Ememory Technology, Inc. · TPEX:3529
Ememory Technology — Q1 2022 Earnings Presentation
31 slides from Ememory Technology's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Investor Conference
Q1 2022 Investor Conference May 11th, 2022 Embedded wisely, Embedded widely
Slide 2: IPR Notice
IPR Notice All rights, titles and interests contained in this information, texts, images, figures, tables or other files herein, including, but not limited to, its ownership and the intellectual property rights, are reserved to eMemory. This information may contain privileged and confidential inform
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements, which are subject to risk factors associated with semiconductor and intellectual property business. It is believed that the expectations reflected in these statements are reasonable. But they may be affected by a variety of
Slide 4: Contents
Contents 1 Review of Operations 2 Future Outlook Why PUF is Pivotal for Metaverse 3 Security 4 Q&A 5 Appendix Embedded Wisely, Embedded Widely 4
Slide 5: Review of Operations
Review of Operations Embedded Wisely, Embedded Widely 5
Slide 6: Q1 2022 Financial Results
Q1 2022 Financial Results (thousands of NT dollars) Change Change Q1 2022 Q4 2021 Q1 2021 (QoQ) (YoY ) Revenue 727,107 631,398 15.2% 596,734 21.8% Gross Margin 100% 100% - 100% - Operating Expenses 313,846 299,677 4.7% 259,023 21.2% Operating Income 413,261 331,721 24.6% 337,711 22.4% Operating Marg
Slide 7: Revenue in Different Stream
Revenue in Different Stream 22Q1 in comparison to 21Q4 Revenue Breakdown $600,000 21Q4 22Q1 Royalty 73.6% $400,000 $200,000 $0 Licensing Licensing Royalty 26.4% Revenue NT$ Thousands Q1 2022 Q4 2021 Change (QoQ) Q1 2021 Change (YoY) Licensing 191,608 162,632 17.8% 176,993 8.3% Royalty 535,499 468,76
Slide 8: Revenue by Technology
Revenue by Technology • The royalty revenue of NeoFuse up 19.1% QoQ and up 56.2% YoY due to the increasing penetration rate of OLED, ISP, Network-related, DRAM and others. • PUF-based revenue is expected to see significant growth in Q2 and H2. • Royalty for MTP grew by 64.0% QoQ and 99.2% YoY for MC
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q1 Royalty Breakdown • 8-inch wafers contributed 50.7% of royalty, up 15.0% 12-inch sequentially and 17.9% YoY due to wafer shipment increase 49.3% from PMIC, MCU, sensors and others. • 12-inch wafers contributed 49.3% of royalty, up 13.4% QoQ and 39.3% YoY due to conti
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Security: Core Technology
Core Technology eMemory’s IP seeks to penetrate across all the applications Core Tech Security Product Applications: Product Application with PUF-based Security IP: eMemory’s IPs are already applied into different PUF-based security IPs are being applied in AI, IoT, applications, which include
Slide 12: Our Perspectives
Our Perspectives Licensing: • License revenue will grow due to the continued strong demand for our Licensing IPs, especially NeoFuse and PUF-related solutions. & Royalty: Royalty • Royalties will continue their growth momentum with increasing wafer shipment and wafer ASP. • 8-inch royalties will
Slide 13: Our Perspectives
Our Perspectives New Business Development: • The focus of our new application development is in the field of security. New • Business activities for PUF-based security solutions are continuing to progress in IoT, Industrial IoT, AI, Blockchain, FPGA, Data Processor Unit Business & (DPU), Mobile St
Slide 14: Why PUF is Pivotal for Metaverse Security
Why PUF is Pivotal for Metaverse Security Embedded Wisely, Embedded Widely 14
Slide 15: What is Metaverse?
