Slide 1: Q4 2023 Investor Conference
Q4 2023 Investor Conference February 6th, 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 Enhancing Security from AI Servers 3 to AI Edge Computing 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 2023 Financial Results
Q4 2023 Financial Results (thousands of NT dollars) Q4 2023 Change Change FY 2023 Change Q3 2023 Q4 2022 FY 2022 (unaudited) (QoQ) (YoY) (unaudited) (YoY) Revenue 898,858 787,091 14.2% 902,704 -0.4% 3,050,325 3,216,711 -5.2% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 359,330 369,
Slide 7: Revenue across Different Streams
Revenue across Different Streams Revenue Breakdown Royalty 69.5% Licensing 30.5% Revenue NT$ Thousands Q4 2023 Q3 2023 Change (QoQ) Q4 2022 Change (YoY) FY 2023 FY 2022 Change (YoY) Licensing 273,927 259,151 5.7% 205,104 33.6% 925,838 742,072 24.8% Royalty 624,931 527,940 18.4% 697,600 -10.4% 2,124,
Slide 8: Revenue by Technology
Revenue by Technology Q4 2023 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 23.2% 11.2% -22.3% 26.3% 1.4% 97.9% 21.9% 17.1% -41.1% NeoFuse 65.6% 18.1% 7
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q4 Royalty Breakdown • 8-inch wafers contributed 37.8% of royalty, up 23.4% sequentially but down 28.5% yearly. 12-inch 62.2% • 12-inch wafers contributed 62.2% of royalty, up 15.5% QoQ and up 5.9% YoY. 8-inch 37.8% Q4 2023 FY 2023 Wafer Size % of Q4 Change (QoQ) Change
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Future Outlook
Future Outlook Licensing & Royalty: ◼ Licensing: – Strong licensing demand will continue to drive the growth momentum of licensing fees. ◼ Royalties: – We expect royalties in the first quarter to be temporarily affected by a customer moving to more advanced node, resulting in a single-digit QoQ decl
Slide 12: Future Outlook
Future Outlook New IP Technology & Business Development: ◼ Specialty processes (HV, HK, BCD, embedded flash, and emerging memory): – There will be more foundry technology licensing this quarter. – Per wafer royalty ASP will increase due to ongoing development into more advanced nodes. – The continue
Slide 13: Enhancing Security from AI Servers to AI Edge Computing
Enhancing Security from AI Servers to AI Edge Computing Embedded Wisely, Embedded Widely 13
Slide 14: eMemory's Contribution to AI
eMemory’s Contribution to AI . ◼ AI will be widely adopted from Edge Devices to Data Centers in the future. ◼ AI systems consists of many components including: Computation and Storage Sensing and Acting Processing ▪ CPU ▪ SRAM ▪ Sensors ▪ GPU ▪ DRAM/DRAM Modules ▪ Actuators ▪ DPU ▪ CXL ▪ Accelerator
Slide 15: Example: eMemory Helps Memory
Example: eMemory Helps Memory . ◼ eMemory’s security IP and OTP/MTP IP 1) ensure data security and 2) improve yield for SRAM and DRAM. AI Accelerator SRAM Embedded memory repair function to improve yield DRAM DIMM (e.g. DDR5) Standalone memory repair function to improve yield CXL Memory Controller C
Slide 16: eMemory Solutions for AI Servers
eMemory Solutions for AI Servers . ◼ eMemory IPs will play a crucial role in AI servers. Storage Processing - Serial DRAM 1 1 SSD SRAM SRAM SSD Interface CXL CXL Memory Controller Controller Expander CPU CPU 2 1 2 SSD 2 2 1 Memory Repair Processing - Parallel 2 Root of Trust GPU GPU GPU 2 2 2 GPU GP
Slide 17: eMemory Solutions for AI Edge Devices
eMemory Solutions for AI Edge Devices . ◼ eMemory solutions are used in 1) protecting AI models, 2) trimming analog devices, and 3) data and program storage in NeoFlash. AI Edge Computing A. Root of Trust to provide: 1. Key Storage SoC Sensors 2. Key Generation D SRAM Hardware Root of Trust Accelera
Slide 18: IR Website
IR Website Embedded Wisely, Embedded Widely 18
Slide 19: IR Website Demo
IR Website Demo. Embedded Wisely, Embedded Widely 19
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) 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 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) 2019 2020 2021 2022 2023
Slide 24: Quarterly Number of New Tape-outs
Quarterly Number of New Tape-outs 2018 2019 2020 2021 2022 2023 (Unit: IP Numbers) 200 184 180 149 154 150 149 160 143 150 138 143 137 147 139 134 136 140 120 111 107 109 109 103 100 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 Q4 Embedded Wisely
Slide 25: 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 9 0 1185 max_logo_header_25yrs Korea 4 0 98 Japan 4 7 81 North 1 1 365 America Europe 2 1 224 Others 1 0 110 Embedded Wisely, Embedded Widely 25
Slide 26: 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 27: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 2022 2023 License 43 20 26 18 28 32 29 48 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 n
Slide 28: 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 4 4 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 29: 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 29