FR EA
1032-00004 · Client 1032 · Review & Investigation Responses
second-rfi-exhibit-supply-chain-map.xlsx DOCUMENT M&A / Corporate
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[sheet: Cover & Summary]

FieldValue
Document TitleSupplemental Exhibit — Marlowe Asset Management Photonics Inc. Supply Chain Map
CFIUS Case No.CFIUS-023-07-3841
Prepared ByCalderwood & Harkness LLP (Counsel to Halcyon Semiconductor AG)
Prepared ForCommittee on Foreign Investment in the United States
Date of SubmissionOctober 6, 2023
ReferenceResponse to Second Request for Information (issued September 22, 2023)
Target CompanyMarlowe Asset Management Photonics Inc.
Target EIN26-4371885
Target CAGE Code7VK92
Target DUNS07-812-4493
Target HQ7400 Ridgeline Parkway, Colorado Springs, CO 80919
Target Fab Facility9200 Innovation Boulevard, Albuquerque, NM 87113
AcquirorHalcyon Semiconductor Aktiengesellschaft (XETRA: HLC)
Acquiror U.S. Acquisition VehicleHalcyon US Holdings Inc. (EIN: 93-2841067)
NSA Docket ReferenceNSA-2024-0019
ClassificationUNCLASSIFIED — Contains Business Proprietary Information
Contact — Buyer's CounselMargaret 'Peggy' Ashworth, Of Counsel, Calderwood & Harkness LLP, 1750 K Street NW, Suite 800, Washington, DC 20006
Contact — Seller's CounselHarrison Whitfield, Partner, Wethersfield & Gale LLP, 2000 Pennsylvania Avenue NW, Suite 600, Washington, DC 20006
Summary FindingVPI sources all critical materials from U.S. and allied-nation (Japan, UK, Germany) suppliers. No dependencies on Chinese or other non-allied sources identified for any critical material category.

[sheet: Critical Materials Overview]

Material CategoryDescription / FunctionPrimary ECCN / ITAR ClassificationNumber of Qualified SuppliersSole-Source DependencyAll Suppliers Allied-NationAny Non-Allied Nation SourcingRisk RatingNotes
Silicon Carbide (SiC) Substrates — Semi-InsulatingFoundation wafer for GaN epitaxial growth; 4-inch and 6-inch semi-insulating 4H-SiCEAR ECCN 3C0053NoYesNoLowAll three qualified suppliers are U.S.-based
Gallium Nitride (GaN) Epitaxial WafersGaN-on-SiC epi layers grown via MOCVD; AlGaN/GaN HEMT structuresEAR ECCN 3C005 / ITAR Cat. XI(a)(3) for defense-grade2NoYesNoMediumOne U.S. supplier and one Japanese supplier qualified; VPI also performs in-house epitaxy at Albuquerque fab
Trimethylgallium (TMGa) PrecursorMetalorganic precursor for MOCVD epitaxial growthEAR ECCN 1C3502NoYesNoLowU.S. and German suppliers
Trimethylaluminum (TMAl) PrecursorMetalorganic precursor for AlGaN barrier layer growthEAR ECCN 1C3502NoYesNoLowU.S. and UK suppliers
Ammonia (NH3) — Electronic GradeNitrogen source for MOCVD GaN growthEAR993NoYesNoLowMultiple U.S. sources available
Photolithography Masks & ReticlesCustom masks for GaN HEMT device patterningEAR ECCN 3B0012NoYesNoLowU.S. and Japanese suppliers
Gold (Au) Bond Wire & RibbonDie-attach and wire bonding interconnectsEAR992NoYesNoLowU.S. suppliers
Ceramic & Metal-Alloy PackagesHermetic packaging for military-grade GaN power amplifier modulesITAR Cat. XI(a)(3) for defense configurations2NoYesNoMediumU.S. and UK suppliers; defense packages ITAR-controlled
Alumina (Al₂O₃) Substrates for Hybrid AssembliesThin-film circuit substrates for matching networksEAR ECCN 3A001 (when incorporated in assemblies)2NoYesNoLowU.S. and Japanese suppliers
Passive Components (Capacitors, Resistors — Military-Grade)MIL-spec passives for power amplifier module assembliesEAR ECCN 3A0013NoYesNoLowAll U.S.-based
Testing & Probe Equipment ConsumablesProbe tips, calibration standards, RF test fixturesEAR ECCN 3B0012NoYesNoLowU.S. and German suppliers
Specialty Gases (N₂, Ar, H₂ — UHP)Process gases for MOCVD and plasma etchEAR993NoYesNoLowMultiple U.S. sources

