But as the cost of resources increase, conservation will beget conservation for large companies that suddenly see a rising cost basis from very basic necessities such as water and gas. Quite necessarily, companies worldwide are standing at the threshold of a very different mentality about consumption, if not out of good conscience, at least out of good business.

So, when we come across a company like Legacy Holdings Inc. (OTCBB: LGYH), it is as much from environmental reverence as good business that we sink our teeth in.

Today’s press release, to those of us not fully briefed on wafer chip processing, is a lot to take in. However, while an extensive knowledge of wafer chip processing might be interesting reading for some, it is not vital to see why LGYH is on the right track for growth. This morning’s news is another small step for Legacy Holdings as a company but another giant leap for green business as a whole – particularly in such a fitting sector as solar energy (aka Photovoltaic).

While news of LGYH’s wafer chip wet processing has been its flagship product this last year, today news focuses on another green process that deals with wafer chip production. Legacy’s dry processing of wafer chips stands to meet the high demands the market is seeing for solar energy. And with the technology able to meet the needs of different sized chips, it opens a lot of doors for Legacy. CEO, Robert Matthews said this morning, “. . . industries such as manufacturers of photovoltaic’s, light emitting diodes, and flat panel displays can benefit from the advanced cleaning and drying technologies.”

Cliffnotes for your Due Diligence

First, let me give you the readers digest of what we have found on wafer chip processing. There is such a thing as too much information on this subject and our bleary-eyed research team can attest to it. Again, understanding this process in depth is not necessary to understanding Legacy’s business but it is worth knowing for the sake of investment research.

The wafer chip, a vital element in everything from your home PC to flat screen displays to solar panels, is a pretty delicate little piece of hardware. The wet processing of this small but integral device usually involves a series of steps, which involve but are not limited to everything from cleaning the product, coating it, removing films left by prior process, re-cleaning, then re-coating, then removing debris left by prior process, etc. etc.

With wafer chip processing, the issue is not drying the substrate (removing water through evaporation) but doing this without leaving any residues. Water is a great solvent, which means it dissolves many things including the silicon wafer itself. The issue arises when you remove the water and all the very tiny impurities that were in the water get left behind. In the world of semiconductors this amounts to very small particles being left on the wafer surface resulting in a water spot. If all these particles were collected and weighed we would be talking about contamination levels in the parts per billion or parts per trillion regimes. But as small as these particles are, they still have the ability to affect device yields. The water spot itself is the remnants of nonvolatile inorganic and organic compounds that are left behind when the water disappears. One of the parameters which distinguished the leading wet station manufactures is their ability to dry the wafers without leaving water spots (process yield), doing this in the shortest period of time (wafer through put) and using the least expensive process (cost of ownership).

The ABC’s of Wafer Chip Processing

Both wet and dry processes, which can be thought of as extra-complicated enameling process, are not only lengthy and time-consuming but use an exorbitant amount of water, chemicals, electricity and manpower. Until now, this was a necessary evil in production of a piece of equipment that has more uses than super glue. (While this last fact has yet to be proven, after what we’ve read, it seems about right.)

In fact, LGYH’s wet processing takes about 1/20th the amount of water as typical wet processing (competition uses 200 gallons of water; Legacy uses 10 gallons of water) which involves only 1 rinse step and takes about 1/3rd the amount of time to complete (competition needs 2 rinse cycles with each cycle a 10 minute rinse @ 10 gallons per minute flow rate plus a 10 minute dry cycle; Legacy’s system needs only a 10 minute combined rinse and dry time).

Also, through the LGYH system, the drying process for solar panels is reduced to a mere 2 minutes, down from the 5-15 minute industry standard. With these processes, which according to Legacy have been virtually error free, each solar panel is processed with 1/8 the amount of water, in about 1/3 the amount of time. This savings comes replete with less energy expended, saved manpower and far less toxic chemicals. If this is not conservation in its most capitalistic hybrid form, I don’t know what is.

For a better understanding of how this process works or what this sector looks like, check out a few resources we have compiled for you.

It’s All About Who You Know. . .

However, what appeals to us most about the potential of Legacy Holdings is not necessarily how it stands to change the wasteful way that wafer chips are manufactured, or how many kinds of chips are currently on the market or being developed that can benefit for this streamlined process or even the amount of money this new and improved wafer chip system saves the clients of LGYH. No. What we like most about LGYH comes down to a canned adage that makes or breaks a business. . . It’s all about who you know.

From what I have read, Legacy Holdings Inc. CEO Robert Matthews not only knows what this market needs, he knows the people that need it – well. After working for Intel, Steag, SubMicron and Texas Instruments for 20 years collectively, Mr. Matthews seems to have a good grip on his product market and potential market just though his rolodex of contacts, which were built through years of being entrenched in the target market itself.

LGYH’s current client list includes many of the nations “tier 1″ technology manufacturing companies. Beyond that, with today’s news that LGYH’s manufactured wafer chips are reaching into new burgeoning markets such as the flat panel screen and photovoltaic sectors, Legacy seems to have a slew of potential new clients at its fingertips and a competitive edge to speak of.

We all have to agree that energy, now being viewed seen as the finite source that it is, is where the investment dollars are going. Whether you favor oil and gas, solar or alternative energy, most will agree that until we make drastic advancements in the conservation of or production of energy, this is a trend that is not going anywhere.

However, in an economic climate where companies are tightening the purse strings, being environmentally conscious has to equate to more than good PR. Legacy has a foothold in a growing market, with a more cost effective solution that also reduces the use of resources. Top that off with a strong management foundation and you will see why this company is one that we think has a very bright future.

Related posts:

1. Legacy Holding Inc. in prime position for new business from old friends
2. LGYH: at the forefront of green chemistry, silicon wafer cleaning
3. Semi Industry Plauged by Decreasing Margins: An Opportunity for Legacy Holdings?