Thank you. Good afternoon, everyone.

Thank you all for attending eMemory's third quarter investor conference. Looking ahead to the fourth quarter, in addition to achieving record-high revenue, we have also made several major breakthroughs.

First, in security applications, we have secured a 10-year contract for US government defense projects on multiple 3-nanometer applications, which marks a significant milestone in promoting our PUF technology. This began with our partnership agreement with the US Defense Advanced Research Projects Agency, DARPA, for the Toolbox initiative in 2021.

Now, our technology is officially been adopted in the defense-related deployment, in addition to more than 100 applications accumulated in the past. Security application standards have always been driven by government and system-level initiative, from DARPA to the OCP, Open Compute Project alliance formed by the major data center players, and its Caliptra standard.

PUF technology is now on a clear path toward large-scale commercialization. The second major breakthrough is in flash memory, particularly our embedded RRAM and NeoFlash technologies.

As memory performance has become a bottleneck in chip computing, technologies that replace external memory with embedded non-volatile memory solutions are entering commercial adoption. Our NeoEE technology has already been designed into DDR5 modules to replace the EEPROM used in DDR4, and is expected to enter mass production next year.

Recently, we have also received multiple major customer engagements for NeoFlash and embedded RRAM as alternatives to external NOR flash. Because security applications generate higher royalty income per wafer and drive a demand for high ASP advanced process nodes, and because MTP and flash royalties are typically 1.5 to 3 times higher than OTP, these factors will collectively lead to a structurally increase in average of royalty per wafers.

Looking to the next year, we have new applications with our IP entering mass production to accelerate royalty growth across major industries. First is RF chips adoption from the leading US smartphone customers in-house modem module.

The second is DDR5-related applications for a major Korean memory manufacturer. Another one is AI server featuring secure BMC and also SSD controllers and networking chips with our PUF IPs.

For the automotive applications in ADAS, networking, and infotainment. Another is in PC and notebook design use our security IP for secure embedded controller.

Another one is other numerous ASIC applications from various customers. We have also started our security-as-a-service business with multiple customers.

Our long-term effort to build foundational technologies and ecosystem has created a strong competitive moat with a royalty base recurring revenue model. The potential for future revenue growth is tremendous.

We are very confident about our growth prospects for the next year and beyond. Next, I would like to invite our Financial Officer, Joseph Hsia, to present our third quarter performance.

Afterward, our President, Michael Ho, will share our future outlook. Thank you.

Afternoon, everyone. Now let's take a look at our 2025 third quarter financial results.

The third quarter revenue was NT$952 million, which is up 1.7% sequentially and increased 5.9% year-over-year. Revenue in US dollar terms was $32 million, representing an 8.2% increase from the previous quarter and a 15.9% increase year-over-year.

On the other hand, operating expenses were NT$404 million, up 3.4% sequentially and increased 2.4% year-over-year. In results, our operating income was NT$548 million, with an increase of 0.5% sequentially and an increase of 8.6% year-over-year.

Operating margin decreased by 0.7 percentage points sequentially, but increased by 1.5 percentage points year-over-year to 57.6%. Our net income amounting to NT$487 million experienced an increase of 21.8% sequentially and an increase of 17.7% year-over-year.

In results, EPS for this quarter was NT$6.52. Next, let's move on to revenue contributions by licensing and royalty.

First off, licensing in the third quarter accounted for 36.4% of our total revenue, up 9.1% sequentially and up 19.4% year-over-year. In US dollar terms, this represents a sequential increase of 12.4% and a year-over-year increase of 28%.

Second, royalties in the third quarter contributed 63.6% of our total revenue, decreasing 2.1% sequentially and decreasing 0.6% year-over-year. In terms of US dollar, this represents a sequential increase of 5.9% and a year-over-year increase of 10.1%.

In results, total revenue for the third quarter increased by 1.7% compared to the previous quarter, increased by 5.9% compared to the previous year. In US dollar terms, total revenue rose 8.2% sequentially and 15.9% year-over-year.

For the first three quarters of 2025 combined, the licensing and royalty revenues are as followed. First off, licensing in the first three quarters combined accounted for 32.3% of our total revenue, up 10.6% year-over-year.

In terms of US dollar, licensing revenue grew 13.6% year-over-year. Royalties in the first three quarters combined contributed 67.7% of our total revenue, increasing 6.7% year-over-year.

