Which stock passed its biggest milestone yet but no one seems to care?

{My InsideMarket Private Fund does not own shares in Weebit at the time of publishing this post. I also do not accept any payment from any of the companies I cover. More on disclosure at end of the post.}


Disruptive technology can be VERY frustrating, both for the developer and the investor.


Take Weebit Nano [ASX:WBT], a leading developer of next-generation memory chip technology designed to meet the significantly higher performance and lower power needs of computing in 2020 and beyond.


Last week the company announced that a significant Chinese memory chip manufacturer, XTX Technology, had validated Weebit's ReRAM memory technology.


"When a first customer validates the technology of a startup, this is a huge milestone" Weebit CEO Coby Hanoch told me.

Hanoch describes the validation achievement as the biggest a startup can have, short of getting an order.


He is a veteran of the chip development industry and so, says he is stunned by the lack of reaction to what he believes is a massive achievement.


On the day of the validation announcement, WBT opened at $0.40 and closed slightly down at $0.395.

I've met Coby Hanoch at Weebit's Israeli offices and since then, have interviewed him several times via Zoom.


Hanoch is extremely cautious about over-promising and under-delivering.


This may explain why the company constantly hits its milestones early, with this current validation process, wrapping up four months ahead of schedule.


No commercial announcement between XTX and WBT has been announced but Hanoch's use of the word "customer" may be an insight into the next phase of the relationship.

Shanghai-based XTX describes itself as a leading provider of flash memory chip to about 2,000 customers, including some of the leading semiconductor companies worldwide.


According to Hanoch, XTX sees Weebit's technology as an opportunity to create a new product offering for existing and potentially new XTX customers.


In the ASX validation announcement CEO of XTX Technology, Mark Long said “We believe ReRAM will boom in the coming three to five years, driven by strong growth in 5G and AI. We will continue to work with Weebit to adapt the technology to our needs."


Hanoch told me the two companies are doing some modifications to the technology as a result of the successful validation process but ultimately, he believes XTX will want to move forward.

Of course, the ever-cautious Hanoch qualified with "But I don't want to put words in XTX's mouth."


Weebit has previously stated that it aims to put its single-chip memory into production [fabrication] by December 2020.


Given that it has already beaten its validation deadline by four months, another early achievement could mean a strong first half for Weebit and its shareholders.


I spoke with Hanoch from Weebit's Hod Hasharon offices outside of Tel Aviv.




Weebit Nano lists it current key priorities as:


 Continue to progress towards commercialisation with XTX Technology.

 Development of a memory module for a potential South Korean customer – this is on track for delivery by mid-2020. The memory module work is a critical input for the production process, and the work being done for the South Korean partner will largely be applicable for any further customer developments.

 Continue to make refinements to technical specifications and production processes in partnership with Leti to ensure Weebit’s ReRAM technology yields the most profitable results in production.

 Continue discussions with other potential customers and partners.




Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

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