Everspin Technologies Submits Application for U.S. CHIPS and Science Act Funding

Rhea-AI Summary

Everspin Technologies Inc. (MRAM) has applied for the CHIPS Incentives Program to increase MRAM capacity and R&D IP capability. The potential funding from the CHIPS Act will empower Everspin to advance MRAM technology and strengthen its position in the semiconductor landscape.

Market Research Analyst

Applying for the CHIPS Incentives Program indicates Everspin Technologies Inc.'s strategic move to expand its manufacturing capabilities and R&D efforts in the MRAM sector. This could potentially increase the company's market share and competitive edge in the semiconductor industry, which is experiencing growing demand for non-volatile memory solutions. MRAM, being faster and more durable than traditional memory types, positions Everspin favorably within the tech industry's ongoing evolution towards more efficient and reliable memory technologies.

The application's success could lead to increased investor confidence, potentially reflected in stock price appreciation. However, the uncertainty of the funding approval process and the time frame for capacity expansion means that any potential financial impact is not immediate and would materialize over the long term. Stakeholders should monitor the company's progress with the CHIPS Incentives Program as it will be a critical factor in Everspin's ability to scale operations and innovate.

Financial Analyst

The announcement by Everspin Technologies Inc. regarding the CHIPS Incentives Program application may have significant implications for its financial health. If approved, the funding could alleviate capital expenditure requirements for expanding the 200mm MRAM capacity, thus potentially improving the company's balance sheet and reducing the need for external financing. Additionally, bolstering R&D capabilities could lead to the development of new MRAM technologies, which might result in future revenue streams and strengthening of intellectual property assets.

Investors should consider the potential for increased operational efficiency and reduced costs associated with the expansion of in-house production capabilities. However, it's important to analyze the company's current financials against the backdrop of this potential investment to understand the full scope of its impact on profitability and earnings per share.

Semiconductor Industry Expert

The application for the CHIPS Incentives Program by Everspin Technologies Inc. is a significant step in the context of the U.S. government's efforts to bolster domestic semiconductor production. The CHIPS for America initiative is designed to support the semiconductor industry, which is critical for national security and economic competitiveness. Everspin's focus on MRAM technology, which is pivotal for applications requiring high-speed and energy-efficient memory, such as in automotive and industrial markets, aligns with the broader industry trend towards advanced memory solutions.

Understanding the technical aspects of MRAM, such as Toggle and STT-MRAM, is crucial. Toggle MRAM is known for its durability and high-endurance, while STT-MRAM offers high density and low power consumption, making them suitable for different applications. Everspin's potential capacity expansion in these areas could meet the increasing demand for specialized memory technologies and enhance its role in the global semiconductor supply chain.

CHANDLER, Ariz.--(BUSINESS WIRE)-- Everspin Technologies Inc., (NASDAQ: MRAM), the market leader and singular domestic volume producer of MRAM, announced it has applied for the CHIPS Incentives Program, which is part of CHIPS for America, with a full application submitted to the National Institute of Standards and Technology, a bureau of the U.S. Department of Commerce. The submitted application is for additional 200mm MRAM capacity and will increase long term R&D IP capability.

“We are pleased to announce that we have recently submitted our proposal for the CHIPS and Science Act, reflecting our dedication to advancing MRAM technology. While the exact timing of the decision remains uncertain, we approach it with optimism, believing that the potential funding will further empower Everspin to contribute significantly to the semiconductor landscape,” said Sanjeev Aggarwal, President and Chief Executive Officer. “The potential funding from the CHIPS Act will be instrumental in further enhancing our capabilities, particularly in expanding our 200mm Toggle and STT-MRAM capacity. As we continue to pursue additional grant opportunities, we are optimistic that these initiatives will help fuel our growth and strengthen Everspin's position as a leader in MRAM technology.”

About Everspin Technologies

Everspin Technologies, Inc. is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest performance non-volatile memory for Industrial IoT, Data Center, and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM.

Forward-Looking Statements in this press release relating to future events or results are forward-looking statements that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Specifically, there can be no assurances that Everspin will be awarded any funds in connection with its Chips Act application. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, as well as in Everspin’s subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made, and subsequent events may cause these expectations to change. Everspin disclaims any obligation to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311241997/en/

Investor Relations:

Monica Gould

The Blueshirt Group

T: 212-871-3927

ir@everspin.com

Source: Everspin Technologies Inc.

What program did Everspin Technologies Inc. apply for?

Everspin Technologies Inc. applied for the CHIPS Incentives Program.

What is the significance of the submitted application?

The submitted application is for additional 200mm MRAM capacity and will increase long term R&D IP capability.

Who is the President and CEO of Everspin Technologies Inc.?

Sanjeev Aggarwal is the President and Chief Executive Officer of Everspin Technologies Inc.

What is the aim of Everspin Technologies Inc. with the CHIPS Act funding?

The aim is to enhance capabilities, expand 200mm Toggle and STT-MRAM capacity, and strengthen Everspin's position in MRAM technology.