SILXF - Quantum Silicon Production Project awarded $5.1m funding under the Defence Trailblazer Program
(NewsDirect)
August 17, 2023(AEST): Silex Systems Limited (Silex) (ASX: SLX) (OTCQX: SILXY) ispleased to announce the award of $5.1m in funding from the DefenceTrailblazer for Concept to Sovereign Capability Program, a strategicpartnership between The University of Adelaide and UNSW Sydney (UNSW),supported by the Australian Government Department of Education throughthe Trailblazer Universities Program.
The funding will support the establishment ofa Quantum Silicon Production Plant, which aims to deliver anend-to-end manufacturing facility at the Company’s Lucas Heightstechnology centre. It is anticipated that the first production modulewill produce between 5kg to 10kg annually of ZS-Si (in the form ofhalo-silane), which will then be converted to multiple Q-Si productforms for potential customers in the global silicon-based quantumcomputing industry.
The new project will be undertaken in conjunction withpartners, Silicon Quantum Computing Pty Ltd (SQC) and UNSW, andfollows on from an earlier project that demonstrated efficientproduction of gram quantities of ZS-Si, with enrichment of silicon-28up to ~99.998% purity.
Michael Goldsworthy, Silex’s CEO/Managing Director,said:
“Weare delighted to receive funding under the Federal Government’sDefence Trailblazer Program, which will assist us to transition ourZero-Spin Silicon enrichment technology from the pilot demonstrationlevel to commercial-scale, including the development of productconversion technology to produce two forms of commercial QuantumSilicon products (gas and solid) required by emerging silicon quantumchip fabricators around the world.”
“This enables us to capitalise on the resultsachieved in the recently completed Zero-Spin Silicon Project for ourinnovative SILEX laser isotope separation technology, and to establisha sovereign capability and secure supply chain for this criticalenabling material for the emerging silicon quantum computing industry.Previously, the main supply of enriched silicon came from Russia, butthis source has been disrupted by geopolitical events”, headded.
Professor Michelle Simmons AO, CEO of SQC, said:
“Following thesuccessful collaboration under the CRC-P program, SQC is tremendouslyexcited about the expansion of our partnership with Silex through theTrailblazer Quantum Silicon Production Project. The Trailblazerfunding supports Silex’s commercial-scale production of QuantumSilicon, the key enriched silicon material essential to themanufacture of SQC’s atom-scale quantum computers in Australia. Thecreation of a sovereign supply of this vital material comes at a timewhen our traditional source of supply has been disrupted. Wecouldn’t be more motivated to support this Project.”
Dr Sanjay Mazumdar,Executive Director, Defence Trailblazer, said:
“The DefenceTrailblazer looks forward to supporting the commercial deployment ofSilex’s Quantum Silicon Production Plant. The intent of the DefenceTrailblazer Program is to support the commercialisation of Australiantechnologies that will have a material benefit to the Defence sectorin Australia. Through the Quantum Silicon Production Project, asovereign end-to-end supply chain for critical quantum materialsessential for silicon quantum computing will be created. The advent ofquantum computing is expected to have profound impacts on Defence andNational Security activities, and this Project is a perfect fit withthe intent of the Trailblazer.”
Professor Nicholas Fisk, Deputy Vice-ChancellorResearch and Enterprise, UNSW Sydney, said:
“UNSW Sydney isextremely pleased to support Silex and SQC in the Quantum SiliconProduction Project under the Defence Trailblazer Program, inpartnership with The University of Adelaide. As a major shareholder inSQC, and as the Administering Organisation for the Australian ResearchCouncil Centre of Excellence for Quantum Computation and CommunicationTechnology, we have been impressed with the achievements in theprevious CRC-P project for the development of ZS-Si productiontechnology, and are excited to support the next step forcommercial-scale production of Quantum Silicon. This Project is ofcritical importance to Australia’s ability to maintain leadership inan increasingly competitive and strategic endeavour to develop theworld’s first scalable quantum computing technology.”
Contributing to the‘ Quantum Materials, Technologies and Computing Theme’ underthe Defence Trailblazer Program, quantum computing capability isemerging as a vitally important strategic and national securitytechnology, as evidenced by the global race to establish early moveradvantage.
TheTrailblazer funding will support the commercialisation of Q-Siproducts for use in defence and civilian markets (domestic andoffshore), while cementing areas of critical sovereign capabilitywithin Australia. Quantum technologies are expected to have a profoundimpact on our way of life in the decades to come, with quantumcomputing to open new frontiers and opportunities for defence andnational security.
The Q-Si Production Plant will include equipment forconversion of ZS-Si (in the form of halo-silane) into differentproduct forms that are compatible with silicon quantum chipfabrication technologies utilised by manufacturers, namely:
- Quantum Silane gas – used in chemicalvapour deposition (CVD) based processes utilised for quantum chipfabrication
- Quantum Siliconsolid – used in atomic and molecular beam epitaxy (ABE / MBE)based processes utilised for quantum chip fabrication.
