The investor interest which culminated with the debut of Belfast-based BCO Technologies on the Irish and London (DCM/AIM) stock markets this week was fuelled by a technological process which the company has developed exclusively. Its product, the BCO Substrate, is said to double the capacity of computer chips, which will lead to significant cost reductions for integrated circuit manufacturers.
The process was developed using wafer-bonding equipment at Queen's University Belfast and the expertise of scientists at the National Microelectronics Research Centre (NMRC) in Cork. Combining silicon wafer technology with integrated circuit (IC) technology, the new process isolates all transistors on an integrated circuit from each other so they can act independently.
BCO subjects a standard silicon wafer to various mechanical processes and treatments, such as bonding, trenching and etching to make the BCO Substrate. This can then be used by an IC fabricator in certain applications, greatly increasing the number of circuits packed on an individual chip.
The advantage in this is that IC fabrication plants can achieve greater packing density thereby increasing output without having to invest in expensive plant storage.
The type of IC which BCO Substrates can enhance is the analogue IC. Though it is a smaller market segment than the digital IC market, it enjoys stable growth, and was estimated at $17.5 billion (£12 billion) in 1996. This is expected to double by 2001. Analogue ICs are used to allow electronic systems to measure and control variables such as pressure, temperature, current and voltage.
The process is costly, says BCO chief executive Dr Scott Blackstone. "We eat capital for breakfast. This is why the flotation was necessary. The venture capitalists felt they had proven the market and the technology, and they wanted to spread the risk around. Now that level of risk is bankable."
BCO raised £10 million when it floated on Wednesday, and immediately announced its plans to invest £7.5 million in equipment to expand its manufacturing capacity. The company currently produces 1,500 wafers per month, this figure is expected to increase to 5,000 by 2000.
By early 1999, BCO hopes to be making a profit. Recently US electronic component manufacturer, CP Clare awarded BCO a contract worth $3 million to produce 9,000 wafers next year. Dr Blackstone believes a flotation in Ireland and Britain is better suited to BCO than a Nasdaq listing.
