Ememory Technology, Inc. · TPEX:3529
Ememory Technology — Q2 2024 Earnings Presentation
27 slides from Ememory Technology's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Investor Conference
Q2 2024 Investor Conference Aug 7th, 2024 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 A Must in Security: 100X Faster 3 PUF-based TRNG 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: Q2 2024 Financial Results
Q2 2024 Financial Results (thousands of NT dollars) Change Change Change Q2 2024 Q1 2024 Q2 2023 H1 2024 H1 2023 (QoQ) (YoY) (YoY) Revenue 893,010 802,764 11.2% 696,625 28.2% 1,695,774 1,364,376 24.3% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 397,829 382,143 4.1% 327,865 21.3% 7
Slide 7: Revenue across Different Streams
Revenue across Different Streams (NT$ K) 24Q2 in comparison to 24Q1 Revenue Breakdown $1,000,000 24Q1 24Q2 Royalty 66.4% $500,000 $0 Licensing Licensing Royalty 33.6% Revenue Change Change Change NT$ Thousands Q2 2024 Q1 2024 Q2 2023 H1 2024 H1 2023 (QoQ) (YoY) (YoY) Licensing 299,711 228,329 31.3%
Slide 8: Revenue by Technology
Revenue by Technology Q2 2024 Total Revenue Licensing Revenue Royalty Revenue Technology % of Q2 Change Change % of Q2 Change Change % of Q2 Change Change Revenue (QoQ) (YoY) Licensing (QoQ) (YoY) Royalty (QoQ) (YoY) NeoBit 25.9% 22.1% 20.1% 24.6% 54.0% 30.2% 26.7% 11.3% 15.9% NeoFuse 58.1% -3.5% 25
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q2 Royalty Breakdown • 8-inch wafers contributed 42.5% of royalty, up 2.6% 12-inch sequentially and 26.7% yearly. 57.5% • 12-inch wafers contributed 57.5% of royalty, up 3.8% QoQ and up 37.6% YoY. 8-inch 42.5% Q2 2024 H1 2024 Wafer Size % of Q2 Change (QoQ) Change (YoY)
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Future Outlook
Future Outlook Licensing & Royalty: ◼ Licensing: – Licensing revenue will continue its growth momentum due to strong demands from both foundries and chip companies. ◼ Royalties: – We expect royalty sequential growth in H2 due to new products ramping up. Embedded Wisely, Embedded Widely 11
Slide 12: Future Outlook
Future Outlook New IP Technology & Business Development: ◼ New IP Technologies: − NeoFuse is developing in FinFET HV process to meet customers’ next generation OLED DDI plans. − RRAM is expanding into more processes with increased customers’ demand. − NeoFlash continues progressing in specialty proc
Slide 13: A Must in Security: 100X Faster PUF-based TRNG
A Must in Security: 100X Faster PUF-based TRNG Embedded Wisely, Embedded Widely 13
Slide 14: True Randomness Makes Guessing Impossible
True Randomness Makes Guessing Impossible ◼ How to break a secure system? ‒ Cryptanalysis: find weakness in cryptographic algorithms ‒ Implementation attacks: find secret keys used in the system ◼ A well-designed secure system is resistant to cryptanalysis and attacks ‒ The only option for an attack
Slide 15: High-speed TRNG: Why Throughput Matters?
High-speed TRNG: Why Throughput Matters? ◼ High-throughput TRNG can generate large amounts of random numbers in a short period of time. Random Bits Online Random Banking Server APP1 APP2 … APP N Number Service Masked Operation Random Number Pool Input Output Random Bits Masked Operation Banking Hard
Slide 16: PUFtrng: 100 Times Faster than Conventional TRNG
PUFtrng: 100 Times Faster than Conventional TRNG ◼ PUF-based conditioning algorithm provides high-throughput and high entropy quality Similar to… Conventional TRNG Conventional Post-processing TRNG Dynamic Entropy Slower (ROSC) Classic Cars PUFtrng Static Entropy PUFtrng PUF (Chip Fingerprint) Entro
Slide 17: PUFtrng: 100 Times Faster than Conventional TRNG
PUFtrng: 100 Times Faster than Conventional TRNG ◼ PUF-based conditioning algorithm provides high-throughput and high-quality entropy Similar to… Conventional TRNG Figure 1: Figure 2: Dynamic Entropy Conventional TRNG Post- → Low throughput processing random bits → Slower Classic Cars PUFtrng Figure
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) 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 2020 2021
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) 200 184 180 171 160 149 143 150 154 143 150 147 149 154 134 136 138 137 139 140 120 111 107 109 109 103 100 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 Q3 Q4 Q1
Slide 23: Worldwide Customers
Worldwide Customers ▪ Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide Country Foundry IDM Fabless Taiwan 4 1 318 China 11 0 1185 max_logo_header_25yrs Korea 4 0 98 Japan 1 9 81 North 2 2 365 America Europe 2 2 224 Others 1 0 110 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 H1 License 43 20 26 18 28 32 29 48 19 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
Slide 26: Technology Development
Technology Development ▪ Developments by process nodes 12" Fabs Production Development IP Type Process Type 3nm 0 4 OTP, PUF FF, FFP 4/5nm 6 0 OTP, PUF FF, FF-Auto 6/7nm 4 1 OTP, PUF FF, FF+ 12/16nm 9 8 OTP, PUF FF, FF+, FFC. FFC+, LPP, DRAM, HV LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI, ReRAM, 22/28
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