Atomera Inc (NASDAQ: ATOM)

Atomera Incorporated develops, commercializes, and licenses proprietary semiconductor technologies for the $700 billion global semiconductor industry. The company’s flagship innovation, Mears Silicon Technology (MST), is a patent-protected thin film of reengineered silicon designed to enhance transistor performance by enabling smaller, faster, and more power-efficient integrated circuits. MST addresses key engineering challenges in semiconductor manufacturing, including drive current enhancement, leakage reduction, and variability control, without requiring significant modifications to existing fabrication processes or equipment. Atomera does not manufacture wafers or integrated circuits directly but instead licenses its technology and provides integration services to semiconductor designers and manufacturers.

Atomera generates revenue through licensing agreements, engineering services, and royalties. The company’s primary revenue streams include upfront license fees for research and development (R&D) and high-volume manufacturing (HVM) licenses, as well as ongoing royalties based on the sales of MST-enabled products. Additionally, Atomera offers MSTcad software, which allows customers to simulate the benefits of MST integration using Synopsys’ technology computer-aided design (TCAD) tools, and provides fee-based integration engineering services to assist customers in evaluating MST within their manufacturing flows. These services are typically structured under paid evaluation arrangements, joint development agreements (JDAs), or integration license agreements.

The company operates through the following segments:

• Technology Licensing: This segment focuses on commercializing MST by entering into license agreements with semiconductor manufacturers, including foundries, integrated device manufacturers (IDMs), and fabless semiconductor companies. Licenses are granted in two phases—R&D licenses for internal use and HVM licenses for commercial production—with upfront fees and royalties tied to product sales. The segment also includes revenue from MSTcad software licensing, which enables customers to model MST integration before physical implementation.

• Engineering Services: This segment provides fee-based integration and evaluation services to customers seeking to adopt MST technology. Services include depositing MST films on customer wafers, conducting test runs, and optimizing integration into existing manufacturing processes. These engagements often serve as a pathway to full commercial licensing agreements and are structured under JDAs or integration license agreements.

Atomera occupies a unique position within the semiconductor industry as a provider of additive, low-cost performance enhancement technology. The company competes with integrated device manufacturers, foundries, fabless semiconductor companies, and other intellectual property (IP) licensing firms that develop technologies to improve semiconductor performance. Unlike many competitors, Atomera’s MST technology is designed to be compatible with existing manufacturing tools and processes, reducing adoption barriers and capital expenditure requirements. The company’s competitive advantages include its extensive patent portfolio, with 119 U. S. and 130 international patents granted as of December 31, 2025, and its strategic partnerships with industry leaders such as Synopsys and a global semiconductor equipment vendor. These collaborations enhance Atomera’s credibility and accelerate customer adoption by leveraging established industry relationships.

Atomera’s customer base spans the semiconductor supply chain, including foundries, IDMs, fabless semiconductor manufacturers, wafer manufacturers, epitaxial equipment OEMs, and electronic design automation companies. Specific customers mentioned in the filing include a leading semiconductor provider, a major semiconductor foundry, a fabless RF semiconductor company, and Asahi Kasei Microdevices (AKM). The company’s technology targets applications in power devices, RFSOI devices, advanced CMOS integrated circuits, and compound semiconductors such as gallium nitride (GaN). Atomera’s engagements typically progress from initial technical evaluations to full commercial licensing, with customers often entering JDAs or integration agreements before committing to HVM licenses.