4DS Memory (ASX:4DS) share price crashes 21% on technical update

Despite a barrage of good news, the 4DS share price is sliding.
The post 4DS Memory (ASX:4DS) share price crashes 21% on technical update appeared first on The Motley Fool Australia. –

The 4DS Memory Ltd (ASX: 4DS) share price is plummeting after the company exited a trading halt and released a technical update this morning.

While much of the update was positive, the market might be reacting to news the company’s second platform lots experienced a technical issue during fabrication.

Right now, the 4DS share price is 17 cents, 20.93% lower than its previous closing price.

Let’s take a closer look at today’s news from the memory technology development company.

What’s weighing on the 4DS share price?

The 4DS share price is in the red after the company announced news of its third non-platform wafers and its second platform lot wafers.

While there was plenty of good news within 4DS’ release, the market might be focusing on some technical issues faced by its second platform lot wafers.

Second platform lot wafers

According to 4DS, all of its second platform lot wafers had fabrication issues. However, the company stated the issues can be corrected and won’t cause delays.  

Additionally, despite the flaws, 4DS was able to use the wafers to demonstrate its memory cell’s scalability to the smallest cell geometries supported on imec’s memory platform.

4DS was also able to demonstrate memory cell switching using an access device ­– a critical step for producing a megabit memory array.

Third non-platform wafers

The 4DS share price is sliding despite the company having received the results of its third non-platform wafers.

The third non-platform wafers have continued to tune the parameters of 4DS’ Interface Switching ReRAM technology.

The company is working to achieve compatibility with state-of-the-art processes currently used in high volume memory production.

4DS was also able to repeat the second non-platform lot’s key memory characteristics results using its third non-platform wafers. The key memory characteristics included speed, endurance, and retention.

For the first time, 4DS was able to demonstrate the fabrication of fully crystalline PCMO at temperatures that can work with the processes run in high-volume memory DRAM and NAND factories.

4DS has also found its PCMO material reduces the cell on-resistance by an order of magnitude. This means 4DS has significantly improved the product’s read speed.

4DS plans to start engaging its third platform lot utilising imec’s megabit memory platform during the coming quarter.

Joint development agreement update

Finally, computer manufacturer Western Digital’s subsidiary, HGST, has requested a review of the results from 4DS’ two recent wafer lots. 4DS has a joint development agreement with HGST.

The company expects to have a meeting with HGST as soon as possible.

4DS share price snapshot

Despite today’s dip, the 4DS share price has gained 40% year to date. It is also 280% higher than it was this time last year.

The company has a market capitalisation of around $284 million, with approximately 1.3 billion shares outstanding.

The post 4DS Memory (ASX:4DS) share price crashes 21% on technical update appeared first on The Motley Fool Australia.

Should you invest $1,000 in 4DS Memory right now?

Before you consider 4DS Memory, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and 4DS Memory wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why is the 4DS Memory (ASX:4DS) share price halted?
Why the 4DS (ASX:4DS) share price is rallying today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!