Brainchip says its brain chip works, shares ride higher. Again.

AI tech company Brainchip (ASX:BRN) says it has now has validation for its Akida Neuromorphic semiconductor technology.

The company said development is now complete for its “System-on-Chip (NSoC) design with functional silicon”, which was built out by the Taiwan Semiconductor Manufacturing Company (TSMC).

Shares in BRN ticked higher in morning trade before easing back slightly, as the market assesses its near-term rally in the wake of a barnstorming September.

Next steps

BRN shares started September trading around 30c, which in itself was an impressive gain after the stock fell below 5c during the March sell-off.

Since then it’s been the talk of the market, hitting a high of 94c last Thursday as daily volumes surged well above 100m shares for seven of the last eight trading days.

Early momentum was sparked by an announcement on September 2, when BRN announced a tie-up with US-based tech business VORAGO technologies to develop products suitable for space exploration as part of a program run by NASA.

The company’s Akida Neuromorphic platform includes an AI function that BRN says is based on the neural network patterns of the brain.

The company’s broader goal is to develop a semiconductor technology that can function at the “edge”, without reliance on a central CPU or memory processor.

Now the company has validated functionality on the hardware side, CEO Louis DiNardo said it will turn its focus to building out the software component.

“We expect to produce a production mask set in the fourth quarter of 2020 and then move forward with volume production wafer fabrication, assembly and test operations,” DiNardo said.

For now, Brainchip said its initial production run of chip devices will be offered as engineering samples for early access customers.