Why is the Weebit Nano share price charging 5% higher today?

Weebit Nano is progressing the development of its ReRAM technology.

Key points
  • Weebit Nano shares accelerate 5.12% to $2.26 during early afternoon trade 
  • The company announced it has released its demonstration chips with ReRAM technology to US-based SkyWater's production fab 
  • Once this milestone process is concluded, Weebit Nano will work towards technology qualification for its chips 

In a sea of red across the ASX, the Weebit Nano Ltd (ASX: WBT) share price is powering ahead today.

This comes after the semiconductor company announced an exciting development.

At the time of writing, Weebit Nano shares are up 5.12% to $2.26.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.23% to 6,680.6 points following heavy falls on Wall Street overnight.

Let's take a look at why shares in the next generation computer memory technology are defying the ASX sell-off today.

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today

Image source: Getty Images

What's driving Weebit Nano shares higher?

Following the company's latest announcement, investors are fighting to get a hold of Weebit Nano shares.

According to the update, the company advised it has released its demonstration chips to the SkyWater's production fab.

Based in the United States, SkyWater is a pure-play silicon foundry that specialises in advanced engineering and manufacturing services.

The demonstration chips are embedded with Weebit Nano's Resistive Random-Access Memory (ReRAM) technology.

ReRAM is over 1000 times faster and uses 1000 times less power than traditional storage options like flash.

Notably, this is the first time the company transferred its ReRAM technology to an outside party for testing and prototyping.

Weebit Nano stated that this marks a significant milestone towards commercialisation into the semiconductor market.

Due to the technology's ultra-low power consumption and ability to integrate easily, this has sparked interest among SkyWater's customers.

In particular, this would be well suited for analogue, power management, automotive, Internet of Things (IoT), and medical applications.

Weebit Nano CEO, Coby Hanoch commented:

We've developed a close and efficient partnership with SkyWater, enabling us to meet our milestones, and bringing us ever closer to volume production. This successful tape- out concludes the technology transfer to SkyWater's US production fab, and once the chips are back from the fab, we will proceed with technology qualification.

We're in discussions with early-adopter customers looking to leverage our faster, more efficient memory technology to increase their competitiveness in the market.

Weebit Nano share price snapshot

A volatile 2022 has led the Weebit Nano share price to sink 20% for the period.

However, when looking at the past 12 months, its shares are up 30%.

Based on today's price, Weebit Nano presides a market capitalisation of approximately $380.79 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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