Silex Systems Limited (ASX: SLX) has received positive news from London-based IQE in relating to Silex’s wholly owned subsidiary Translucent Inc’s cREO technology.
In 2018 IQE purchased the cREO technology from Translucent in accordance with an Option and Licence Agreement between the parties.
IQE has now revealed it has achieved a key demonstration milestone for its new high frequency (RF) filter product, called IQepiMo, which is built on the cREO technology platform.
IQE reported that data from customer and partner device trials indicated significant improvement in the performance of its 5G filter device, compared to incumbent technology, when tested at the top end of the frequency range used in current 5G applications.
The 5G industry is finding it difficult to achieve high levels of performance at these higher frequencies using conventional filter technology. The new IQepiMo template technology therefore offers customers a path to overcoming these inherent challenges while still using their current 5G infrastructure and processes. Additional trials of the new RF filter product are continuing with IQE’s partners.
Under the Agreement between Translucent and IQE, Translucent is currently eligible for minimum annual royalties for the cREO technology and a perpetual royalty of at least 3% will be payable to Translucent on the sales revenues from any IQE products that utilise the cREO technology.
The first minimum royalty payment of US$400,000 for the year ended CY2019 was received in March 2020, with the second payment for CY2020 due in the coming weeks.
cREO technology is a potentially enabling technology that could create a step change in the integration of various compound semiconductor devices with large scale silicon wafer-based production techniques. This has the potential to improve performance and lower the cost of production of compound semiconductor devices such as chips for wireless communications equipment and power electronics devices.
