Atomera (ATOM): Needham Growth Conference on 1/15 Notes

  • Key Takeaways
  • There are 370 fabs and at least 370 nodes worldwide(est. 500)
  • Working with very large Fabs with multiple nodes/lines
  • Fabs adopting MST will make more money and get better performance
  • MST applicable to 5nm, 3nm and next gen fabs
  • Licensing involves know how and patents which leads to long licensing/royalties

Here are some of the highlights I captured listening to the presentation at the Needham conference on 1/15/21. The webcast and presentation can be found on the Atomera website and it is highly recommended to listen to it.

Added a manufacturing license as part of first JDA
3 Unique Patent Portfolios to license for royalties
  • Three Extensive patent portfolio
  • Easy to detect infringement by disecting device
  • Know how to use patents part of manufacturing license and never expire. Long licensing life for portfolios.
Business case
  • There are 370 fabs worldwide and at least 370 nodes(est. 500)
  • VERY large fabs may have multiple nodes
  • Installing MST provides 30% improvement in performance
  • Very large fabs can produce 80k wafers/month one node
  • Atomera makes $66/wafer in royalties, $64m/year
  • Fab makes $214/wafer or an additional $205m
  • Customers agree this is very beneficial to adopt
  • Working with VERY large fabs first that have multiple nodes and product families
Very low cost model
  • Company has grown from 3 customers to 19 customers
  • Yearly costs show very little increases
  • Can expand quickly with minimal increase in costs going forward

The following questions were discussed in the Q+A session

Question 1: How applicable is MST technology to the 5nm and below fabs.

Answer 1: A lot of papers in the industry suggesting it is applicable. When talking with customers they believe it can help solve some of their problems in this area.

Question 2: When will shareholders learn who partners are in JDAs.

Answer 2: They are working with numerous companies on future JDAs and licenses. First question Atomera asks is if they can share their names. The larger the company the less likely they are to allow. Will announce when they get into production. Working with worlds VERY large semiconductor companies.

Question 3: Can you provide an update on the 3 original licensees?

Answer 3: Engaged with all three. Progress continuing. AKM had a fire but is still planning to move forward.

Three original licensees

Question 4: The technology seems to good to be true with improved performance, lower costs, higher yields etc.. If so good why not being used in production?

Answer 4: Getting face to face meetings with fab technical team provides deep dive into technology. By end of meeting customer is suggesting ways where the technology may be of even further benefits. The reason it takes time to adopt is simply the complex nature of the semiconductor process. In a 200 step process MST would be added around step 30 and add more steps. Many variables and takes time to modify fab.

Additional info not part of conference below.

2021 Catalysts

CASH on hand as of early January = $37m. There was $25m(9/30) and they raised another $15m via ATM in January 21. Roughly $40m minus cash used in q4 of $3m.

Cash position $37m

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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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