Monthly Sales Report for February 2026

Issue on: 2026/03/05

ELAN Monthly Sales Report - February 2026

ELAN Microelectronics Corp. (the Company), specializing in Edge AI and On-Device AI technologies, announced its consolidated net sales of NT$ 934 million for February 2026. Sales decreased by 11.4% YoY and 12.5% MoM.

1Q is traditional slow season for consumer electronics. In addition, global trade policies and geopolitical issues have continued to increase macroeconomic uncertainty. As a result, brand customers have remained cautious in their marketing and procurement strategies, while adopting more flexible approaches to component inventory and risk management. Despite uncertainties, the Company gradually ramp up shipments of high-ASP Haptic touchpads in 1Q26, optimizing product mix.

Nevertheless, the Company has officially begun shipments of its AI image recognition algorithm products since 3Q25, successfully expanding applications into drones and various image recognition fields. Diversified products have driven revenue to remain stable compared with peers and exceed the Company's original expectations. The Company continues to strengthen the relationship with customers and adjust strategies flexibly to ensure stable supply.

The sales breakdown for February 2026: Touchpad Module 46%, Touchscreen Controller 22%, Fingerprint Sensor 12%, Pointstick (PST) 11%, AI 6%, and 3% from the sales of Microcontroller and affiliates. Touch applications, including biometric applications, accounted for 80%, non-touch applications accounted for 14% and AI accounted for 6%.

Despite the first quarter remaining a traditional slow season, global trade policy and geopolitical uncertainties have continued to impact the macroeconomic. At the same time, AI server

demand has created a crowding-out effect, leading to component supply imbalances in certain areas. Supported by increased early inventory build-up from brand customers, overall order and shipment have remained stable, with reduced sensitivity to seasonal fluctuations.

In the short term, customers have maintained a relatively high flexibility in their sales and inventory strategies in response to the macroeconomic. The Company has correspondingly align with customers' production requirements, enabling it to respond effectively to potential short orders. Although market uncertainties persist, the Company remains cautiously optimistic about enterprise replacement demand and the development of AI PCs. Commercial models are expected to benefit first, with the proportion of related products continuing to increase steadily.

Looking ahead to 2026, NB market is expected to continue facing multiple challenges amid the impact of tariff policies and geopolitical factors. Nevertheless, both the Company and its brand customers share a strong consensus on the long-term development of AI PCs and will continue to invest in relevant technologies and product roadmaps to address future technological evolution and industry trends, while jointly capturing growth opportunities driven by edge computing.

Furthermore, the Company continues to leverage its core technological strengths in AI image recognition algorithms to expand into diversified application areas, including automotive ADAS, smart cockpits, AI CCTV, drones, robotics, and autonomous vehicles. These initiatives support a more diversified operational layout and are expected to inject long-term, stable growth momentum into the Company's overall operations.

Overall, the Company maintains a positive long-term outlook on the growth prospects of AI image recognition and the NB industry. It will continue to deepen strategic partnerships with key customers, respond flexibly to market changes, and work collaboratively to enhance overall market competitiveness and achieve sustainable, long-term value creation.