Shares of Runcorn-based Nanoco Group plc rose about 5% after it announced that it has signed a “statement of work with significant joint development activities (JDA)” with STMicroelectronics, an important European electronics customer.

Nanoco is a nano-material production company, specialising in the production of its patented cadmium free quantum dots (CFQD) and other patented nano-materials for use in the electronics industries.

“The JDA is a two year programme to optimise the performance of a second generation sensing material to be developed by Nanoco,” said the Runcorn firm.

“The new JDA will include revenue for services that Nanoco will soon be able to offer in the extended Runcorn facility, particularly in device testing and analytical services.

“If all of the technical milestones in the two years of the JDA are achieved, the next step in the process will be to scale the new material into an industrialised process capable of supporting high volume applications.

“The JDA helps to underpin the board’s expectations for non-license fee income in FY24, which are in line with FY23.

“The JDA is also expected to deliver additional sales of test materials during FY24 and FY25.”

Nanoco CEO Brian Tenner said: “The group’s significantly improved financial position allows us to proactively invest to accelerate development of new materials and new service capabilities. The new 200mm wafer device capability is one such example.

“This expanded range of services has created a compelling offering for ST who will be the first to take advantage of these new capabilities in the future.

“Further production orders received for first generation sensing materials will be in parallel with this JDA. ST’s commitment to developing a second generation material, emphasises Nanoco’s ability to be a robust partner in complex electronics supply chains.”