- 29 July 2021 13:20
BluGlass now funded through to first commercial orders
Locally listed semiconductor developer BluGlass Limited (ASX: BLG) has announced in an update to the ASX that it is funded through to its first expected commercial orders.
In June and July 2021 BluGlass raised $8.42 million; comprising an oversubscribed Entitlement Offer to existing shareholders and two separate Placements. Funds raised enable BluGlass to expedite delivery of its direct-to-market gallium nitride laser diode products, where the company is targeting in-demand and underserved wavelengths for industrial cutting and welding, laser displays, general lighting, and defence applications.
Proceeds will also be used for investment in sales, marketing and distribution channels for its laser diode products, as well as enhanced product development and working capital.
Its 420nm laser diode products are currently demonstrating commercial specifications for light-output, voltage, and wavelength in both pulsing and initial continuous wave testing.
These results confirm the commercial quality of BluGlass’ laser diode design and epitaxy (the semiconductor material growth steps). However, initial reliability testing of 420nm devices has shown a gradual loss of light output and laser performance during high power testing.
BluGlass has observed flaws in the optical facet of the laser, which is contributing to the reliability issue.
The optical facet is in the post epitaxy production steps and involves third-party suppliers. BluGlass is working with multiple vendors and expert fabrication specialists with established production capabilities to expedite solutions. The Company continues to pursue improvement in the reliability of its laser diodes and currently has several iterations, running in parallel, already in development.
Once this issue is addressed, the solution will then be integrated across BluGlass’ suite of laser diode products.
Gallium nitride (GaN) laser diodes are a high value, high margin product due to manufacturing complexity. BluGlass is initially targeting in-demand and under-served wavelengths for use in industrial, display, defence and scientific applications.
BluGlass Executive Chair James Walker said, “These manufacturing challenges are understood by the industry, and we remain confident of being able to solve this issue to launch a range of commercial laser diodes. To further support our technical activities, we are increasing our expert team, which will enable BluGlass to expedite solutions, and - once implemented - ramp-up commercial manufacturing.
"We have a large and growing addressable target market for our first direct-to-market products and are already in discussions with potential customers. Our manufacturing capability in both Australia and the US is supported by our supply chain partners, which will enable us to cost-effectively scale to meet demand.”
BluGlass’ enhanced laser diode designs, utilising its proprietary remote plasma chemical vapour deposition (RPCVD) and tunnel junction technologies, are also progressing through the manufacturing supply chain.
While at an earlier stage of development, these novel laser diode designs combine both RPCVD and industry standard MOCVD processes into a single high-power device. They are designed to enable brighter, higher power and higher-efficiency laser applications.
“Our direct-to-market approach provides us with a clear path to revenue. We are addressing a global industry need for end-to-end manufacturing capability, and during the year ahead will prepare our supply chain to scale rapidly to meet demand for both specialised custom batches to volume production for repeat orders”, added Mr Walker.