Three phases to a vertically integrated quantum photonic chip fab
QLT is pursuing a phased strategy to build a vertically integrated quantum photonic chip fabrication facility in a Texas Opportunity Zone — capturing federal and state tax incentives worth tens of millions while establishing sovereign US manufacturing for quantum hardware.
From $25M split-fab prototype to $1.2B sovereign manufacturing
QLT's manufacturing strategy is a disciplined three-phase path: prove the physics and lock down IP with a split-fab prototype ($25M), build a dedicated pilot facility ($150M), then scale to a full vertically integrated fab ($1.2B). Each phase is milestone-gated and de-risks the next.
Three phases from first silicon to volume production
Split-Fab Prototype + IP Fortress
5 strategic seats × $5M each. Pillar 1: $5M split-fab prototype across Ligentec, AIM Photonics, and imec with encrypted partial GDS. Pillar 2: $20M IP expansion — 60+ patent families across 7 jurisdictions with defensive litigation reserves.
Pillar 1: $5M prototype · Pillar 2: $20M IP · 3–5 FTE · 12–18 months
Dedicated Pilot Fab
Purpose-built 25,000–30,000 sq ft facility with 10,000–15,000 sq ft ISO 5–7 cleanroom. DUV stepper ($8–12M), dual ICP-RIE etchers, PECVD/LPCVD for SiN, e-beam lithography, full metrology suite, fiber-attach packaging. Texas Opportunity Zone.
$80M equipment · $32M facility · $13M team · 25–30 FTE · 10–20 WPW
Full-Scale Vertically Integrated Fab
World-class quantum photonic chip fabrication facility. 50,000+ sq ft, DUV lithography, FOUP-based automation, MES-integrated production, AI-driven fault detection, advanced packaging lines, integrated quantum test lab. Lights-out 24/7 manufacturing.
200/300mm wafer class · 50–80+ FTE · Thousands of WPY · IPO-ready
Pilot Facility Layout — 30,000 sq ft
Texas Opportunity Zone — ISO 5–7 Cleanroom Zones
Process-aligned equipment for full-stack quantum photonic chip production
Every piece of equipment below maps directly to a step in QLT's 9-step fabrication process traveler — from bare Si₃N₄ wafer to packaged, tested, fiber-coupled quantum photonic processor. This is the complete production pipeline.
Wafer Fabrication & SiN Core Deposition
$18–25MWafer Fabrication & SiN Core Deposition
$18‑25MThe foundation of every QLT chip is a 200mm silicon wafer with a 4 µm buried oxide (BOX) layer and a 300–800nm stoichiometric Si₃N₄ core deposited by LPCVD at ~800°C. This high-temperature process produces the industry's lowest propagation loss (~0.1 dB/m) — critical for maintaining quantum coherence across on-chip waveguide paths exceeding 1 meter.
LPCVD Furnace (Si₃N₄)
→Deposits the stoichiometric silicon nitride waveguide core layer via low-pressure chemical vapor deposition. Dichlorosilane (SiH₂Cl₂) + ammonia…
Tempress / ASM · 200mm capacity · 3-zone · ≤0.5% uniformityPECVD System (SiO₂)
→Deposits SiO₂ upper cladding at low temperature (~300°C) using TEOS/O₂ chemistry. Provides the symmetric refractive index environment (n≈1.44)…
Oxford Instruments / Applied Materials · 200mm · TEOS + O₂CMP System
→Chemical-mechanical planarization achieves <5nm surface roughness on the SiO₂ cladding — critical for bonding the proprietary ODR overlay…
Strasbaugh / Logitech · 200mm · sub-nm roughness targetThermal Oxidation Furnace
→Grows the 4 µm thermal SiO₂ buried oxide (BOX) layer on bare silicon wafers. This insulating layer prevents optical mode leakage into the silicon…
Lindberg / Tempress · O₂/H₂O ambient · 1100°C maxALD System
→Atomic layer deposition of ultra-thin Al₂O₃ interlayers (~5nm) for bonding interfaces, passivation of exposed Si₃N₄ surfaces, and etch-stop layers…
Cambridge Nanotech / Beneq · 200mm · TMA + H₂OLithography — Pattern Definition
$12–18MLithography — Pattern Definition
$12‑18MQLT's photonic circuits require sub-micron pattern fidelity: waveguide widths of 500nm–1.5µm, coupling gaps of ≥150nm, MZI mesh networks with path length precision of ±10nm, and proprietary ODR waveguide structures requiring nanometer-scale precision. Two lithography systems work in tandem — a DUV stepper for production patterning and an e-beam writer for the finest ODR structures.
