The future of memory and how Atomera plays a key role!
- Jeff Hendricks
- Nov 15, 2021
- 4 min read
Updated: Dec 1, 2021
Those of you who read our first blog know Atomera is our top pick.
If you did not read our prior blog post you can find it here:
Let's discuss memory, and more importantly let's discuss Atomera's future role. Our belief is MST will be adopted as the gold standard in the semiconductor space - especially within memory.
Memory is a pure commodity technology. Really. The pricing pressure on the memory space is extremely tight, and most customers who sell to end users ( the consumer ) will automatically go with the cheapest price attainable. So, if a memory producer like SK Hynix or Samsung can find a way to increase yield per wafer plus increase performance it is a natural home run. Just increasing yield alone would be a game changer!
Atomera's management is beyond conservative. We believe their conservative nature is not only due to their professional backgrounds ( engineers are not typically known as the life of the party! ), but the industry as a whole is so secretive Atomera's management team has to be very careful what is said and when it is said. So, when the company puts something smack in front of you on their website I would recommend you take notice.
From Atomera's website, the above screenshot should clue you in on a few things. Notice how the company only highlights MST technology in LPDDR5? Notice the data being used is quite specific in nature?
LPDDR5 is the most advanced form of memory in production today. Samsung, Micron, and SK Hynix are the key players, and all three are progressing towards next generation products. In order for Atomera to advertise the above graph the company would have needed to get this information from somewhere. Engineers do not simply make up numbers, and then in turn go to multi-billion dollar companies and try to sell them technology as those companies would not even take the appointment.
Our point: There is no debate in our minds the above graph represents real-time data which came from actual tests being done within a client's FAB.
So, one can easily surmise the above data came from Samsung, SK Hynix, or Micron.
As you should already know, the company signed it's first JDA ( Joint Development Agreement ) in early 2021. With that JDA an initial payment of $400K was paid by the confidential client. We know that payment came from the Asia Pacific region due to the company's own SEC filings. Through the last three quarterly reports, the tax payments indicate the JDA payment came out of South Korea.
So, an easy deduction can be made that the 1st JDA is either with SK Hynix or Samsung. We believe that JDA is with SK Hynix, but this blog will focus on why the next JDA will be with Samsung.
Samsung has certainly pushed their LPDDR5 technology in the market, and as shown in the chart below has made impressive progression.
However, the careful eye should notice something very interesting within this chart. Why does the 12gb generation use EUV Lithography but the more advanced 16gb does not? Seems quite counter intuitive. We will discuss this more in a moment!
One of Atomera's key partners is Synopsys. $SNPS is a 53 billion dollar giant in the semiconductor space, and Synopsys has invested significant time, effort, and resources into helping companies like Samsung develop best in class technology.
So what does all this have to do with Atomera? Well, I am glad you asked!
If our theory is correct ( which we believe it is! ) SK Hynix is the 1st JDA. We will cover our reasons for this in a separate blog, then here is why Samsung is next:
EUV Lithography is no doubt a powerful tool for the semiconductor space. You don't have to look any further than ASML stock to see this:
However, EUV Lithography has limitations. One massive limitation is:
But, don't take our word for it.
In a space fiercely price competitive, companies like Samsung need to stay relative to the market.
The above chart, and article, clearly tell us why Samsung did not use EUV Lithography for the 16gb generation LPDDR5, and moving forward how will Samsung continue to expand it's LPDDR5 memory without EUV Lithography?
After all, Jung-bae Lee, Executive Vice President of DRAM Product at Samsung said they want to continue to expand:
Along comes Atomera. A fraction of the upfront cost, over 20 years of internal R&D already done, and a small percentage royalty charge on product already sold. Let me be clear, a small royalty on product ALREADY sold. No 150 million dollar investment needing 4 jumbo airliners, no years of internal R&D, and Atomera makes money when? When the client makes money!
It is our belief Samsung will be the next JDA, and it is our belief they will be seeking a cost effective solution to expand their LPDDR5 memory lineup in a significantly more cost effective manner. This in no way means EUV Lithography is out, but that technology needs more time for cost sensitive products ( memory being one of the most cost sensitive offerings out there! ). Till that happens, a solution is here right now and that is called MST.
Of course, this is all our opinion, but the wonderful thing about our investment in Atomera is with plenty of cash, no debt, and an industry desperately seeking cost effective solutions any future contracts are going to rocket the stock to new all time highs.
Thanks,,,and as my token appreciation heres also your spiritual investment incmedia.org "Where True Knowledge Meets You!"