M31 Technology Corporation (M31), a global leader in silicon intellectual property (IP), held its earnings conference today and announced consolidated revenue of NT$422 million for the second quarter of 2026, representing a 6.9% increase quarter-over-quarter.
During the quarter, revenue from large-scale advanced-node projects for leading North American customers, which had previously been deferred, was successfully recognized. Together with expense optimization, this contributed to a significant improvement in profitability, with loss per share narrowing substantially from NT$1.18 in the previous quarter to NT$0.06.
In addition, on August 5, the Company’s Board of Directors approved the introduction of ASPEED Technology Inc. as a strategic investor. The two companies plan to deepen cooperation in AI server and high-speed interface IP solutions, marking a new phase in M31’s ecosystem development strategy. Furthermore, M31 was recognized in the top 5% of Taiwan’s Corporate Governance Evaluation for the fifth time this year.
North American Project Recognition Drives Revenue Growth; Advanced-Node Licensing and Royalties Continue to Expand
In terms of process technology deployment, revenue from advanced process technologies of 16nm and below accounted for 67.4% of the Company’s licensing revenue in the second quarter, reflecting continued strong demand for advanced-node IP solutions.
On the royalty side, royalty revenue represented 17.8% of total revenue in the second quarter. Looking at year-over-year performance, royalty revenue in the first half of 2026 increased by approximately 20% compared with the same period last year. Notably, royalty revenue from process technologies of 16nm and below surged nearly fourfold year-over-year, with its contribution exceeding 30% of total royalty revenue.
As more customer projects move into mass production toward the end of this year, M31 expects advanced-node royalties to become an increasingly important driver of future growth.
Strategic Investment from ASPEED to Expand Opportunities in AI Servers and High-Speed Interfaces
Scott Chang, CEO of M31, said: “ASPEED has been a key partner of M31 since 2017, with collaborations spanning applications including BMC chips and 3D cameras. The strategic investment will further strengthen cooperation in server-related semiconductor solutions and high-speed interface IP products.”
As demand for AI servers, data centers, and high-speed connectivity continues to grow, M31 is actively investing in next-generation IP development, including PCIe Gen6 and 112G SerDes solutions. Looking ahead to the second half of 2026, M31 remains optimistic about growth across the U.S., China, and Taiwan markets and maintains its target of achieving double-digit growth for the full year.