Slide 1: Q3 2023 Investor Conference
Q3 2023 Investor Conference November 8th, 2023 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 3 OTP for SRAM Repair in HPC 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: Q3 2023 Financial Results
Q3 2023 Financial Results (thousands of NT dollars) Q3 2023 Q2 2023 QoQ Q3 2022 YoY Revenue 787,091 696,625 13.0% 790,608 -0.4% Gross Margin 100% 100% - 100% - Operating Expenses 369,873 327,865 12.8% 345,160 7.2% Operating Income 417,218 368,760 13.1% 445,448 -6.3% Operating Margin 53.0% 52.9% 0.1p
Slide 7: Revenue across Different Streams
Revenue across Different Streams Revenue Change Change NT$ Thousands Q3 2023 Q2 2023 Q3 2022 (QoQ) (YoY) Licensing 259,151 249,711 3.8% 144,631 79.2% Royalty 527,940 446,914 18.1% 645,977 -18.3% Total 787,091 696,625 13.0% 790,608 -0.4% Embedded Wisely, Embedded Widely 7
Slide 8: Revenue by Technology
Revenue by Technology Embedded Wisely, Embedded Widely 8
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size • 8-inch wafers contributed 36.3% of royalty, down 3.8% sequentially and down 36.5% yearly. • 12-inch wafers contributed 63.7% of royalty, up 35.7% QoQ but down 2.3% YoY. Q3 2023 Wafer Size % of Q3 Change (QoQ) Change (YoY) 8-Inch 36.3% -3.8% -36.5% 12-Inch 63.7% 35.7%
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Future Outlook
Future Outlook Licensing & Royalty: New IP Technology & Business Development: ◼ Strong licensing demand will continue ◼ Our development of special processes to drive the growth momentum of such as HV, HK, BCD, embedded flash, licensing fees. and emerging memory (RRAM/MRAM) ◼ We expect royalties to r
Slide 12: OTP for SRAM Repair in HPC
OTP for SRAM Repair in HPC Embedded Wisely, Embedded Widely 12
Slide 13: Embedded SRAM for Advanced Nodes
Embedded SRAM for Advanced Nodes . ◼ The rise of High-Speed Computing (HPC), such as DPU, GPU, and AI are driving the need for High-Density Embedded SRAM. ◼ Therefore, SRAM Repair in Advanced Process is a must. Queue, Uncore, I/O Core Core Smart Sensors Voice Recognition Shared Due to Multi-core Cor
Slide 14: Scheme of SRAM Repair
Scheme of SRAM Repair . ◼ Memory is usually repaired through a Switch Box that replaces the bad memory cells with Redundant Memory cells. ① Obtains location of bad memory cell ③ Takes redundant memory column to replace column with bad cell ② Stores location of bad memory cell Switch Box (Stored in O
Slide 15: Why OTP is a Must for SRAM Repair
Why OTP is a Must for SRAM Repair . ◼ To repair memory, you need to store the location of bad memory cells. For a Switch Box, OTP is a better solution than eFuse considering the area cost effect, yield, reliability and flexibility. Features eFuse OTP Cell Size Large Small Repairing Density Small Lar
Slide 16: Q&A
Q&A Embedded Wisely, Embedded Widely 16
Slide 17: Appendix
Appendix Embedded Wisely, Embedded Widely 17
Slide 18: 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 19: 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 20: Quarterly Number of New Tape-outs
Quarterly Number of New Tape-outs 2018 2019 2020 2021 2022 2023 (Unit: IP Numbers) 200 184 180 149 154 150 160 143 150 138 143 137 147 139 134 136 140 120 111 107 109 109 103 100 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 Q3 Embedded Wisely, Embed
Slide 21: Worldwide Customers
Worldwide Customers ▪ Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide Country Foundry IDM Fabless Taiwan 4 1 323 China 9 0 1105 Korea 4 0 96 Japan 4 7 80 North 1 1 365 America Europe 2 1 211 Others 1 0 103 Embedded Wisely, Embedded Widely 21
Slide 22: 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 23: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 License 43 20 26 18 28 32 29 34 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
Slide 24: New Technology Under Development
New Technology Under Development ▪ New technologies are being developed for 156 platforms by Q3 2023. ▪ 15 licensing contracts were signed. 0.11~ 0.15~ Technology 3nm 4/5nm 6/7nm 12/16nm 22/28nm 40nm 55/65nm 80/90nm >0.25um 0.13um 0.18um NeoBit - - - - - - 2 1 14 12 1 NeoFuse 3 2 1 6 17 6 19 7 3 4 -
Slide 25: Technology Development
Technology Development ▪ Developments by process nodes 12" Fabs Production Development IP Type Process Type 3nm 0 3 OTP, PUF FF, FFP 4/5nm 2 6 OTP, PUF FF, FF-Auto 6/7nm 4 1 OTP, PUF FF, FF+ 12/16nm 9 7 OTP, PUF FF, FF+, FFC. FFC+, LPP, DRAM, HV LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI, ReRAM, 22/28
Slide 26: 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 26