DUV Stepper/Scanner (248nm)
→Primary production lithography for all waveguide layers, grating coupler patterns, MZI mesh routing, all-optical switch trench windows, metal pad…
Canon FPA-3000 or Nikon NSR · 248nm KrF · ≤180nm resolution · 200mmE-Beam Lithography System
→Writes the proprietary ODR waveguide structures — nano-scale geometries requiring sub-50nm edge placement precision. Also used for prototype mask…
JEOL JBX-9500 · <10nm beam · 100kV · stitching <20nmResist Track (coat/develop)
→Automated spin-coat, soft-bake, develop, and post-bake of photoresist. Ensures uniform ~1.5µm resist thickness (±1%) for consistent exposure dose…
TEL / DNS · 200mm · programmable recipesDry Etch — Waveguide & Trench Formation
$6–10MDry Etch — Waveguide & Trench Formation
$6‑10MReactive-ion etching transfers lithographic patterns into Si₃N₄ and SiO₂ films. Waveguide sidewall roughness must be <1nm RMS to achieve the ≤0.1 dB/m propagation loss required for quantum coherence. A separate etch step creates the ~200nm-deep all-optical switch trenches through the top oxide, exposing the Si₃N₄ core at precise locations for piezoelectric stack integration.
Dual ICP-RIE System
→Primary etch tool. Chamber 1: CHF₃/O₂ chemistry etches SiO₂ cladding for all-optical switch trench windows (~200nm depth, endpoint on Si₃N₄ core).…
Oxford PlasmaPro 100 / PlasmaTherm · dual chamber · ICP + RIE · 200mmO₂ Plasma Asher/Descum
→Post-etch oxygen plasma clean removes resist residue and passivates etch-damaged surfaces. Critical after all-optical switch trench etch to ensure…
Technics / Diener · barrel or downstream · O₂ at 200WWet Bench Suite
→Solvent clean (acetone/IPA lift-off for metal), piranha clean (H₂SO₄:H₂O₂ for organic removal), buffered HF (BHF) for precision oxide thinning, and…
Wafer-Process / custom · acid-resistant · recirculating DI · fume hoodODR Overlay & All-Optical Switch Integration
$4–7M · ProprietaryODR Overlay & All-Optical Switch Integration
$4‑7M · PROPRIETARY — QLT's Core DifferentiatorThese two steps are where QLT's technology becomes irreproducible by competitors. The ODR (Optical Distortion Reversal) process applies a proprietary waveguide geometry and advanced squeezed-light techniques to reverse the optical distortion that accumulates as photons traverse sub-micron waveguides — passively extending photonic qubit coherence at room temperature. This is not reinventing the wheel: optical distortion reversal has been leveraged in telecom for decades to maintain signal fidelity across thousands of kilometers of fiber. QLT's breakthrough is miniaturizing and adapting these proven principles onto a single photonic chip. The all-optical switch integration places proprietary nano-scale switching elements into etched waveguide trenches, creating the femtosecond-speed all-optical transistors that enable real-time quantum gate routing without electronic bottlenecks.
Proprietary Overlay Evaporator
→Deposits the proprietary ODR overlay material onto waveguide sections using controlled thermal evaporation. The overlay material's high nonlinear…
Custom / Denton · 3-pocket · base pressure <5×10⁻⁶ Torr · rate ~1 Å/sPVD Sputter System
→Alternative overlay deposition path and metal seed layers (Ti/TiN) for all-optical switch electrode adhesion. Magnetron sputtering provides more…
AJA / CHA · multi-target · RF/DC magnetron · 200mmPrecision Micro-Assembly Station
→Manual pick-and-place of prefabricated all-optical switch nano-stacks (LiNbO₃/PVDF hybrid crystals) into etched waveguide trenches. Requires ±200nm…
Custom station · ≥200× microscope · 6-axis manipulator · ±0.2µmFlip-Chip Bonder
→Automated precision bonding of LiNbO₃ thin-film components to Si₃N₄ PIC. For the bonding approach: ALD-deposited Al₂O₃ interlayer, surface…
SUSS FC150 / SET FC300 · ±1µm accuracy · force + temp controlMetallization, Anneal & Passivation
$8–14MMetallization, Anneal & Passivation
$3‑5ME-beam evaporation deposits 30nm Ti adhesion + 200nm Au for all-optical switch mirror electrodes, driving electrodes, wire-bond pads, and thermal phase-shifter heaters. After metal lift-off, the wafer undergoes forming gas anneal (N₂/H₂ at 425°C, 90 min) to heal etch damage, hydrogen-passivate Si₃N₄ waveguide surfaces, and reduce propagation loss by up to 0.5 dB/m.
