN, having been selected as a key strategic epitaxial materials partner by Wang. “We carefully selected IQE as the ideal partner to bring our intellectual property to mass production based on its track record and its experience,” says Wang. The transaction represents a unique opportunity to commercialize NanoGaN’s technology, he adds.

With development of NanoGaN’s technology at an advanced stage (having entered pilot production in June), IQE will assist in completing the development of commercial products and then begin transferring the technology to its high-volume production facilities, where it is expected to begin generating sales in 2010.

IQE says that the acquisition complements and enhances its existing product portfolio by accelerating its strategic plans in emerging high-growth markets for laser projection, high-definition optical storage (including BluRay products), high-resolution laser printing, and solid-state lighting for industrial, commercial and residential lighting. NanoGaN’s core technology will also be used to enhance IQE's supply of GaN products for high-power RF applications. NanoGaN also brings seven filed patents, and several innovations for which patents will be submitted.

As part of the acquisition, Wang will become chief scientific advisor to IQE’s board. Wang was co-founder of Arima Optoelectronics Corp (which is listed on the Taiwan Stock Exchange) and chairman & president of Taiwan-based Quantum Optech Inc. Many of his 26 granted patents continue to be used for mass production in the optoelectronics industry, says IQE. He has also acted in advisory roles, including scientific advisor to Taiwan's government as well as to the country's ITRI (Industrial Technology Research Institute).

“This acquisition provides a perfect complement to our existing wireless and opto, and emerging solar businesses and widens our product portfolio,” says IQE’s CEO Dr Drew Nelson. “We now operate in a range of diverse international markets, all with powerful drivers including high-growth consumer applications and political and legislative trends towards technological solutions to address environmental challenges,” he adds.

Picture: IQE’s CEO Dr Drew Nelson.

See related items:

Orders return to pre-recession levels at IQE

Bulk GaN substrates to expand from blue lasers to lighting and power electronics

Search: IQE Epiwafers GaN Free-standing GaN substrates

Visit: www.iqep.com

Visit: www.nanogan.com