Monthly Sales Report for October 2025

Issue on: 2025/11/06

ELAN Monthly Sales Report - October 2025

ELAN Microelectronics Corp. (the Company), specializing in Edge AI and On-Device AI technologies, announced its consolidated net sales of NT$ 997 million for October 2025. Sales decreased by 8.0% YoY and 12.0% MoM.

4Q is traditional slow season for consumer electronics. In addition, global macroeconomic uncertainty has increased due to adjustments in trade policies and geopolitical factors, leading customers to adopt comparatively conservative marketing and procurement decisions. 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. This has 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 October 2025: Touchpad Module 46%, Touchscreen Controller 15%, Fingerprint Sensor 14%, Pointstick (PST) 17%, Microcontroller and others 3%, and 5% from the sales of AI. Touch applications, including biometric applications, accounted for 75%, non-touch applications accounted for 20% and AI accounted for 5%.

4Q marks the traditional slow season for consumer electronics, while global trade policy adjustments continue to introduce uncertainties to the macroeconomic environment. Nevertheless, with inventory levels returning to healthy, overall orders and shipments have remained stable. In short term, customers have adopted relatively cautious sales strategies in response to current market conditions. To align with this, the Company has flexibly adjusted shipment pace and coordinated with customers' production needs to respond to potential rush

orders.

Despite market noise, the Company remains confident in enterprise replacement cycle, expecting commercial models to benefit first, with increasing market share in commercial models. Meanwhile, the Company continues to leverage strength in AI image recognition algorithms to expand applications across diverse applications, including automotive ADAS, smart cockpit systems, AI CCTV, drones, robotics, and unmanned vehicles-driving a more diversified business model.

Looking ahead, the company maintains a positive long-term outlook for the AI image recognition and notebook industries and will continue to strengthen partnerships with key customers to jointly create mutually beneficial growth opportunities.

Impacted by tariff policies and geopolitical risk, NB market in 2025 faces numerous challenges. Nevertheless, brand customers and the Company remain committed to advancing AI PC development in response to evolving technologies and future trends. As the penetration rate of AI PCs continues to rise, we are confident that the Company's operations will grow accordingly. By incorporating more AI features, we aim to capture the growth opportunities brought by Edge AI together with customers.