In terms of US dollar, royalty revenue increased by 8.9% year-over-year. In results, total revenue for the first three quarters of 2025 combined increased by 7.9% compared to the previous year, and in terms of US dollar, total revenue grew 10.4% year-over-year.

With that, I would like to comment further on our revenue contributions by specific IPs. NeoBit technology accounted for 23.2% of our total licensing revenue in the third quarter, increasing 34.2% sequentially, but decreasing 11.3% year-over-year.

The royalty for NeoBit accounted for 25.3% of our total royalty, down 6.2% sequentially and decreasing 3.1% year-over-year. Secondly, our NeoFuse technology, it accounted for 42.8% of our total licensing revenue in the third quarter, increasing 18.4% sequentially and increasing 70.9% year-over-year.

In terms of total royalty revenue for NeoFuse, it decreased by 0.8% sequentially and decreased by 0.7% year-over-year, accounting for around 71.4% of our total royalties. Next is our PUF-based security IPs.

It contributed 14.5% of our total licensing revenue in the third quarter, increasing 8.1% sequentially and increasing 44.1% year-over-year. While the royalties for PUF-based security IPs accounted for less than 1% of our total royalties, increased 83.9% compared to the previous quarter and increasing 326.9% compared to the previous year.

Lastly, it is our MTP technology. It accounted for 19.5% of our total licensing revenue in the third quarter, decreasing 21.3% sequentially and decreasing 13.3% year-over-year.

Royalty from MTP increased 0.9% sequentially and increased by 24.8% year-over-year, accounting for 3.1% of our total royalties. For the first three quarters of 2025 combined, the revenue by technology are as follows.

First off, NeoBit licensing revenue decreased by 7.1% year-over-year, but royalty increased by 6.3%, accounting for 24.4% of our total revenue. Second, NeoFuse licensing revenue increased by 27.7%, and the royalty increased by 6.5% year-over-year, contributing to 62.3% of our total revenue.

For PUF-based security IPs, the licensing revenue increased by 25.7% year-over-year, accounting for 4.2% of our total revenue. Lastly, MTP technology, the licensing revenue decreased by 3.3%, the royalty increased by 13% year-over-year, accounting for 9.1% of our total revenue.

Now let's take a look at our royalties by wafer size. First of all, 8-inch wafer accounted for 40.6% of our royalties, down 0.6% sequentially and down 1.4% year-over-year.

For 12-inch wafers, it contributed 59.4% of our royalties, down 3.1% sequentially and stayed flat compared to the same period from the last year. In total, we have completed 173 product tape-outs in the third quarter, and we will be providing more information regarding that in our management report.

Next, I would like to invite our President, Michael Ho, to share a little bit more about our future outlook.

Thank you, Joseph. Hello, everyone.

I will now present our future outlook. We expect our business momentum to accelerate.

For licensing, the licensing growth will be driven by: 1. A 10-years contract, including the 18 3-nanometer tape-out for the US defense applications, and a 3-nanometer CPU for AI server will drive strong PUF security license growth.

2. Strong license for embedded RRAM and NeoFlash technologies that will replace the external memories.

About the royalty part, the royalty growth is expected to accelerate due to the customer tape-out moving into mass production for the following items: 1. RF chips for a leading US smartphone customer's in-house modem module.

2. DDR5-related applications for a major Korean memory manufacturer.

3. AI server featuring secure BMC, SSD controllers, and networking chips.

4. Automotive applications in ADAS and networking.

5. Secure embedded controller for PC and notebook.

6. ASIC applications from various customers.

In technology development, for OTP part, we continuing joint development with TSMC on the 2-nanometer technologies and IPs. About the RRAM, we co-developing FinFET technologies and IPs with the Korea's largest company.

For NeoFlash part, collaborating with multiple foundries to develop the BCD process technologies and IPs at the various nodes, targeting at the smart power application. About the security part, accelerating the development of security server hardware and software for security-as-a-service.

In the business platforms: 1. We jointly develop end-to-end chiplet security solutions with multiple partners to ensure the chiplet supply chain protection.

The main collaboration focus on supply chain security and chip authentication, ensuring that every chip slow can be securely verified locally. 2.

Collaborating with Arm to develop the PUF-based security root-of-trust to enhance the security capability of Arm's runtime security engine. 3.

Working with automotive system suppliers and hospitals to provide a PUF-based HSM server platform for OTA software protection and the DID-based personal privacy protection. The establishment of these platforms will contribute to future revenue growth.

This concludes my comments. Next, I will pass the time to Charles.

