Good afternoon and welcome to eMemory's first quarter 2025 webcast investor conference. Joining us today is our Chairman, Dr. Charles Hsu, President, Mr. Michael Ho, Head of IR, Ms. Li -Jing Chen, and Director of the Finance Department, Ms. Teresa Kuo. The format of today's events will be as follows. First, eMemory's Chairman, Dr. Charles Hsu, will give an opening remark. Afterwards, President, Mr. Michael Ho, will summarize our operations, followed by our business outlook. Next, Dr. Charles Hsu will give a talk titled "NeoPUF-based HSM Edge Server for PQC Migration." We will conclude today's conference with the Q&A section where our management team will answer your questions. Please feel free to submit your questions in the input box on the webcast window throughout the conference. As a reminder, this conference is being recorded, and a webcast replay will be available after the conference is finished. For more information, please visit the company's website under the Investor Relations section. As usual, before we begin, we would like to remind everyone that today's presentation may contain forward-looking statements subject to risk factors associated with the semiconductor and IP business. Please refer to the cautionary statement on page three of today's presentation. Now, I would like to give the floor over to eMemory's Chairman, Dr. Charles Hsu. Okay, good afternoon, everyone. Thank you for joining our conference call today. We understand investor primary concern is the recent significant fluctuation caused by tariff and exchange rate and their impact on our operations. While we do not have a crystal ball, our company, with 25 years of history, has navigated several periods of macroeconomic turbulence. Our approach has always been to tightly control cost, accelerate R&D, and assist foundries and chip customers in launching more competitive technology and chip solutions. Therefore, despite potential short-term economic viability as echoed by most of our chip customers, we remain very confident in the company's long-term growth trajectory. Beyond our prior mention of post-quantum cryptography security IP, we will showcase a PUF-based crypto engine accelerator, which integrates into the hardware architecture of a PUF-based HSM edge server. This system is designed to deliver both high performance and robust security for post-quantum encryption. The solution is intended to provide the essential IP design, software, and services to help enterprises prepare for the quantum migration of their information system over the next decade. I will provide more detail on this later. Next, I would like to invite our President, Michael Ho, to share our first quarter performance and future outlook. Thank you. Good afternoon, everyone. Now, let's begin with our 2025 first quarter financial results. The first quarter revenue was TWD 912 million, down 9.8% sequentially, but up 13.6% year over year. Operating expenses were $389 million, down 12.5% sequentially, but up 1.9% year- over- year. Operating income was TWD 522 million, with a decrease of 7.7% sequentially, but an increase of 24.2% year- over- year. Operating margin increased by 1.3 percentage points sequentially and increased by 4.9 percentage points year over year to 57.3%. Our net income, amounting to $462 million, experienced a decrease of 10.3% sequentially due to the reduced foreign exchange gains, but increased 7.2% year- over- year. EPS for this quarter was TWD 6.18. Next, let's move on to the revenue contribution by licensing and royalty. Licensing, in the first quarter, accounted for 26.3% of the total revenue, down 23.8% sequentially, but up 5.2% year- over- year. Royalty, in the first quarter, contributed 73.7% of the total revenue, decreasing 3.4% sequentially, but increasing 16.9% year- over- year. Total revenue for the first quarter decreased by 9.8% compared to the previous quarter, but increased by 13.6% compared to the previous year. With that, I will comment on our revenue contribution by specific IPs. NeoBit accounted for 23.6% of the total licensing revenue in the first quarter, decreasing 14% sequentially, but increasing 18.7% year- over- year. Its royalties accounted for 25.4% of total royalty, down 0.8% sequentially, but up 20.2% year- over- year. NeoFuse accounted for 49.1% of total licensing revenue in the first quarter, down 4.3% sequentially, and down 1.7% year- over- year. In terms of total royalty revenue, NeoFuse royalties decreased by 4.4% sequentially, but increased by 16.3% year- over- year, accounting for 72.4% of total royalties. PUF-based security IPs contribute 7% of licensing revenue, decreasing 76.4% sequentially and decreasing 7.4% year- over- year, while its royalty accounted for less than 1% of total royalties, up 1.7% compared to the previous quarter, and up 542.2% compared to the previous year. MTP Technology accounted for 20.3% of total licensing revenue, down 11.1% sequentially, but up 14.9% year- over- year. Royalty from MTP increased 0.2% sequentially, but decreased 1.6% year- over -year, accounting for 2.1% of total royalties. Now, let's look at royalty for 8-inch and 12-inch wafers. For 8-inch wafers, accounted for 42.5% of royalties, up 0.6% sequentially, and up 16.1% year- over- year. 12-inch wafers contribute 57.5% of royalties, decreasing 6.2% sequentially, but up 17.5% year over year. In total, 137 product tableaux were completed in the first quarter due to fewer working days. We will provide more information in the management report. In the next section, I will address our future outlook. Regarding