Atomera Inc (NASDAQ: ATOM)

Atomera Inc., often recognized by its stock symbol ATOM, operates in the semiconductor industry. This company is renowned for its innovative development, commercialization, and licensing of proprietary processes and technologies, with a particular focus on its lead technology, Mears Silicon Technology (MST). MST is a thin film of reengineered silicon that can be utilized as a transistor channel enhancement for CMOS-type transistors, the most widely used transistor type in the semiconductor industry.

Atomera's primary business activities revolve around the development and licensing of its MST technology. The company operates in various countries, collaborating with a wide array of industry players, including foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. Atomera's revenue is generated through a three-stage licensing approach, which includes an integration license, a manufacturing license, and a distribution license. The upfront license fee increases at each stage, and royalties are paid based on the number and sales price of MST-enabled products sold to customers.

Atomera's MST technology holds significant potential to address key engineering challenges in the semiconductor industry. These include enhancing drive current, reducing gate leakage, and reducing variability. The technology can be applied to a broad spectrum of devices, encompassing microprocessors, logic products, analog, RF, and mixed-signal devices, as well as DRAM, SRAM, and other memory integrated circuits.

Atomera competes with IDMs, OEMs, foundries, fabless manufacturers of semiconductors, and semiconductor IP licensing companies. However, the company believes that its MST technology has the potential to be a low-cost, additive technology that would not face significant direct competition from other technologies. Atomera's competitive advantage lies in its ability to provide a low-cost improvement to the standard fabrication process, making it an attractive option for the industry.

Atomera's customers and partners include STMicroelectronics, which has entered into a full commercial license agreement with Atomera. STMicroelectronics has performed extensive evaluations of Atomera's MST technology and has granted them an integration license. Additionally, Atomera has developed partnerships with OEMs, such as Applied Materials, to ensure that MST can be reliably and predictably deposited using their manufacturing tools.

Atomera's primary product is its MST technology, a proprietary and patent-protected performance enhancement technology. The company's research and development efforts are primarily focused on enabling existing and prospective customers to integrate MST into their manufacturing processes and enabling them to commercialize MST-enabled semiconductor products. Atomera also dedicates research and development resources to evolving and expanding its technology to address new process technologies in the semiconductor industry roadmap.

Atomera's intellectual property rights are a crucial aspect of its business operations. The company relies primarily on a combination of patent laws, trade secret laws, confidentiality procedures, and contractual provisions to protect its proprietary technology. As of December 31, 2023, Atomera has been granted 216 patents in total, with 103 patents in the U.S. and 113 abroad, and has 106 pending patent applications, with 35 in the U.S. and 71 abroad.