Q3 FY24 Quarterly Activities Report: Weebit Nano advancing negotiations with partners and customers; demonstrates ReRAM robustness

Tech transfer to DB HiTek progressing to schedule

April 30, 2024 – Weebit Nano Ltd (ASX: WBT, Weebit or Company) is pleased to provide this activity report for the quarter ended 31 March 2024 (Q3 FY24), along with the Company’s Appendix 4C cash flow report.

Weebit CEO Coby Hanoch said: “Weebit Nano has had a busy quarter on the technical front, demonstrating the robustness of its ReRAM under extended automotive conditions and confirming its capability at 22nm. These achievements have significantly increased interest in our embedded ReRAM, including from leading automotive companies. In parallel, we’ve stepped up our commercialisation progress with the appointment of a Chief Revenue Officer to focus on new partner and customer agreements.

“The strong performance of our ReRAM at 150 degrees Celsius and 100K cycles endurance demonstrates its suitability for applications in extreme environments where high-temperature stability and endurance are required, such as automotive, industrial, medical, and aerospace and defence applications.

“Our progress at 22nm on GlobalFoundries’ wafers further validates the suitability of our embedded ReRAM to replace embedded flash in more advanced geometries and applications. While testing of the 22nm demo chip is ongoing, we are highly encouraged by the quality of our initial results, which customers at the recent Embedded World show in Germany also reiterated. Our world-class team is continuing to improve the technical parameters and scalability of our ReRAM to meet evolving customer needs.

“Weebit is continuing to make in-roads with many of the world’s top-10 foundries and integrated device manufacturers (IDMs), with these engagements increasingly moving from technical evaluations to business discussions. We’ve been engaged in evaluations and negotiations with many of these companies for over a year, reflecting the complexity of individual foundry requirements. We’ve also started to cautiously re-engage with select Chinese vendors, which remains a significant opportunity for the business. At the same time, we’re also making progress with fabless product companies, as customer demand drives urgency for foundries to add our ReRAM to their IP libraries. In partnership with DB HiTek, we’ve also started reaching out to their extensive customer base.

“We’ve also added another high-calibre executive to our team with IP industry veteran Issachar Ohana joining as Chief Revenue Officer. Issachar has a proven track record of driving customer expansion strategies for IP companies, building CEVA’s salesforce from the ground up into a high-performing team achieving US$135 million in annual revenue. His unique blend of technological expertise, global perspective, and strategic vision, combined with his hands-on experience, will be invaluable as we continue to expand commercialisation efforts and close new IP deals.”

Demonstrated ReRAM under extended automotive conditions

Weebit Nano continues to confirm the suitability of its ReRAM for automotive components, demonstrating lifetime operation of its embedded ReRAM at 150 degrees Celsius, as well as 100K cycles endurance. Reliability under extended automotive conditions opens new markets for Weebit ReRAM, and follows full qualification at automotive grade one temperatures of 125 degrees Celsius in SkyWater Technology’s S130 process. Weebit ReRAM is ideal for applications requiring higher temperature and endurance levels, given its cost effectiveness, power efficiency, ease of integration, and tolerance to radiation and electromagnetic fields. Weebit is continuing to test performance at 150 degrees Celsius, as well as higher temperatures and endurance levels, driven by automotive customer engagements and working in accordance with standards such as AECQ100.

Tech transfer to DB HiTek

During the quarter, Weebit Nano progressed the transfer of its embedded ReRAM IP to Tier-1 foundry DB HiTek, and is on track to complete the technology transfer process within the next six months. Weebit is already engaging with DB HiTek’s extensive customer base, as well as other customers who are interested in moving to DB HiTek in order to have access to our ReRAM, and is working to secure customer agreements before qualification at DB HiTek is completed.

Weebit’s embedded ReRAM IP will be first available in DB HiTek’s 130nm Bipolar-CMOS-DMOS (BCD) process, suitable for analog, mixed-signal and power designs in consumer, industrial, and other IoT applications.

Live demo of ReRAM on GlobalFoundries’ 22FDX wafers

In April, Weebit Nano showcased its ReRAM module implemented on GlobalFoundries’ advanced 22FDX wafers at leading industry conference, Embedded World 2024. Weebit’s 8Mb 22nm demo chip features the Company’s largest memory capacity module and is embedded in the most advanced process so far.

