Weebit Nano (ASX: WBT) has entered 2025 on a high note, announcing a major licensing agreement with US semiconductor giant onsemi (NASDAQ: ON). The deal underscores the growing industry recognition of Weebit Nano’s resistive random access memory (ReRAM) technology as a next-generation solution in the non-volatile memory (NVM) market. This development follows prior successes and positions the company for accelerated commercialisation and industry impact.
Key Details of the onsemi Agreement
The licensing deal with onsemi involves integrating Weebit Nano’s ReRAM technology into the Treo™ platform, a cutting-edge solution for analogue and mixed-signal applications. Treo™ combines Bipolar-CMOS-DMOS (BCD) processes, enabling highly efficient and versatile chips for automotive, robotics, healthcare, and factory automation. onsemi has set ambitious targets for Treo™, aiming to achieve US$1 billion in revenues from the platform by 2030.
As part of the agreement, Weebit Nano will receive upfront licensing fees, non-recurring engineering (NRE) payments for integration support, and royalties tied to production volumes. While the financial materiality of the deal remains undetermined, the partnership represents a significant strategic win. onsemi, with 2023 revenues of US$8.3 billion and a market capitalisation of US$27 billion, is by far Weebit Nano’s largest customer to date.
Industry Validation and Market Potential
This partnership reinforces Weebit Nano’s standing as a key player in the semiconductor space. According to Pitt Street Research, the deal with onsemi is "another major validation" of ReRAM as the leading NVM replacement technology. It also establishes Weebit Nano as the only independent provider of ReRAM intellectual property outside of TSMC and UMC. For companies seeking alternatives to the dominant players, Weebit Nano emerges as the go-to provider.
The agreement is expected to catalyse ongoing commercial discussions with other Integrated Device Manufacturers (IDMs) and foundries. Pitt Street Research highlights that onsemi’s competitors, including NXP, Infineon, Texas Instruments, and STMicro, are likely to explore integrating ReRAM into their products to remain competitive. This dynamic positions Weebit Nano for multiple new deals in 2025.
Faster Commercialisation Pathway
Unlike Weebit Nano’s previous deals with foundries, the onsemi partnership involves an IDM, which designs, manufactures, and markets its chips in-house. This streamlined structure eliminates the need for third-party approvals, potentially accelerating the timeline from technology transfer to revenue generation. Pitt Street Research emphasises that IDM agreements simplify commercial negotiations and reduce dependencies, enabling faster time-to-market.
Weebit Nano’s Strong Financial Position
The company is well-capitalised to execute its growth strategy, following a $50 million capital raise in November 2024. This funding, completed at a premium to the 5-day VWAP, provides Weebit Nano with approximately $100 million in cash as of January 2025. This financial runway allows the company to support existing agreements, pursue new deals, and accelerate its technology roadmap.
What Lies Ahead for Weebit Nano
Management has tied its 2025 performance incentives to closing three new agreements with IDMs or product companies, finalising the qualification process for DB HiTek, and expanding its ReRAM footprint. With this clear focus, Weebit Nano is targeting an expanding range of applications across industries, including artificial intelligence, automotive, and industrial automation.
Pitt Street Research maintains a valuation of $9.56 per share for Weebit Nano, highlighting additional catalysts that could drive the stock higher. These include progress on the onsemi technology transfer, further licensing agreements, and advancements in qualification processes with existing partners.
Industry Context: A Shift Toward ReRAM
The semiconductor industry is experiencing a paradigm shift as ReRAM emerges as a superior alternative to traditional flash memory. Weebit Nano’s ReRAM technology offers faster performance, lower power consumption, and greater reliability. onsemi’s adoption of ReRAM for its Treo™ platform reflects a broader industry trend, with leading players recognising the technology’s potential to revolutionise memory solutions.
Conclusion
Weebit Nano’s landmark deal with onsemi marks a pivotal step in its journey toward widespread adoption of ReRAM technology. The agreement not only validates the company’s technological leadership but also sets the stage for accelerated growth and industry influence. With a strong financial position, strategic focus, and a growing roster of high-profile partners, Weebit Nano is well-positioned to capitalise on the opportunities ahead. Investors and industry stakeholders alike will be watching closely as the company navigates this transformative year.
