Canadian Manufacturing

5N Plus invests $8.5M in Montreal campus to support domestic semiconductor supply chain

5N Plus will expand the capacity of its Montreal campus to address the growing demand of II-VI semiconductor compounds and powders, including those essential for the renewable energy market.

June 2, 2021  by CM Staff

MONTREAL — On June 2, 5N Plus Inc., a producer of specialty semiconductors and performance materials, announced that it is investing $8.5 million in its Montreal campus to expand the development and manufacturing of critical and strategic materials, including those containing tellurium, for advanced II-VI semiconductor compounds and engineered powders. The investment is supported by and has received funding from the Ministère de l’Économie et de l’Innovation (Ministry of Economy and Innovation) and the Ministère de l’Énergie et des Ressources Naturelles (Ministry of Energy and Natural Resources) within the province of Quebec, accounting for approximately a third of the investment.

Alignment between investment and strategy
With this investment, 5N Plus will expand the capacity of its Montreal campus to address the growing demand of II-VI semiconductor compounds and powders, including those essential for the renewable energy market. The investment in process technology and supply chain optimization will reduce unit cost of production and the overall carbon footprint of the activity. The investment package is expected to be completed by the autumn of 2022. The Company has indicated that it will be investing near the rate of depreciation over fiscal years 2021 and 2022. This investment package is included in this assumption.

“Today’s announcement is an exciting glimpse into the compelling future of our business. Following the project’s completion, 5N Plus will have the capacity to competitively produce over half of the world’s high purity tellurium-bearing II-VI semiconductor compounds, which are essential elements for several critical industries including renewable energy,” said Arjang Roshan, President and Chief Executive Officer of 5N Plus.

The Company continues to accelerate its semiconductor activities across its sites in Montreal and St. George, Utah, and recently expanded its II-VI value-chain to include engineered substrates that are essential for opto-electronic applications.

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Strategic alignment with AZUR acquisition
5N Plus also recently announced its intent to acquire AZUR SPACE Solar Power GmbH, which is a development supporting its strategic transformation. Given AZUR’s established business within III-V semiconductor materials, the acquisition, along with 5N Plus’s complimentary activities in this space, will expand the combined companies’ value-chain and hopefully serve as a substantial catalyst for growth.

Investment in sustainability
The new process technologies facilitated by the $8.5 million investment will enable 5N Plus to consolidate and onshore a sizeable portion of its supply chain related to its family of II-VI materials at 5N Plus Montreal, which is powered by hydroelectricity. The totality of this shift will decrease the Company’s carbon footprint per unit of production for II-VI specialty semiconductor materials.