Monthly Sales Report for May 2025

Issue on: 2025/06/05

ELAN Monthly Sales Report - May 2025

ELAN Microelectronics Corp. (the Company), a leading touch controller solution provider in global NB market, announced its consolidated net sales of NT$ 969 million for May 2025. Due to the strengthening of the New Taiwan Dollar against the US Dollar and changes in tariff policies, there has been increased uncertainty in order visibility, sales decreased 9.7% MoM and 8.8% YoY. In response to these external challenges, the company has maintained close communication with customers to stay updated on market trends and order fluctuations. By optimizing its product portfolio and maintaining flexible production, the company aims to ensure stable supply, meet short-, mid-, and long-term demand, and mitigate operational risks.

The sales breakdown in May 2025: Touchpad Module 49%, Touchscreen Controller 26%, Fingerprint Sensor 8%, Pointstick (PST) 11%, Microcontroller 3%, and 3% from the sales of affiliates. Touch applications, including biometric applications, accounted for 83% and non-touch applications accounted for 17%.

2Q25 marks the traditional hot season for consumer electronics. While tariff policy changes have introduced macroeconomic uncertainty, normal orders and shipments remain stable, supported by normalized inventory levels. In the short term, we are providing flexible shipment schedules and coordinating production planning to help customers mitigate tariff policy impacts.

Despite ongoing market noise, we remain confident in the upcoming replacement cycle. Windows 10 will no longer receive security updates after its end-of-support date, demand for security-enhanced devices-such as those with fingerprint recognition-is expected to grow, driven by the need to protect organizational data and assets.

In addition, we are actively working with customers to expand AI applications, integrating AI features into new models and together shaping the future AI PCs. We maintain positive on the long-term growth of the NB industry and will continue to deepen customer collaboration to create mutual value.

Looking ahead to the NB market in 2025, we anticipate a NB replacement cycle due to 1) Microsoft's Windows 10 will no longer provide technical support and free software updates, starting in 2025'Q4, and 2) a well-prepared AI PC supply chain. In fact, such replacement cycle already started in the Japanese market in 2024, and the growth trend of the demand is expected to continue. General market research institutions view the market positively, predict moderate market growth. With this, we are confident in driving an increase in operational efficiency.