4DS Memory Limited (ASX: 4DS) is one of the small-cap technology stocks on the ASX that has a very high growth potential. We first covered the stock on the 15th of September at a price of $0.059. Members with exposure since then have had a good ride. 4DS now trades at $0.090 – translates to a 52.5% return in just a little over a month.
2020 has been a really important and impressive year for 4DS. It has made significant strides forwards and has recorded the best data to date in 2020.
4DS’s ReRAM technology already ticks the essential boxes in order to be successful. The applications for their technology are in the storage memory class and cloud data centres. Storage memory class is the space that is empty in a scale with DRAM and NAND Flash on either end. The best of both worlds is what 4DS’s ReRAM technology is gunning for.
In 2020, the data recorded by 4DS is as follows:
- A 2x to 3x increase in endurance
- Speeds close to that of DRAM
- A first in ReRAM technology – 4DS has found a way to correct errors on its chip without compromising on speed
- Higher data retention capabilities
These milestones have resulted in 4DS being granted patents in the USA for their speed and error correction capabilities. The data from their production tests has also been validated by two giants in the semiconductor space – imec and HGST.
HGST is a subsidiary of one of the best digital storage companies in the world – Western Digital. 4DS has been in partnership with HGST for 7 years now. The partnership allows 4DS to learn from one of the best innovators in the world. Their interest in 4DS’s technology confirms the potential that it has in disrupting the current memory market. HGST have also recently validated the data seen from 4DS wafer testing results.
Another very important partner 4DS has is imec – a Belgian R&D firm that works on nanotechnology and has the production capabilities required for commercialisation. Imec is the world’s leading independent semiconductor institute. The collaboration between the two firms enables 4DS to develop a fabrication process for high volume production. Imec’s megabit memory platform results in cost and time reduction in the manufacturing process. The ultimate aim with this partnership is to develop a 4DS interface switching chip with a fully functioning Storage Class Memory.
4DS’s latest quarterly update reveals that the manufacturing of the two sets of Wafers (23 Non-Platform Wafers and 12 Platform Wafers) at imec has begun. The manufacturing of the two sets is being done with various process conditions to further improve the results that have been achieved.
The testing for these two sets being produced is set for the final quarter of 2020 and first quarter of 2021. The importance of these results cannot be overstated as success may mean corporate transactions and sales being lined up.
4DS has $7.2 million in cash as of September 30th, 2020. This tells us that 4DS has enough cash reserves to not worry about running out of money when working on its 2021 milestones. No other financial metrics have changed for the company since the analysis in our previous report.
The outlook remains the same for 4DS. A potential 100-billion-dollar industry waits as it perfects its product offering. The firm now has 23 patents in its portfolio and a very experienced board and management to take it to the next level. We continue to “Hold” 4DS in our portfolio and we urge our members to follow suit.