Slide 1: Q3 2021 Investor Conference
Q3 2021 Investor Conference Nov 10th, 2021 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 3 Confidential Computing Architecture 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: Q3 2021 Financial Results
Q3 2021 Financial Results (thousands of NT dollars) Change Change Q1-Q3 Q1-Q3 Change Q3 2021 Q2 2021 Q3 2020 (QoQ) (YoY) 2021 2020 (YoY) Revenue 594,277 541,415 9.8% 441,259 34.7% 1,732,426 1,279,971 35.3% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 277,611 258,701 7.3% 243,913 13
Slide 7: Revenue in Different Stream
Revenue in Different Stream Revenue Breakdown 21Q3 in comparison to 21Q2 $600,000 21Q2 21Q3 Royalty 68.3% $400,000 $200,000 $0 Licensing Licensing Royalty 31.7% Revenue NT$ Thousands Q3 2021 Q2 2021 QoQ Q3 2020 YoY Q1-Q3 2021 Q1-Q3 2020 YoY Licensing 188,667 174,559 8.1% 111,125 69.8% 540,219 335,63
Slide 8: Revenue by Technology
Revenue by Technology NeoBit royalty decreased YoY due to some PMIC and DDI products migrating into 12-inch and using NeoFuse instead. We expect the growth momentum to return once new products (legacy PMIC, auto and IoT related 8-inch applications) ramp up production. The royalty revenue of NeoF
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q3 Royalty Breakdown 8-inch wafers contributed 52.3% of royalty, up 9.0% sequentially and 12-inch 6.7% YoY due to 8-inch applications expanding into automotive and IoT 47.7% related applications. 12-inch wafers contributed 47.7% of royalty, up 12.3% QoQ and 47.4% Yo
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: eMemory Embedded Everywhere
eMemory Embedded Everywhere eMemory’s IP seeks to penetrate across all the applications Core Tech Security Product Applications: Product Application with PUF-based Security IP: eMemory’s IP are already applied into different PUF-based security IP are being applied in AI, IoT, applications, whi
Slide 12: Our Perspectives
Our Perspectives Licensing: • Licensing revenue will grow since demand remains strong for NeoFuse, Licensing NeoBit, PUF-based solutions, and MTP. We expect licensing revenue to & continue its growth this in Q4 and beyond. Royalty Royalty: • 8-inch royalties will continue to grow due to the dema
Slide 13: Our Perspectives
Our Perspectives New Business Development: • NeoFuse and NeoPUF in advanced processes, is being adopted for AI, HPC and Automotive applications, especially in 7nm and 6nm nodes. • Business activities for PUF-based security solutions are in progress in various New applications. PUFrt and PUFcc have
Slide 14: Confidential Computing Architecture
Confidential Computing Architecture Embedded Wisely, Embedded Widely 14
Slide 15: Why Confidential Computing?
Why Confidential Computing? Confidential Computing Architecture Now Secured by Confidential There is a need for Data Confidentiality to protect Computing • Data at Rest • Data in Transit • Data in Use Data at Rest and Data in Transit can be protected by Encryption through existing security proto
Slide 16: Introduction of Confidential Computing (I)
Introduction of Confidential Computing (I) From Non-Confidential Computing to Confidential Computing: To encrypt program code and data Non-Secure Normal Application Application Operating System Operating System Encrypted Memory Memory (Data and Code) (Data and Code) CPU CPU Figure 1 Figure 2 Embed
Slide 17: Introduction of Confidential Computing (II)
Introduction of Confidential Computing (II) NON-CONFIDENTIAL ENCRYPTED TRUST ZONE COMPUTING COMPUTING COMPUTING Non-Secure Normal Normal Non-Secure Secure (Trust Zone) Application Application Application Application App App Operating Operating Operating System Operating System OS OS System System Me
Slide 18: Introduction of Confidential Computing (III)
Introduction of Confidential Computing (III) CONFIDENTIAL COMPUTING ARCHITECTURE Realms Non-Secure Secure (Trust Zone) Even in the Secure Enclave, it can still share App App App App App App the data in Virtual Memory OS OS OS PUF enables the Memory OS OS OS Tagging to protect unauthorized access
Slide 19: How can PUF help Confidential Computing?
How can PUF help Confidential Computing? Now Secured by Confidential Computing PUF Key for Tagging PUF Key for Encryption PUF Key for Encryption Ensuring data and code in Protect Data and Code at Rest Protect Data and Code in Transit Virtual Memory will not be used by unauthorized parties Embedded W
Slide 20: Q&A
Q&A Embedded Wisely, Embedded Widely 20
Slide 21: Appendix
Appendix Embedded Wisely, Embedded Widely 21
Slide 22: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP Revenue Trend (Unit: NT$ 1,000) 2,000,000 Licensing & Royalty License/Design Revenue Royalty 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 Founded In 200
Slide 23: 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) 2017 2018 2019 2020 2021
Slide 24: 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 1 310 Development China 8 0 896 Korea 4 0 91 Japan 4 7 69 North 1 1 315 America Europe 2 1 194 Others 1 0 78 Embedde
Slide 25: 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 26: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 Q1-Q3 2021 License 43 20 26 18 28 24 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 particul
Slide 27: New Technology Under Development
New Technology Under Development New technologies are being developed for 108 platforms by Q3 2021. 10 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 2 8 11 1 NeoFuse 1 1 5 10 2 12 7 2 1 - PUF-Bas
Slide 28: 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 5 5 OTP, PUF FF, FF+, FFC. FFC+, LPP 22/28nm 37 12 OTP, PUF, MTP LP/ULP/ULL, HPC/HPC+, HPM, DRAM, SOI, ReRAM 40nm 17 4 OTP, PUF LP/ULP
Slide 29: Embedded wisely, Embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 29