AmberWave buys chip research firm Aonex Technologies for $7.95M

New Hampshire semiconductor research firm AmberWave Systems Corp. has agreed to acquire semiconductor substrate research firm Aonex Technologies, a subsidiary of Arrowhead Research Corp. of California, for $7.95 million in earn-out payments. In addition, AmberWave will pay a running royalty on products incorporating Aonex's technology.

Launched in 2004 as part of the publicly traded nanotechnology research firm Arrowhead, Aonex is working on ways to make high-efficiency solar cells, LEDs and other semiconductors. The company's primary product is a new substrate that could enable the fabrication of higher efficiency compound semiconductor devices at lower cost and higher yields, according to AmberWave.

Aonex's technology is based on research by founder and Caltech professor Harry Atwater, who will continue to support the product's development. AmberWave is expected to take over Aonex's Pasadena operations.

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The deal will enable AmberWave, a developer of advanced materials and technologies for semiconductors, to move into new, high-growth markets and allow Aonex to take its prototypes into commercialization, officials said.

Founded in 1999, AmberWave researches, develops, patents and licenses advanced semiconductor materials technologies. The company has raised more than $91 million in funding over the course of five rounds. Investors include Adams Capital Management, TeleSoft Partners, Arch Venture Partners, 3i and The Hillman Co.

The company also has a 10-year licensing agreement with Intel Corp. regarding the California company's use of AmberWave patents covering strained silicon. The agreement is the result of a lawsuit AmberWave filed against the chip giant that was settled last year.