My take on the Webinar:
Dadi - We have customers, a fab and the right tech – we are very happy and it’s a great day.
Coby – yes a very exciting day (can’t get the grin off his face!). Skywater (SW)– a great partner. Very respectable business. They will be licensing the tech so they can manufacture in their Minnesota fab. It’s a very important step.The first step is to transfer the tech and qualify it in their fab. It will take time to get this done but aiming for the end of next year to be ready for volume production. Co-operation with SW has been great at all levels. Its really exciting. Business model is a licensing model. They will be paying a licensing fee, they will be offering it to their own customers and to our customers as well. SW is the only foundry that is completly based in the US. They work with US defence…. The picture of Joe Biden with a SW wafer – will help push things along. In terms of transfer we are already talking to them. Its going to their key production line. It’s a great way to get maximum exposure. 130nm. Its not the smallest version of the product but a size that is still in great demand. There will still be R and D work going on at Leti. Leti will still by a major part of life for Weebit. It’s a non-exclusive license. There will be a lot of joint marketing efforts. The triangle is forming now – its very exciting. There will be products that customers can pick up but most customers will want product that is specially designed for them. For every company – this happens once in a lifetime and it transitions us from being an R and D company to a company looking at commercialisation. We won’t have mass production tomorrow – its still a long process. We have conversations on the go with other potential customers.
·What’s involved with the qualification process? The manufacturing process is complex and delicate. Different fabs use different machines. First we give them the recipe. The process is well defined. We have to transfer it to SW. Their ovens and tools are different. We have to give the process the stamp of approval – that it meets the standards. All of the chips on the wafer must act exactly the same, different wafers need to have the same results. It must be repeatable, consistent and match the client’s needs. Only then can mass production start.
·What will the transfer cost? Will a cap raise be required? We are participating in funding the transfer – the amount is not significant.
·Given the license is non-exclusive, are we talking to other commercial fabs? We can deal with any other fabs, we can deal with other customers. We are open to work with other fabs in different parts of the world. We can also bring customers to SW. You want to be able to deal with different fabs, with different target markets. You don’t want to be limited – we are talking to fabs all over the world. SW is a huge project, we are focussed on it now, but we are planning to work with others.
·China / Taiwan – what is SW doing to ??? The US gov put a lot of money into strengthening manufacturing capacity????
·Why did SW select Weebit? They recognise the advantage of the tech. They looked at other ReRam tech. They want to move rapidly.
·In terms of sectors, where does SW move. Pushing forward in automotive, cloud computing, aerospace. Requirements from the markets will mean the need for several different modules.
·Is there a plan in place for targeting end users? The cooperation between WB and SW has been fabulous and unexpectedly quick. We already have joint collateral, plans for addressing customers, we are working closely with them.
·Leti and Weebit have also had a good relationship – what role will they have in the future? It is important to note that the relationship with Leti is important – they are an amazing R and D powerhouse. We are fortunate to have them as our partners. The deal with SW will only improve the relationship and Leti will help with the tech transfer. We can’t neglect R and D now. We have more and more projects with them and that will continue. SW is not just a mass production facility, they also have engineering services and some R and D. It’s a perfect stepping stone for us. This is not a simple deal and Leti will be a big help to us.
·SW is a small company – why not choose Intel? We have a multi phase strategy. SW is a good fit. Intel is a possibility when we move into stand alone memory.
·130nm – what advantage does it offer for Weebit to start production at this level? The semiconductor world is spread over lots of geometries. A lot of applications don’t require the smallest and most expensive tech. Many markets are content at 130nm. It’s a sweet spot, and an active part of the industry. Power management, automotive, defence, aerospace. It’s a good place to start.It’s a fast way to get to revenue. There are less obstacles. You don’t want to take a bite that is too big. Startups can choke because they take on too much. Working with a tier 2 fab – they are aggressive, they see the potential of our tech. They are a great fab, very respectable.
·How many agreements is Weebit capable of handling? Potential customers are already talking to SW. We are going to put everything we have into SW and make it a big success before we start making big investments with another fab. We want to make sure it is successful. This initial phase will take about a year.
·What has been the reaction of other potential customers to the SW deal? We have mentioned it to a few others, the reaction has been good so far but we haven’t publicised it much.
·Will you continue to work on other agreements? Coby calls himself impatient and wants to get things done. They are talking to others but customers like to see that the product is qualified. We can keep pushing things forward. We are talking to potential customers but we are not expecting announcements in the near future. We are trying to achieve additional agreements as fast as possible. It’s a pipeline and it’s a lot of work – don’t expect it to happen fast.
·If a customer signs with SW to use our chips will we be told? The first customer will most likely be announced but as additional customers come, we will work out what needs to be announced. Material deals will be announced according to ASX rules.
They went to visit SW in June, this agreement will make it easier to go to additional fabs. The second deal will be easier, and the third even easier. Other fabs will see the success. It’s still a challenge though. We have a plan – we have been meeting our milestones. There are a lot of exciting times ahead. This is a huge step forward for us. Its exciting for us to be talking to customers and now we can start capitalising on it.
Its Jewish New Year. Its going to be the start of a great year.
(20min delay)