[sheet: Supplier Detail]

Supplier IDMaterial CategorySupplier NameSupplier Headquarters — CitySupplier Headquarters — State/RegionSupplier CountryAllied NationFive Eyes / NATO / Treaty AllySupplier Facility Manufacturing LocationManufacturing CountryApproximate Annual Spend — VPI FY2022 (USD)% of VPI Total Spend in CategoryPrimary / Secondary SupplierContract TypeCurrent Contract ExpirationLead Time — Typical (weeks)Lead Time — Expedited (weeks)Qualification StatusITAR / EAR Compliance ConfirmedNotes
SUP-001SiC Substrates — Semi-InsulatingRidgepoint Advanced Materials Inc.DurhamNCUnited StatesYesFive Eyes (U.S.)Durham, NCUnited States840000055%PrimaryLong-term supply agreement (3-yr)2025-06-30128Fully qualified — QPL listedYesPrimary SiC substrate supplier; 4-inch and 6-inch 4H-SiC wafers
SUP-002SiC Substrates — Semi-InsulatingAppalachian Crystal Technologies LLCScrantonPAUnited StatesYesFive Eyes (U.S.)Scranton, PAUnited States420000028%SecondaryAnnual PO framework2024-12-311410Fully qualifiedYesSecondary source; 4-inch wafers only
SUP-003SiC Substrates — Semi-InsulatingFoxwood Semiconductor Corp.San JoseCAUnited StatesYesFive Eyes (U.S.)San Jose, CAUnited States260000017%SecondarySpot purchase / qualificationN/A — spot basis1612Qualification complete 2022YesTertiary/backup source; 6-inch wafers
SUP-004GaN Epitaxial WafersPinnacor Epitaxial Inc.IthacaNYUnited StatesYesFive Eyes (U.S.)Ithaca, NYUnited States610000060%PrimaryLong-term supply agreement (3-yr)2025-09-30106Fully qualified — defense-gradeYesCustom AlGaN/GaN HEMT epi structures; ITAR-compliant facility
SUP-005GaN Epitaxial WafersTakeda Compound Semiconductor K.K.TsukubaIbarakiJapanYesTreaty Ally (Japan)Tsukuba, JapanJapan410000040%SecondaryAnnual supply agreement2024-12-311410Fully qualified — commercial-grade; defense-grade qualification pendingYesSupplies commercial/5G-grade epi wafers; DSP-5 not required (Japan)
SUP-006TMGa PrecursorElbridge Specialty Chemicals Inc.DanburyCTUnited StatesYesFive Eyes (U.S.)Danbury, CTUnited States180000065%PrimaryAnnual blanket PO2024-06-3064Fully qualifiedYesElectronic-grade TMGa
SUP-007TMGa PrecursorRheintal Feinchemie GmbHLudwigshafenRhineland-PalatinateGermanyYesNATO (Germany)Ludwigshafen, GermanyGermany97000035%SecondaryAnnual PO2024-09-3086Fully qualifiedYesEuropean source for supply chain resilience
SUP-008TMAl PrecursorElbridge Specialty Chemicals Inc.DanburyCTUnited StatesYesFive Eyes (U.S.)Danbury, CTUnited States120000058%PrimaryAnnual blanket PO2024-06-3064Fully qualifiedYesElectronic-grade TMAl
SUP-009TMAl PrecursorHoughton Metallurgics Ltd.BristolEnglandUnited KingdomYesFive Eyes (UK) / NATOBristol, UKUnited Kingdom87000042%SecondaryAnnual PO2024-12-3186Fully qualifiedYesUK-manufactured electronic-grade TMAl
SUP-010Ammonia — Electronic GradeClearfield Industrial Gas Corp.HoustonTXUnited StatesYesFive Eyes (U.S.)Houston, TXUnited States42000050%PrimaryAnnual contract2024-12-3121Fully qualifiedYesStandard UHP NH₃ supply
SUP-011Ammonia — Electronic GradeGreat Lakes Gas & Chemical Inc.ToledoOHUnited StatesYesFive Eyes (U.S.)Toledo, OHUnited States25000030%SecondaryAnnual contract2024-12-3121Fully qualifiedYes
SUP-012Ammonia — Electronic GradePrairie Chem Solutions LLCOmahaNEUnited StatesYesFive Eyes (U.S.)Omaha, NEUnited States17000020%BackupSpot purchaseN/A32Fully qualifiedYesBackup supplier
SUP-013Photolithography Masks & ReticlesBrightline Photomask Inc.ChandlerAZUnited StatesYesFive Eyes (U.S.)Chandler, AZUnited States320000070%PrimaryMaster services agreement2025-03-3142Fully qualifiedYesCustom GaN HEMT mask sets
