Archer Materials’ deep tech could be game-changing for two key tech sectors

Archer Materials Ltd (ASX:AXE) (OTCMKTS:ARRXF) (FRA:38A) has its sights set on becoming a world leader in the medical diagnostics and quantum computing sectors, as it makes significant progress on its two proprietary deep tech projects. Archer is hard at work developing advanced semiconductor devices, including ‘labs-on-a-chip’ that integrate biosensors relevant to point-of-care medical diagnostics and processor chips relevant to quantum computing. The company has made significant progress on both projects in the past six months, and in mid-June confirmed its focus on deep technology with the sale of its South Australian mining tenements, for which it will retain a 2% net smelter return royalties. 12CQ chip The 12CQ chip is a world-first technology Archer is building for quantum computing operation at room temperature and integration onboard modern electronic devices. Quantum computing aims to utilise quantum mechanical phenomena to power the next generation of computers. At a basic level, quantum mechanics describes the way nature and matter function at the scale of atoms and subatomic particles, which is fundamentally different from the way they function at the many scales above that size (which is described by classical physics). Functioning quantum computers remain a matter of theory only at this point in time, but, should they be successfully developed, it is hypothesised that they could solve computational problems substantially faster than any existing computers; quantum computing also has significant implications for cryptography and cybersecurity. Recent progress on 12CQ chip In the past six months, Archer began work on optimising Quantum Neural Networks, which could be relevant to consumer and enterprise-scale AI technology products. This work involves adapting a unique class of quantum algorithms, called the Quantum Approximation Optimisation Algorithm, to be used in the training of quantum neural networks, which are artificial neural network models that mimic the way the human brain functions and are used in computing. In May it began applying advanced semiconductor device modelling to build sophisticated qubit control devices. Controlling qubits in Archer’s 12CQ chip requires the design of new and highly complex quantum information control electronics to integrate with 12CQ chip qubits. Archer has also applied for patents to protect its intellectual property across the globe. A new computing boom Archer CEO Dr Mohammad Choucair said the potential of quantum computing had echoes of the boom in home computing that occurred in the 1980s. “There are parallels between the business growth strategies of quantum computing companies today and the computing companies of the 1980s that have since come to dominate global tech,” he said. “Hardware and software firms working together at an early stage of technology development is a well-known recipe for success in the computing industry. “At Archer, we are working with global leaders in computing and AI to develop and integrate the software required to enable the operation of our 12CQ chip and its proposed high impact end-use applications.” The biochip for medical diagnostics Archer’s other major technology project is a biochip with unique graphene-based biotechnology that it is building to enable the complex detection of some of the world’s most deadly communicable diseases. In mid-June, the company made progress in the development of its biochip by establishing essential chip testing operations in a semiconductor fabrication environment, an essential step in developing and commercialising the company’s biochip technology. Earlier the company achieved the ability to analyse individual materials in the components of the biochip and now has progressed to the stage where it has established testing and measurement for the chips themselves. Archer’s team has been developing biochip components that are less than 10 nanometres in size - the average human hair is around 75,000 nanometres wide. Miniaturising key biosensor components to nanoscale chip formats on silicon wafers has opened the potential to host more than one million sensor components on the centimetre-sized wafers. This all came on the back of successful demonstrations that Archer can fabricate nanosize biosensor components of 100-150 nanometre features on silicon wafers. Previously using local semiconductor foundry fabrication techniques, the company was limited to one sensor per 1 square centimetre; but with its in-house capability, it has now miniaturised key biosensor components to chip-formats on silicon by nanofabrication translating to over 1 million sensor components within 1 square centimetre. Lab-on-a-chip device potential Archer’s biochip design principles involve using proprietary graphene-based materials as integrated circuits, to form the key sensing elements in its lab-on-a-chip technology. The biochip end-use is initially aimed at addressing the complex detection of diseases affecting the respiratory system. Lab-on-a-chip devices integrate several biological laboratory functions on a single chip, one being biosensing, and others including sample delivery, for better diagnostics. The largest technological barriers to commercialising such devices involve nanofabrication that link to high-value advanced manufacturing – which is the current focus of Archer in its biochip development. Partnerships galore The company has attracted plenty of partners keen to work with them on their technology - not least of them IBM, with which it is exploring the potential of quantum computing. It is now working with the Australian Missile Corporation to identify opportunities to contribute to the Commonwealth Government’s new Sovereign Guided Weapons Enterprise, to support missile and guided weapons manufacturing in Australia. Archer has also strategically expanded its commercial access to institutional deep tech infrastructure as part of its biochip development and made the move to Lot Fourteen, an innovation precinct in Adelaide. Share price movement AXE shares have moved about 93% higher in 2021 thus far, passing the $1 a share threshold on multiple occasions in the past few months. Going back two years, Archer shares have gained a whopping 809%, to make it one of the most exciting tech stocks on the ASX. Next steps The company is now looking ahead to international prosecution of patent applications in the US, Europe, China, and South Korea, breakthrough technology development in its 12CQ quantum computing chip and biochip technology, more collaborative partnerships to develop our processor devices, algorithms, applications and business use cases, and inclusion in the S&P/ASX All Technology Index. - Daniel Paproth