Slide 1: Q2 2021 Investor Conference
Q2 2021 Investor Conference Aug 11th, 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 Hardware Security in DARPA 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: Q2 2021 Financial Results
Q2 2021 Financial Results (thousands of NT dollars) Change Change Q1-Q2 Q1-Q2 Change Q2 2021 Q1 2021 Q2 2020 (QoQ) (YoY) 2021 2020 (YoY) Revenue 541,415 596,734 -9.3% 423,276 27.9% 1,138,149 838,712 35.7% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 258,701 259,023 -0.1% 227,364 13
Slide 7: Revenue in Different Stream
Revenue in Different Stream Revenue Breakdown 21Q2 in comparison to 21Q1 $500,000 21Q1 21Q2 Royalty 67.8% $0 Licensing Licensing Royalty 32.2% Revenue NT$ Thousands Q2 2021 Q1 2021 QoQ Q2 2020 YoY Q1-Q2 2021 Q1-Q2 2020 YoY Licensing 174,559 176,993 -1.4% 118,062 47.9% 351,552 224,508 56.6% Royalty 3
Slide 8: Revenue by Technology
Revenue by Technology The royalty revenue of NeoBit down 19.1% QoQ and 13.9% YoY due to some customer products (PMIC, DDI, and Fingerprint) moving into 12-inch for productions and adopting NeoFuse IP instead. New customer products (legacy PMIC, IoT, and Automotive- related) will contribute to NeoB
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q2 Royalty Breakdown 8-inch wafers contributed 51.8% of royalty, down 16.7% sequentially 12-inch due to seasonality of smartphone customers, but up 3.3% YoY. Other 48.2% products (legacy PMIC, Sensors, and Automotive-related) will contribute to 8-inch royalty in the f
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: eMemory’s IP are already applied into different Product Application with PUF-based Security IP: applications, which includes PMIC, LCD driver, PUF-based security IP
Slide 12: Our Perspectives
Our Perspectives Licensing: Licensing • Licensing revenue will grow due to continuing strong demand from & NeoFuse, PUF-based solutions, and MTP. Royalty Royalty: • 8” royalties will grow due to demand and content increases for PMIC, MCU, Fingerprint and Sensor-related in 5G, Automotive, and IoT
Slide 13: Our Perspectives
Our Perspectives New Business Development: • NeoFuse in advanced process is adopted for secure key storage. This will be a trend for security requirement. • Business activities of PUF-based security solutions are in progress in New applications of IoT, IIoT, AI, FPGA, DPU, UFS, and Automotive. Bus
Slide 14: Hardware Security In DARPA
Hardware Security In DARPA Embedded Wisely, Embedded Widely 14
Slide 15: Collaboration with DARPA
Collaboration with DARPA Processor “Advanced on-chip security mechanisms utilize OTPs and PUFs to establish unique identity of every manufactured die are foundational building PUF Anti- blocks for mitigation of supply OTP TRNG tamper chain vulnerabilities.” Cryptos Shell PUF-based Hardware root of t
Slide 16: DARPA Hardware Security Programs
DARPA Hardware Security Programs PUF-based root of trust and Security solutions facilitate the development of chip providers for governments and defense devices SSITH AISS SHIELD AMI System Security Automatic Supply Chain Integrity for Asset Management Integration Through Implementation of Electro
Slide 17: Q&A
Q&A Embedded Wisely, Embedded Widely 17
Slide 18: Appendix
Appendix Embedded Wisely, Embedded Widely 18
Slide 19: 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 20: 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 21: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide New Country Licensing Foundry IDM & Fabless Application & Royalty Technology Taiwan 4 1 304 Development China 8 0 827 Korea 4 0 89 Japan 4 6 68 North 1 2 303 America Europe 2 1 182 Others 1 0 73 Embed
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 Q1-Q2 2021 License 43 20 26 18 28 14 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 24: New Technology Under Development
New Technology Under Development New technologies are being developed for 103 platforms by Q2 2021. 9 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 3 8 11 1 NeoFuse 2 1 5 13 2 10 7 1 1 - PUF-Base
Slide 25: Technology Development
Technology Development Developments by process nodes 12" Fabs Production Development IP Type Process Type 5/6nm 0 4 OTP, PUF FF 7/10nm 2 1 OTP FF, FF+ 12/16nm 5 5 OTP FF, FF+, FFC, FFC+, LPP 22/28nm 34 15 OTP, MTP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI 40nm 17 4 OTP, PUF LP/ULP, E-Flash, HV-DDI/
Slide 26: Embedded wisely, embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 26