the licensing revenue, driven by strong demand from foundries and NCHIP customers, coupled with an expanding portfolio of process platforms and more advanced non-volatile memory and security IP, we expect the licensing fee to maintain substantial growth momentum. As for royalty revenue, we expect the royalty revenue to continue its growth trend as the accumulated tableaux in advanced process nodes enter the production stage, along with continued market share gains in the mature applications. Move on to the new IP technology and business development. For new IP technologies, we are developing post-quantum cryptography PQC modules and expanding into a full suite of solutions, from the PUFrt to PQC PUFcc and PQC PUFhsm, to build the foundation hardware security cores needed for the upcoming decade of quantum migration. Regarding the business development platforms, one, following our recognition as TSMC OIP's best embedded memory IP partner, we joined the Intel Chiplet Alliance, integrating our OTP and PUF technologies to become a key enabler of Intel's U.S.-based Chiplet Security Innovation Solutions. Two, at the upcoming Computex, we launched the PUF-based HSM Edge Server, which serves as the cornerstone of our security as the service platform strategy. This concludes my comments. Next, I will pass the time to Charles. Thank you. Quantum computing is coming. It will revolutionize the world and render today's encryption obsolete. Quantum attacks may expose corporate data. How do we stay safe? Post-quantum cryptography is the answer. It uses quantum-resistant algorithms and ensures long-term protection. NIST has already standardized PQC. Delay migration, you may face compliance and security risks. Today's digital world runs on servers and computing power. That's why we built the PUF-based HSM edge server, a future-proof solution designed for the server edge. The PUF-based HSM edge server features NeoPUF technology, which generates unclonable keys and locks secrets in the chip. Only the original chip can unlock them, making theft and misuse impossible. Even better, PUF and PQC algorithms work hand in hand to deliver efficient, future-proof encryption. HSM is like a vault at your edge, fully visible, fully under your control. No risk from cloud, insiders, or connection failures. To flexibly support various cloud and on-prem deployments, our solution comes as a scalable PCIe card, easily integrated with any server and can fulfill different computing loads. We also deliver a complete software suite built for security as a service. eMemory and PUFsecurity build a complete security ecosystem, spanning hardware, performance, system, and service layers. At the hardware layer, we offer PUF-based IP and the secure chip PUFse, which is the foundation of physical unclonability. At the performance layer, PUFAccelerator enhances cryptographic operations with speed and trust, which is designed for modern security workloads. At the system layer, the PUF-based HSM edge server delivers zero-trust protection, ideal for on-premises, high-assurance environments. At the service layer, our post-quantum SaaS ensures future-ready security, built on NeoPUF, built to last. In a world where digital and physical realms converge, security is no longer a choice. It is a necessity at every moment. From code to documents to AI models, every signature and verification begins with an unalterable root of trust. Whether it's people, devices, or even national identities, every access is safeguarded by HSM technology. Across every link in the supply chain, from production to delivery, every device and every component carries a trusted identity. Every transaction, every card swipe, and every compliance certification is protected under the vigilant guard of HSM. As we move to the AI and the quantum era, we continue to secure the world with PUF-based PQC security as a service. Secure everything from cloud to on-prem, PUF-based HSM edge server. Okay, so after watching the video, I would like to use this section to introduce our new IP, which is System IP, the NeoPUF-based HSM edge server solution for the PQC migration. This edge server, we will also demonstrate in the Computex the week after next week in the ASUS booth, because this project we cooperate with the ASUS server group. In our research, we have been devoted to NeoPUF-based security IP innovation, and we have developed a range of solutions from root of trust, security coprocessor, and security element to HSM and HSM accelerator, and also HSM edge server. We will continue to innovate the best security solution to achieve zero-trust security for the world and to resist quantum computer attack. Additionally, I would like to emphasize that as a security technology and solution provider, we will continue to focus on a licensing-based business model rather than selling physical products. We know that post-quantum cryptography migration is very critical because quantum computers, which are rapidly advancing, will threaten to break current cryptographic systems like ISA and ECC by solving complex mathematical problems exponentially fast. This system underpins the security of our digital infrastructure from online banking to secure communication. If quantum computers render them obsolete, sensitive data could be exposed, eroding trust and causing widespread disruptions. The migration to PQC, which uses algorithm resistance to quantum attack, ensures long-term security. Acting now is essential to stay ahead of quantum advancements, protect data integrity, and maintain confidence in our