Confidence starting to build with the company.
BrainChip (ASX: BRN) has just taken a major step forward, announcing it is moving from development and prototyping to actual chip production.
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BrainChip’s Three-Pillar Revenue Model Positions It for Scalable Growth
According to its most recent half-year report, BrainChip generated approximately USD 1 million in revenue during the first half of FY25. The company’s revenue model is built around three core streams that support both near-term growth and long-term scalability.
The first stream is direct product sales, where BrainChip sells its Akida neuromorphic chips such as the existing AKD1000 and the upcoming AKD1500 to manufacturers and system integrators. In the first half of FY25, product sales contributed around USD 19,000, but with the transition to full-scale chip production, this segment can potentially become the primary driver of revenue over the next five years.
The second stream is development services, which currently forms the bulk of revenue. This includes custom engineering projects and collaboration agreements that integrate BrainChip’s IP into partner systems. Notable partnerships include Frontgrade Gaisler for space-grade chips, Onsor Technologies for epileptic seizure prediction, HaiLa Technologies for low-power IoT solutions, and Chelpis Quantum for robotic security applications.
The third stream is licensing, where BrainChip generates income by licensing its intellectual property to semiconductor companies and manufacturers. This model provides an additional pathway to scale, offering recurring, high-margin revenue opportunities as adoption of neuromorphic technology expands globally.
The Investor’s Takeaway For BrainChip
With the company now starting up chip production, through a foundry, we expect to see a sharp revenue ramp up from chip sales starting late in 2026. Of course, the IP license model will still be available for customers that want to integrate the IP into their products themselves and maybe customise it somewhat. In any case, we believe this tape-out news is a very good sign for BRN shareholders!
we will know on Monday.
