Weebit Nano (ASX:WBT) two real chips bring royalties one step closer to reality

Weebit Nano Real Chips. Real Customers.

Until now, Weebit Nano’s progress has largely been measured through commercial agreements, licensing deals, foundry partnerships and design in contracts.

That progress matters. But the more underappreciated milestone is what happens after the agreement is signed. A licence deal does not guarantee a physical product ever reaches market. The real value only starts to emerge when customers move from design work into silicon, testing and eventually production.

That is why today’s update deserves closer attention from investors. Weebit’s long term upside is tied to royalties, and royalties only arrive if real chips make it into real products.

Weebit Nano (ASX:WBT) has now confirmed that two customers have made physical chips using its ReRAM technology. One of those customers is Overlord Labs, which is integrating Weebit’s ReRAM into smart battery technology and battery management systems. The chip was taped out at DB HiTek.

That chip has now come back from the foundry as first silicon. Early testing shows it is functioning as expected, including the Weebit ReRAM module.

That is important. A working prototype in a customer’s hands is one of the clearest technical validation points Weebit has delivered so far.

What Tape Out Means for Weebit Investors

In Weebit’s commercial lifecycle, the agreement is only the starting point.

After a commercial deal is signed, the company moves through several technical stages. This includes technology transfer, where Weebit adapts its ReRAM technology to the customer’s specific requirements. This process takes around 10 months on average.

The next key step is tape out. This is where the prototype design is sent to a foundry, in this case DB HiTek, to be physically manufactured as silicon. From there, the chip goes through qualification testing before it can move toward mass production.

That is why tape out matters. When a product company tapes out a chip that incorporates Weebit’s ReRAM, it is no longer just exploring the technology. It is making a real commercial bet that Weebit’s memory can work inside its product.

If you like our coverage on Weebit, read our full research notes here.

The Next Stage Is Qualification, Not Celebration

After tape out, there is still a meaningful amount of work ahead.

The chip now needs to move through characterisation and qualification, which typically takes around 12 to 18 months before mass production can begin. This stage is about proving the chip performs reliably, consistently and at the standard required for commercial use.

But the key point is this. Weebit is now entering the later stages of the commercialisation pathway.

The company has moved beyond agreements, design work and technology transfer. It now has customer silicon coming back from the foundry, being tested and moving closer to the point where royalties can begin.

Royalty Timing Is Still the Main Question

As we mentioned earlier, royalties are still some time away.

The chips now need to be stress tested and validated against the requirements of their end markets. If both products pass qualification, the customers can then move toward mass production.

That is the point where the economics start to matter. We anticipate onsemi royalties could begin around H1 2027 to H2 2027, while royalties from these product companies could begin around H2 2027 to H1 2028.

Only once chips enter mass production does Weebit begin earning per chip royalties at meaningful scale. But this update shows the pathway is becoming much more tangible. The company is no longer just signing agreements. It is now moving customer chips through the final technical stages before production.

The Investors Takeaway for Weebit Nano

To us, Weebit looks like it is staying on track with what it has promised investors.

CEO Coby Hanoch said Weebit’s ReRAM IP is now embedded into several next generation applications, with more tape outs expected this calendar year. He also flagged that discussions with additional potential customers are advancing.

That matters because the investor debate is starting to shift.

The key question is no longer just whether the technology works. A functioning prototype goes a long way toward answering that. The bigger question now is scale and speed.

How many more tape outs can Weebit deliver in 2026? How smoothly do these chips move through qualification? And can the first royalty paying production volumes arrive within a timeframe the market is willing to wait for?

If Weebit can keep pushing customer chips through this pathway, the market may start focusing less on signed agreements and more on the royalty engine those agreements could eventually create. Investors can find more in depth coverage of ASX listed semiconductor names here at stocksdownunder.

Pitt Street Research Directors owns shares in the company discussed. This article reflects personal views and is not financial advice.