M31 Technology: Advanced Nodes and Royalties Drive 20% Revenue Growth Target for 2025

Hsinchu, Taiwan – November 5, 2025 – M31 Technology Corporation (M31), a global leader in silicon intellectual property (IP), held an investor conference today and announced consolidated revenue of USD 11.8 million for the third quarter of 2025, representing a 0.4% year-over-year decrease and a 19.8% quarter-over-quarter decline. The revenue decline was primarily due to project schedule delays from chip design customers in North America and Europe, as well as slower-than-expected adoption of advanced processes below 5nm, which postponed revenue recognition. Meanwhile, a significant increase in EDA licensing expenses placed short-term pressure on financial leverage, resulting in earnings per share (EPS) of USD -0.18 for the quarter. M31 reaffirmed a full-year U.S. dollar revenue growth target of over 20% compared with 2024, and expects multiple new AI and automotive projects to kick off in the fourth quarter.

Looking back at the year up to the third quarter, the foundry business remained the main revenue contributor, driven primarily by advanced 5nm and 6nm process platforms at global leading foundries. The company expects to resume partnership discussions with a major U.S. advanced foundry in the fourth quarter. If progress goes smoothly, M31 will be positioned to fully enter the supply chains of the world’s top three advanced process foundries, laying a more solid foundation for mid- to long-term growth. On the fabless side, business performance in the third quarter slowed due to weak demand in consumer electronics and delays in customer project schedules. However, demand from the automotive sector in China remained strong, supported by expanding applications in advanced driver-assistance systems (ADAS), in-vehicle infotainment, and LiDAR, along with the continued advancement of 5G mobile communication chips in China. These factors led to significant growth in IP orders for processes below 6nm. Looking ahead to the fourth quarter, M31 expects to launch a new wave of 2nm and enhanced 3nm IP projects, with multiple leading global AI and automotive companies initiating collaborations with the company. AI applications are continuing to penetrate into end devices, including AI PCs, AI glasses, smartphones, in-vehicle AI systems, and edge AI accelerators, driving interface and memory IP specifications to advance to sub-5nm technologies. In terms of royalties, revenue increased by more than 80% quarter-over-quarter in Q3. IPs for 12/16nm and 6nm processes have entered small-scale pilot production, and as mass production of advanced processes expands and the penetration of various mature process platforms increases, M31 expects royalty income to grow steadily over the mid to long term, becoming a sustainable profit engine for the company.

M31 CEO Scott Chang stated that the company is currently at a critical stage of technological transformation and organizational realignment. As challenges in the adoption of advanced process technologies intensify, short-term profitability has been affected, for which the company expressed sincere apologies. He noted that starting in 2026, expense growth will be kept within 10% annually, and through rigorous cost control and R&D integration, M31 will continue to enhance operational efficiency and optimize resource utilization. Chang further emphasized that M31 will continue to deepen collaboration with global advanced foundries, strengthen IP technology advantages below 6nm, and steadily expand in mature process markets, ensuring a balanced product portfolio for both the short and long term. He stressed, “The company remains committed to the 2025 full-year U.S. dollar revenue growth target of 20% and will continue to advance steadily in technological innovation, operational resilience, and royalty growth.”