ASX Semiconductor Stocks: An Ultimate Guide for Investors (2025 edition)

ASX Semiconductor Stocks are amongst the most complicated and volatile companies on the bourse, but also those with amongst the most money-making potential investments on the bourse. Because semiconductors underpin all modern technologies from smartphones to advanced manufacturing machines. And the AI revolution promises to deliver even further growth.

Having followed the sector for many years now, we at Stocks Down Under know these things too well. But while we have looked at just about every ASX semiconductor company (those still on the market and those that have failed), we have never written a comprehensive guide to the sector.

 

 

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What are semiconductors?

Semiconductors is a broad term. Strictly speaking, it alludes to materials—usually silicon—that have electrical conductivity between that of conductors (like copper) and insulators (like glass). They’re essential in controlling electrical current, which makes them ideal for creating: Microchips / Integrated Circuits (ICs), Transistors, Diodes, Sensors. But sometimes the term is used to allude to any of those technologies in isolation. As we noted above, they’re the building blocks of modern electronics, powering everything from smartphones to data centres to satellites.

 

Why consider ASX semiconductor stocks?

Above all else, because of the Long-term growth potential, especially from AI, cloud computing, 5G, and autonomous vehicles. Moreover, many established companies have high barriers to entry like capital and supply chains. Even smaller companies have unique IP making replication difficult. It can be a high-margin business when demand peaks.

But they come with unique risks. One is high capex and R&D costs – although they can pay for themselves quicker than airlines, these are costs that need to be met upfront. Moreover, the sector is highly cyclical – not just to economic conditions but general demand/supply mismatches and geopolitical risk, especially U.S.–China tensions and Taiwan.

 

AI is a huge opportunity for semiconductor stocks

The rise of prominent consumer AI products, most pertinently ChatGPT, has given a glimpse of AI’s capabilities, but has also given a false impression that the race is well underway. In reality, AI is only at its early stages of development. It will need advanced chips and memory technology to operate, particularly in respect of Edge AI (i.e. AI functions performed at the device rather than relying on a data centre).

 

The reality of ASX semiconductor stocks

ASX semiconductors are no TSMCs – they are not semiconductor or chip makers in their own right. They just work on technologies to sell to fabs or other companies. We’ll delve into specific examples shortly. These companies are working towards getting bought out by a major rather than aspiring to become a major, given many of them have niche technologies.

There is also no guarantee any of these companies will succeed. Yes this is true in any sector, but the parallels of Weebit Nano (ASX:WBT) and 4DS Memory (ASX:4DS) show companies can either progress or not go anywhere for years.

 

A list of ASX semiconductor stocks

Weebit Nano (ASX:WBT)

Weebit is the most advanced ASX semiconductor stock. It is manufacturing its own version of Resistive Random Access Memory (ReRAM), a Non-Volatile memory technology that can replace Flash.

Virtually any electronic device needs some kind of Non-volatile memory and this has typically been Flash memory. But remember what we said earlier about how chips are expected to get smaller and smaller while doing more and more? Well, flash memory has reached the point where it cannot scale down smaller while still being commercially viable.

This is where WBT’s technology comes in. In particular, it can perform 10-100x better than Flash because it can handle 100k-1m read/write cycles, can store and retain data for 10 years at 175C or 20 years at 125C, has a 100x faster access time, and can withstand up to 350x more radiation than Flash.

All the while, it adds far less to the cost of a semiconductor wafer than flash or other technologies and has lower power consumption levels and lower voltage requirements, thus enabling a longer battery life.

While Weebit is off its all time highs, it is still capped well ahead of its peers at nearly $500m. This is no accident – it has four customers that have licensed Weebit’s ReRAM to integrate in its own technologies. The first 3 are US-listed semiconductor foundry SkyWater (NDQ:SKYT), South Korean fab DB HiTek and American chip manufacturer ON Semi (NASDAQ:ON).

And just last week, Weebit Nano disclosed a first licensing agreement with a so-called product company, i.e. a company that uses computer chips in their products, like smart watches, phones, robotics, medical devices and others. In this case, the deal is with an unnamed US company in the security space, signaling possible early traction in new verticals.

Exciting times!

 

4DS Memory (ASX:4DS)

To make a long story short, this company could (and probably should) be where Weebit is right now, but isn’t. 4DS is working on ReRAM too. But several forks in the road have delayed its progress.

4DS is hanging its hat on having worked with HGST (a subsidiary of Western Digital) for many years now. But currently things are in limbo since the most recent ‘Platform Lot’ showed negative results. The platform lot (which was the sixth) had some process modifications that hoped would yield better results, but this has not happened. 4DS has told its investors it will meet with its partners to discuss options going forward.

 

DorsaVi (ASX:DVL)

This company is a newcomer to the space, having only gotten in June. But it signed a worldwide exclusive license to a ReRAM developed in Singapore. DorsaVi’s specialty up to this point has been motion analysis device technologies. The company plans to integrate ReRAM into its sensors, which are already FDA approved. Of course, if Weebit is any guide, this could be just the tip of the iceberg in ReRAM’s potential.

 

BrainChip (ASX:BRN)

BrainChip has commercialised its technology but is only generating nominal revenues at this stage (i.e. just license fees from new customers and not recurring revenues). Still, it is a fair achievement to be commercialised and this is why it is valued at just under $400m. BRN’s technology is Akida, proprietary intellectual property (IP) added to a chip that enables the chip to function in a similar way to the human brain instead of relying on externally-set software-based algorithms.

