The BrainChip Holdings Ltd (ASX: BRN) share price is rocketing higher on Wednesday.
In early trade, the artificial intelligence (AI) technology company's shares are up a massive 27% to 67.5 cents.
Why is the BrainChip share price rocketing higher?
Investors have been buying the company's shares after it announced the start of volume manufacturing of its Akida AKD1000 neuromorphic processor chip for edge AI devices.
According to the release, the engineering layout for BrainChip's high-performance, ultra-low power chip was designed in partnership with Socionext. It is a developer of advanced System-on-Chip (SoC) solutions.
Socionext then released the engineering layout of the production version of the AKD1000 chip to Taiwan Semiconductor Manufacturing Company, which has begun preparing to manufacture at volume.
What is Akida?
The company describes its Akida Neural Processor technology as a revolutionary advanced neural networking processor that brings AI to the edge in a way that existing technologies are not capable.
It notes that the solution is high-performance, small, ultra-low power and enables a wide array of edge capabilities.
It can be used in applications including Smart Home, Smart Health, Smart City and Smart Transportation. These applications include home automation and remote controls, industrial IoT, robotics, security cameras, sensors, unmanned aircraft, autonomous vehicles, medical instruments, object detection, sound detection, odor and taste detection, gesture control and cybersecurity.
BrainChip's CEO, Peter van der Made, commented: "I am grateful to our engineering team, who worked hard over the past eight months to release the Akida technology for volume production, and to our EAP customers that have helped lead us to market readiness."
"This move to manufacturing is a major milestone for BrainChip and for the industry at large as the first realistic opportunity to bring AI processing capability to edge devices for learning, enabling personalization of products without the need for retraining," he concluded.