increasingly digital world. Post-quantum cryptography migration is very critical and a multiple-step process to secure our digital world against quantum threat. First step is the organization must inventory all the cryptographic assets, identifying where RSA and ECC are used in system, software, and hardware. The next step is they should assess risk and also prioritize sensitive data like medical records or financial transactions that need long-term protections. The next step is to plan the transitions, often adopt a hybrid cryptographic to combine traditional and also PQC algorithm during the shift. After that, need to do the testing and the deployment to ensure competitivity and performance with continuous monitoring to address vulnerability. A security accelerator is essential because PQC algorithms are computationally intensive and require specialized hardware to handle large key size and complex calculations efficiently. Without accelerators, systems face performance bottlenecks, risking delays, and also vulnerabilities. By leveraging accelerators and following these steps, we ensure robust and quantum-resistant security for the futures. For this system, the NeoPUF plays a very important role. NeoPUF, which is developed by eMemory, plays a pivotal role in the post-quantum cryptography migration for the hardware security module on edge server by providing a quantum-resistant foundation for secure key generation and storage. Unlike traditional methods that rely on external key injection, NeoPUF leverages quantum tunneling and silicon variation to create unique uncomparable identifiers directly on chip, ensuring robust protection against quantum attacks. This is critical for the HSM on edge server, which secures sensitive data in distributed environments like IoT or cloud infrastructures. By integrating NeoPUF with PQC algorithms like Kyber and Delilithium, HSM achieves crypto agility and enables seamless transition to quantum-safe standards without vendor lock-in. This solution addresses store now and decrypt later, the threat, and enhances performance in resource-constrained edge settings and ensures long-term security, making NeoPUF a cornerstone for PQC migration. NeoPUF-based HSM edge server can be applied across seven major sectors, as shown in this slide, page 18. These sectors fail to implement, if the sectors fail to implement post-quantum cryptography in time, they will face significant risks in the future. These applications are the finance industry, e-commerce and retail industry, healthcare industry, the public sectors, the telecommunication industry, cloud and data centers, and the automotive industries. NeoPUF-based HSM does not only address current cybersecurity demands, but also creates a robust defense against emerging quantum threats. To implement this, we built a comprehensive solution called PUF-based HSM Security as a Service on the server. At the heart of this solution is the expansion of PUF Technology's security benefits to the service layers. This allows any application that demands high-level security, whether for key management, identity authentication, or system access control, to benefit directly from the solutions. Our system architecture for the service solution is illustrated in these slides. The foundation is the yellow highlighted block presenting the PUF-based HSM edge server. On top of this server, the platforms run essential services such as PKI, public key infrastructure, and the KMS, key management system, with further support for the CMS, certificate management system, and zero-trust identity management. This NeoPUF-based HSM edge server will perform the service and also the solution I just mentioned. 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 statement. 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 the Chinese version first, followed by the English version. We will now collect the questions and begin our Q&A section. [Foreign language] [Foreign language] Our first question is PUF-related revenues saw a notable decline in the first quarter. Do you expect it to grow this year? Charles, please. Okay. For customers using security-related IP, especially in advanced processes, consideration for CPU and hardware security architecture must be integrated from the outset when defining chip specification. The process from architecture discussions, IP specification, customization, design integration, to chip mass production takes significantly longer than for customers using only OTP. Based on the trends observed over the past few years, these security-related license cases exhibit clear seasonality. As mentioned, the discussion with customers can be lengthy, and due to budget cycle, the end of the year is typically a peak period for finalizing deals, resulting in the highest license revenue in the fourth quarter. In this first quarter, as customers initiate new annual projects, discussions are usually still ongoing and marking the lowest point of the year. Licensing revenue in April and May has already shown a noticeable uptick, so this year is likely to follow the historical pattern of quarter-on-quarter design increase with sustained growth throughout the year. [Foreign language] [Foreign language] Can you provide more information about the partnership between eMemory and Intel Foundry, especially after the Chairman's recent involvement in Intel's presentation? Our specialty on the OTP and the PUF-based hardware security can support chiplet security very well. Intel Foundry 18A processes are a very important platform for high-performance