@Trailwinds Research Atomera 1 of 3 disruptive picks
Atomera: their MST product is, in layman’s terms, additional layers of oxygen built into the manufacturing of semiconductors. The process is not a dramatic cost increase for manufacturers and the resulting chips have dramatically lower power consumption and can be made smaller when implemented. In the semiconductor industry, power savings and size reduction mean everything.
The potential customers are the who’s who of the microchip industry, such as Intel, TSMC, ST Micro, etc. The process is patent protected, highly differentiated from others and, importantly, if it works as advertised will greatly improve those chips containing the process from others. Which means that broad-scale adoption would likely follow successful implementation by the first customer.
The semiconductor industry is a $450 billion dollar market. Is it possible that Atomera’s process is used in more than 1/2 of this over time? Yes. What would that mean? Billions of dollars of high-margin royalty income per annum.
What hurdles remain? Only the biggest one, which is getting the first product into the market. There are rumors of multiple engagements being inked in 2020. Signing of just one contract would be big for Atomera. But, the signing of a second would be a definitive sign of success.
Will Atomera be successful? The jury is still out, but it’s looking increasingly likely. Would success mean massive returns for investors? Clearly this is the case.