A key benefit of theSILEX laser isotope separation technology is its modular nature,allowing the possibility for the production plant to be scaled up withadditional modules, based on market demand and other factors.
The 3.5-year Project hasa total budget of ~$16m, of which $5.1m in funding will be provided bythe Defence Trailblazer. Silex is currently resolving other avenues offinancial support for the Project.
Authorised for release by the Silex Board ofDirectors.
Further information on the Company’sactivities can be found on the Silex website: www.silex.com.au or by contacting investor.relations@silex.com.au.
Forward LookingStatements and Risk Factors:
About Silex Systems Limited (ASX: SLX) (OTCQX:SILXY)
SilexSystems Limited ABN 69 003 372 067 ( Silex or the Company ) is atechnology commercialisation company whose primary asset is the SILEXlaser enrichment technology, originally developed at the Company’stechnology facility in Sydney, Australia. The SILEX technology hasbeen under development for uranium enrichment jointly with US-basedexclusive licensee Global Laser Enrichment LLC (GLE) for a number ofyears. Success of the SILEX uranium enrichment technology developmentprogram and the proposed Paducah commercial project remain subject toa number of factors including the satisfactory completion of theengineering scale-up program and nuclear fuel market conditions andtherefore remains subject to associated risks.
Silex is also at variousstages of development of additional commercial applications of theSILEX technology, including the production of ‘Zero-Spin Silicon’for the emerging technology of silicon-based quantum computing. The‘Quantum Silicon’ project remains dependent on the outcomes of theproject and the viability of silicon quantum computing and istherefore subject to various risks. Silex is also conducting researchactivities in its Medical Isotope Separation Technology (MIST)Project, which is early-stage and subject to numerous risks. Thecommercial future of the SILEX technology in application to uranium,silicon, medical and other isotopes is therefore uncertain and anyplans for commercial deployment are speculative.
Additionally, Silex hasan interest in a unique semiconductor technology known as‘cREO ® ’ through its 100% ownership of subsidiaryTranslucent Inc. The cREO ® technology developed byTranslucent has been acquired by IQE Plc based in the UK. IQE haspaused the development of the cREO ® technology until acommercial opportunity arises. The future of IQE’s developmentprogram for cREO ® is very uncertain and remains subject tovarious technology and market risks.
Forward Looking Statements
The commercial potentialof these technologies is currently unknown. Accordingly, no guaranteesas to the future performance of these technologies can be made. Thenature of the statements in this Announcement regarding the future ofthe SILEX technology as applied to uranium enrichment, Zero-SpinSilicon production, medical and other isotope separation projects, thecREO ® technology and any associated commercial prospectsare forward-looking and are subject to a number of variables,including but not limited to, unknown risks, contingencies andassumptions which may be beyond the control of Silex, its directorsand management. You should not place reliance on any forward-lookingstatements as actual results could be materially different from thoseexpressed or implied by such forward-looking statements as a result ofvarious risk factors. Further, the forward-looking statementscontained in this Announcement involve subjective judgement andanalysis and are subject to change due to management’s analysis ofSilex’s business, changes in industry trends, government policiesand any new or unforeseen circumstances. The Company’s managementbelieves that there are reasonable grounds to make such statements asat the date of this Announcement Silex does not intend, and is notobligated, to update the forward-looking statements except to theextent required by law or the ASX Listing Rules.
RiskFactors
Risk factors that couldaffect future results and commercial prospects of Silex include, butare not limited to: ongoing economic and social uncertainty, includingin relation to the impacts of the COVID-19 pandemic; geopoliticalrisks, in particular relating to Russia’s invasion of Ukraine andtensions between China and Taiwan which may impact global supplychains, among other risks; uncertainties related to the effects ofclimate change and mitigation efforts; the results of the GLE/SILEXuranium enrichment pilot demonstration program; the market demand fornatural uranium and enriched uranium; the outcome of the project forthe production of ‘Zero-Spin Silicon’ for the emerging technologyof silicon-based quantum computing; the outcome of the MIST Project;the potential development of, or competition from alternativetechnologies; the potential for third party claims against theCompany’s ownership of Intellectual Property; the potential impactof prevailing laws or government regulations or policies in the USA,Australia or elsewhere; whether IQE’s commercialisation program forcREO ® is resumed, the results from the program and themarket opportunities for cREO ® products; actions taken bythe Company’s commercialisation partners and other stakeholders thatcould adversely affect the technology development programs andcommercialisation strategies; and the outcomes of various strategiesand projects undertaken by the Company.
ContactDetails
Silex Systems Limited
MichaelGoldsworthy | Julie Russell
+61 2 9704 8888
investor.relations@silex.com.au
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