Slide 1: Q4 2021 Investor Conference
Q4 2021 Investor Conference Feb 10th, 2022 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 The Importance of PUF for 3 Random Number Generation 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: Q4 2021 Financial Results
Q4 2021 Financial Results (thousands of NT dollars) Q4 2021 Change Change FY 2021 Change Q3 2021 Q4 2020 FY 2020 (Unaudited) (QoQ) (YoY) (Unaudited) (YoY) Revenue 631,398 594,277 6.2% 496,682 27.1% 2,363,824 1,776,653 33.0% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 299,677 277,6
Slide 7: Revenue in Different Stream
Revenue in Different Stream Revenue Breakdown 21Q4 in comparison to 21Q3 $600,000 21Q3 21Q4 Royalty 74.2% $400,000 $200,000 $0 Licensing Licensing Royalty 25.8% Revenue NT$ Thousands Q4 2021 Q3 2021 Change (QoQ) Q4 2020 Change (YoY) FY 2021 FY 2020 Change (YoY) Licensing 162,632 188,667 -13.8% 154,4
Slide 8: Revenue by Technology
Revenue by Technology The royalty revenue of NeoFuse up 27.3% QoQ and up 89.6% YoY due to increasing production from new and existing products from OLED, DDI, ISP, DTV, DRAM and others. PUF-based IP licensing in 2021 increased 140.9% YoY due to strong demand for PUF-based solution. Q4 2021 Total
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q4 Royalty Breakdown 8-inch wafers contributed 50.3% of royalty, up 11.2% sequentially and 12-inch 13% YoY due to more production from PMIC, DDI, Fingerprint and 49.7% Sensors. 12-inch wafers contributed 49.7% of royalty, up 20.3% QoQ and 74.4% YoY due to continuous
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: Product Application with PUF-based Security IP: eMemory’s IPs are already applied into different PUF-based security IPs are being applied in AI, IoT, applications, w
Slide 12: Our Perspectives
Our Perspectives Licensing: • Licensing revenue will grow due to the continued strong demand for our Licensing IPs, especially NeoFuse and PUF-related solutions. & Royalty Royalty: • 8-inch royalties will continue to grow due to the demand and content increase for PMIC, MCU, Fingerprint, and Sen
Slide 13: Our Perspectives
Our Perspectives New Business Development: • The focus of our new application development is in the field of security. NeoFuse is replacing secret key storage for eFuse, and applications are migrating to more advanced processes, and was also adopted by automotive applications in 6/7nm. New • Busin
Slide 14: The Importance of PUF for Random Number Generation
The Importance of PUF for Random Number Generation Embedded Wisely, Embedded Widely 14
Slide 15: Revisiting the Goals of Security
Revisiting the Goals of Security Authenticity of both the sender & recipient (Authentication) Confidentiality of Data-in-transit (Encryption) B A B Confidentiality of The Genuineness of information (Integrity) Data-at-rest (Encryption) Embedded Wisely, Embedded Widely 15
Slide 16: Randomness is Pivotal in Security
Randomness is Pivotal in Security • Introducing unpredictability significantly improves security Ex: Encrypting a message using random numbers of different quality Original Poorly Random Highly Random “The strength of a security mechanism is directly proportional to the randomness of the number it u
Slide 17: Methods of Generating Random Numbers
Methods of Generating Random Numbers Software RNG Hardware RNG Generated from Computer Programs Extracted from physical sources e.g. rand() commands e.g., intrinsic difference in materials Pseudorandom Truly Random Requires initial seed No seed is needed Periodic up to a certain length Not repeatabl
Slide 18: On-Chip Randomness from PUF
On-Chip Randomness from PUF NeoPUF Bit-Cell NeoPUF Enable NeoPUF Array 50% 0 1 0 1 “1” Cell 1 0 1 1 50% 0 0 0 1 “0” Cell 0 1 1 0 Easy to Tunnel Difficult to Tunnel Random Numbers should be: Quantum Tunneling NeoPUF Electronically measurable on chip Measurable tunneling current on chip Unpredic
Slide 19: Building upon PUF-based Security
Building upon PUF-based Security PUFrt selected by ARM for v9 CCA security eMemory partners with Intel Foundry Service PUFrt fully integrates Key generation, Secure eMemory’s OTP, PUF and Security IPs will be Storage and tRNG available in Intel’s leading-edge processes Such Hardware Root-of-Tr
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) 2,500,000 Licensing & Royalty License/Design Revenue Royalty 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) 2017 2018 2019 2020 2021
Slide 24: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide New Country LicensingIDM& Foundry Fabless Application & Royalty Technology Taiwan 4 1 324 Development China 9 0 979 Korea 4 0 94 Japan 4 7 75 North 1 1 319 America Europe 2 1 198 Others 1 0 83 Embedde
Slide 25: 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 26: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 License 43 20 26 18 28 32 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 particular sea
Slide 27: New Technology Under Development
New Technology Under Development New technologies are being developed for 103 platforms by Q4 2021. 8 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 1 9 11 1 NeoFuse 1 1 5 9 2 11 8 2 - - PUF-Based
Slide 28: Technology Development
Technology Development Developments by process nodes 12" Fabs Production Development IP Type Process Type 5/6nm 2 2 OTP, PUF FF 7/10nm 2 1 OTP, PUF FF, FF+ 12/16nm 6 5 OTP, PUF FF, FF+, FFC. FFC+, LPP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI, ReRAM, 28/22nm 40 11 OTP, PUF MRAM 40nm 20 2 OTP, PUF,
Slide 29: Embedded wisely, Embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 29