Yes that is an interesting statement, sound to me that they...

Yes that is an interesting statement, sound to me that they already know they will have sales by that date and that an agreed amount has been decided as a minimum?

"In the case of bare cREO™ template products, a royalty of 6% on sales will be payable. In the case of finished epiwafers fabricated on top of cREO™ templates, a royalty of 3% of sales will be payable. It is expected that the cREO™ template will account for around 40% to 50% of the value of any finished epiwafer product."


Just reading this bit above, it seems to me that we will earn around the same amount for either cREO™ or perhaps slightly more for finished epiwafer product or am I reading it wrong?


The figures given below are for Silicon wafers, so I would assume that the price of a cREO™ would possibly less to manufacture? but keeping in mind that they have the ability to do a lot more, it is also worth remembering that these figures below are for manufacturing costs of Silicon wafers not sale price, so the finished product could sell for a lot more?
I would expect the manufacturing cost of the cREO™ templates to be less than those shown for Silicon and the sale price to be greater?
http://www.semi.org/en/node/50856

Whenever a new wafer size is first introduced, the cost per square inch of silicon on a given wafer size is at its peak. But, as the technology matures, this cost per square inch drops with time. The minimum silicon cost reached with 125mm diameter wafers is about US$ 1 per square inch. The minimum silicon cost with 200mm diameter wafers is about $2 per square inch, resulting in a maximum cost per wafer of $100.. The minimum silicon cost reached with 300mm diameter wafers is about $3 per square inch, resulting in a maximum cost per wafer to of $400. Thus, for every succeeding increase in wafer size, there is approximately a 1.4 times increase in costs of manufacturing.


So what price for the SALE of a 300mm cREO™ wafer, would it be double the manufacturing cost?