BrainChip shares surged over 20% on Monday after the provider low power, high-performance artificial intelligence technology announced that MegaChips, a pioneer in the Application Specific Integrated Circuit industry, has entered into a multi-year license agreement for the BrainChip Akida IP to enhance and grow its technology positioning for next-generation, Edge-based AI solutions.
MegaChips is a multibillion-dollar global fabless semiconductor company based in Japan, that provides chip solutions that fulfil various requirements, including low power consumption, cost and time to market, while achieving breakthrough functions and performance by fusing knowledge of Large Scale Integrations and applications for problems in device development.
By partnering with BrainChip, MegaChips is aiming to quickly and easily maintain its industry innovator status by supplying solutions and applications that leverage the Akida technology to high growth markets such as automotive, IoT, cameras, gaming and industrial robotics.
The four-year agreement provides MegaChips with an intellectual property license for use in designing and manufacturing BrainChip’s technology into external customer’s system on chip designs. In exchange for the IP and certain engineering services, BrainChip will receive an upfront license fee and additional payments over the term of the agreement. BrainChip is also eligible to receive additional compensation based on engineering efforts, software support fees and royalties associated with MegaChip’s customer engagements. This agreement provides BrainChip access to a significant portfolio of world-class customers and opens up new global opportunities for the Akida technology.
Due to its flexibility and scalability, the Akida neuromorphic system on a chip and intellectual property can be used in applications including Smart Home, Smart Health, Smart City and Smart Transportation. These applications include but are not limited to home automation and remote controls, industrial IoT, robotics, security cameras, sensors, unmanned aircraft, autonomous vehicles, medical instruments, object detection, sound detection, odour and taste detection, gesture control and cybersecurity.
“The MegaChips and BrainChip partnership furthers both company’s missions to push boundaries and offer unprecedented products,” said Rob Telson, BrainChip VP of Worldwide Sales and Marketing. “By providing Akida’s on-chip learning and ultra-low power Edge AI capabilities as an integrated technology in MegaChips’ ASIC solutions, we are able to deliver a cascading array of benefits to cutting-edge products that not only ensure power efficiency without compromising outcomes but can run autonomously for incremental learning without the need to go back and forth to the cloud. This is an exciting collaboration from both a business perspective as well as from an industry-altering aspect.”