Oh,

okay, let's look at the video first. The wars of tomorrow won't start with missiles.

They've already begun with code. The new front line isn't land or sea, but the invisible battlefield of technology.

For over six decades, DARPA has turned the impossible into the foundations of modern defense, from the internet to stealth, autonomy, and artificial intelligence. Yet as our systems advance, their foundations grow fragile.

One compromised chip, one leaked key, and the balance of power can shift in seconds. True security lies beneath software, inside the silicon itself.

Hardware must become the root of trust. NeoPUF harnesses nature's own randomness.

Every device forms a pattern no machine can clone. Its keys exist only when called, never stored, never stolen.

Built for the harshest conditions: heat, cold, noise, even cosmic radiation, NeoPUF keeps defense systems trusted when everything else is uncertain. PUF secure every drone, robot, and controller, verifying identity before action.

This has become especially important with chip components built across multiple sites and nations. The supply chain is more fragmented and vulnerable than ever.

From DARPA's labs to the frontiers of space, protecting innovation is protecting peace. A secure national defense secures the world, because trust begins in silicon.

NeoPUF, silicon's most fundamental hardware root of trust. The leader in logic NVM and PUF-based security solutions, eMemory.

Today I'd like to share some information about our PUF technology on national security. Since we have signed a 10-years contract for our 3-nanometer PUFrt to be used in defense application, today I would like to talk about the hardware root of trust in national security.

In many ways, a country's security depends heavily on its defense capabilities. As we build more electronics, automation, and artificial intelligence into modern defense systems, keeping them secure become absolutely critical.

Taking a drone and robots, for example, they are already been used on the battlefield. If control over these systems were ever lost, the result could be disaster.

That's why to truly protect national security, we must make sure our weapons and defense equipments are fully secured against any kind of threat. For national security reasons, it is also essential to build a strong domestic supply chain for chip manufacturing.

In the United States, Intel, GlobalFoundries, and TSMC Arizona are the major suppliers directly or indirectly serving national defense needs. Our NeoPUF-based security solution have been licensed to these foundries, enabling them to meet their defense customers' growing demand for trusted and reliable hardware security.

Our NeoPUF technology is not only proven at the most advanced manufacturing nodes, but also recognized as a key enabler of secure next-generation defense systems. Our defense and the communication system today are built through the complex multi-tier global supply chain, from chip design to fabrication to final system integration.

Each stage is a potential attack surface. If even one component is counterfeit or tampered with, a single vulnerability could compromise an entire weapon system or communication network.

That's why PUF, the physically unclonable function, is so critical. PUF creates a unique and unforgeable hardware identity for each chip.

It serves as a hardware root of trust, enabling secure verifications, key generation, and the device authentication directly from silicon itself. In short, PUF transforms each chip, drone, radio, or satellite into a trusted and traceable element within a national defense ecosystem, and protect the defense equipments and the weapons.

Let's now look at how PUF is applied across different layer of defense. This can be grouped into three levels: device level, system level, and supply chain level.

At the device level, PUF gives every chip a unique, unclonable fingerprint. This allows us to verify authenticity and prevent counterfeit devices from entering the network.

It also enables secure key generation. The key is created from the chip's own physical traits, not injected from the outside, which means it cannot be stolen or altered.

This is vital for communication equipments. It ensures that critical systems like military radios or avionics operates only with authorized firmware.

It also support secure boot and run [unclear] defense supply chain. PUF provides protection throughout the entire product life cycle, from silicon to system operation.

At the design and the fabrication stage, PUF IP is embedded directly into the silicon system. Each chip generates its own unique ID, make it secure from birth.

This ensures authenticity at the hardware level before the device even leaves the factory. At the assembly and testing stage, when parts are integrated, each module can be authenticated through a PUF-based ID.

This process identifies counterfeit or modified component early in productions. At logistics and deployment stage, every shipment can be linked to a PUF-signed digital certificate, maintaining a clear and verifiable chain of custody.

It prevents component swapping or fake delivering during transportation. At the operation and the maintenance stage, once deployed, the system can perform continuous attestation using a PUF-based hardware security module.

This verified firmware integrity and ensure that every unit in the field remain authentic and secure. With PUF, the entire defense supply chain become transparent and traceable and tamper-resistant.

Finally, let's talk about why our NeoPUF is ideal for the defense devices. NeoPUF has been carefully designed to provide stable, reliable, and secure hardware identities, even under demanding environmental conditions such as wide temperature range, voltage variations, and exposure to radiation.

