Shares I love: eMemory Technology

Carlos Hardenberg, co-manager of Mobius Investment Trust (MMIT), explains why he holds semiconductor producer eMemory Technology (TAI:3529).

“eMemory is a silicon intellectual property company based in Taiwan. Founded in 2000, the focus of intellectual property is embedded non-volatile memory which works when power is off. This memory is embedded in the integrated circuit, saving cost and space, and used for applications such as trimming, parameter setting, encryption, function selection, identification setting and code storage.

eMemory’s business model is chiefly funded with licence fees and royalties, with the latter contributing 70 per cent to its revenues. Licence fees consist of technology licences whereby foundries pay eMemory to develop intellectual property. eMemory’s latest invention, NeoPuF, provides more secure solutions in areas such as the crypto space, automotive driving and national defence. It is particularly attractive, in view of the rising number of global cyber security attacks.

The company has also experienced a surge in demand for its services with the work from home drive and reaped the benefits of the ongoing roll-out of 5G.

During 2020, eMemory contributed 5 per cent to Mobius Investment Trust’s performance and this strong performance has continued in 2021. eMemory is an excellent example of the type of high-conviction companies that we are finding in the technology area, in particular in Asia. While such companies are small today, their rapid growth, combined with their world-class research and development capabilities, will allow them to continue growing their market share, revenues and profitability.”

eMemory Technology was Mobius Investment Trust’s largest holding at the end of April, accounting for 9.5 per cent of its assets. The trust had 37.6 per cent of its assets in technology companies at the end of April, its largest sector exposure, and 16.4 per cent in Taiwan.