4DS Memory Pauses Development to Conduct Strategic Review of Technological Challenges

The board of 4DS Memory (ASX: 4DS) has decided to take a strategic three-month pause to decide its future direction after an extensive analysis of its Sixth Platform Lot memory technology.

Results from this analysis has led 4DS to initiate the review, pause development activities, and disengage from active collaborations with imec and Infineon Technologies.

Belgium-based imec is a world-leading research and innovation hub in nano electronics and digital technologies, while Infineon is Germany’s largest semiconductor manufacturer and one of the 10 largest worldwide.

Outcomes Not Achieved

4DS reported in mid-June that process modifications and optimisations to wafers from the entire Sixth Platform Lot program had not yielded the anticipated outcomes in electrical testing and characterisation.

A subsequent root cause analysis of the 20-nanometre platform confirmed that etch residues introduced during manufacturing aimed at scaling the wafers down from 60nm had led to electrical shorting of the memory devices.

The company at the time described the ability to scale to 20nm as “a significant goal in order to be able to demonstrate the potential of a generational memory technology.”

Best Use of Capital

Executive chair David McAuliffe said the decision to take a strategic pause followed a year of significant investment, rigorous analysis, and collaboration that had led 4DS to take a disciplined approach in evaluating both the results and the broader market context.

“This strategic review is about ensuring that we deploy our capital in a manner which is most advantageous toward creating shareholder value in a fast-moving industry,” Mr McAuliffe said.

“The board is committed to transparency and to ensuring that 4DS continues to commit to growth, opportunity and responsible stewardship of capital and its priority to position the company in areas where it can deliver sustainable value.”

Mr McAuliffe said the developments over the past 12 months had highlighted the challenges of pioneering a disruptive memory technology.

“The 4DS engineers worked extensively to understand the core switching mechanism and its scalability, but recent results indicate that advancing further iterations to demonstrate the technology at 20nm would demand materially greater time and capital without certainty of achieving the performance benchmarks now demanded by global markets.”

Comprehensive Operational Review

4DS will now commence a strategic review in which it will evaluate a number of factors, including the effect of AI and data-centric computing.

The company will also assess potential pathways to realise value from the company’s significant investment and intellectual property in ReRAM, strategic options to leverage adjacent or complementary technologies in the rapidly expanding AI ecosystem, and market-aligned opportunities that offer scalable, relevant, and commercially viable outcomes.

4DS announced that chief technology officer Dr Ting Yen and chief strategy officer Peter Himes had tendered their resignations.