First, NeoPUF demonstrates a strong reliability. Its positive feedback amplification mechanism allow each device to reach a stable state quickly, the variation in temperature or electrical noise have minimal influence.

This ensures consistent and repeatable responses, which is critical for long-term operation in defense and the aerospace systems. Second, NeoPUF shows excellent tolerance to radiation.

Because it is based on quantum tunneling through the gate oxide rather than bistable SRAM elements, radiation effects which cause the soft error in SRAM commonly occur in space will not impact NeoPUF. Third, NeoPUF is inherently resistant to tampering and duplication.

Its physical structure is fixed during the fabrication and cannot be modified afterward, and this makes unauthorized duplication or alternation extremely difficult. Finally, NeoPUF is adaptable across the defense ecosystem.

It can be integrated into a wide range of mission systems, from secure communication network and the radar control unit to satellites, drones, and the surveillance platforms. This adaptability allows defense organizations to build a unified trust architectures across different domains, ensuring every connected system operates with a consistent implementation of hardware-based trust.

In summary, I would like to say that NeoPUF provides a proven and stable foundation for hardware-based trust, supporting the long-term security and the resilience required in national defense supply chains. This is what I would like to share with you today.

Thank you. Next, we will enter the Q&A section.

Thank you, Charles. This concludes our prepared statements.

We will now begin the Q&A section. Please submit your questions in the input box on the webcast window.

All of our questions will follow the format of answering Chinese version first, followed by the English version. We will now collect the questions and begin our Q&A section.

等一下最後會回答各位對這個股價為什麼這麼爛的問題，所以等到最後吧，OK？那第一個問題就是公司剛分享PUF技術在國防應用領域的應用，請問這樣的成功的案例是否有機會進一步擴展到其他高端市場領域？我們請Charles回答。 好的，是的，PUF作為unique

ID跟secret key

seed，在security方面有很廣泛的應用。目前我們正與合作夥伴推進以下的專案：chiplet方面，用於供應鏈的安全，確保每個晶片都具備身分驗證的功能；在Caliptra for data center方面，用我們的這個PUFrt建立這個信任根，提供唯一的識別，以及金鑰儲存還有亂數產生；另外在所謂的PUF FIDO，我們是開發跟partner開發無密碼驗證，就是passwordless authentication方案，提升登入與身分驗證的安全性；另外也跟partner做這個所謂的比特幣託管服務，他們利用這個PUF作為保護加密貨幣的私鑰，確保資產的安全；另外也與partner做一個所謂的去中心化的應用，叫做DID，用於保護病患醫療資料的隱私，建立去中心化的驗證機制。 At last we will answer the questions about share price.

Our first question is: The company just shared the application of PUF technology in the defense sector. Will this successful case create opportunities to further expand into other high-end markets?

Charles, please.

Yes. As a unique ID and secret key seed, PUF has a wide range of application in the field of security.

Currently, we are collaborating with partners on the following projects. Chiplets, our security IP can enhance supply chain security by enabling authentication for each chip within a chiplet.

For the Caliptra, which is for the data centers, establishing root of trust with a unique ID, key storage, and random number generations. The application in the PUF FIDO, developing a passwordless authentication solution for secure identity verifications.

For the Bitcoin custody services, protecting cryptocurrency private keys to ensure asset security. The use in the decentralization identity, DID, which safeguarding patients' medical data privacy through the decentralized identity verifications.

公司過去曾跟Nvidia討論過合作的可能性，那當時因為是跟5奈米的製程還我們就是力旺還沒有通過認證，所以合作沒辦法進行。那現在隨著技術的進步，是否我們還有繼續尋求跟Nvidia合作呢？那如果有，有沒有可能進去3奈米製程？還是在4、5奈米進行合作呢？那這這還是希望公司能積極進入Nvidia跟AMD的兩大GPU生態系統。那請Michael回答這個問題，是投資人的期待這樣子，嘿。 好，我們的合作仍在很積極地推進當中。那目前我們的技術跟產品都已經成熟，並且在推動像AI跟資料安全領域的這個發展中，我們是扮演著越來越關鍵的角色，所以我們有信心能夠在這個生態鏈擁有更大的一個滲透機會。

The company previously mentioned that Nvidia had reached out for potential collaboration, but since our 4-nanometer to 5-nanometer process had not yet been qualified at that time, the project did not move forward. Are we still in discussions with Nvidia?

