October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsSlow PC?RecommendedPC slow today? Run a repair scan before it gets worseResolve common Windows issues and optimize system performance.Scan NowOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
corporate acquisitions

JMAR’s SAL Purchase: How a $4.3 Million Deal Was Meant to Build an X-Ray Lithography Supplier

JMAR bought SAL to combine X-ray steppers with its laser-plasma sources and pursue integrated lithography systems. The roughly $4.3 million deal targeted GaAs fabs, but later disclosures cited a missed throughput earn-out and CPL delays.

By TheFinanceBase Team 4 min read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

JMAR Technologies bought Semiconductor Advanced Lithography (SAL) in August 2001 to combine SAL’s X-ray lithography steppers with JMAR’s laser-plasma X-ray sources. The roughly $4.3 million acquisition was a bid to sell an integrated system, initially aimed at gallium-arsenide chipmakers—not proof that JMAR had displaced EUV or achieved broad commercial success.

Why did JMAR buy SAL?

JMAR had been developing laser-plasma X-ray sources; SAL made X-ray lithography stepper systems. Buying SAL brought together two pieces of equipment needed for an integrated lithography system: a source of X-rays and a tool to use them to pattern semiconductor wafers. Rather than remain primarily a source developer, JMAR could pursue a complete system through its JMAR/SAL NanoLithography subsidiary, commonly called J-SAL.

The initial target was gallium-arsenide (GaAs) manufacturing, including high-speed communications chips. JMAR’s plan was vertical integration: combine the source and stepper, develop the supporting technology, and offer a production tool to fabs.

What did the acquisition cost?

Contemporary reporting and JMAR’s later accounting describe the price at different levels of precision. EDN reported an approximate $4.5 million transaction value when it covered the completed purchase on August 10, 2001. JMAR’s 2005 Form 10-K gives an original purchase price of $4,297,414 including transaction costs. The latter is the more precise accounting figure; the press figure is a rounded contemporary estimate.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Deal item Reported amount Source and qualification
JMAR shares 603,051 shares, valued at $1.7 million JMAR Technologies, 2005 Form 10-K; consideration for the August 7, 2001 acquisition
Cash $1.2 million JMAR Technologies, 2005 Form 10-K; consideration for the August 7, 2001 acquisition
Notes $1.2 million JMAR Technologies, 2005 Form 10-K; consideration for the August 7, 2001 acquisition
Recorded purchase price $4,297,414 JMAR Technologies, 2005 Form 10-K; original price including transaction costs
Contemporary reported transaction value Approximately $4.5 million EDN, August 10, 2001; rounded report of the completed purchase

The listed stock, cash, and note amounts are rounded, so adding them does not reproduce the exact recorded purchase price. The gap is not evidence of an additional separately identified payment; JMAR’s filing says the recorded amount includes transaction costs.

The merger agreement was signed July 24, 2001. It called for SAL to merge into JMAR/SAL Lithography, Inc., with the JMAR subsidiary surviving. JMAR later identified August 7 as the acquisition date; EDN reported completion on August 10.

Rank #2
Sale
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
  • Ideal for Gifting
  • Ideal for a bookworm
  • Compact for travelling

Was JMAR trying to compete with EUV?

Yes, in the sense that JMAR presented its X-ray lithography system as a potential alternative. EDN’s April 17, 2001 account said the company believed its approach could be “cheaper and available sooner than EUV-based systems.” That was JMAR’s strategic claim, not an independently verified comparison or evidence of customer adoption.

A credible comparison would require more than a claim about wavelength or theoretical resolution. It would also need evidence on source power and reliability, mask and stepper integration, cost of ownership, customer qualification, and actual shipments. The available milestones establish JMAR’s development objectives and some execution problems, but do not establish that its system became a commercially successful alternative to EUV or mainstream silicon lithography.

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

How was the integrated system supposed to be developed?

A separate engineering-prototype effort was reported by Photonics Spectra on August 1, 2001. It described nearly $7.8 million in DARPA-sponsored funding through the U.S. Army Robert Morris Acquisition Center. That funding was for prototype development, not the price JMAR paid SAL.

  • Analyze the SAL stepper test stand.
  • Develop a larger-field X-ray collimator.
  • Raise the modular source’s planned power to at least 45 watts.
  • Begin integrating the source into the SAL Model 5 stepper.

JMAR CEO John S. Martinez said the company expected a separate new DARPA contract before the end of 2001 to complete purchase of a Model 5 stepper, install JMAR’s X-ray source, and carry out final installation and checkout of the integrated system. The statement described an expectation; it does not establish that the separate contract was awarded or that the planned checkout was completed.

Did the combined X-ray lithography business succeed?

The available record supports a more limited conclusion: JMAR built an integrated development effort, but the documented milestones do not show broad commercial success. The first SAL earn-out depended on a stepper-limited throughput test by June 30, 2002. JMAR later disclosed that the requirement was not met. In 2004, it also described uncertainty about market acceptance of the CPL system and delays in completing it.

These disclosures matter because combining a source and a stepper was only the starting point. A fab would need a tool that met throughput and reliability needs, completed qualification, and had a viable customer market. The cited record identifies missed performance and development milestones, while leaving commercial shipments and sustained customer adoption unestablished.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

How long did the SAL acquisition shape JMAR?

In 2007, JMAR said all of its goodwill arose from the SAL acquisition and was assigned to its Vermont Operations/Research Division. The division linked source development with system design, integration, testing, and assembly. That accounting treatment shows that the acquisition remained embedded in JMAR’s organizational and financial reporting years later; it does not, by itself, demonstrate that the acquired business produced successful sales.

Quick Recap

SaleBestseller No. 1
SaleBestseller No. 2
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Ideal for Gifting; Ideal for a bookworm; Compact for travelling
$10.99
SaleBestseller No. 5
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
It can be a gift option; Comes with secure packaging; Helpful in various ways
$9.15
Best Value
Sale
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
  • It can be a gift option
  • Comes with secure packaging
  • Helpful in various ways

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More from the Money Desk

Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.