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Australian GaN laser diode manufacturer moves production to silicon valley

Australian semiconductor developer BluGlass has acquired a 19,000 sq ft purpose-built commercial laser diode production facility lease and manufacturing equipment in Silicon Valley for $2.5 million.

Over the next several months the firm will move into the facility and prepare its adaption for gallium nitride (GaN) laser diode production.

The acquisition enables BluGlass, which intends to capture 6-10 per cent of the gallium nitride (GaN) laser diode market by 2025to accelerate its longer-term growth strategy, bring key fabrication processes in-house, and improve the quality and consistency of its GaN laser diodes.

Commenting on the acquisition, BluGlass’ President Jim Haden said: ‘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. At the same time, it will eliminate supply chain complexity and halve our wafer production costs, paving the way for cash flow break-even.

‘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. 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 $2.5 million purchase price comprised $2 million cash and $500,000 in new BluGlass shares at an issue price of 3.3 Australian cents per share.

More information on BluGlass.

Read more about:

Business, Diode lasers, Semiconductors

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