Webinar 23 July 2021 – Dadi and Coby.
Obviously – this is just my interpretation of what was said.
Apologies to all but I missed most of the first part of the presentation.
Last year there were 7 companies relying on semiconductors
Now there are 9 out of top 10 relying on semiconductors
Market potential – massive
Dadi – semiconductors for the digital economy is like oil for the industrial economy
The world is renewing every few years and the demand for new processing capabilities is exciting
Short term focus is on embedded ReRam module
Memory array needs an interface with the rest of the chip.
This module can be simple or elaborate
We have developed patterns for improving endurance and retention of the memory array
Have built demonstration models of how it will all fit on a chip (this is not a product available for purchase)
End of next year there will be a lot of activity as will be ready for production
Key Takeaways
·ReRam can replace flash memory
·Working with production fabs to start tech transfer
·Ongoing discussions with potential customers with goal of first agreement in Q3 2021
·Renowned board and management team.
Questions
- How many agreements are possible – Coby – every product that comes out has a non-volatile memory – so in theory huge numbers. But will start with small numbers. Tech hasn’t been qualified so there is caution. The first buyer to jump on it will have a competitive advantage. They are having lots of discussions and it is very exciting
- Is there a particular product that is crying out for this memory – Coby – we are focussing on what we see as a sweet spot – they realise that applications like sensors and power management will get a big advantage.
- What’s the revenue flow likely to be? Dadi – common practice is a licence fee and a royalty fee for every product. Coby – For embedded components it is licencing because its embedded in their products. NRE – non recurrent engineering is required to adapt the product to individual needs. When mass production happens, there will be royalties. WBT provides the tech, the customer imbeds it and fabs manufacture.After 15 months we had our first business trip recently. We saw how effective face to face meetings can be! Travel is still very limited. Dadi – some of the important countries are on the green list (for travel).
- Is travel the biggest obstacle. Coby – its an issue – coming out with a new product. People are reluctant and need to make sure it will fit their needs. People are more cautious because the tech hasn’t been demonstrated. This is true for any semiconductor developer. If they are betting the future of a new product on the new tech they want to be sure.
- How much does the geopolitical situation affect decisions? Dadi – we are talking to everyone. China, North America. It’s a tough topic but I am not going to hint at where the first deals will be made. I am positive that we can allow for the complexity.
- Is our tech fab friendly? Coby – very much so. You can go to any fab in the world and adapt to their existing machinery. With ease, we can start manufacture.
- What’s the relationship between WBT and Leti. Coby – Leti is a close and strategic partner. You need a fab to develop the tech – they are very expensive to set up. Leti has an R and D fab and we are a top priority to them. The relationship is that Leti is a Gov. owned set up, we pay them on a milestone basis. The cost is not what a regular contractor would ask from us so we are committed to give them a royalty from our sales. This is capped. Every Euro that we pay Leti is refunded 60c by the French government. Leti is a gov research institute; they have more than 1000 PHD’s there. They are top notch. They have been working on our selector for 6 years. Has saved us 6 years of development. It’s a great relationship.
- As we enter the commercialisation space, what are the competitors? Coby – emerging tech, the two are ReRam and MRam. MRam got to market first and there are sales happening now. MRam is not fab friendly – it’s a nightmare for fabs because of magnetic material. It has to be isolated. ReRam is just a few steps in the process. ReRam costs an extra 5%, MRam is much more (40%?). ReRam has many advantages. There are a few other companies but WBT is the leader in many aspects.
- IP Protection, patents have been filed but how is the tech protected? Coby – we are very conscious of this and the management team is very conscious of it. Most quarters we file additional patents. We don’t give people all of the information up front – we are cautious about it. When you talk to Chinese companies, we only give what is absolutely necessary. Dadi – patents are good but we also have know-how. We don’t give this information out. We don’t give the recipe for the fabrication.
- Is there a limit to how many commercial agreements could be made? Coby – no. Others have thousands of customers. We are looking forward to it. Dadi – we are working with our existing customers closely but as it progresses it will be a simple process for new customers – ie low touch. People will be able to say what they need and a memory module will be spat out that meets their needs.
- Can it be a multi billion dollar tech – Dadi – why would we be here if that wasn’t possible. We have a dream. Coby – when you go after such a big market, you have to expect more than a few per cent.
(20min delay)