products, particularly pioneering in chiplet technology. We are in the Intel chiplet alliance to support Intel chiplet technology security for chiplet technologies and also the security innovation and the solutions. [Foreign language] [Foreign language] The company originally planned to complete 3 nanometer verification in 2025. What is the recent schedule update? This question is for Michael. Our 3 nanometer OTP has already been integrated into customer design, with several other customers currently in discussions and integration stages. Thank you. [Foreign language] [Foreign language] As we move into the 2 nanometer era, the standard supply voltage for devices is expected to decrease. How is eMemory getting ready for this change? With the transition from FinFET to GAA architecture, will eMemory's IP need any structural modifications? In the 2 nanometer GAA process, the supply voltage will indeed decrease, and only core devices are available, with no I/O devices included. In response to this change in process architecture, we have made some adjustments to our OTP design. As previously mentioned, we have divided the OTP design into several smaller modules, which have already been validated on previous 3 nanometer shuttle. This approach significantly increased our chance of success, allowing us to effectively launch the 2 nanometer OTP and the security IP for our customers. Thank you. [Foreign language] [Foreign language] Have you implemented any foreign exchange risk management strategies in response to the recent appreciation of the New Taiwan dollar in order to mitigate potential impacts on profitability? In response to the recent appreciation of the New Taiwan dollar, we have reduced our exposure to the U.S. dollar's holdings. We employ a hedging strategy by promptly converting the payment into the New Taiwan dollar. Since most of our clients are international IC design firms that primarily quote in U.S. dollar, the appreciation of the New Taiwan dollar has a negative impact on our revenue when converted to the New Taiwan dollar. However, our primary operating costs, such as salaries, utilities, and materials, are mostly in New Taiwan dollar, resulting in a minor impact from exchange rate fluctuations. Thank you. [Foreign language] [Foreign language] Although tariffs do not directly impact the company's licensing, a decline in end product demand and reduced shipments could indirectly affect overall royalty income. Has the company observed such situations? What are your views and strategies regarding potential future impacts? Our royalties are received after the foundry shipments. Based on the recent earning calls from the chip customers, their outlook for the second half of the year tends to be conservative. If end market demand is affected by tariffs, royalties from the existing customers' mass production will inevitably be impacted. However, new customer applications entering mass production will also contribute. Overall, the impact on us is expected to be relatively small. We will more proactively develop the advanced process platforms to integrate our IPs into the high-end IC applications, such as security and high-performance computing, which currently accounted for a small portion of our revenue, but will drive future growth momentum. Thank you. [Foreign language] [Foreign language] Regarding the PUF-based Edge Server mentioned by Chairman Hsu, are you planning to enter the server sales business? What is the current status of this initiative? What is the business model, and do you already have a proven track record or customer engagements? The primary reason we developed the HSM Edge Server solution is that for the past few years, many clients, such as those in Blockchain and financial services, approached us asking if we could provide random number generation services. They explained that the current approach using cloud-based key service cost is very high, which is over $4 per hour, and it's a very significant burden for them. Over the years, we have validated PUF technology at the foundries with numerous test chips. Our RD team created a ball for the real-world testing, leveraging PUF inherent randomness to generate large quantities of random numbers quickly at a low cost and without requiring expensive hardware. Building on this, we developed a chip and created a multi-channel accelerator card, paired with parallel processing software, which can be inserted into the server slot to instantly generate high-speed and high-efficiency random numbers. Beyond random number generation, all other hardware security functions can also be escalated rapidly. The purpose of launching this solution is threefold. First, to enable individuals and organizations to conveniently use high-level security functions to protect their data and assets. The second is to accelerate post-quantum cryptography migration, as much critical local data does not go to the cloud. Third is to facilitate the implementation of zero trust security, which can only be achieved when each chip has a PUF. Similar to our IP business model, we provide solutions and collect licensing fees and royalties without selling server or accelerator cards. We are currently collaborating with server manufacturers and several cybersecurity software companies. This is a novel concept and solution. We are partnering across the industry to create a solution customers need. [Foreign language] [Foreign language] What is eMemory's niche in pursuing this business? If other companies also license your PUF to develop chips and create similar servers, would