If so, will it be based on the 3-nanometer process, or could 4 to 5-nanometer be adopted now that it has been qualified? Investors are also hoping to see the company enter the ecosystem of both Nvidia and AMD.

Michael, please.

We continue to engage actively and closely monitor the development of advanced process, such as 3-nanometer, 4-nanometer, and 5-nanometer. We have confidence in capturing greater opportunities in the AI ecosystem.

現在大家很關心美國大選對半導體產業的影響。如果美國政府未來增加對台灣晶片或半導體的關稅，或者川普要求台積電把更多先進製程移到美國生產，那這對力旺可能造成的實際影響是什麼？請Michael回答。 我們的技術在美國的各大晶圓廠都已經完成了佈建，所以不管客戶選擇在哪裡生產，對力旺都不會有任何的影響。

There is a lot of market attention on the impact of the US presidential election on the semiconductor industry. If the US government increases tariffs on Taiwan chips or semiconductors in the future, or if Trump requests TSMC to move more advanced processes to the US,

what would be the actual impact on the company? Michael, please.

Our technology has already been licensed to all major US foundries, regardless of where customers choose to manufacture, it has no impact on us.

除了積極跟Nvidia合作外，公司是否也跟四大CSP在其自研的AI ASIC晶片上展開合作？Michael。

我們目前已經在DPU跟CPU的應用領域跟多家領先的企業展開深度的合作。那同時我們也持續跟四大CSP保持交流，致力在AI跟資料安全平台的發展中來發揮我們技術的關鍵價值。我們相信這些合作將為公司帶來顯著的一個成長機會。

Beyond efforts with Nvidia, are there active discussions with the major cloud service providers regarding their in-house AI ASIC chip development? Michael, please.

Collaborations are already underway with several leading companies in DPU and CPU applications, and communication with the major CSPs remains close and ongoing. This engagement highlights the strategic value of the technology in enabling next-generation AI and data center platforms.

While specific customers cannot be disclosed, these efforts represent a meaningful long-term growth opportunities. Thank you.

請問是否有客戶導入PQC，後量子加密？那硬體安全模組叫HSM，是不是已經有客戶了？請Charles回答。 好的，PQC已經有兩個晶片客戶導入。那HSM已經有一家簽約，還有兩家正在進行。

Do we have customers using our PQC IP, and are there customers for our HSM solutions yet? Charles, please.

Yes, we already have two chip customers adopting PQC, post-quantum cryptographies. For HSM, one customers has signed the contract and two more are currently in progress.

在先前的法說會中，公司提到BMC晶片將使用力旺的IP。請問目前該領域的滲透率如何？我們知道BMC晶片全球市占率最高的就是信驊，那是是不是跟它有客戶關係？若沒有，那會不會影響滲透率的提升？那請Michael回答。 好，目前這個市場上的主流BMC的晶片公司基本上都已經廣泛地採用我們的解決方案。提供了透過提供完整的這個root

of trust的元件組合，像包括OTP、PUF跟TRNG等技術，我們能夠全面地滿足BMC晶片對於安全性跟可靠性的一個核心的需求，那並且已經獲得廣泛的應用。那我們看到隨著市場對高強度安全需求的持續增長，我們也看到在整個生態鏈上進一步擴大滲透率的一個潛力。謝謝。

In previous earning calls, it was mentioned that BMC chips will adopt related IP. What is the current penetration rate in this segment, given that ASPEED holds the largest global market share in BMC?

Is there a customer relationship in place? If not, would this affect future penetration?

Michael, please.

Mainstream BMC chip vendors have already adopted our security IP solutions with a complete root-of-trust portfolio, including the OTP, PUF, and TRNG technologies. These solutions address the demanding security and the reliability requirement of BMC applications.

As the need for stronger hardware-based protection grows, there are clear opportunity to further expand the market penetration across the ecosystem.

