Weebit Nano share price returns from suspension and continues to sink

What's going on with this tech stock right now?

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The Weebit Nano Ltd (ASX: WBT) share price has returned from its suspension this morning and is falling again.

At the time of writing, the semiconductor company's shares are down 5% to $5.40.

This means its shares are now down 30% since this time last week.

Why is the Weebit Nano share price falling?

The company's shares have returned to trade today after it made a temporary non-executive director appointment.

This is to ensure that the company has the two required Australian resident directors on its board following the sudden resignation of one earlier this week.

That resignation forced the Australian stock exchange operator to immediately suspend its shares from trade. Not a great look for a billion-dollar company!

According to the release, Weebit Nano's company secretary, Mark Licciardo will join the board as an independent non-executive director effective today while it seeks a longer-term candidate.

ReRAM update

In other news, this morning the company advised that SkyWater Technology (NASDAQ: SKYT) has confirmed that Weebit Resistive Random-Access Memory (ReRAM) IP has been fully qualified for industrial temperatures employing the fabricator's 130nm CMOS (S130) process.

The release notes that the full qualification confirms the quality, repeatability, and reliability of Weebit Nano's embedded ReRAM module when SkyWater customers use Weebit's proven non-volatile memory (NVM) IP in volume production.

The qualification used demo chips produced by SkyWater which integrate Weebit ReRAM IP. The tests were performed per the JEDEC industry standards for NVMs, which impose rigorous testing of many silicon dies blindly selected from three independent wafer lots.

Weebit Nano's CEO, Coby Hanoch, said:

Successful qualification of our technology in SkyWater S130 confirms that customers can have confidence that the IP will work reliably as specified. Together with SkyWater, we are engaged in numerous customer discussions and anticipate that Weebit ReRAM will be in design with one or more of these customers during this calendar year.

SkyWater's technology as-a-service approach is a great differentiator for customers developing new IP, and its robust process technologies for mixed-signal designs, rad-hard ICs, ROICs and power management are an excellent fit for our ReRAM technology, offering a unique value-add to various markets and applications.

Time will tell if this leads to Weebit Nano generating sufficient revenue to justify its lofty billion-dollar market capitalisation.

What is SkyWater?

SkyWater Technology is a US$380 million American semiconductor engineering and fabrication foundry. It hasn't turned a profit in the last five years and reported revenue of US$66 million during the last quarter.

Motley Fool contributor James Mickleboro 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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