BrainChip (ASX:BRN) gains 20% on MegaChips deal

November 22, 2021 06:05 PM AEDT

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BrainChip, partnership, MegaChips, Edge-Based AI Solutions, Application Specific Integrated Circuit, Intellectual property — Image source: © Alexandersikov | Megapixl.com

Highlights

BrainChip has struck a deal with MegaChips for developing Next-Gen Edge-Based AI Solutions.

MegaChips is a pioneer in the Application Specific Integrated Circuit (ASIC) industry.

Backed by the announcement, the stock BRN rose by over 20% on ASX today.

ASX-listed Australia-based technology firm that delivers artificial intelligence applications, BrainChip Holdings Ltd (ASX:BRN), on Monday announced that MegaChips has entered into a multi-year license agreement for the BrainChip Akida™ Intellectual property (IP) to develop its technology positioning for next generation.

MegaChips, is a pioneer in the Application Specific Integrated Circuit (ASIC) industry.

Japan-based MegaChips offers chip solutions that fulfil several requirements, including low power consumption, cost and time to market while achieving advanced functions and performance by blending knowledge of Large-Scale Integrations and applications for difficulties in device development.

The announcement revealed that by partnering with BrainChip, MegaChips could quickly and easily maintain its industry innovator status by providing solutions and applications that leverage the revolutionary Akida technology to high growth markets like automotive, IoT, cameras, gaming and industrial robotics.

The flexibility as well as scalability of BrainChip’s Akida technology, the Akida (NSoC) and IP, can be used in Smart Transportation applications, Smart City, Smart Home, and Smart Health, and Smart City.

The four-year deal gives MegaChips an intellectual property (IP) license for use in designing and manufacturing BrainChip’s Akida technology into external customer’s system on chip designs. In turn, BRN will immediately get the license fee and other payments of the transaction.

Meanwhile, BRN closed 20.370% higher at AU$0.650 per share on ASX today.

Road ahead

Via this agreement, BrainChip will have access to a considerable portfolio of global customers and bring new opportunities for Akida technology.