nGimat has developed proprietary nanoengineered resistive and dielectric coatings that enable embedded passive components to improve performance, decrease size, and reduce the use of solder. nGimat believes that its technology will replace surface mount passives (e.g., resistors, capacitors and inductors soldered to conventional circuit boards) with thin film passives incorporated inside a multi-layer circuit board. Conventional passive devices consume valuable "real estate" on circuit boards that could otherwise be devoted to "chips" (i.e., semiconductor integrated circuits). Key industry consortia - the National Electronics Manufacturing Initiative (NEMI), and the Semiconductor Industry Association (SIA) - have identified embedded passives as a critical technology for continued improvement in the functionality and speed of electronic devices.

Although each discrete passive may cost only pennies, the total cost of acquisition, inventory, quality control and automated assembly of literally hundreds of circuit board components can amount to as much as 60% of the cost of the completed board, far outweighing the cost of components. Furthermore, each discrete device requires solder joints; failure of these joints is a major source of electronic system failures, leading to expensive downtime and service costs. The Company expects embedded passives to eliminate at least 50% of these joints.

nGimat's inorganic embedded passives technology is being commercialized via a non-exclusive license agreement with Rohm and Haas Electronics Materials, a leading provider of advanced, high-performance specialty materials and breakthrough technology solutions for the printed circuit board, semiconductor manufacturing and advanced packaging industries. nGimat is independently developing organic matrix materials for embedded capacitors that yield values from 10 to >100 nF/cm².