近期記憶體因為這個AI需求產生了變化，那請問公司是否有受惠？請Michael回答。 好，最近記憶體的話題蠻熱門的喔。那我們直接導入的記憶體應用是台灣客戶的DDR4跟DDR5的這個DRAM

repair。那這部分的權利金會隨著客戶生產線的擴大，以及導入更多客製化特殊型記憶體的應用而有所成長。那我們也很積極地在拓展客戶群當中。此外，我們的韓系客戶會在明年Q1量產的DDR5的模組會導入我們的NeoEE，應用在SPD Hub跟PMIC，這部分會開始有權利金的貢獻。另外在flash的應用部分，PUF已經累積超過20個以上SSD controller，那其中包括像美國、台灣、中國等多個客戶。這部分有些是受到Caliptra對安全性的要求，而在AI跟enterprise的server上來作為flash memory的保護。那我們也導入客戶開發中的這個HBF，High Bandwidth Flash。這部分因為都是在12奈米跟5奈米這個FinFET製程，那加上客戶數跟tape-out數都很多，那我們相信這個對權利金會有明顯的貢獻。此外，對於我們擅長的embedded記憶體的技術會產生結構性的一個驅動，帶動近期很多大客戶對於像embedded RRAM跟NeoFlash的這個部分的需求。謝謝。

Has the recent AI-driven shift in the memory sector had a positive impact on the company? Michael, please.

Our direct memory applications are with the Taiwanese customers for DDR4 and DDR5 DRAM repair. Royalties for this segment are expected to grow as customers expand their production lines and adopt more customized and specialized memory applications.

We are also actively broadening our customer base. In addition, our Korean customers will begin mass production of DDR5 modules in Q1 next year, which will incorporate NeoEE's SPD Hub and the PMIC, contributing to royalty revenue.

In the flash application segment, our PUF technology have already been adopted in over 20 SSD controller across the US, Taiwan, and China. Some of these applications are driven by Caliptra security requirement for AI and enterprise servers, where PUF is used for flash memory protection and integrate into customer-developed HBF solutions.

Since these are produced in 12-nanometer to 5-nanometer process nodes, with a large number of customers and tape-outs, this segment will make significant contribution to royalties. Furthermore, these development are creating a structural growth driver for our expertise in embedded memory technologies, leading to strong demand from the major customers for the embedded RRAM and the NeoFlash.

Thank you.

請問成熟製程的代工價，我們都知道那個報紙寫台積電是調高最先進製程，那成熟製程因為過去特別是去年其實跌蠻慘的，那現在是不是還有繼續跌？那請Michael回答。 好，我們看到今年以來成熟製程代工價已經趨於平穩。那像是部分的記憶體，像NOR

flash可以用邏輯製程製造，那加上HBM的base die也轉往晶圓代工廠生產，那甚至我們有聽到有些代工廠有漲價的一個可能。 Given that advanced node foundry pricing is rising while mature nodes experienced sharp declines last year, are mature node prices continuing to drop, or have they stabilized?

Michael, please. We have seen mature node foundry pricing stabilize this year.

With some memories like NOR flash shifting to logic process manufacturing, and HBM base dies also shifting to production at foundries, we have even heard from customers that there is the possibility of price increase.

目前公司在3奈米、4奈米、5奈米製程的tape-out或者是量產的進度，是否有新的客戶案件正在導入？那在先進製程的權利金貢獻預計會在何時放大？請Michael回答。 好，我們目前在7奈米以下的新進製程已經有累積超過60個design

win，那特別是我們在第四季已經簽下超過20個在3奈米上面的一個tape-out。那是公司在主流先進製程的一個重大的突破。那我們在7跟6奈米已經有權利金的貢獻了，那至於5、4跟3奈米的部分會陸續跟上，那我們對先進製程在未來的權利金貢獻是很有信心的。謝謝。

What is the current progress for 3-nanometer, 4-nanometer, and 5-nanometer tape-outs or production? Are there new customer projects being introduced, when are royalties from advanced nodes expect to start contributing meaningfully?

Michael, please.

Currently, the company has accumulated over 60 design wins in advanced process nodes below 7-nanometer. Notably, in the fourth quarter, we have secured more than 20 tape-out at 3-nanometer, marking a major breakthrough for the company in mainstream advanced process.

The 7-nanometer and 6-nanometer nodes have already started contributing royalty revenue, while 5-nanometer, 4-nanometer, and 3-nanometer will follow. We are very confident in the future contribution from these advanced process nodes.

請問與Arm的合作進展為何？請Charles回答。 我們正在加速合作開拓新的領域，除了已經進入這個Arm的CSS伺服器的CSP的用戶之外，也正在參與車用以及工業用的產品。我們透過Arm給到中端客戶的都是3奈米的PUF

hardware root of trust，今年已經有2到3個新的客戶的合作案。除了將我們的PUF IP作為Arm的CSS產品線的信任根之外，我們更積極的與Arm以及Arm的合作夥伴與中端客戶共同合作上層的這個軟體跟PQC的IP。Arm對我們的3奈米的PUFrt非常的讚賞跟信任，我們是目前3奈米唯一有silicon design-proven的security IP，搭配Arm的CSA的這個架構，以及未來Arm要深化AI的這個design，我們也正在持續與Arm共同進行這個chiplet security在這個SoC上面的這個設計。

What's your progress with Arm? Charles, please.