The live demonstration reaffirmed the capability of Weebit ReRAM at 22nm - one of the industry’s most common process nodes and a geometry where embedded flash is not viable - and was well received by potential partners and customers. Testing of the 22nm demo chip is ongoing with initial results exceeding expectations, including low Bit Error Rate (BER) which is a very important criteria for customers.

The live demonstration can be viewed at: https://www.youtube.com/watch?v=sEHRQVueS-s

Negotiations with partners & customers

Securing agreements with multiple foundries and IDMs in 2024 remains the Company’s top priority. Technical evaluations and negotiations with many of the world’s leading foundries and IDMs are advancing, and are being supported by recent technical demonstrations and growing demand from fabless product companies. While negotiations with foundries and IDMs can be lengthy, each new agreement signed paves the way for additional agreements. ReRAM is increasingly being viewed as the leading emerging NVM technology, and Weebit is wellplaced for leadership in this domain as the market’s only qualified independent ReRAM provider.

The Company is also actively engaging with potential customers at both SkyWater Technology and DB HiTek.

New Chief Revenue Officer

During the quarter, Weebit Nano appointed Issachar Ohana to lead the sales function as Chief Revenue Officer (CRO), driving growth for its embedded ReRAM with global customers and partners through licensing fees and royalties. Mr Ohana has more than 25 years’ sales and business development experience, previously holding multiple leadership positions at NASDAQ-listed semiconductor licensing company CEVA Inc as well as AI, voice processing, wireless technology company DSP Group (now Synaptics).

Mr Ohana is based in Silicon Valley and has already started expanding Weebit’s sales team.

Market engagement

Weebit Nano continues to build interest in its embedded ReRAM technology, engaging with potential customers and partners at leading industry trade shows and conferences during Q3 FY24. In addition to participating at these events, Weebit Nano’s executive team were invited speakers at Embedded World 2024 and Electron Devices Technology and Manufacturing Conference (IEEE EDTM 2024). In the coming quarter, Weebit will attend ChipEx in Israel, International Memory Workshop 2024 in South Korea, Global Semiconductor Alliance 2024 in Munich, Design Automation Conference 2024 in the USA, and Leti Innovation Days in France.

During the quarter, Weebit received the MOCCA award from supplier NplusT, which recognises customer innovation. The award was for the introduction of NplusT’s new NVM characterisation equipment within Weebit’s workflow.

Patents

During the quarter Weebit Nano was granted a new patent related to technology process innovations. This patent relates to reducing the forming voltage of the Weebit ReRAM cell, thereby enhancing reliability. Weebit now holds more than 50 patents and patent applications, further solidifying its IP position.

Investor briefing details

CEO Coby Hanoch will participate in a “Meet the CEO” interview covering the Company’s quarterly update at 3pm AEST on Wednesday, 1 May 2024. Participants will have an opportunity to ask questions at the end of the webinar.

To attend, please pre-register at: https://us02web.zoom.us/webinar/register/WN_qL1A2DAVQzeIArO4h6K6Cg

Financials

Notable quarterly net operating cash flow items included a $1.4 million GST refund in relation to Q2 FY24’s higher than normal milestone-based payments to research partner CEA-Leti. R&D expenses were A$11k for Q3 FY24. Payments to related parties, including fees paid to Directors and the CEO’s cost of payroll, were A$447,000. Weebit remains well-funded with a strong cash balance of A$67.8 million as at 31 March 2024.

Looking forward

Weebit Nano is on track to achieve the following milestones in 2024:

• Sign additional customer agreements with IDMs/foundries/product companies;
• Complete technology transfer in DB HiTek’s production fab; and
• Complete testing of its 22nm GlobalFoundries wafers.

About Weebit Nano Limited

Weebit Nano Ltd. is a leading developer of advanced semiconductor memory technology. The company’s ground-breaking Resistive RAM (ReRAM) addresses the growing need for significantly higher performance and lower power memory solutions in a range of new electronic products such as Internet of Things (IoT) devices, smartphones, robotics, autonomous vehicles, 5G communications and artificial intelligence.

Weebit’s ReRAM allows semiconductor memory elements to be significantly faster, less expensive, more reliable and more energy efficient than those using existing flash memory solutions. As it is based on fab-friendly materials, Weebit ReRAM can be integrated within existing flows and processes faster and easier than other emerging technologies, without requiring special equipment or large investments.

See: www.weebit-nano.com