Memory Increases A Weebit

This story features WEEBIT NANO LIMITED. For more info SHARE ANALYSIS: WBT

Weebit Nano is set to significantly increase memory chip capacity while reducing size and temperature and increasing longevity.

-Disruptor to flash memory industry
-Manufacturability strong selling point
-TMT Analytics reiterates Buy rating

By Sarah Mills

TMT Analytics reiterates its Buy rating for Weebit Nano ((WBT)) after the company announced it had built and tested its 1MB SiOx ReRAM at a 40 nanometer resolution, on time.

TMT’s recommendation is the latest in a round of news article to hit the market in response to the news.

Weebit’s 1MB array at 40 nanometers is considered to be a leap in memory technology that allows a big expansion in memory capacity, smaller chip size, lower operating temperatures and greater longevity. Weebit has declared itself a disruptor, particularly to the flash-memory industry, which most pundits say is stretched to its limits.

Still, so many “disruptors” with new technologies have failed to meet the hype. So, why would Weebit be any different? Weebit suggests that it is because its technology was built to make friends.

The Silicon Oxide industry, upon which the technology is based, has a 50-year pedigree and significant vested interests. In other words, the memory technology can slot into the existing manufacturing economy with minimal cost and maximum support.

Manufacturability is touted as the technology’s main selling point and differentiator in the keenly contested market.

With this in mind, Weebit has been able to partner with the CEA-Leti, a French-based institute for electronics and information technologies and internationally recognized science hub, to accelerate the optimization of the manufacturing process. This will allow for faster, lower cost entrance to market.

TMT says announcement significantly de-risks the company and the fact that Weebit continues to meet its roadmap builds confidence in its capacity for delivery.

Still, start-ups are fraught with many hurdles for investors outside commercialisation. The most ever-present of these is the usual cash-burn and the threat of constant share dilution – and the company has been chewing through the cash.

While reiterating its Buy rating, TMT maintains its price target at 7c, noting the share price is capped by the number of outstanding call options on issue.

Investors should note TMT Analytics acknowledges it has been engaged and paid by the company for ongoing research coverage.

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