Slide 1: Q4 2024 Investor Conference
Q4 2024 Investor Conference Feb 12th, 2025 Embedded Wisely, Embedded Widely 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 Post-Quantum Cryptography (PQC) 3 Needs PUF? 4 Q&A 5 Appendix Embedded EmbeddedWisely, Wisely,Embedded EmbeddedWidely Widely 4
Slide 5: Review of Operations
Review of Operations Embedded Wisely, Embedded Widely 5
Slide 6: Q4 2024 Financial Results
Q4 2024 Financial Results (thousands of NT dollars) Q4 2024 Q3 2024 QoQ Q4 2023 YoY 2024 2023 YoY (unaudited) (unaudited) Revenue 1,010,717 899,477 12.4% 898,858 12.4% 3,605,968 3,050,325 18.2% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 444,784 394,561 12.7% 359,330 23.8% 1,619,3
Slide 7: Revenue across Different Streams
Revenue across Different Streams (NT$ K) 24Q4 in comparison to 24Q3 Revenue Breakdown $1,000,000 24 Q3 24 Q4 Royalty 68.8% $500,000 $0 Licensing Licensing Royalty 31.2% Revenue Change Change Change NT$ Thousands Q4 2024 Q3 2024 Q4 2023 2024 2023 (QoQ) (YoY) (YoY) Licensing 315,330 290,639 8.5% 273,9
Slide 8: Revenue by Technology
Revenue by Technology Q4 2024 Total Revenue Licensing Revenue Royalty Revenue Technology % of Q4 Change Change % of Q4 Change Change % of Q4 Change Change Revenue (QoQ) (YoY) Licensing (QoQ) (YoY) Royalty (QoQ) (YoY) NeoBit 23.6% -4.2% 14.2% 20.9% -27.2% -8.3% 24.8% 9.0% 26.1% NeoFuse 62.5% 20.9% 7.
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q4 Royalty Breakdown • 8-inch wafers contributed 40.8% of royalty, up 13.9% 12-inch sequentially and up 20.0% yearly. 59.2% • 12-inch wafers contributed 59.2% of royalty, up 14.4% QoQ and up 6.0% YoY. 8-inch 40.8% Q4 2024 2024 Wafer Size % of Q4 Change (QoQ) Change (YoY
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Future Outlook
Future Outlook Licensing & Royalty: ◼ Licensing: – We anticipate that licensing revenue will continue its growing momentum due to increasing demand from both foundries and end chip customers. We continue to launch new IPs, and available on increasing number of process nodes on worldwide foundries. ◼
Slide 12: Future Outlook
Future Outlook New IP Technology & Business Development: ◼ New IP Technologies: − NeoFuse is advancing various derivative processes at leading edge nodes, having secured design wins in 3/4/5/6/7nm process nodes. − RRAM is broadening into automotive grade, and already have multiple customer design wi
Slide 13: Why Post-Quantum Cryptography (PQC) Needs PUF?
Why Post-Quantum Cryptography (PQC) Needs PUF? Embedded Wisely, Embedded Widely 13
Slide 14: Why PQC Needs PUF?
Why PQC Needs PUF? PUF can efficiently generate keys with long length, which is needed for PQC. PUF can efficiently provide random numbers, which are needed for anti-tampering in PQC. Embedded Wisely, Embedded Widely 14
Slide 15: What is PQC?
What is PQC? ◼ PQC aims to create cryptographic systems that can withstand attacks from quantum computers. Traditional Encryption Algorithms RSA ECC Quantum Computers Post-Quantum Cryptography (PQC) PQC Quantum Computers Embedded Wisely, Embedded Widely 15
Slide 16: Why is PQC Needed?
Why is PQC Needed? ◼ As quantum computing progresses, the demand for encryption capable of resisting quantum attacks becomes critical. ◼ The sooner we implement PQC, the sooner we can guarantee the security of our data in a quantum future. Safeguard our data Implement PQC Now in the Quantum Future F
Slide 17: How PUF-based Solutions Help PQC?
How PUF-based Solutions Help PQC? ◼ Our PUF-based Root of Trust (PUFrt) can help PQC: Unique Secret NeoPUF Secure Storage NeoFuse OTP Dynamic Randomness TRNG Key Protection Anti-tamper PUFrt ◼ By integrating the PUFrt into the security subsystem, it can effectively manage the long and complex keys r
Slide 18: Q&A
Q&A Embedded Wisely, Embedded Widely 18
Slide 19: Appendix
Appendix Embedded Wisely, Embedded Widely 19
Slide 20: Company Overview
Company Overview ▪ eMemory is the global leader of embedded non-volatile memory IP Revenue Trend (Unit: NT$ 1,000) 4,000,000 3,500,000 Royalty License/Design Revenue 3,000,000 2,500,000 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
Slide 21: 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) 2019 2020 2021 2022 2023
Slide 22: Quarterly Number of New Tape-outs
Quarterly Number of New Tape-outs 2018 2019 2020 2021 2022 2023 2024 (Unit: IP Numbers) 200 184 179 181 180 171 149 154 150 149 154 160 143150 138 143 137 147 139 134 136 140 120 111 107 109 109 103 100 97 100 91 89 86 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 23: Worldwide Customers
Worldwide Customers ▪ Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide Country Foundry IDM Fabless Taiwan 4 1 350 China 12 0 1361 max_logo_header_25yrs Korea 4 0 103 Japan 1 9 88 North 2 2 368 America Europe 2 2 237 Others 1 0 127 Embedded Wisely, Embedded Widely 23
Slide 24: 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 25: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 License 43 20 26 18 28 32 29 48 41 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 the
Slide 26: Technology Development
Technology Development ▪ Developments by process nodes 12" Fabs Production Development IP Type Process Type 2nm 0 2 OTP, PUF GAA 3nm 0 6 OTP, PUF FF, FFP 4/5nm 6 2 OTP, PUF FF, FF-Auto 6/7nm 4 4 OTP, PUF FF, FF+ 12/16nm 12 12 OTP, PUF FF, FF+, FFC. FFC+, LPP, DRAM, HV LP/ULP/ULL, HPC/HPC+, HV-OLED,
Slide 27: Embedded Wisely, Embedded Widely
Embedded Wisely, Embedded Widely For more information, please visit: eMemory Website: https://www.ememory.com.tw/ PUFsecurity Website: https://www.pufsecurity.com/ Embedded Wisely, Embedded Widely 27