SUP-014Photolithography Masks & ReticlesNihon Seimitsu Optics Co., Ltd.YokohamaKanagawaJapanYesTreaty Ally (Japan)Yokohama, JapanJapan140000030%SecondaryAnnual PO2024-12-3164Fully qualifiedYesSecondary mask supplier for non-ITAR product lines
SUP-015Gold Bond Wire & RibbonNorthstar Interconnect Technologies Inc.AttleboroMAUnited StatesYesFive Eyes (U.S.)Attleboro, MAUnited States190000075%PrimaryAnnual contract2025-06-3042Fully qualifiedYesMIL-spec Au wire and ribbon
SUP-016Gold Bond Wire & RibbonValor Precious Metals LLCProvidenceRIUnited StatesYesFive Eyes (U.S.)Providence, RIUnited States64000025%SecondaryAnnual PO2024-12-3143Fully qualifiedYes
SUP-017Ceramic & Metal-Alloy PackagesHargrove Microelectronic Packaging Inc.HuntsvilleALUnited StatesYesFive Eyes (U.S.)Huntsville, ALUnited States560000065%PrimaryLong-term agreement (3-yr)2025-12-31106Fully qualified — defense-grade; ITAR-registeredYesPrimary hermetic package supplier for defense modules
SUP-018Ceramic & Metal-Alloy PackagesSovereign Microelectronics Ltd.EdinburghScotlandUnited KingdomYesFive Eyes (UK) / NATOEdinburgh, UKUnited Kingdom300000035%SecondaryAnnual supply agreement2024-12-31128Fully qualified — defense-grade; UK MOD approvedYesSupplies ceramic packages for NATO-export configurations; DSP-5 license in place
SUP-019Alumina Substrates for Hybrid AssembliesCascade Ceramic Technologies Inc.PortlandORUnited StatesYesFive Eyes (U.S.)Portland, ORUnited States110000055%PrimaryAnnual PO2024-12-3164Fully qualifiedYesThin-film alumina substrates
SUP-020Alumina Substrates for Hybrid AssembliesMurata Advanced Ceramics K.K.NagaokakyoKyotoJapanYesTreaty Ally (Japan)Nagaokakyo, JapanJapan90000045%SecondaryAnnual PO2024-12-3186Fully qualifiedYes
SUP-021Passive Components — Military-GradeCornerstone Electronic Components Inc.Huntington BeachCAUnited StatesYesFive Eyes (U.S.)Huntington Beach, CAUnited States210000050%PrimaryAnnual blanket PO2024-12-3184Fully qualified — MIL-PRF compliantYesMIL-spec capacitors and resistors
SUP-022Passive Components — Military-GradeLakewood Defense Electronics Corp.Colorado SpringsCOUnited StatesYesFive Eyes (U.S.)Colorado Springs, COUnited States120000029%SecondaryAnnual PO2024-12-3185Fully qualified — MIL-PRF compliantYes
SUP-023Passive Components — Military-GradeTrident Micro Devices Inc.San DiegoCAUnited StatesYesFive Eyes (U.S.)San Diego, CAUnited States88000021%TertiarySpot / qualificationN/A106Fully qualifiedYesBackup source
SUP-024Testing & Probe Equipment ConsumablesPrairieland Test Solutions Inc.RichardsonTXUnited StatesYesFive Eyes (U.S.)Richardson, TXUnited States75000060%PrimaryAnnual MSA2024-12-3142Fully qualifiedYesRF probe tips and test fixtures
SUP-025Testing & Probe Equipment ConsumablesKellermeister Messtechnik GmbHStuttgartBaden-WürttembergGermanyYesNATO (Germany)Stuttgart, GermanyGermany50000040%SecondaryAnnual PO2024-12-3164Fully qualifiedYesCalibration standards and specialty test fixtures
SUP-026Specialty Gases (N₂, Ar, H₂ — UHP)Clearfield Industrial Gas Corp.HoustonTXUnited StatesYesFive Eyes (U.S.)Houston, TXUnited States31000045%PrimaryAnnual contract2024-12-3121Fully qualifiedYes
SUP-027Specialty Gases (N₂, Ar, H₂ — UHP)Great Lakes Gas & Chemical Inc.ToledoOHUnited StatesYesFive Eyes (U.S.)Toledo, OHUnited States22000032%SecondaryAnnual contract2024-12-3121Fully qualifiedYes
SUP-028Specialty Gases (N₂, Ar, H₂ — UHP)Prairie Chem Solutions LLCOmahaNEUnited StatesYesFive Eyes (U.S.)Omaha, NEUnited States16000023%BackupSpot purchaseN/A32Fully qualifiedYes

