M31 Gains Momentum in Advanced Processes, Targets Double-Digit Growth in 2026

May 8, 2026 -- M31 Technology Corporation (M31), a leading global provider of silicon intellectual property (IP), held an investor conference today (May 6) and announced the financial results for the first quarter of 2026. Consolidated revenue for the first quarter reached NT$395 million, representing a year-over-year decrease of 9.2%. The decline was primarily attributable to timing fluctuations in contract signings for certain key advanced-node customers in North America, with the related revenue expected to be recognized in the second quarter. Operating expenses increased by approximately 8% year-over-year in the first quarter, mainly reflecting higher R&D personnel compensation and bonus expenses as the Company continues to invest in advanced process technologies. As a result, earnings per share (EPS) for the quarter were NT$-1.18. Furthermore, the Board of Directors approved the issuance of restricted stock awards (RSAs) during the quarter, reflecting the Company’s commitment to retaining key talent and enhancing organizational competitiveness.

Deepening Advanced Process Development, with Promising Royalty Growth Momentum

Across regional markets, M31 continues to demonstrate solid, multi-pronged growth momentum. In Taiwan, revenue contribution increased, driven by new project engagements on advanced process platforms from leading foundry customers, boosting the region’s overall contribution to total revenue. Looking ahead, the Company expects to further deepen collaboration with key foundry customers and expand into sub-6nm advanced nodes, underscoring continued progress in advanced process deployment within the foundry ecosystem. In China, the market has sustained its recovery trend since the second half of last year. During the first quarter, M31 successfully secured sub-6nm design wins from several leading IC design companies across applications such as SSD controllers and tablet AP SoCs. Adoption of M31 IP solutions also continued to expand among fabless customers in other high-end consumer electronics segments, supporting steady overall growth momentum. While the North American market experienced short-term impacts from project delays, demand for advanced process technologies remains strong, particularly in automotive high-speed networking, imaging, smart wearables, and mobile processors. Notably, a 2nm project secured in prior years is expected to enter mass production in the fourth quarter of this year. Overall, revenue contributions from the three major regional markets are expected to remain well balanced throughout the year. On the royalty front, as sub-16nm advanced nodes gradually enter commercialization, royalty revenue is entering an accelerating growth phase. Meanwhile, continued progress on 22/28nm platforms in China is expected to further strengthen the Company’s medium- to long-term royalty base.

Scott Chang, CEO of M31 Technology, commented: “Although first-quarter revenue fell short of expectations due to the deferral of certain projects, M31 remains optimistic about growth momentum going forward. Looking ahead to 2026, demand across regional markets remains strong. In China, growth is driven by increasing demand from fabless customers for both mature and advanced process technologies. In North America, M31 continues to advance toward cutting-edge nodes with core customers, while also expanding engagement with emerging and high-end application companies. In addition, international foundries are expected to initiate collaborations in the second quarter. In other regions, M31 is expanding the global footprint through diversified partnerships and tailored strategies, further strengthening overall market presence.” Chang further noted that in the era of “AI everywhere,” M31 is expanding the IP portfolio across a broad range of applications beyond high-performance computing. This expansion spans from GPUs to high-speed interfaces and chiplet technologies, while also entering emerging fields such as humanoid robotics and automotive sensing. The Company remains committed to a double-digit growth target and will continue to enhance market penetration.

Explore M31 IP:

• USB4 Gen3 x2-lane PHY, TSMC N5, 1.2V, N/S orientation, type-C
• PCIe Gen4 PHY, x2-lane, RC/EP, TSMC N6, 1.8V, N/S orientation
• MIPI TX CPHY_v2.0 / DPHY_v2.5, 3-TRIO/1C4D, TSMC N5A, 1.2V, E/W orientation(ASIL-B)
• eUSB2 v1.1 Dual-Role, repeater/native mode PHY, TSMC N3E, 1.2V, N/S orientation