Australian semiconductor technology developer BluGlass Limited (ASX: BLG) announced today that it’s received a United States Government-funded, sub-award contract from Yale University. News of the contract, which has sent the BluGlass share price soaring, will involve the company assisting the US Defense Advanced Research Projects Agency (DARPA) to develop novel laser diode technology.
By the market’s close today, the BluGlass share price had defied the wider market selloff to close the session 15% higher at 11.5 cents.
What does BlueGlass do?
BlueGlass is a semiconductor company bringing to market innovations in the LED lighting and power electronics industries. It’s currently commercialising a breakthrough technology using remote plasma chemical vapour deposition (RPCVD) used in the manufacture of industrial devices such as laser diodes, next generation LEDs, and microLEDs.
Bluegrass was founded in June 2005 as a result of more than 15 years research at Sydney’s Macquarie University and floated in September 2006 on the Australian Stock Exchange.
According to its website, the company holds a number of patents in key semiconductor markets including in the US, China, Europe and Japan.
Why is the DARPA contract a big deal for BluGlass?
According to the announcement today, BluGlass and Yale University will work together on the Lasers for Universal Microscale Optical Systems (LUMOS) research program funded by DARPA.
In this project that’s scheduled to last 18 months, BluGlass will supply GaN laser diodes and laser epitaxial wafers to Yale University for incorporation into a photonic integrated circuit.
BluGlass has also won other government contracts in the past, such as the Australian Government grant it won in June to manufacture more efficient plasma deposition in collaboration with the Australian National University.
However, the contract with DARPA is by far the most high profile contract the company has won to date – and represents the first major one with the US Government.
DARPA is the technology branch and agency of the US Department of Defense. Its purpose is to test new technologies and make them operationally ready for use in the US military and beyond. DARPA was involved in the development of the global positioning system (GPS) technology, which is widely used across the world today.
About the BluGlass share price
BluGlass is a small cap ASX share with a current market capitalisation of $48 million. The BluGlass share price started the year at 9 cents, before falling as low as 1.8 cents in March. Following today’s gains, the BluGlass share price has now increased more than 27% in year-to-date trading.
Forget what just happened. We think this stock could be Australia’s next MONSTER IPO…
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
- Byron Energy (ASX:BYE) rigs evacuated as hurricane Zeta approaches
- $14 trillion investor alliance warns Aussie mining companies
- Here’s how BrainChip (ASX:BRN) performed in the third quarter
- Why the Fluence (ASX:FLC) share price is up 10% today
- The shares to buy for 3 different US election outcomes
Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post BluGlass (ASX:BLG) share price jumps 15% on US Defence contract appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/383BLMf
Leave a Reply