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In brief: Emcore, Nichia, ST Systems, Jazz Semi

Emcore receives $13.2 million cash earn-out from Veeco, Nichia reportedly plans ambitious spending, ST Systems puts a line under another tough year, and Jazz Semiconductor joins California's Fab Owners Association.

Emcore takes earn-out in cash
Chip and subsystem manufacturer Emcore has received a cash payment of $13.2 million from equipment supplier Veeco, relating to the latter's acquisition of Emcore's MOCVD business in late 2003.

Under the terms of the deal, Emcore was set to receive half of all revenue earned by the Turbodisc business above a $40 million threshold, with the maximum payout limited to a $20 million aggregate over two years.

Following Veeco's recent revision of its 2004 accounts (see related story), the Turbodisc division earnings amounted to $66.3 million. Emcore received $13.2 million in cash from Veeco on March 31.

Emcore is expecting to receive the remaining maximum balance of $6.8 million from Veeco next year.

Nichia "plans aggressive hiring"
Leading GaN-based LED manufacturer Nichia is planning to grow sales of the devices by 30% under an aggressive new four-year expansion plan, reports the Nihon Keizai Shimbun newspaper.

According to the report, the company will invest around ¥30 billion ($277 million) in plant and equipment and ¥17 billion on research and development.

By 2008, Nichia is expected to make 25% of its LED sales from its main current application, backlighting of screens in cell phones and other small devices. Meanwhile, large display applications will grow to represent 18% of sales and automotive applications will contribute 15%.

Nichia's workforce will swell from the current figure of 3700 to 5000 by 2008, adds the report.

ST Systems reels after tough 2004
Weak market demand, competitive pressures leading to lower selling prices, and the continued weakness of the US dollar were the primary reasons for another tough year for Surface Technology Systems (STS), said the company in its financial review of 2004.

The UK-based semiconductor equipment supplier reported sales of £14.0 million ($26.3 million), down 24% on 2003.

System sales in 2004 were dominated by MEMS applications, which accounted for 71% of revenue. Photonics and and wireless applications accounted for just 9% of 2004 revenue between them, compared with 30% in 2003.

The low sales figures saw the company post a £4 million operating loss, despite cost-cutting actions that were taken in late 2003.

However, company chairman Nigel Randall says that the outlook for 2005 is brighter, with an increase in enquiries for STS machines.

Jazz joins fab club
SiGe foundry Jazz Semiconductor has joined the California-based Fab Owners Association, a not-for-profit international association for semiconductor device manufacturers.

Newport Beach-based Jazz is the first pure-play foundry to join the FOA, which lists Fairchild Semiconductor as one of its current members.

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