Weebit Nano and DB HiTek: The ASX’s most advanced semiconductor stock and top tier fab are partners

Meet the latest commercial marriage among ASX semiconductor stocks – Weebit Nano and DB HiTek.  Weebit Nano (ASX:WBT) is the ASX’s most advanced semiconductor stocks while DB HiTek is a top tier semiconductor fab that like what it sees in WBT’s ReRAM technology.

Recap of Weebit Nano

Weebit Nano is a semiconductor technology development company that is listed on the ASX. The company specialises in a Non-Volatile Memory technology called Resistive Random Access Memory (ReRAM) that has strong potential to replace Flash memory technology, among other things.  

WBT signed its first commercial deal with US fab SkyWater back in 2021 for ReRAM to be included in SkyWater’s products. After a long qualification period, ReRAM is now avaliable to SkyWater’s customers.

Although WBT has been working informally with other semiconductor fabs, shareholders eagerly anticipated a formal commercial partnership to supplement the SkyWater deal. Well now the dreams have become a reality.

Weebit Nano and DB HiTek make it official

South Korean fab DB HiTek has signed a deal to license WBT’s ReRAM for its customers to integrate as embedded non-Volatile memory (NVM) in their Systems on Chips (SoCs). ReRAM will be available in DB HiTek’s 130nm Bipolar-CMOS-DMOS (BCD) process – ideal for many analog, mixed-signal, and power designs in consumer, industrial, automotive and other IoT devices. To illustrate specifically how WBT’s ReRAM could be used, clients of DB HiTek include NXP, Samsung Electronics, Texas Instruments and Toshiba Semiconductor.

Under the technology transfer and qualification agreement, Weebit and DB HiTek will immediately cooperate in transferring Weebit’s embedded ReRAM technology to a DB HiTek production fab and then continue to qualify the technology towards volume production.

The technology licensing agreement grants DB HiTek a non-exclusive license to manufacture Weebit ReRAM as embedded NVM in designs from customers globally. DB HiTek will add Weebit’s memory module to its BCD 130nm Process Design Kit (PDK). DB HiTek customers can use the standard modules in the PDK or have modules customised for their needs. Weebit will receive manufacturing license fees, project use fees and royalties based on production volumes.

A great deal for shareholders

In our opinion, this is the biggest news for WBT shareholders since it signed the SkyWater deal a couple of years ago. Even though it will likely be a year or two before we see ReRAM in DB HiTek clients’ products given the qualification process, it shows there is eager interest from semiconductor fabs for this technology.

Furthermore, shareholders can look forward to WBT’s first revenues immanently as ReRAM is commercialised through SkyWater, not to mention further commercial deals down the track.

Check out our investor webinar on this deal HERE!