NANO-X IMAGING LTD announced that it has opened its new semiconductor chip fabrication plant in South Korea. The facility is operational, opened on schedule, and will be the main production site of Nanox micro-electro-mechanical systems (“MEMs”) known as Nanox.SOURCE, a chip that produces the digital X-ray source for the Company's Nanox.ARC system, a 3D medical imaging system that has the potential to democratize meaningful access to imaging not currently available in approximately two-thirds of the world. Nanox expects to get to scale for production by mid-year 2022.

Additionally, Nanox has been building its production line capabilities and establishing an operational assembly line at its Israeli facility to enable the expected ramp up in production and preparation for shipments of the Nanox.ARC system. The new facility is a highly advanced fabrication plant, dedicated to the production of MEMs. Strategically located next to the world's large semiconductor cluster in Yongin, South Korea, the Nanox facility spans 12,000 square meters, including a 1,200-square-meter MEMs clean room. The Company's core proprietary technology is a transformation from an analog X-ray source to a digital X-ray source, which believe will result in a decrease in costs of Nanox.ARC system compared to traditional 3D imaging systems that use a legacy analog X-ray source.

The Nanox.SOURCE is a semiconductor chip that replaces the filament in the analog X-ray tube, similar to a light-emitting diode (LED) source, and has an on/off toggling feature designed to reduce the duration of each operation. As the Nanox X-ray digital source maintains a low temperature, there is no heat associated with electrons exiting the chip as compared to analog X-ray sources. The X-ray tube's expected range is 20-120 KV and it is small in size and light in weight.

The Company is developing a holistic, end-to-end medical imaging solution that integrates Nanox.ARC, AI medical imaging technology and teleradiology services. While it continues the ongoing integration of the recent Nanox.AI, USARAD and MDW acquisitions, Nanox believes these acquisitions will enhance the services provided by the Nanox solution. The facility is designed to perform advanced semiconductor fabrication practices, including 200nm photolithography using a krypton fluoride (KrF) scanner, electrochemical metal etching, chemical vapor deposition (CVD) and physical vapor deposition (PVD) of thin films, dry etching, wet and chemical etching, chip inspection and testing in vacuum, and C-module packaging for X-ray tubes.