[sheet: Spend by Country]

CountryAllied-Nation StatusTreaty / Alliance BasisNumber of SuppliersTotal Annual Spend — FY2022 (USD)% of Total Critical Material SpendMaterial Categories Supplied
United StatesAllied (Domestic)N/A — Domestic184327000076.0%SiC Substrates, GaN Epi, TMGa, TMAl, NH₃, Masks, Au Wire, Packages, Alumina, Passives, Test Consumables, Specialty Gases
JapanAlliedTreaty Ally — U.S.-Japan Security Treaty3640000011.2%GaN Epi, Masks, Alumina Substrates
United KingdomAlliedFive Eyes / NATO238700006.8%TMAl Precursor, Ceramic Packages
GermanyAlliedNATO214700002.6%TMGa Precursor, Test Consumables
People's Republic of ChinaNon-AlliedN/A000.0%None
Russian FederationNon-AlliedN/A000.0%None
All Other Non-Allied NationsNon-AlliedN/A000.0%None
TOTAL — Allied Nations255501000096.6%
TOTAL — Non-Allied Nations000.0%
GRAND TOTAL2555010000100.0%

[sheet: Allied-Nation Assessment]

Assessment CriterionFindingDetail
Presence of Chinese-origin suppliers in critical material supply chainNone identifiedVPI does not source any critical materials (SiC substrates, GaN epi, MOCVD precursors, packaging, passives, or test consumables) from suppliers headquartered in or manufacturing in the People's Republic of China.
Presence of Russian-origin suppliersNone identifiedNo suppliers headquartered in or manufacturing in the Russian Federation.
Presence of other non-allied-nation suppliersNone identifiedAll 25 unique qualified suppliers are located in the United States (18), Japan (3), United Kingdom (2), or Germany (2) — all allied nations under treaty or Five Eyes/NATO frameworks.
Domestic (U.S.) concentration of supply76.0% by spendApproximately 76.0% of VPI's FY2022 critical material spend was sourced domestically from U.S. suppliers. The remaining 24.0% comes from three allied nations: Japan, UK, and Germany.
Sole-source dependencies on non-U.S. suppliersNoneNo critical material category relies solely on a non-U.S. supplier. Every material category has at least one fully qualified U.S.-based supplier.
ITAR-controlled material sourcing100% domestic or Five Eyes / NATO alliedAll materials classified under ITAR Category XI(a)(3) (defense-grade GaN epi wafers and hermetic ceramic packages) are sourced exclusively from ITAR-registered U.S. suppliers or UK MOD-approved allied suppliers with DSP-5 licenses in place.
EAR-controlled material sourcing100% domestic or allied-nationAll materials classified under EAR ECCNs (3A001, 3B001, 3C005, 3E001, 1C350) are sourced from U.S. or allied-nation suppliers. No License Exception issues identified for current supply chain.
