@writer ( apologies for the length of this reply in advance)
maybe the guys in the podcast lose themselves a bit in some of their conversations there ....to a degree any way - great to watch though writer, thanks for posting
the bottom line in semiconductors is the bottom line ....return on invested capital (ROIC)...everything else is a conversation that goes nowhere some companies decide to develop the new tech and hope for a buyout from the big boys....rarely works that way, to the satisfaction of all parties anyway as if you're a company looking to merge or acquire you must know the ROIC over 3 to 5 years and what the technology will deliver in gains over that time to keep you leading in the market place ...otherwise you gain no ( or minor) market share ( if any) and your investment to acquire is very costly......it remains costly as you then need to throw more coin at it to develop it further....so the big boys hold the cards on early takeover offers on new tech ( not legacy tech) ....those big boys are the Tier 1s.... they have highly tuned operations and the takeover acquisition target must demonstrate technology and financial advantage over that 3 to 5 yr period or as the new start up you are under negotiated and swallowed up cheap if you succumb....this is not my opinion - it is the reality of the bottom line cost structure in the industry....and most people see the shiny new wow tech and are blinded by the shine ...fatal mistake usually.....that is the market reality of semiconductors. Does DP know this - hell yeah.......does the BOD know this....hell yeah, they are all successful industry veterans in their own right.
new companies need to show: yield cheapest cost per bit manufacturability secure cost effective supply chain ROIC over 3 to 5 yrs
wbt is well on the way - those factors lead to price elasticity which allows competitive advantage in a mass adoption market.....$$$$ Semiconductors are cyclical and have crippling R&D costs ....WBT and Skywater are perfectly placed in both these regards going forward =$$$$ No cost of capex because SiOx suitability meets new and legacy nodes alike .....new and legacy foundry applications alike ...again this is additional price flexibility which returns on invested capital.....Skywater would love the economics of this SiOx stuff.....they see tier progression over time....up the tree.
so....tier 2
Skywater aiming to leverage new tech to capture mass market in reram with wbt ( and other partners quite obviously, as wbt will as well)....initially in legacy node 'sweet spot' to prove the technology going forward....exactly what all concerned want to see ...the ROIC is there from the start with potential to gain by volume over time as mass adoption occurs = $$$$$$$
Its extremely tough for tier 2s' to crack the 1 space ....the leading foundries compete hard for customers with extensive design libraries and advanced process technology on offer in the logic nodes 10nm and below...now down to 3 and 2nm ....highly expensive ...TSMC and the like have catered to this space and specialised at the expense of the legacy and memory nodes if you will and that is where the supply shortage is .......
if you manage your R&D budget properly and can adopt technology that improves your bottom line across 98% of the metrics that return/generate coin...and this sees you capture market share through new customers in a mass adoption market space......its a no brainer......Thomas Sonderman is no dummy that's obvious.... Skywater capacity will build to match existing and customer influx to wbt's disruptive tech greatly improving the foundry price points ......significanlty. = $$$$$$
one of the business models adopted in the industry is known as the mature market attack model. Well WBT and Skywater combine potentially to be exactly that with an innovative disruptive tech that will change the game..... are there other Reram players ...yep Why didn't Thomas go with them instead of WBT......the potential bottom line return across the 3 to 5 yr time horizon with this tech, the cheapest and most readily available material in the world, the cheapest cost per bit manufacturability across the adoption and production process, the negligible R&D cost spend going forward, etc etc ....nothing comes close.
Once significant volume is needed globally attack the market attack the market with significant simplified value for money product offering and gain by volume....so simple.
So many investors here and generally don't see this big picture and want returns now.......be patient, the returns that are coming will blow your mind.
Some say the opportunity cost of sitting here while the sp goes up and down from week to week is to high and they are going to go and chase pips elswhere.....that's called impatience....and the lost opoortunity cost of that will make you weep blood when this company moves north this year...eye water gains are very close imo
but hey, as always to each their own.
looking forward to the sub system register demonstration....very close now i'm sure. GLA
(20min delay)