M31 Technology Corporation (M31), a leading global silicon intellectual property (IP) provider, held its investor conference today (Nov. 6) and reported a series of strong results. Consolidated revenue for the third quarter reached NT$495 million, up 17.4% quarter over quarter and 39.6% year over year. Licensing revenue also climbed to a recent high, marking the Company’s third-highest quarterly performance since inception. Royalty revenue reached its best level in the past 15 quarters. During the quarter, M31 also secured its first Angstrom-node advanced process technology licensing deal, signaling that the Company’s IP portfolio has officially expanded into ultra-advanced process nodes.
In addition, M31 once again received TSMC’s “Partner of the Year” award for consumer and mobile Specialty Process IP this year, marking the 9th consecutive year the Company has earned this honor—underscoring M31’s long-standing technical capabilities and deep engagement within the advanced process ecosystem.
North American Advanced-Node Projects Drive a Structural Upgrade, Significantly Raising Average Licensing Deal Value
North America served as the primary growth engine for the Company this quarter. In addition to recognizing the first advanced-node platform deployment project from a North American foundry, M31 also secured its first collaboration opportunity with a major local IDM. In the fourth quarter, this engagement has the potential to expand to sub-2nm GAA architecture projects. Meanwhile, collaboration with a leading North American IC design company advanced to the Angstrom node during the quarter, further expanding M31’s coverage in ultra-advanced process nodes.
At the same time, the Company also secured new orders from leading automotive chip and MCU customers in China. Customer applications continue to expand, spanning diverse end markets such as ADAS, AI accelerators, AI smart glasses, data converters, and passive optical network (PON) broadband equipment. Overall, the number of newly signed licensing deals this quarter declined from the previous quarter, but licensing revenue still increased 16% quarter over quarter, supported by a continued rise in the share of advanced-node and high-value projects—demonstrating the Company’s steady progress in executing its high-value strategy.
On the royalty front, third-quarter revenue in U.S. dollar terms grew 17% quarter over quarter and 6.8% year over year, reaching the best level in the past 15 quarters. Cumulative royalty revenue for the first three quarters has already reached 87% of last year’s full-year total. Royalties from advanced process nodes at 16nm and below increased to 13.2% of total royalties, and the cumulative amount for the same period has already surpassed the full-year total for 2025. This indicates that the advanced process platforms the Company has invested in over the past several years are gradually entering customers’ mass-production phase, with related royalty contributions beginning to increase significantly.
Advanced-Node Portfolio Enters Harvest Phase; M31 Targets New Opportunities in Humanoid Robots and Smart Connectivity
M31 CEO Scott Chang stated, “Over the past few years, M31 has continued to invest in advanced-node IP development and foundry platform deployments ranging from 12nm down to sub-4nm, and these efforts are now gradually being reflected in the Company’s licensing fees and royalties. This year, the Company achieved breakthroughs with fabless, IDM, and foundry customers in North America, with most projects advancing to advanced-node technologies. In China and Korea, the Company is continuing to expand its presence in emerging applications such as automotive, edge computing, and humanoid robots, and M31’s IP has begun to tap into this new wave of next-generation AI hardware demand. The Company expects to see clearer results starting in the first quarter of next year. As advanced-node platforms progressively enter the mass-production harvest phase, the Company will continue converting its technological achievements into licensing and royalty income, further enhancing overall profitability.”