ASX small-cap stock 4DS Memory Ltd (ASX: 4DS) went into a trading halt just before the market open on Tuesday amid news of a development agreement and imminent capital raise.
The 4DS Memory share price is frozen at 8 cents per share.
4DS Memory is a semiconductor technology company based in Silicon Valley in the United States.
The company announced it has entered into a design agreement with Infineon Technologies LLC, which is a US-based subsidiary of German semiconductor solutions company Infineon Technologies AG (ETR: IFX).
Let's check out the details.
ASX small-cap stock on ice amid news of design deal
4DS is an ASX small-cap tech stock known for its Interface Switching ReRAM technology.
The technology is designed to be used in intensive computing and artificial intelligence processors.
It brings high bandwidth, high endurance, and persistent non-volatile memory to advanced CMOS process nodes.
Under the terms of the agreement, Infineon Technologies LLC will provide technical expertise and resources to design a custom ReRAM memory test chip based on 4DS's requirements.
4DS will pay a total of US$4.5 million for the initial 15-month scope of work. This includes an upfront payment of US$1.5 million, with the balance payable monthly in varying amounts.
In a statement, 4DS explained that the deal was a necessary step in its pathway to product commercialisation.
The company said it needs a customised memory macro platform vehicle that is specifically designed for its unique area-based Interface Switching ReRAM characteristics.
4DS Memory said:
This is a vital and necessary third phase in memory technology development for the Company and Infineon is the ideal party for the implementation of a memory test chip for such a macro Platform strategy.
4DS also issued a company update discussing progress with the analysis of its Fifth Platform Lot.
On 10 October, 4DS Memory announced that Belgium-based nanoelectronics research hub, imec, had completed the manufacture of the Fifth Platform Lot and shipped it to 4DS's facilities in California.
The main purpose of the Fifth Platform Lot is to optimise the memory stack to enable its rescaling in the Sixth Platform Lot.
The company said:
The Fifth Platform Lot analysis to date has been successful in that 4DS has uncovered some processes that can be improved just in time for the Sixth Platform Lot. These process optimizations are currently in progress at imec and will then be used to complete the Sixth Platform Lot.
Extensive testing continues on the Fifth Platform Lot and will carry through to 1Q 2025. Meantime, the company expects the manufacture of the Sixth Lot Platform to be completed in the same quarter.
The executive chair of this ASX small-cap stock, David McAuliffe, said:
The manufacture of an additional 60nm Platform Lot was necessary to ensure that when we scale down to 20nm, which is nine times smaller, we ensure we take the learning from the 60nm cells and incorporate them into the 20nm cells to give the Company the best chance of success.
What's next?
The ASX small-cap stock will remain in a trading halt until the company announces details of its capital raise.
The company expects to make this announcement prior to the commencement of trading on Thursday.
