AE bets on ‘revolutionary’ tech

FORT COLLINS — Advanced Energy Industries Inc. (Nasdaq: AEIS) has quietly invested $1.5 million in a technology that purportedly eliminates the need for vacuums in the computer-chip-making process.

The technology was developed at Los Alamos National Laboratory by Gary Selwyn, founder of APJet Inc., based in Santa Fe, N.M.

The investment in APJet is a joint endeavor between AE, which makes equipment used to manufacture semiconductors, and Air Products & Chemicals of Allentown, Penn., a company that produces gases used in the semiconductor industry.

The two companies put $1.5 million each into APJet’s Atmospheric Pressure Plasma Jet. AE is keeping mum about the expenditure.

“We really don’t want to talk about it publicly,´ said Cathy Kawakami, AE’s director of investor relations.

Securities analysts who follow the semiconductor industry said they had not heard of the technology or AE’s investment.

“That certainly would be revolutionary if it works,´ said Tim Summers, analyst and director of Chicago’s Investec PMG Capital. “Most front-end processes require a vacuum.”

Alex Paris Sr. of Barrington Research said he also had not heard of the investment or the technology, but added that it is common practice for technology companies to make these types of investments.

“When they hear of a new technology, they’ll make a small investment so they can get a look inside,” Paris said. “They may or may not do anything with it.”

Selwyn said that AE has been keeping a close eye on his work for about four years.

The APJet process uses reactive chemicals in a gas form to clean, decontaminate, etch and coat surfaces at atmospheric pressure and low temperatures — something that could revolutionize the semiconductor industry if it is viable.

APJet is developing the prototypes, Selwyn said; AE, through a licensing agreement, will provide volume manufacturing and sales, service and support. Beta-Test units should be in place over the next several months, Selwyn said.

“Without the need for a vacuum chamber, we can put the equipment into a smaller footprint in a clean room,” he said. “Smaller is cheaper.”

The semiconductor market traditionally has been performance-based, but is moving towards a commodity model, Selwyn said.

“Because of that, end users like Intel, IBM and Motorola are looking carefully at equipment and operation costs,” Selwyn said. The APJet technology would cost half as much as the competition, give four times the output and perform better, he said.

“This could change the whole economy of the industry, and that is exactly our goal,” Selwyn said. “The fact that Advanced Energy and Air Products went in on this investment is really a vote of confidence in the future of the technology and the potential it offers.”

The two-year contract is contingent on meeting three undisclosed milestones, he said.

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