M31 Q1 Revenue Increases 9.3% YoY, Advanced Processes Drive QoQ Growth

May 14, 2024 -- M31 Technology Corporation (M31), a leading global provider of silicon intellectual property (IP), announced at today’s earnings conference call (05/09) that the consolidated revenue for the first quarter of 2024 was NT$342 million, an increase of 9.3% over the same period last year, and the first-quarter earnings per share (EPS) were NT$1.22, with a maintained gross profit margin of 100%. To meet the high demand for advanced processes in the market, M31 has been actively expanding its global R&D capabilities in the first quarter. CEO Scott Chang expressed optimism about the increase in the unit price of advanced processes and pledged to accelerate revenue growth to keep pace with expenses. It is worth mentioning that M31 has been consecutively ranked in the top 5% of corporate governance evaluations for three years, which is the highest honor in this evaluation, demonstrating recognition for M31’s commitment to integrity governance, improving information transparency, and promoting sustainable development.

In the first quarter, the momentum for fabless chip development has significantly increased, especially with strong growth in demand for IP licensing in advanced processes of 8nm and below, leading to advanced processes being adopted in end-markets such as high-end smartphones, advanced driver assistance systems (ADAS), AI accelerators, AR/VR, and storage interface applications. The previous layout in the 12/16nm process is also coming to fruition. In the future, more AI and 5G Internet of Things (IoT) edge device chips will be introduced, driving subsequent growth in royalty fees. Meanwhile, the cost-effective 22/28nm technology node continues to contribute steadily to the company’s revenue. M31 also continues to invest in the development of special process technologies, creating unique differentiators for foundry customers in mature processes ranging from 40 to 65nm for specific application markets. In the second half of the year, M31 is expected to continue closely following the latest processes of foundries, initiating the development of 2nm IP to maintain a competitive edge in advanced process technology. This year, M31 has been working steadily on advanced process projects with U.S.-based foundries, international chip giants, and cloud service providers (CSPs), and remains optimistic that the U.S. market will contribute to revenue growth starting in the second quarter.

Scott Chang, CEO of M31, stated, “M31, as a leader in the development of IP technology in Asia, has finally caught up with the first tier IP suppliers in advanced processes after years of hard work, and has made a name for itself in international competition, but it’s not an easy task to dance with the semiconductor giants. At this stage, we are fully committed to the R&D of advanced processes, which we believe will become M31’s core competitiveness. The market is full of opportunities and challenges, but we are confident and continue to strive forward. As we gradually tape out advanced processes with customers, we believe that leveraging the increase in unit prices of advanced processes and high value-added licensing of mature special processes will drive up operating performance quarter by quarter this year, further increasing the company’s revenue scale.”