AERKOMM enters definitive agreement with Sakai Display Products and PanelSemi to commercialize tile antenna technology.

AERKOMM Inc. has entered a definitive joint-venture agreement with Sakai Display Products Corporation (“SDPJ”) — incorporated in Japan — and PanelSemi Corporation — incorporated in Taiwan — on January 10, 2022. The JV will develop and commercialize AERKOMM’s tile antenna technology.

Structure

The joint venture is operated through a to-be-established California corporation (“Newco”), initially wholly owned by SDPJ. AERKOMM will license the relevant intellectual property to Newco.

Upon approval of the proof of concept (“POC”):

• AERKOMM contributes its IP to Newco in exchange for 52% equity.
• SDPJ and PanelSemi contribute US $20 million in cash, less contributions funded prior to POC approval. SDPJ holds 45% and PanelSemi holds 3% of Newco.
• SDPJ additionally invests €7.5 million in AERKOMM Inc. via private placement upon POC approval.
• If POC is not achieved within 11 months of signing, the JV terminates: AERKOMM’s IP licence to Newco is terminated and Newco remains wholly owned by SDPJ.

Why tile antennas

Tile antenna technology is a key building block for the flat-panel, electronically-scanned-array systems that make multi-orbit satcom viable for aerospace and mobile platforms. Partnering with display-panel manufacturers — companies whose core competency is precisely the kind of high-yield, tight-tolerance production tile antennas require — is a rational path from prototype to volume manufacturing.