Brainchip (ASX:BRN) shares rise on Indian growth plans

The Brainchip Holdings Ltd (ASX: BRN) share price is up this morning after announcing Indian growth plans.

Brainchip’s Indian growth plans

Brainchip announced today that it has established a software development centre in Hyderabad in India.

The development center will concentrate on software and firmware development to support the Akida Neuromorphic System on Chip (NSoC).

Brainchip said that software for device drivers, the CPU complex and firmware are critical components of turning Akida into a commercial enterprise.

The development center will have five software engineers and local management. This isn’t expected to add to expenses because the staff have already worked as contracted service providers for several quarters and it has provided the funds for the facility and cost of equipment.

This Indian outfit will complement the staff in Toulouse, France which are also working on software.

BrainChip CEO Louis DiNardo said: “We have established BrainChip Systems in India to support the requirement for robust system software and firmware. As Akida is implemented commercially, it is important that our software is mature and provides a positive user experience.

We have a very seasoned management and engineering team in Hyderabad. Having a BrainChip entity in India will allow us to recruit and retain experienced engineering professionals as we expand operations to meet market demands. The India group has been working exclusively on Akida software and firmware development for several quarters and we are fortunate to have them join us as we bring Akida to market.”

Summary

If management feels this move is necessary then it seems like a positive step. Brainchip has been making headlines recently for its share price rise.

I don’t know whether BrainChip’s share price is a buy at $0.10, $0.46 or $0.76. It seems impossible to know how much money BrainChip can make at this stage. It’s hard to know what BrainChip can achieve – for that reason I think it’s hard to come up with a reasonable valuation. Is a market cap of over $700 million a fair price?

I prefer other ASX growth shares like ASX tech share Altium Limited (ASX: ALU) and Pushpay Holdings Ltd (ASX: PPH).

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At the time of publishing, Jaz owns shares of Altium.

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