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Why the Archer Materials (ASX:AXE) share price rocketed 13% today

The company is making progress in the semiconductor space…
The post Why the Archer Materials (ASX:AXE) share price rocketed 13% today appeared first on The Motley Fool Australia. –

The Archer Materials Ltd (ASX: AXE) share price reached an all-time high in intraday trade today. This came after the semiconductor company announced it has been granted a new South Korean patent.

In late afternoon trade, Archer shares were swapping hands for $1.665 apiece — a new record. By the final bell, they had partially retreated to $1.61, a 12.94% gain on yesterday’s closing price.

Archer adds to its intellectual property portfolio

Investors are pushing the Archer share price higher after digesting the company’s positive update.

According to its release, Archer has been granted a patent associated with its CQ quantum computing chip technology.

The KR patent (No. 10-2288974) is considered a significant commercial milestone in the company’s efforts to access global markets.

South Korea is regarded as a leading manufacturer and exporter of semiconductor chip devices. Conglomerates such as Samsung Electronics and SK Hynix are ranked among the top producers in the world.

Achieving patent approval is a giant leap for the company. The Korean Intellectual Property Office has more than 1 million patents and thoroughly examines each patent before consent.

Together with the United States and China, South Korea is one of the most competitive jurisdictions for patent granting.

As such, the granting of the patent gives Archer access to a high-performing economy to explore sales opportunities within the country.

South Korea committed to investing US$450 billion in the industry through to 2030. Most of these funds came from Samsung Electronics and SK Hynix, US$150 billion and US$200 billion, respectively.

CEO Dr Mohammad Choucair commented on the news which could be affecting the Archer share price:

Archer’s quantum computing chip IP is now well protected in South Korea – home to some of the world’s largest chipmakers, and a critical part of the global semiconductor supply chain.

We now have CQ chip patents granted in Japan and South Korea, with patent applications in the US, China, and Europe progressing well… South Korea’s semiconductor industry is one of the world’s best, while Asia as a whole dominates in semiconductor manufacturing, where close to 80% of all chips are produced.

The patent is valid until December 2036.

Archer share price snapshot

Shareholders would be ecstatic with the Archer share price since the beginning of 2021.

The company’s share price has gained more than 200% year-to-date, reflecting strong optimism in Archer’s progress in developing its CQ chip.

The post Why the Archer Materials (ASX:AXE) share price rocketed 13% today appeared first on The Motley Fool Australia.

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More reading

The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high
Why the Archer Materials (ASX:AXE) share price is up 30% in a week
Why the Archer Materials (ASX:AXE) share price is surging 12% higher

Motley Fool contributor Aaron Teboneras 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.

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