Akida can operate and learn ‘in the field’ without a continuous internet connection and when it is already deployed. Akida, and any device it is used in by extension, can make decisions much faster as a consequence. Moreover, it is less power-hungry compared to other neural networks, needing only fractions of a watt to operate.

 

Archer (ASX:AXE)

Archer is at a development stage but it has a well-rounded patent portfolio, a proven record of cost control and crucial partnerships with foundries and research partners.

Archer has two technologies. The first is 12CQ is a carbon-based semiconductor technology which could enable mobile quantum devices. It resolves the impediments that have prevented quantum devices, from reaching the mainstream – which currently include the practicalities of operation and scale.

The second is Biochip, a Lab-on-a-Chip technology being developed to enable rapid, detection of diseases. It would allow droplets of biological specimens to be analysed and processed using graphene sensors, thus generating faster and more reliable results than competing technologies.

 

Audio Pixels (ASX:AKP)

Some would say this is the most disappointing company of all having been listed so many years and not getting anywhere. It is currently in suspension and increasingly likely to be delisted on March 1 next year.

AKP’s technology was centred around the idea that vibrating pixels on various frequency could produce a purely digital sound. And this could be installed on every speaker on Earth and make them better. In 2011, it told the market it signed a manufacturing agreement with Sony and expected samples to be avaliable at the end of the following year.

We seen plenty of talk of fabrication yields and demonstration units, and excuses for delays including COVID lockdowns and yields being lower than expected. At least it seems investors will be put out of their misery soon.

 

Adisyn (ASX:AD1)

At the end of last year, Adisyn (ASX:AD1) bought an an Israel-based company called 2D Generation (2DG). 2DG is in the semiconductor space, seeking to use graphene as a material to connect very small transistors – by very small, we mean less than 2 nanometres – one nanometre is a billionth of a metre!

Transistors are semiconductor devices that regulate or control currents or voltage flow in addition to amplifying and generating these electrical signals. But as popular as they are, they have reached the point where they cannot scale down further, at least when they are made of copper.

Graphene is the best option because of its high thermal conductivity and strength – it is 200x stronger than steel! 2DG has a technology that uses graphene, based on the principles of Atomic Layer Deposition (ALD). It can be done at temperatures much lower than those needed in other methods, is scalable and repeatable, provides precise control of film thickness and creates uniform layers on the transistors.

Adisyn is working with imec, a semiconductor R&D powerhouse, based in Belgium, along with ConnectingChips, an EU initiative aimed at driving innovation and collaboration in the semiconductor industry with industry leaders, such as NVIDIA (NASDAQ:NVDA).

The company is hoping to have a Demonstration Prototype by mid-2026 – in other words a 1x1cm chip. It is hoped that the company will speed up this process in mere weeks once it has a special ALD tool delivered to it.

 

Nanoveu (ASX:NVU)

Nanoveu is another company that got into the semiconductor space, buying a Singapore-based venture called Embedded A.I. Systems Pte Ltd, or ‘EMASS’ for short.

EMASS is a so-called System-on-a-Chip, or SoC. EMASS’ chips have 20x the power efficiency of comparable chips and could handle 13 million AI parameter simultaneously (at once) at over 10 trillion AI operations per second per watt. Moreover, they could work with just 0.1mW of power consumption.

Therefore, ECS-DoT could be a godsend for any device needing AI inference at the edge (i.e. AI inference done on the device rather than in a data centre).

Specific applications for ECS-DoT could include robotic surgeries, autonomous vehicles, AR/VR conversion from videos, medical imaging, IoT devices like smart watches and medical implants. And that’s before you consider what isn’t possible now that could be in the future. One example could be live biometric data from medical patients.

Full production tape-out is anticipated in Q1 2026 and first revenues are expected thereafter.

 

BluGlass (ASX:BLG)

BluGlass is a manufacturer of laser diodes. These are devices that generate highly intense, focused beams of light and serve several purposes, depending on the industry and applications.

These include mobile phones that use them to indicate the presence of incoming calls, and advanced manufacturing processes use laser diodes for the fabrication of advanced componentry needed in everything from the high precision manufacture of semiconductor chips and electronic devices, to the intricate metal and polymer fabrication needed in cars, planes and trains.

BluGlass is a small player but this is an advantage. This is because it can deliver customers better flexibility, development, enhanced performance and lower-cost solutions – without post-purchase work. This is possible through BLG’s unique manufacturing processes.

 

 

Conclusion

We know this is a lot to digest. But we hope if there’s one takeaway point, it is that this entire sector will be crucial in the years ahead. Even some of these companies may not make it, others will and will reap significant windfalls. The challenge for investors is to find the right company and have patience to ride out short-term fluctuations.

 

This article about is not financial advice. Also note that Small caps are risky and you can easily lose money in these kinds of stocks (but you probably already knew that).

All ASX companies mentioned except Audio Pixels are or have been Pitt Street Research clients in the past and Pitt Street Research is the sister company to Stocks Down Under. Pitt Street directors own shares in Weebit, Nanoveu, Adisyn, Dorsavi, 4DS and Archer.