Spin Transfer Technologies to re-brand as Spin Memory

Allied Minds portfolio company, Spin Memory, Inc., (Spin Memory) the MRAM developer formerly known as Spin Transfer Technologies, has announced its $52 million Series B funding round, and entry into a commercial agreement with Arm for the licensing of Spin Memory's Endurance Engine design IP to address static random-access memory (SRAM) applications, and a commercial agreement with Applied Materials, Inc. (Applied) to create a comprehensive embedded MRAM solution.

This funding round was led by Applied Ventures LLC, the venture capital arm of Applied Materials, Inc. (Applied), and Arm. The round is comprised of $29.0 million raised or otherwise committed from these new investors, as well as existing investors, and $23.0 million from the exercise of convertible securities subscribed for in an earlier bridge round by Allied Minds, Woodford Investment Management and Invesco Asset Management.

Along with the funding, Spin Memory announced a commercial agreement with Applied to create a comprehensive embedded MRAM solution "” and a commercial agreement with Arm for the licensing of Spin Memory's Endurance Engine design IP to address static random-access memory (SRAM) application in SoCs.

The funding and commercial agreements represent a new model of collaboration that Spin Memory is driving to establish MRAM as a mainstream alternative to embedded SRAM and a range of other non-volatile memories.

"These new agreements with Applied and Arm provide Spin Memory the opportunity for strong ecosystem collaboration," said John Kispert, chairman of the board of directors at Spin Memory. "Spin Memory is driving a unique industry approach to bringing breakthrough memory technology IPs into the mainstream. We are proud to be engaging with industry leaders in our mission to enable new and exciting embedded memory applications."

Spin Memory - Arm licensing agreement

Spin Memory has signed a licensing agreement with Arm, the world's leading semiconductor IP company. The licensing agreement extends to Spin Memory's Endurance Engine™ technology and related IP, and governs the terms on which Arm and Spin Memory will work together to create SRAM-class magnetoresistive random-access memory (MRAM) design solutions based on this proprietary technology.

Under the licensing agreement, Spin Memory will provide Arm its innovative Endurance Engine design architecture to develop a new line of embedded MRAM design IP. This MRAM design IP will address static random-access memory (SRAM) application in SoCs, with denser and lower power solutions than typically achieved with the current 6T SRAM cell-based IP.

"Technologies like AI, 5G, ADAS and IoT demand more power and area-efficient embedded memory than the existing SRAM and eFlash solutions. These requirements are leading the industry to rethink the way chips are developed "” including their memory IP content," said Gus Yeung, VP, GM, and Fellow, Physical Design Group, Arm. "Arm's work with Spin Memory aims to address a key design challenge and enable broader adoption of MRAM design in SoCs."

"With the challenges currently facing SRAM, we have long seen demand for a new memory that could replace SRAM and suitably support the needs of technologies like AI or IoT," said Tom Sparkman, CEO of Spin Memory. "Through our collaboration with Arm, our objective is to combine our Endurance Engine with Arm's IP to provide an MRAM design solution that satisfies the growing need for a denser, lower power SRAM replacement."

Spin Memory - Applied commercial agreement

Under the commercial agreement with Applied, the parties will create a comprehensive embedded MRAM solution. The solution brings together Applied's industry-leading deposition and etch capabilities with Spin Memory's MRAM process IP.

Key elements of the offering include Applied innovations in PVD and etch process technology, Spin Memory's revolutionary Precessional Spin Current™ (PSCᵀᴹ) structure (also known as the Spin Polarizer), and industry leading perpendicular magnetic tunnel junction (pMTJ) technology from both companies. The solution is designed to allow customers to quickly bring up an embedded MRAM manufacturing module and start producing world-class MRAM-enabled products for both non-volatile (flash-like) and SRAM-replacement applications. Spin Memory intends to make the solution commercially available from 2019.

"In the AI and IoT era, the industry needs high-speed, area-efficient non-volatile memory like never before," said Tom Sparkman, CEO at Spin Memory. "Through our collaboration with Applied Materials, we will bring the next generation of STT-MRAM to market and address this growing need for alternative memory solutions."

"Our industry is driving a new wave of computing that will result in billions of sensors and a dramatic increase in data generation," said Steve Ghanayem, senior vice president of New Markets and Alliances at Applied Materials. "As a result, we are seeing a renaissance in hardware innovation, from materials to systems, and we are excited to be teaming up with Spin Memory to help accelerate the availability of a new memory."

Re-branding as Spin Memory

Previously known as Spin Transfer Technologies, the company has rebranded itself as Spin Memory to differentiate itself from its former business goals and objectives. "Our company has completely transformed over recent years "” moving from delivering industry-changing technologies to offering a full suite of MRAM solutions," said Tom Sparkman, CEO at Spin Memory. "The rebranding reflects this shift in intent, as we transform the industry with a new MRAM IP ecosystem, overcoming the limitations of today's embedded memories."

Implications of the fundraise for Allied Minds

The balance of the raise not subscribed by Arm and Applied is expected to be provided by additional new strategic and financial investors in a second closing to be concluded in due course. Allied Minds is backstopping this component of the raise in the interim.

The fundraise was completed at a pre-money valuation that is the same as the valuation included in Allied Minds' OAV stated at our H1 2018 results. Following the completion of the second closing of the transaction, Allied Minds' ownership of Spin Memory's issued share capital is expected to be 40.88%.