Weebit Nano shares plunge after onsemi licensing deal
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The news: Shares in Weebit Nano tumbled in early trading on the ASX after the semiconductor play licensed its resistive random access memory (ReRAM) technology to US semiconductor integrated device manufacturer onsemi.
The numbers: Weebit Nano shares were down 10% to $3.24 by 10:50am AEDT, extending losses of around 20% over the last 12 months.
The context: The agreement includes IP licensing, technology transfer, design and qualification of Weebit's ReRAM in onsemi's Treo platform. As part of the deal, Weebit is required to meet a number of technical milestones on an agreed workplan.
Israel-based Weebit will receive manufacturing license fees, non-recurring engineering fees, and royalties based on production volumes.
The company said that the "economic materiality of this agreement is not known at this time". However, it sees the deal as "strategically important given onsemi's position in the US semiconductor industry". Weebit expects the agreement to be "medium to long term" given the capital commitments required from onsemi.
What they said: "This agreement is further industry recognition that ReRAM is the non-volatile memory solution best positioned to replace traditional flash storage, with Weebit being a leading independent provider of ReRAM," said Weebit Nano CEO Coby Hanoch.
The source: ASX announcement