E-Beam Evaporator
→Deposits Ti/Au metal stack by electron-beam evaporation at <5×10⁻⁶ Torr base pressure. Ti (30nm at ~1 Å/s) provides adhesion to SiO₂; Au (200nm…
Denton Nexdep / CHA · 3-pocket · planetary rotation · crystal monitorForming Gas Anneal Furnace
→Post-metallization anneal at 425°C in 95:5 N₂/H₂ for 90 minutes. Hydrogen atoms passivate dangling bonds at Si₃N₄/SiO₂ interfaces, reducing optical…
Lindberg / Tempress · 3-zone tube · N₂/H₂ forming gas · ≤1100°CRTP (Rapid Thermal Processor)
→Quick thermal anneals for dopant activation (if active Si modulators used), contact sintering, and stress relief. 10-second spike profiles minimize…
AG Associates / Mattson · 200mm · <50°C/s ramp · N₂/O₂ ambientBack-End Processing, Packaging & Quantum Test
$12–20MDicing, Fiber Attach & Packaging
$8‑12MAfter front-end processing, each 7×7mm die is singulated, facet-polished to optical quality, and coupled to polarization-maintaining (PM) fiber arrays with <1 dB insertion loss per facet. Wire bonding connects electrical pads to the ceramic carrier. The completed device is sealed in a hermetic package with nitrogen purge and getter material for long-term reliability in data center and defense environments.
Automatic Dicing Saw
→Singulates 7×7mm photonic dies from 200mm wafer. 50µm diamond blade at ~30 krpm, 1 mm/s feed rate. Coolant-assisted cutting prevents thermal damage…
DISCO DAD-3220 · 200mm · auto-alignment · ±5µm accuracy6-Axis Fiber Alignment + IR Camera
→Precision end-fire coupling of PM fiber arrays to chip facets. Sub-micron (±1µm) active alignment optimized via IR camera feedback or optical power…
PI P-611 NanoCube / Newport · 6-DOF · sub-µm · PM fiber V-groove arraysWedge Wire Bonder
→Bonds 25µm gold wire from chip pads to ceramic carrier or PCB at ~120g force, 120ms ultrasonic. Connects all-optical switch driving electrodes,…
K&S 4523 / West-Bond · 25–50µm Au/Al · wedge + ball modesHermetic Packaging Line
→Vacuum oven (200°C, 10⁻² Torr) with getter material for seam-seal or lid-attach. Creates dry nitrogen atmosphere inside package for moisture…
Vacuum oven + lid sealer · N₂ purge · getter · epoxy or seam-sealAdvanced Packaging (Phase 3 prep)
→Flip-chip bonding, through-silicon vias (TSVs), and 2.5D interposer integration for multi-chip quantum processor modules. Enables co-packaged optics…
Automated die attach · TSV processing · interposer bondingMetrology, Characterization & Quantum Test Lab
$12‑18MEvery QLT chip undergoes a 5-phase validation protocol: (1) waveguide cut-back loss measurement, (2) ODR coherence restoration efficiency characterization, (3) all-optical switch speed/extinction tests, (4) MZI fidelity and reconfigurability, and (5) single-photon herald measurements confirming quantum operation. In-line metrology catches defects at each fab step before value is added.
