About Company
Cool Chips plc is focused on the development of the Cool Chips™ technology, and our business model is designed to allow continued dedication to this task. Consequently, though there is lab-scale production of Cool Chips prototypes today, commercial fabrication expected to be split between in-house assembly for specific high-value markets, and sub-contracted assembly for mass markets. Sub-contracting will use the "fabless" model adopted by many major
Cool Chips plc is focused on the development of the Cool Chips™ technology, and our business model is designed to allow continued dedication to this task. Consequently, though there is lab-scale production of Cool Chips prototypes today, commercial fabrication expected to be split between in-house assembly for specific high-value markets, and sub-contracted assembly for mass markets. Sub-contracting will use the "fabless" model adopted by many major semiconductor design companies.
Cool Chips are being licensed to market leaders in industries ranging from aerospace to white goods, with each industry representing well over $1 billion annually in potential sales. For each of these markets, licenses are expected to be exclusive. For example, if Cool Chips plc licensed the rights to use Cool Chips for domestic freezers to the fictitious "Freezercorp", then only Freezercorp could sell domestic freezers which use Cool Chips.
A licensee could then in turn sub-license to its competitors, if it chose to do so. But the license from Cool Chips means that the technology will not be available to any licensee's competitors unless that licensee decides to make it available.
This model allows every company involved to focus on its core competency. Cool Chips plc focuses on development and optimization of the technology. The manufacturer, which will be drawn from the semiconductor industry, will focus on cost-effective and high-yield manufacture of a single core component. The licensee, meanwhile, continues to do what it does best -- assembling products, distributing, selling and servicing them as it does today.
This model is attractive to Cool Chips plc because revenues will be based on license fees and royalties, allowing us to focus on further development. It is attractive to licensees because they have the opportunity to sell a vastly superior product at a competitive price, often in a market which was previously commoditized. Finally, it is attractive to manufacturers, because it allows them to generate revenue from disused or under-utilized fabrication facilities.