What is Metaverse? “ In the future, instead of just doing this over a phone call, you’ll be able to sit as a hologram on my couch, or I’ll be able to sit as a hologram on your couch, and it’ll actually feel like we’re in the same place, even if we’re in different states or hundreds of miles apart. M
Slide 16: Seven Layers of Metaverse
Seven Layers of Metaverse Metaverse is layered into different levels for different roles. Consumers are in Experience and Discovery layers while the inner layers are for creators and service/equipment providers. Games, Social, esports, Experience Theater, Shopping Discovery Ad Networks, Social c
Slide 17: Security Needs in Metaverse
Security Needs in Metaverse While all activities that occur in the Metaverse go through multiple layers, they are realized by some, if not all, of the six core technologies. Digital Asset NFT Crypto Confidentiality Transaction Blockchain IoT Interactivity Connected Connected Data Device Network Game
Slide 18: Metaverse Ecosystem
Metaverse Ecosystem Within the 7 layer ecosystem, major brands are investing and embracing the Metaverse Embedded Wisely, Embedded Widely 18
Slide 19: Scenarios in Metaverse
Scenarios in Metaverse Below are some possible every-day scenarios in the Metaverse and their corresponding layers. Embedded Wisely, Embedded Widely 19
Slide 20: Why PUF is Pivotal to Metaverse Security?
Why PUF is Pivotal to Metaverse Security? PUF, a digital fingerprint, provides a unique identity when entering Metaverse. eMemory patented Quantum Tunneling technology creates the most optimal PUF, utilizing silicon variations from manufacturing to generate keys. PUFsecurity’s integrated solution de
Slide 21: Q&A
Q&A Embedded Wisely, Embedded Widely 21
Slide 22: Appendix
Appendix Embedded Wisely, Embedded Widely 22
Slide 23: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP Revenue Trend (Unit: NT$ 1,000) 2,500,000 Licensing & Royalty License/Design Revenue Royalty 2,000,000 1,500,000 1,000,000 500,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 24: Quarterly Revenue Pattern
Quarterly Revenue Pattern 1st month: Receive License Fees of the month and Royalty from most foundries on previous quarter’s wafer shipments. 2nd month: Receive License Fees of the month and Royalty from other foundries. 3rd month: License Fees Only. (Unit: NT$ 1,000) 2018 2019 2020 2021 2022
Slide 25: Quarterly Number of New Tape-outs
Quarterly Number of New Tape-outs 2018 2019 2020 2021 2022 (Unit: IP Numbers) 180 158 160 148 147 150 134 134 138 140 120 113 109 109 99 97 107 103 100 91 90 87 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Embedded Wisely, Embedded Widely 25
Slide 26: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide New Country LicensingIDM& Foundry Fabless Application & Royalty Technology Taiwan 4 1 324 Development China 9 0 979 Korea 4 0 94 Japan 4 7 75 North 1 1 319 America Europe 2 1 198 Others 1 0 83 Embedde
Slide 27: Business Model
Business Model Recurring royalty is the backbone of our business 70-75% revenue are from royalty based on wafer production More adoption = more volume shipment More advanced node wafers = higher ASP per wafer Revenue Breakdown 1-4 years 1-4 years License Fee Design License Fee Royalty Foundr
Slide 28: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 2022 Q1 License 43 20 26 18 28 32 11 Note: Terms (including number of process platforms and licensing fees) for each technology license are set contractually. Payments are made according to set milestones, and there are no par
Slide 29: New Technology Under Development
New Technology Under Development New technologies are being developed for 111 platforms by Q1 2022. 11 licensing contracts were signed. 0.11~ 0.15~ Technology 5/6nm 7/10nm 12/16nm 22/28nm 40nm 55/65nm 80/90nm >0.25um 0.13um 0.18um NeoBit - - - - - 1 1 12 12 1 NeoFuse 1 1 5 8 4 11 8 2 1 - PUF-Bas
Slide 30: Technology Development
Technology Development Developments by process nodes 12" Fabs Production Development IP Type Process Type 5/6nm 2 2 OTP, PUF FF 7/10nm 2 1 OTP, PUF FF, FF+ 12/16nm 6 6 OTP, PUF FF, FF+, FFC. FFC+, LPP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI, ReRAM, 22/28nm 42 11 OTP, PUF, MTP MRAM 40nm 21 4 OTP,
Slide 31: Embedded wisely, Embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 31