March 17, 2023 -- M31 Technology (M31), a leading global provider of Silicon Intellectual Property (SIP), at today’s investor conference (3/15/2023) stated that, in 2022, a strong increase in licensing fees led by strong demand of IP from the new projects, and the royalty fees also were doubled in the second half of last year due to new projects moved in mass production. The 2022 consolidated revenue was NT$1.36 billion, an increase of 34.4% year over year (YoY); the net profit was NT$379 million with an annual increase more than 50%, which translated to NT$12.16 earnings per share (EPS). Both revenue and profit of the year hit new highs, while the gross margin stayed at 100%.
In 2022, M31 has expanded the scale of the business to continuously invest in IP development of advanced processes below 7nm. Despite the global economic slowdown and slow demands in the second half of the year, the forward-looking M31 was able to go against the odds and grow by leveraging its technological capabilities and collaborative partnerships with leading companies. In these applications such as high-end smartphone chips, HPC, and AI that require high computing speed, U.S. customers have accelerated and upgraded to higher speed interface IP in smaller geometry processes, resulting in a significant increase in the numbers of 3nm and 5nm projects. As the supply of wafers were more available globally, and the design house is under the pressure to diversify its geographic production base, the Foundation IP which is highly process dependent has seen more demand and growth due to the fact that IP cell libraries are required in different process nodes by various foundries. M31 is the only leading Asia IP provider that has the core technologies to develop IP in process nodes under 7nm. As every country was actively developing their own semiconductor technologies, to address their needs of strong growth in new project development, China customers moved their designs to mature technologies, after the technologies in advanced nodes were banned by the U.S, M31 expect to further capture the marketing Chinese with its silicon proved IP in mature processes equal or above 28nm. In terms of automotive applications, M31-certified IP by safety standards was adopted and manufactured by top-tier automotive customers in both U.S. and Japan. With these successful experiences and establishments, M31 will continue to invest in auto IP development.
Looking forward to 2023, “Even though the first quarter which is with fewer working days and in the slow season, royalty revenues could be suppressed because overall foundries’ wafer production utilization rate is lower, but foundries have been building the momentum of new processes starting in the fourth quarter of last year. M31 has already been worked on projects in 16nm or more advanced processes with foundries, and M31 will continue to launch more ultra-low-power Foundation IP and high-speed interface IP in these advanced process nodes. Facing these uncertainties, like the changes of the economic environment and the dynamics of semiconductor inventory, the company will take a prudent approach to continue to aim for the challenge of double-digit revenue growth in 2023.”Emphasized by Scott Chang, M31 CEO.
About M31 Technology
M31 Technology Corporation (6643-TW) is a professional silicon intellectual property (IP) provider. M31 is honored to have received the TSMC Open Innovation Platform® Partner of the Year award for Specialty Process IP for five years in a row. The company was founded in 2011 with its headquarters in Hsinchu, Taiwan. By virtue of substantial experiences in IP development, IC design, electronic design automation fields, and IP integration service, the main products include High-Speed Interface IP designs such as USB, PCIe, MIPI, SATA, and SerDes; Foundation IP such as standard cell library, memory compiler, GPIO, and OPPA library solutions; Analog IP such as ADC, PLL, LDO, and PVT sensor. And continue to expand product portfolios such as processor hardcore IP as well as integration of interface PHY and controller. Learn more at m31tech.com