they be able to compete directly? We provide a total solution that enables the ecosystem business of security as a service. This innovation is protected by patent covering the system architecture for parallel processing and key management, which gives us strong competitive advantages. [Foreign language] [Foreign language] If smartphone chips manufacturers face tariff challenges, could they potentially transition from using NeoFuse to the eFuse integrated within the foundry to cut expenses? It's improbable. The foundry covers the royalties for NeoFuse, meaning tariffs will not raise the expense for the chip manufacturer. Additionally, NeoFuse provides superior reliability and performance compared to the eFuse. Transition to eFuse could result in decreased yield and system instability. NeoFuse has been widely produced across top process nodes for several years and is a reliable option, making it unlikely to be substituted solely for cost considerations. Thank you. [Foreign language] [Foreign language] With the U.S. and Europe encouraging localized semiconductor supply chains, will this trend influence the use of PUF-based solutions? In fact, PUF can act as a basis for verifying chip identity and the origin of manufacturing. This assists local foundries in the U.S. or Europe in demonstrating that the chip will meet domestically, which aligns with government mandates for the traceability and the secure supply chain, while improving the reliability and also compliance of the chips. [Foreign language] [Foreign language] Given the rising demand for cybersecurity and the development of post-quantum cryptography, are the company's PUF-based solutions an indispensable component in achieving a PQC security architecture? Compared to similar security solutions in the market, what are the specific technical differences and competitive advantages? Are these advantages gradually being reflected in customer adoption? In the field of security solutions, most IP providers in the market primarily focus on supplying cryptography IP such as algorithm and encryption modules. However, in addition to supporting traditional and PQC algorithms, we provide a complete and verifiable Root of Trust IP, which is a critical foundation for achieving high-level security architectures. Our NeoPUF technology offers a unique and uncomparable hardware identity for chips, combined with components like OTP and PUF, forming a comprehensive Root of Trust solution. This solution meets stringent security certification standards such as PSA Level 3 and FIPS, offering greater integrity and resistance to attack as compared to the solution that only provides algorithms. These differences are gradually being reflected in customers' adoption. Our PUF-based solutions are already widely applied in the field such as HPC, AI, IoT, SSD, and automotive, securing license agreements and design wins from multiple global chip industry leaders. We expect adoption rates to continue expanding as cybersecurity regulation in Europe and the U.S. advances and the demand for the PQC implementation grows. [Foreign language] [Foreign language] Could you provide an update on the progress of technology adoption and design projects related to the chiplet architecture? Is this expected to be a significant growth driver in the future? We continue to collaborate with customers and foundries to integrate chiplet-related applications. Chiplet technology enables heterogeneous components to be integrated across different processes, improving yield, cost efficiency, and time to market. This technology has the potential to break through the limitations of Moore's Law, driving the semiconductor industry forward. eMemory and PUFsecurity focus on OTP and PUF-based hardware security technologies, which can enhance chiplet yield and support chiplet security requirements. We are already working with key partners in this area and believe it will bring significant contributions in the future. Thank you. In the interest of time, we have the final questions. [Foreign language] [Foreign language] What is your view on the development trends and market potential of RNAN? In process nodes below 28 nanometer, it has become increasingly difficult to advance traditional split-gate or stacked E-Flash solutions. Additionally, in 12-inch VCD processes, customers have expressed concerns about the complexity and high cost associated with the conventional E-Flash solution. These challenges present opportunities and growing demand for RNAN technology. RNAN can offer advantages such as low power consumption, high integration density, and fast performance, making it well suited for the application in the IoT, wearable, MCU, edge AI, and automotive electronics. With ongoing improvement in process maturity and yield, RNAN is expected to become one of the most competitive solutions among the emerging memory technologies. Thank you. We will begin the closing comments. Charles, please proceed. Thank you, everybody, for attending the eMemory conference call. For more information about our PUF-based security IP and technology, we encourage you to visit our PUF-based security website at www.PUFsecurity.com and check out our articles and other materials. We also encourage you to visit Computex ASUS Booth to find out what our new PUF-based HSM Edge Server is. Thank you again for your patience and support for eMemory. We will continue to work hard on technology and IP innovation and PUF-based hardware security solutions for our customers and bringing a higher 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.