Weebit Nano is a developer of next-generation semiconductor memory technology that has the potential to reinvent the industry.
This morning, Weebit announced that they have hit the all important milestone of their first commercial deal with SkyWater. The agreement provides WBT commercial validation of their ReRAM technology and commences the growth trajectory for the Company’s cutting-edge technology. This milestone has been coming for a while and WBT shares have surged following the announcement.
SkyWater is a US based, US Department of Defense accredited pure play technology foundry. They specialise in advanced innovation engineering services and volume manufacturing of a wide variety of differentiated integrated circuits (ICs) across multiple industries.
Why is the Weebit Nano Share becoming the best performing ASX Stock today?
SkyWater selected the WBT technology given its technical excellence, maturity, robustness and its broad applicability. The two companies will collaborate to transfer the WBT ReRAM technology to SkyWater’s production fab and qualify it for volume manufacturing. The aim is for volume production by the end of 2022.
Commercialization of ReRAM technology will provide enhancements to a range of new electronics in industries such as automotive which require high-temperature performance. WBT’s ReRAM allows semiconductor memory elements to be significantly faster, less expensive, more reliable and more energy efficient. The technology focuses on enabling IoT devices and edge computing architectures and will benefit machine learning and artificial intelligence applications.
Given the broad applicability of Weebit’s technology, it can be scaled to a number of other technologies like SkyWater’s 90 nm and carbon nanotube platforms. Because it is based on fab-friendly materials, the technology can be quickly and easily integrated with existing flows and processes, without the need for special equipment or large investments.
The agreement is a typical IP licencing revenue model wherein an upfront license fee will be paid to WBT and an on-going royalty also be paid based on the production volumes. This is a crucial first step for WBT as it brings in first revenue and cash flows into the firm, and also accelerates commercialisation deals with other manufacturers.
WBT shares surged 27% today and closed at $3.59 a share. In the past year, WBT shares have returned over 400% and is one of the best growth stocks on the ASX.
