VIGO Photonics S A : signed an agreement with NCBiR to co finance the project “HyperPic – Photonic integrated circuits for mid infrared applications” from European Funds

• The maximum amount of public aid in the project is PLN 440,535,480

• The aim of the HyperPIC project is to develop and implement the technology of specialized, hybrid integrated photonics systems in the mid-infrared range for sensor applications (MIRPIC platform) and to prepare and launch production lines ensuring a complete supply chain for MIRPIC systems

• The HyperPIC project is implemented as part of the European mechanism Important Projects of Common European Interest in Microelectronics and Communication Technologies (IPCEI ME/CT), the most important goal of which is to strengthen the European microelectronics industry

VIGO Photonics (WSE:VGO) announced that it has received information about the signing of an agreement by the National Center for Research and Development with the Company for co-financing the project "HyperPIC - Photonic integrated circuits for mid-infrared applications" under the European Funds for a Modern Economy (FENG) program. The project will be implemented as part of the integrated European program IPCEI ME/CT (Important Projects of Common European Interest on Microelectronics and Communication Technologies).

On June 12, 2023, VIGO informed about the approval by the European Commission of the maximum amount of public aid for the company up to EUR 102.9 million for the implementation of the HyperPIC project, and about its inclusion on the list of entities recommended for co-financing on February 23, 2024.

The aim of the HyperPIC project is to develop and implement photonic integrated circuit technology designed to operate in the mid-infrared (mid-IR) range, building the world's first production line providing a complete value chain for MIRPIC systems (Mid Infra Red Photonic Integrated Circuits). The project requires the development of new technologies, significant investment and operational expenditure, as well as expenditure on the commercialization of new products on the dynamic integrated photonics market. As a result of the project, VIGO Photonics will become the world's first manufacturer of mid-infrared photonic integrated circuits (MIRPIC).

The total value of eligible costs in the project is PLN 853,117,563.35, and the maximum amount of public aid is PLN 440,535,480.00, which corresponds to the so-called financial gap in the project. Eligible costs in the project include expenditure on research and development work, expenditure on the construction of a new production line and operating costs after launching the new production line.

The project is planned to be implemented in 2023-2029 and consists of two phases:

• R&D phases (2023-2027), i.e. research and development phases on new technologies for integrated photonics in the mid-infrared range and technological line solutions. The value of eligible costs in the R&D phase is PLN 146,366,042.37
• FID (First Industrial Deployment) phase, i.e. the first industrial implementation (2024-2029), including investments in a new production line and implementation of new products into production, including financing of part of the operating costs during implementation. The value of eligible costs in the FID phase is PLN 706,751,520.98

After the end of the FID phase, it is planned to start serial production (after 2029), which does not include public funding for the project. The Company's Management Board anticipates that the eligible costs of the project, above the value of funding from public funds, will be covered from the Company's funds and equity, from debt financing and/or, in particular in the FID phase, from other sources, such as, among others, strategic project partnership and/or off-balance sheet financing in the project finance formula.

Potential recipients of HyperPIC systems will be contractors from around the world who use solutions in the field of broadly understood sensing techniques in their products, including manufacturers of biomedical equipment, manufacturers of devices for monitoring industrial pollution, operators of critical infrastructure, companies operating on the IoT market, telecommunications operators and integrators, automotive industry, manufacturers of industrial machines and manufacturers of mobile devices.

Obtaining funding under FENG for the HyperPIC project is an extremely important milestone for VIGO. Thanks to it, we will be able to develop integrated photonics technologies for the mid-infrared range, in which we are global pioneers, and we will create a strategic potential for their production in Europe. This will not only allow us to maintain the EU's technological advantage, but also to strengthen the technological potential of the Polish economy - emphasizes Adam Piotrowski, President of the Management Board of VIGO Photonics.

The implementation of IPCEI projects allows Polish entrepreneurs to gather specialist knowledge and join value chains in the field of breakthrough technologies. They support the internationalization of Polish companies by enabling close cooperation with entrepreneurs from other EU countries operating in the field of advanced technologies. With the help of European Funds, the National Center for Research and Development supports valuable projects of Polish entrepreneurs, and one of them is the project of VIGO Photonics - said Prof. Ph.D. engineer Jerzy Małachowski, acting director of the National Center for Research and Development.

The HyperPIC project is a multi-year investment program with a positive impact on the competitiveness of the Polish economy, which will also be an impulse for the development of the Polish photonic technology cluster. It will provide many new jobs, both directly in the project and in the ecosystem of partners and customers, and will attract engineering talents to Poland. Thanks to the HyperPIC project, we will introduce globally innovative products that meet the needs of AI, IoT, industry 4.0, agriculture 4.0, etc. I also expect the project to have a strong impact on the entire Polish photonics ecosystem, ultimately allowing Poland to become a significant player in the integrated photonics industry in Europe - adds Adam Piotrowski.

####

About the IPCEI mechanism

The IPCEI (Important Projects of Common European Interest) mechanism is one of the most important instruments supporting the new economic policy and competition policy of the European Union. Its aim is to strengthen the potential of European industry in the context of global competition. IPCEI ME/CT is the most important European support instrument for the entire microelectronics, photonics and semiconductor industries.

These technologies, defined by the European Commission as Key Enabling Technologies, are important for the development of the entire European economy. Microelectronic components and communication network systems and equipment provide interfaces between the physical world and the digital world. The IPCEI ME/CT program is defined by the slogans SENSE (feeling), THINK (information processing), ACT (action), COMMUNICATE (communication), which constitute the four main streams of the program and indicate its most important challenges. Addressing these challenges requires the development of advanced technologies and specialized knowledge, as well as high-performance equipment and the highest quality semiconductor materials. Therefore, the best European companies from the semiconductor sector, both in the field of microelectronics and photonics, were qualified for the IPCEI ME/CT program.

Contact for media and individual investors:

Piotr Piotrowski, cc group

[e-mail], [phone]

Contact for institutional investors:

Małgorzata Młynarska, cc group

[e-mail], [phone]