Supply chain resilience — dual sourcingAll critical categories dual-sourcedEvery critical material category has a minimum of two qualified suppliers, and key categories (SiC substrates, passives, gases) have three or more qualified sources.
VPI in-house manufacturing capabilityGaN epitaxy performed in-houseVPI's Albuquerque fab (9200 Innovation Boulevard, Albuquerque, NM 87113; 45,000 sq. ft. GaN-on-SiC fab) performs in-house MOCVD epitaxial growth, reducing external dependency for defense-grade epi wafers.
Post-acquisition supply chain riskLowNo changes to VPI's supply chain sourcing are anticipated as a result of the acquisition by Halcyon Semiconductor AG. The NSA Technology Control Plan will ensure continued separation of VPI procurement from HSAG global supply chain.
Compliance with DFARS 252.225-7007 (Berry Amendment) and DFARS 252.225-7012CompliantVPI's sourcing of specialty metals, electronic components, and semiconductor materials complies with applicable DFARS clauses requiring domestic or qualifying-country sourcing for defense contracts.
Section 889 (NDAA FY2019) compliance — telecommunications equipmentCompliantVPI does not source any telecommunications or video surveillance equipment from covered entities (Huawei, ZTE, Hytera, Hikvision, Dahua) in its supply chain.

[sheet: Government Contract Linkage]

Government ContractContracting AgencyContract Backlog (USD)Prime / SubKey Material DependenciesAll Suppliers Allied-NationSupply Chain Risk to ProgramNotes
GaN HEMT Modules for AN/TPS-80 RadarU.S. Army CERDEC (PEO IEW&S)52300000PrimeSiC Substrates, GaN Epi (defense-grade), Ceramic Packages (ITAR), MIL-grade Passives, Au WireYesLowAll materials sourced from qualified U.S. and UK suppliers
Next-Gen mmWave Power AmplifiersU.S. Air Force Research Laboratory (AFRL)41700000PrimeSiC Substrates, GaN Epi, Alumina Substrates, Photomasks, TMGa/TMAl PrecursorsYesLowVPI in-house epi capability provides additional resilience
GaN-based T/R Modules for Missile DefenseMissile Defense Agency (MDA)38900000PrimeSiC Substrates, GaN Epi (defense-grade), Ceramic Packages (ITAR), MIL-grade PassivesYesLowDefense-grade materials sourced exclusively from ITAR-registered U.S. and UK suppliers
Subcontract — Naval RF ComponentsU.S. Navy NAVSEA (via Ironclad Defense Systems Inc.)34100000SubcontractSiC Substrates, GaN Epi, Ceramic Packages, Au Wire, MIL-grade PassivesYesLowIronclad Defense Systems Inc. is the prime contractor
Border Surveillance RF ComponentsDHS Science & Technology Directorate26000000PrimeSiC Substrates, GaN Epi, Alumina Substrates, PassivesYesLowCommercial-grade and dual-use components; EAR-controlled
TOTAL TOP 5 BACKLOG193000000Aggregate backlog: $52.3M + $41.7M + $38.9M + $34.1M + $26.0M = $193.0M