Bluglass Limited (ASX: BLG) is a semiconductor company that is focusing on bringing a breakthrough in the LED lighting and power electronics industries through a new technology, ‘remote plasma chemical vapour deposition’ (RPCVD). This is used to produce highly efficient devices such as light emitting diodes (LEDs), power electronics and concentrated solar cells.
RPCVD if compared to the current manufacturing techniques has several potential advantages. It can produce higher performing devices and a cleaner, lower temperature and lower cost method of manufacture.
The company has recently advised that it is undergoing a negotiation with Lumileds to extend the collaboration between the parties and potentially enter into a commercialization agreement. The company is not bound by any arrangements with Lumileds related to RPCVD field, being developed by any parties.
The key points of the business update however remain:
- Negotiations with Lumileds continue, and BluGlass is no longer bound by exclusivity.
- The company is successful in demonstrating the functioning tunnel junctions using its unique as-grown and activated p-GaN (AAG) technology by remote plasma chemical vapour deposition (RPCVD).
- The company is about to complete the upgradation of facilities.
A cascaded LED is a term used for a device where two or more LEDs are grown in a continuous vertical stack using a tunnel junction for interconnecting the multiple LEDs in a single chip. A cascaded LED addresses the fundamental challenge of ‘efficiency droop’ in GaN-based LEDs since it can decrease the required electric current while increasing the emitted light power density.
This is a significant achievement for BluGlass, as a successful cascaded LED is not commercially available till date. It is not easily achieved by the incumbent manufacturing technology, metal-organic chemical vapour deposition (MOCVD).
This breakthrough could be commercially forcing the high-performance LEDs for automotive lighting, UV LEDs for water purification, high power laser diodes for industrial machining applications and in high efficiency multi-junction solar cells.
The BluGlass Facility upgrade is about to be completed. The company has taken delivery of the AIX 2800 G4, an Aixtron commercial scale MOCVD platform to be additionally added with RPCVD and the first of two new systems to be installed in the new cleanrooms. The second system will arrive on-site at BluGlass in January 2019. The facility upgrade will help BluGlass with additional capacity for industry collaborations. The advantage of BluGlass’ RPCVD technology includes low-temperature deposition mixed with the ability to grow with little-incorporated hydrogen. This has practically helped to implement GaN-based tunnel junction devices.
Let us now quickly analyze the performance of the BluGlass stock price today and the return it has produced over the past few months. The stock has plummeted almost 28% during the day's trade, as at December 18, 2018. The stock last traded at $0.210. The stock has a YTD return of -20.55%, and it posted a negative return of 19.44% over the last six months’ span. It has a current market capitalization of $ 121.31 million.