Crocus

Crocus is a startup company that develops MRAM technology - and recently they have announced several exciting advances in both their technology and their financing and production plans. We had the good chance to interview Barry Hoberman, Crocus' chief marketing officer.

Q: Barry, thanks for agreeing to answer our questions... The big story today is still RUSNANO's $125 million investment - announced in May 2011. Any updates on this deal? Have the construction begun on the Russian plant?

A: The site selection for our Russian plant (Crocus Nano Electronics) has been completed. The site contains an existing shell, which will be modified to support the clean room. Crocus expects to process wafers at this facility in 2013.

Crocus signed a technology development and wafer manufacturing agreement with China's Semiconductor Manufacturing International Corp. (SMIC). The two companies will develop high-temperature Magnetic Logic Unit (MLU) technology targeted at automotive applications. The base wafer processing will be done by SMIC and these wafers will be further processed by Crocus at a facility that has yet to be built in Russia.

In addition the MLU technology could be licensed to SMIC for use in embedded chip applications and the two companies plan to market jointly smart cards made using TAS MLU and MRAM technology.

Crocus announced that Morpho plans to develop smartcards based on Crocus' Magnetic-Logic-Unit (MLU) technology. The two companies signed an agreement under which Crocus will develop an MLU-based secure microcontroller which Morpho will integrate into its smart card products. The secure microcontroller product will be compliant with the latest quality and security standards.

According to Crocus, MLU technology (which is an adaption of thermally-assisted magnetic switching, or TAS, for use in memory access in addition to storage) offers the advantage of much higher read-write cycle endurance, compared with leading-edge flash memory, while also offering inherent non-volatility and low power operation. The use of MLU should also provide match-in-place capability, which can be used for secure authentication.

Crocus signed a joint technology development agreement and a mutual patent license agreement with IBM. They also signed a technology agreement - under which they will jointly develop semiconductor technology that combines Crocus' thermally assisted next generation Magnetic-Logic-Unit (MLU) technology with IBM's MRAM technology and processing capabilities.

MLU is a scalable evolution of Crocus' Thermally Assisted Switching (TAS) technology, and enables practical implementation of advanced magnetic logic and memory capabilities.

Crocus announced that they acquired NXP Semiconductor's MRAM patent portfolio - which includes fundamental MRAM intellectual property rights in multiple geographies worldwide, including North America, Europe and Asia.

Crocus now holds over 100 issued and pending patents related to the magnetic semiconductor technology covering magnetic materials, devices, and design and product technology.

Crocus developed a new technology called Magnetic-Logic-Unit (MLU), which is an evolution of their Thermally Assisted Switching (TAS) technology. MLU allows for practical implementation of advanced logic and memory capabilities - which will enable new applications in high density data storage, secure commerce and communications, high performance network processing and high temperature automotive and industrial markets.

Crocus' MLU provides stability to the stored data in normal operation. The MLU's reference leayer can be configured in three ways:

• With Fixed magnetization to implement a traditional NOR function
• With floating magnetization to implement a NAND function
• With driven magnetization to implement an XOR function, which ultra-secure compare and encrypt function.

A couple of weeks ago we reported that Crocus have successfully developed their 2nd generation MRAM products. It was rumored that Crocus will produce these chips in Russia, and today RusNano confirmed the story. The Russian state-owned investment group will invest $64 million to build an MRAM chip fab in Russia and further $55m will be invested in Crocus, which will control 51% of the joint venture (called Crocus Nano Electronics). They will begin mass producing MRAM chips in 2013.