Emerging flat-panel display maker SI Diamond Technology Inc of Houston is to take over a substantial part of the Microelectronics & Computer Technology Corp pre-competitive research co-operative in Austin, Texas. It has agreement in principle to buy the assets and take over the operations of part of the semiconductor packaging and interconnect laboratory and fab, obtaining equipment and leasehold improvements, and a licence to some 100 patents and rights to market a significant proportion of the consortium’s packaging and interconnect and electronics technology, one of the most successful parts of the collaborative effort. About 15 employees currently responsible for research, development and operation at the facility will transfer to SI Diamond. The price is $1m plus an equivalent amount in services over the next two years, and a 3% royalty over the next six years from commercial sales of products using technology developed at the co-op. The facility, which would cost $10m to build, will be used to continue development of SI Diamond’s diamond field emission display system, and a pilot manufacturing line will be established to begin commercial production of the flat panel displays.