Your Google, your amazon, Intel, Tesla, Facebook Tensent etc have their own chip production - have their own strategic business trajectory and technology trajectory.
They look at a start up and assess their CMOS and realise its expensive to tool for fab and production lineto meet that manufacturing requirement …$$$$ - so better to keep it in house and minimise external delay and cost of acquisition and integration and ultimately establishyour own semiconductor ecological system …in house – Samsung is a classic example – a full system company (IDM - integrated device manufacturer) and they don’t sell chips externally to the market!
Staying with Samsung as they are very recognisable – they have bought start ups before and not been very successful at integrating the new tech into their system processes….(plenty on the web to verify this)
These are your Tier 1 ( Samsung and the like) companies and this is why they are not a market target for WBT.
The value proposition for them does not stack up and it places design cost and constraint on WBT to meet their requirements before acquisition - there is nothing wrong with this course of action as you get a sale but usually at a much diminished value imo
The above design and manufacture process has made it a rich mans game….a few years ago things were a little different
A major disruption occurred – the foundry concept that enabled fabless semiconductors to prosper.
The status quo was upset because if you wanted chips you had to buy from TI, Intel, Motorola, Toyota, Applied materials etc… and it was expensive, you then had to design your integrated circuits around these chips. This was a barrier to low cost entry. The moment the fabless model popped up – ie Qualcomm, Broadcomm, TSMC etc… the barrier to entry for the IC companies was removed …you could place an order for your specific chip design metrics (ICDM) and these guys would manufacture it for you….then you slot it into your circuit production and off to market you go – lower cost / greater margin return …revenues…no foundry costs…
These are the Tier 2 guys – integrated circuits (IC) only looking to gain supply access to chips that are ICDM – cost effective – low cost production from the foundries as there is no additional tooling cost requirement to use WBTs’ product so a great value proposition as opposed to the chips from the ‘whole system’ companies or those that don’t fabricate silicon……allowing them in the future to perhaps invest in foundry construction to bring their chips in house ( just like Samsung if you will) and become Tier 1.
Why would they wish to do this – foundries are booked solid and backlogged ( up to 2 years in some cases) – if you could collaborate with a partner to construct a foundry / fabrication manufacturing process to pump out WBTs’ chips that is cheaper, better metrics and faster supply chain due to the most easily accessible and manufacturable material on earth – well….no brainer really hey.... that's potentially why SiEN is so attractive - and they hunted down WBT...not the other way around - they see the value proposition very clearly.
Weebits perspective – a chip that fits perfectly the above model ie - exceeds most data metrics of current chips available, cheaper to produce as no fabrication retooling requirements for foundries as silicon oxide suits the current foundry processes with minimal adjustment…..fits the customers design requirements perfectly (ICDM)…and as management points out will fit every product on the planet….
yep, no brainer. addressable market $$$BBB
hope this helps - these are my opinions only
Happy to be corrected good luck all - news flow please
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