Slide 1: Q4 2022 Investor Conference
Q4 2022 Investor Conference February 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 From OTP to PUF: The Evolution of 3 PUF-based Security Sub-systems 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 2022 Financial Results
Q4 2022 Financial Results (thousands of NT dollars) Q4 2022 Change Change FY 2022 Change Q3 2022 Q4 2021 FY 2021 (unaudited) (QoQ) (YoY) (unaudited) (YoY) Revenue 902,704 790,608 14.2% 631,398 43.0% 3,216,711 2,363,824 36.1% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 368,090 345,
Slide 7: Revenue across Different Streams
Revenue across Different Streams 22Q4 in comparison to 22Q3 Revenue Breakdown $1,000,000 22Q3 22Q4 Royalty 77.3% $500,000 $0 Licensing Licensing Royalty 22.7% Revenue NT$ Thousands Q4 2022 Q3 2022 Change (QoQ) Q4 2021 Change (YoY) FY 2022 FY 2021 Change (YoY) Licensing 205,104 144,631 41.8% 162,632
Slide 8: Revenue by Technology
Revenue by Technology Q4 2022 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 29.7% -1.1% 20.7% 17.7% -4.0% 54.6% 33.3% -0.7% 16.7% NeoFuse 60.9% 20.6% 52
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q4 Royalty Breakdown • 8-inch wafers contributed 47.4% of royalty, up 9.6% 12-inch sequentially and up 40.2% yearly. 52.6% • 12-inch wafers contributed 52.6% of royalty, up 6.6% QoQ and 57.5% YoY. 8-inch 47.4% Q4 2022 FY 2022 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: New IP Technology & Business Development: ◼ Licensing will grow significantly this ◼ NeoFlash technology platforms are year due to the strong demand for our developed in several foundries, PUF-related solutions. targeting the embedded flash market. ◼ The growth mo
Slide 12: From OTP to PUF: The Evolution of PUF-based Security Sub-systems
From OTP to PUF: The Evolution of PUF-based Security Sub-systems Embedded Wisely, Embedded Widely 12
Slide 13: Evolution from OTP to Security Sub-Systems
Evolution from OTP to Security Sub-Systems . ◼ Based on OTP Technologies, many different security functions IPs have evolved ◼ Regulations, such as TPM 2.0, now require Hardware Root of Trust OTP NeoFuse Key Storage PUF NeoPUF Key Generation Root of Trust PUFrt Foundational Security IP Cryptography
Slide 14: Security Business Development
Security Business Development . ◼ As eMemory is an established IP company, there are different platforms that we can leverage for sales in security IPs and sub-systems Foundry Platforms CPU Partners OEM TSMC, Intel, UMC, GF, etc. Arm, RISC-V, Cadence, etc. More to come - Licensed our security techno
Slide 15: Next Computing: Confidential Computing
Next Computing: Confidential Computing . Core 1 Core 2 Core 3 Core N ◼ Protect data in the Virtual CPU Memory of Multi-Core CPUs Cores Tag 1 Tag 2 Tag 3 … Tag N ◼ CPU Cores and Virtual PUFcc Generated Memory have unique Tags corresponding tag numbers Tag 1 Tag 2 Tag 3 Tag N Virtual ◼ Tag numbers are
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 (Unit: IP Numbers) 200 184 180 149 154 150 160 143 150 138 143 134 136 140 120 111 107 109 109 103 100 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 Embedded Wisely, Embedded Widely 20
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 License 43 20 26 18 28 32 29 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 partic
Slide 24: New Technology Under Development
New Technology Under Development ▪ New technologies are being developed for 135 platforms by Q4 2022. ▪ 6 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 2 2 1 6 8 6 18 8 1 3 - P
Slide 25: Technology Development
Technology Development ▪ Developments by process nodes 12" Fabs Production Development IP Type Process Type 3nm 0 2 OTP FF 4/5nm 0 4 OTP, PUF FF 6/7nm 4 1 OTP, PUF FF, FF+ 12/16nm 8 6 OTP, PUF FF, FF+, FFC. FFC+, LPP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI ,ReRAM,M 22/28nm 44 11 OTP, PUF ,MTP RAM,
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