NDP Special Offer! On 5 July 2022, AEM obtained the grant of patent for the thermal control technology used in its System Level Test equipment. Will this patent change the fortune of the semiconductor test equipment manufacturer? Following the fallouts from the Russia-Ukraine conflict and soaring interest rates, AEM share price has been in sluggish form in 2022. Year-to-date, AEM share price slumped by about 17%.
One should not underestimate the potential impact of the new patent on AEM share price. Non-executive Chairman Loke Wai San was the man who led AEM out of dark Egypt when the former management was embroiled in a corruption scandal in 2012. Back then, AEM share price was on the brink of collapse and the company had been placed on the SGX Watch-List.
Despite the challenges, Loke Wai San saw the potential in the equipment business due to the partnership with leading US chipmaker, Intel. The decision proved to be pivotal as the partnership between AEM and Intel led to a patent for its test handling stacking technology. The patent was granted in March 2018. If investors look back, AEM share price used to trade at less than $0.10 in 2016. The patent turbocharged AEM share price to nearly $2.00 in March 2018.
Obviously, the 2018 patent has led to a significant volume ramp up from Intel, thereby increasing the revenue for AEM. Fast forward to 2022, Intel is no longer the force it used to be. As such, my sensing is that the management of AEM is trying its very best to weed off its heavy reliance on Intel for business. Currently, the Group is engaging top tier semiconductor companies. The new patent granted in July 2022 should be useful in its engagements with the semiconductor companies, thereby providing much needed revenue …
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