We are accelerating our collaboration with Arm to explore new area. In addition to have been enter Arm's CSS servers used by CSP customers, we are also participating in automotive and industrial product developments.

Through Arm, our technology is reaching end customers with our 3-nanometer PUF root of trust. This year, we have already initiated 2 to 3 new customers projects.

Beyond positioning our PUF IP as the root of trust within Arm's CSS product lines as standard, we are also actively working with Arm, its ecosystem partners, and end customers on the higher-level software integration and also PQC developments. Arm has shown confidence in our 3-nanometer PUFrt.

We are currently the only provider with silicon design-proven security IP at 3-nanometer. Together with Arm's CSA architecture and its future focus on the AI design, we are continuously collaborating with Arm on the chiplet security design for SoC implementations.

這題其實是非常重要，也是我本人，我是公司的大股東，最關心的。公司在強化組織韌性跟營運效率方面，我想大家都聽到很多外面傳的，那目前為止有沒有看到一些具體的成果？那這部分是Michael回答，那請Michael回答好了，因為這個是Michael真正的回答，因為有些是我幫他回答的，上面寫的，那這個是真的他自己回答的，OK，好。 好，我想蠻多人關心這一部分。那我們在強化組織的韌性跟營運效率的這個部分，今年已經透過AI的導入跟組織的優化，那已經看到一些明顯的一個成效。那像在研發效率的部分，我們導入AI應用在這個IP的開發跟驗證的這個參數優化跟自動化的測試，那這個很明顯可以看到它可以縮短設計的週期來提升生產力。那在客戶支援部分的話，AI可以輔助design

kits的自動生成自動化跟版本的管理，可以更快速的回應design-in的案件，降低錯誤率跟加速客戶導入設計的一個時程。那另外在營運的流程的部分，我們從組織優化那再加上導入AI跟數據分析，那可以提升整個協作效率跟資訊的透明度，進行流程改善跟自動化的導入來降低人工作業的成本。那整體而言，我們看到AI的導入讓我們在研發自動化、客戶的服務效率跟營運的成本控管上有看到實質的成果，那進一步也強化了組織的韌性跟競爭力。謝謝。 坦白說我的我的角色比較像是幫投資人在監督公司，因為我是董事。那這次的這個內部改革，其實我非常非常詫異，我從來沒有看過一家公司可以在這麼短的時間做這麼大的改變。真的，特別是Michael，OK，我非常感謝他。他在我們公司是一個大好人，就是too

nice。那他也做了很大的改變，變成一個很tough的manager。所以這一次是整個制度面，包括考核制度，所以我們現在是非常非常明顯的看到，不管是員工的心態，還有工作效率的改善。那今年所做的會對未來公司的競爭力是有相當長遠的影響，因為我已經觀察了11年，那我覺得這個其實這家公司的人真的是很不錯，OK，真的，因為很很罕見的，他們就是從Charles到總經理到一級主管自我要求，不是說我給他什麼特別的extra bonus，這個才重要。因為我們向來裡面這個生意從來都不是問題，OK，你可以看我們的授權金，不管是景氣循環或怎麼樣，但但是全世界做這麼大的劇劇變，我們是自己自發性的去做這樣的改變，那我想這些成果在未來你一定會看得很明顯，大概是這樣子，好。 Have the organizational changes helped enhance operational agility or cross-team efficiency?

Michael, please.

In terms of strengthening organizational resilience and operational efficiency, we have already seen meaningful progress this year through the AI adoption and organizational optimization. For the R&D efficiency part, by applying AI to parameter tuning and automatic testing in the IP development and verification, we are shortening design cycles and improving productivity.

For the customer support, AI-assisted automation in design kit generation and version control enable us to respond faster in design-in cases, reduce error rates, and accelerate customer design adoption timeline. Operational process, through the organizational screening combined with AI and data-driven process improvement, we have enhanced collaboration efficiency and transparency, and further reduce manual workload through the automation.

Overall, AI adoption has delivered tangible results in the R&D automation, customer service efficiency, and operational cost management, which in turn strengthen our organizational resilience and competitiveness. Thank you.

Our internal reform focused on system-level improvement have moved faster than expected.

