".. We have collaborated with BAE Systems numerous times over the last 2 years, most recently to successfully transfer our most critical process loop into their facility. Encouraged by this track record, we are excited to be extending this collaboration to develop the full flow on 3-inch and later 6-inch wafers.”
For anyone who's wondering what this means:
http://bwrcs.eecs.berkeley.edu/Classes/icdesign/ee141_f01/Notes/chapter2.pdf
In short, it's a good thing.
They've replicated the most critical(ie: "difficult/important") manufacturing processes in the BAE facilities. To my understanding of the NR, this means that we've accomplished enough of the POET process at the BAE Fabs to be taken into mass production stage.
"to develop the full flow on 3-inch and later 6-inch wafers"
BAE was able to replicate the most important pieces of the puzzle. BAE & POET now have enough accomplished at BAE Fabs to confidently enter full scale manufacturing flows.
“Working with BAE Systems will enable the acceleration and maturation of the POET fabrication process for a faster prototype demonstration and a smoother transition to manufacturing.”