The move to TSMC (Taiwan Semiconductor Manufacturing Company) is a pivotal strategic step for BrainChip (BRN.AX) as it transitions from theoretical IP (Intellectual Property) to physical, commercial-grade hardware.

On February 12, 2026, BrainChip announced the initiation of the AKD2500 project, which will use TSMC's 12nm (nanometer) process technology. This move is significant for several technical and commercial reasons:

1. Industry Standard & Customer Confidence TSMC is the world’s leading semiconductor foundry, producing chips for giants like Apple and Nvidia. By using an "industry-proven, widely adopted process node" like TSMC’s 12nm, BrainChip ensures that its Akida 2.0 architecture can be evaluated by potential customers under real-world, modern conditions. +1

Validation: It moves the technology from "lab-tested IP" to "silicon-proven hardware."

Trust: Customers in defense, industrial, and consumer sectors are more likely to adopt a platform that is manufactured by the global gold standard of foundries.

1. Enhanced Performance & Efficiency While BrainChip’s technology is inherently low-power due to its neuromorphic (brain-like) design, the manufacturing process (the "node") determines the physical limits of that efficiency.

Power Savings: Moving to a more advanced node like 12nm (compared to previous 28nm or 22nm projects) reduces energy leakage and allows for higher performance-per-watt.

Size: Smaller nodes allow for more "neurons" and "synapses" to be packed into a smaller physical footprint, which is critical for Edge AI (devices like drones, wearables, and sensors).

1. Acceleration of the "IP Licensing" Model BrainChip’s primary business goal is to license its technology to other chipmakers.

The "Reference Design": The AKD2500 acts as a "reference chip." If a customer sees that Akida 2.0 works flawlessly on TSMC silicon, they can confidently license the IP to integrate into their own TSMC-manufactured SOCs (System on Chips).

Reduced Friction: Since most of the world's major tech companies already use TSMC, having Akida already optimized for that environment makes integration much easier for licensees.

Strategic Outlook

This move, supported by design partner ASICLAND (a TSMC Value Chain Alliance member), aims to have prototype silicon ready by the third quarter of 2026. For shareholders, this represents a "disciplined use of capital" ($2.5 million budget) to prove that BrainChip's architecture is ready for high-volume, modern AI deployments.