SEM (Scanning Electron Microscope)
→Sub-nm imaging of waveguide sidewalls (roughness <1nm RMS target), photonic crystal hole profiles, all-optical switch trench dimensions, and…
FEI / Hitachi · field-emission · <2nm resolution · 200mm stageAFM (Atomic Force Microscope)
→Surface roughness measurement (sub-nm resolution) on CMP-polished cladding, ODR overlay film quality, and bonding interface inspection. Provides 3D…
Bruker Dimension / Park · tapping mode · <0.1nm z-resolutionSpectroscopic Ellipsometer
→Non-destructive measurement of Si₃N₄ film thickness (±2nm) and refractive index (n, k) across full wafer. Critical for verifying LPCVD uniformity…
J.A. Woollam / HORIBA · 190–1700nm · 200mm mappingAutomated Wafer-Level Optical Prober
→Tests every die on-wafer before dicing: couples tunable laser into grating couplers, measures waveguide loss (target ≤0.1 dB/m), MZI extinction…
Keysight / FormFactor · tunable laser 1500–1600nm · fiber array probeHigh-Speed Detector + ESA (50 GHz)
→Characterizes all-optical switch timing: pulsed laser excitation → 50 GHz photodetector → electrical spectrum analyzer measures femtosecond…
u²t / Finisar 50 GHz PD · Keysight N9040B ESA · pulsed laser sourceSingle-Photon Detectors (SPADs)
→Room-temperature quantum herald measurements: confirms single-photon generation, path entanglement, and Hong-Ou-Mandel dip visibility in the MZI…
Excelitas / ID Quantique · Si SPAD (visible) + InGaAs SPAD (1550nm) · <100ps jitterOSA + Tunable Laser
→Optical spectrum analyzer measures ODR conversion efficiency, waveguide spectral response, grating coupler bandwidth, and parasitic…
Yokogawa AQ6370 OSA · Santec TSL-570 tunable laser · 1500–1620nmFacility Shell, Cleanroom & Infrastructure
$30‑38M25,000–30,000 sq ft total footprint with 10,000–15,000 sq ft ISO Class 5–7 cleanroom. ISO 5 lithography bay ($800/sq ft construction), ISO 6 etch/deposition areas, ISO 7 packaging and test. Separate MES-controlled zones for proprietary ODR and all-optical switch processing with restricted access. Texas Opportunity Zone site.
HVAC/HEPA Filtration
→Laminar flow, temperature ±0.1°C, humidity ±1% RH in lithography bay
Vibration Isolation
→Active isolation pads for DUV stepper and e-beam writer (VC-D or better)
Power & UPS
→Redundant 3-phase 480V service, 500 kVA UPS, generator backup
UHP Gas Delivery
→CHF₃, SF₆, O₂, N₂, Ar, forming gas (N₂/H₂) — double-contained lines with gas monitoring
DI Water + Chemical Waste
→18.2 MΩ DI water system, chemical waste treatment, acid neutralization
MES + Automation + IT
→Manufacturing Execution System, recipe management, yield analytics, automated material handling (FOUP), facility monitoring (BMS)
Safety & Security
→Gas monitoring, FM-200 fire suppression, SCBA, CCTV, card access, EHS compliance, hazmat storage, ITAR-compliant restricted zones
10–20 wafers per week · yielding 50–200+ packaged quantum photonic processors per week · first revenue within 12–18 months of facility commissioning
Texas Opportunity Zone + federal incentives
Layered incentive stack worth $30–50M+ in tax savings
By locating the pilot fab in a Texas Qualified Opportunity Zone, QLT can layer federal and state tax programs to reduce effective facility cost by 20–35%. Texas has 628 designated OZ tracts across 145 counties — including census tracts adjacent to Samsung (Taylor/Austin), Texas Instruments (Dallas/Richardson), and established semiconductor corridors near San Antonio.
Texas also has no state income tax, no state capital gains tax, and an active semiconductor-specific incentive ecosystem established by the Texas CHIPS Act (HB 5174) and the Texas Quantum Initiative (HB 4751).
Tax-free appreciation on 10-year hold
- Capital gains invested in a Qualified Opportunity Fund (QOF) are deferred for 5 years
- 10% basis step-up after 5 years (30% for qualified rural OZ funds)
- All appreciation on the QOF investment is 100% tax-free if held 10+ years
- Program made permanent by the 2025 "One Big Beautiful Bill Act" — OZ 2.0 effective Jan 1, 2027
- On a $150M pilot facility, 10-year tax-free appreciation could shelter tens of millions in gains
Property tax abatement + 25% OZ bonus
- 10-year limitation on school district M&O appraised value (50% abatement)
- Additional 25% bonus abatement for projects in Qualified Opportunity Zones
- Effective 75% school property tax reduction for 10 years in an OZ
- Eligibility: advanced manufacturing with $20–200M investment + 10–75 jobs (by county)
- Must pay 110% county average wage and provide health benefits
Semiconductor Innovation Fund (TSIF)
- Texas Semiconductor Innovation Fund provides grants for in-state R&D and manufacturing
- Federal CHIPS Act provides direct subsidies for domestic semiconductor manufacturing
- Texas Enterprise Fund available as "deal-closing" grant for projects competing with out-of-state locations
- Sales and use tax exemptions on manufacturing equipment purchases
Estimated incentive value on $150M pilot fab
| Incentive Program | Mechanism | Estimated 10-Year Value |
|---|---|---|
| Federal Opportunity Zone 2.0 | Capital gains deferral + tax-free appreciation after 10yr hold + 10% basis step-up at 5yr | $10‑25M+ (depends on appreciation) |
| Texas JETI Act (base) | 50% school district M&O property tax abatement for 10 years | $5‑12M |
| Texas JETI OZ Bonus | Additional 25% abatement for OZ-located projects (total 75%) | $3‑6M |
| Texas Sales Tax Exemption | Manufacturing equipment exempt from 6.25% state + local sales tax | $5‑8M |
| Federal CHIPS Act Grants | Direct subsidies for domestic semiconductor manufacturing | $5‑15M+ (application-dependent) |
| Texas Enterprise Fund | "Deal-closing" discretionary grant from Governor's office | $1‑5M |
| No State Income / Capital Gains Tax | Texas has zero state income tax and zero capital gains tax | Ongoing (structural savings) |
| Total Estimated Incentive Value | $30–70M+ over 10 years |
Tax incentive estimates are preliminary and subject to qualification, application, and regulatory processes. Consult tax and legal advisors for specific investment guidance.
