Atomera (ATOM): Royalty potential is highest the industry will ever see

Atomera is a semiconductor licensing company whose earnings will come from royalties. Their technology is being adopted in nodes of the world’s largest fabs. There are 370 fabs worldwide and closer to 500 nodes. The large fabs they are working with first, probably have at least 3 nodes each. The example below is just one large node producing 80k wafers/month(see note below) and will generate $64m/year in royalties for Atomera. Each node will generate $205m in extra profit for the fab meaning it will be a huge financial and technical advantage to adopt. Each of the first two JDAs will hopefully have 3 nodes each and the first license will also be 3 nodes. In the first full year of running the first 9 nodes, of the potential 500, will generate $576m in royalties for Atomera. While exact start of the royalties could be as late as 2022 there is also the possibility the first licensee will go into production in 2021.

Modified Atomera slide showing $64m/year in royalties for 1 node
  • NOTE
  • This example uses 80k wafers/month for estimating purposes but the VERY large nodes are capable of 120k-200k wafers per month.

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Industry Definitions:
Joint Development Agreement (JDA) – major contract between two parties enabling technology to be adopted throughout the organization.  Involves significant capital investment, license fees, and proprietary information sharing. In the case of Atomera a JDA allows the company they are working with to quickly adopt the technology on other nodes. In the first JDA after the Phase 4 tech transfer is complete(Q1) and the company moves the first node to Phase 5(qual) they can start installing on other nodes and go from Phase 3 (which a number of customers are in) directly to Phase 5. That is the benefit of a JDA over just a license. As mentioned in the recent CC the JDA is more a teaming of customer and Atomera engineering that allows the customers engineers to do the tech transfers on other nodes much more quickly since it is done with the companies own experts who are much more familiar with their own companies proprietary nodes.

TCAD Software Modeling and EPI tool will speed future developments.

Any due diligence from this site is for entertainment only and not a solicitation to buy or sell Atomera stock. Any estimates are just examples of what is possible and should not be considered financial advise. I have not been compensated in any way and will never be compensated for my reports.

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