In less

than a year, we have established a new appraisal and management framework, significantly improving team efficiency and the morale. As a major shareholder, I have personally seen this positive changes, and I'm deeply grateful to Michael for leading this transformation, turning our company into a stronger and more competitive organization.

This reform will have a lasting, profound impact on the company's future. 好，最後一個問題就是說，很多人在問說，對現在股價這種低迷跟這種外面的傳聞，那公司的看法是什麼？那我想很多投資人現在是心情很低落啦，因為別人漲你不漲，別的漲你跌，那個是更可怕的。所以那請問這個公司怎麼因應這個事情呢？如何去恢復市場的信心？請Michael回答。

好，我們有注意到近期的市場反應較為波動，那可能是反映市場的一個情緒跟關注，而不是公司基本面的一個變化。那經營面來看的話，我們的研發、客戶合作以及在AI相關的一個導入的部分的進展都很穩定地在進行。那我們看到我們的royalty跟design-in的案件也持續在增加。那公司的財務結構是很健康的，我們會持續專注在這個技術跟客戶價值的提升，也會持續溝通我們的經營成果，讓市場能夠更了解我們長期的潛力跟韌性。謝謝。 過去以來我們一直是在一個既定的生意軌道上推進，你若畫一個很長的線。那股票市場呢，是人來風，它會有一個很大的乖離率，像不知道為什麼它也會漲，不知道為什麼它也會跌。但是如果你很了解這個公司的商業模式，跟我們剛剛解釋，它就是這麼明顯在往上的趨勢，那乖離率過大，它一定就會回去。那今年呢我要take responsibility，因為我的focus是push公司做改革。在沒有改革完全，你怎麼去跟人家講一個很清楚的未來？那個叫執行力。那公司的同仁讓我嚇一跳，OK，所以我覺得我自己在未來裡面，我會更有信心的去把公司的未來講得更清楚，因為我們的生意是沒有捷徑的，收到的每塊錢都是需要長期耕耘的。那同樣的呢，這種建構在專利權跟強大晶圓代工體系的商業模式，它也不會因為股價跌，因為我又沒有要出去籌資。你是有籌資需求的，你股價低你就會有影響，我們還payout幾乎賺的錢都pay給股東。完全不會有影響，是人的信心的問題。你以前那麼喜歡記憶體，覺得那爛公司為什麼漲那麼高，漲了幾倍還在追，這是人性的問題。那我觀察公司很久，做我的工作11年，我要確定公司是在對的路上，特別是執行力上，我就會出來promote公司，就是現在。所以呢，我一定會更加積極跟資本市場溝通，因為呢這種這麼巨大的價值，有關乎人命的安全叫資安，它是不可能不會被看到的，OK，請大家有信心，謝謝。

The last question and the most important question is: How does management view the current market sentiment and investor confidence? Michael, please.

We have noticed the recent volatility in the market, which we believe largely reflect investor sentiment and external concerns rather than change in our fundamentals. From an operational perspective, our R&D progress, customer engagement, and AI-related initiatives are all moving forward steadily.

Both royalty revenue and design-in activities continue to grow. The company's financial position remains healthy, and we will continue to focus on strengthening our technology and customer value.

We will also keep communicating with our business progress to make the market better understand our long-term potential and resilience.

Over the years, we have been moving forward steadily and firmly along with our established business path. There are no shortcut in our business.

Every dollar we earn is a result of long-term effort and accumulation. At the same time, this type of business model built upon strong patent portfolio and deep integration with leading foundry ecosystem will not be changed by fluctuation in the capital market.

We will continue to strengthen our communication with investor so that the market can better recognize our true value. Thank you.

In the interest of time, we will begin the closing comments. Charles, please proceed.

Okay. In the coming year and the next year, because in the past we have been working very hard on the innovation of our technology and also IP, the portfolio of our technology and IP is keeping increase.

We will expect that our license fee and also the royalty coming from our old IP and also technology will continue to increase. Thank you again for your patience and the support for eMemory.

We will continue to work hard on the technology and the IP innovation, and also particularly PUF-based hardware security solutions after we have spent more than about 10 years on this technology and the businesses, and we have seen that the demand on the security is also increased very fast. Thank you again, and we will continue to bring high return for our shareholders.

Thank you.

Thank you, ladies and gentlemen. Please be advised that the conference recording will be accessible within the next three hours.

Thank you, everyone, for joining us today. We hope you will join us again next quarter.

You may now disconnect. Goodbye and have a good day.