Why QLT builds its own fab
Absolute process control
The ODR overlay, proprietary all-optical switch integration, and advanced waveguide processing are QLT's core differentiators. In-house fabrication eliminates IP exposure risk entirely. No encrypted GDS, no NDAs, no split manufacturing — full physical custody of every wafer.
Weeks, not months
External foundry cycles take 3–6 months per run. An in-house fab reduces prototype iteration to 2–4 weeks — critical for tuning ODR conversion efficiency, proprietary switch geometry, and process window optimization during development.
US-sovereign manufacturing
Defense and intelligence customers require ITAR-compliant, US-based fabrication. A domestic fab qualifies QLT hardware for DoD Trusted Foundry programs, SBIR/STTR partnerships, and classified quantum applications that require full chain-of-custody.
From wafer to packaged product
The facility covers the full stack: lithography, etch, deposition, post-processing, packaging, fiber-attach, test, and qualification. No dependency on external assembly houses or packaging vendors for the complete product.
Revenue from excess capacity
Excess fab capacity can serve external customers as a US-based photonic foundry — filling an unmet market need for domestic SiN fabrication with advanced integration capabilities. This mirrors Infinera's strategy of vertical integration as a competitive moat.
$30–70M+ in captured incentives
Texas OZ location + JETI Act + CHIPS Act + sales tax exemptions + zero state income tax compounds to reduce effective facility cost by 20–35%, making the $150M Series A investment comparable to a $100M facility in tax-advantaged terms.
42-week plan to first silicon
The immediate path uses commercial foundry runs while building proprietary post-processing capability in parallel.
Design & Layout
PIC design, DRC verification, mask layout review using the universal checklist, MPW submission to Ligentec AN350.
Foundry Fabrication
Split-fab across multiple foundries (Ligentec, AIM Photonics, imec) with encrypted partial GDS. No single vendor sees the full design. In parallel: set up NDA-controlled clean environment for ODR overlay and final assembly.
Post-Processing & Assembly
In-house ODR overlay (proprietary waveguide processing), all-optical switch integration, die singulation, facet polishing, and micro-assembly.
Packaging & Fiber Attach
Wire bonding, fiber alignment, encapsulation, lid sealing, and initial electrical/optical verification.
Test & Validation
Full integrated test plan: waveguide loss, ODR conversion efficiency, all-optical switch timing, MZI fidelity, and first quantum herald measurements.
Two-pillar investment structure
- Split-fab MPW runs (Ligentec, AIM, imec): $1M
- Multi-foundry IP protection (encrypted GDS): $1.2M
- Patent prosecution (34+ filings): $1M
- R&D + simulation (Lumerical, Ansys): $800K
- Team + ops (3–5 FTE, 12 months): $1M
- Patent portfolio expansion (60+ families): $8M
- International protection (7 jurisdictions): $5M
- Defensive litigation & enforcement: $5M
- Trade secret & data infrastructure: $2M
Complete manufacturing stack
QLT has prepared: fabrication-ready build schematic (AN350), 42-week GANTT chart, process traveler and test plan, mask layout checklist, foundry selection workflow, proprietary switch integration protocol, and full equipment procurement checklists.
Discuss the manufacturing strategy and facility investment
QLT is seeking partners and investors who understand US-sovereign quantum hardware manufacturing. The Texas Opportunity Zone strategy creates a structural tax advantage that amplifies every dollar invested.