Core Insights - SEALSQ Corp has signed a Memorandum of Understanding (MoU) with the Seoul Metropolitan Government to establish a Post-Quantum Semiconductor Personalization, Research and Design Center in Seoul [3][5][11] - The center will focus on integrating quantum-resistant cryptographic technology into semiconductor chips, addressing future cybersecurity threats posed by quantum computing [4][8][10] Industry Overview - South Korea holds a significant position in the global semiconductor market, controlling nearly 17% and leading in memory chip production [5] - The South Korean government has allocated $136 million for quantum research and development in 2025, aiming to enhance the country's capabilities in quantum-secure communications and encryption technologies [5][11] Project Objectives - The center will research and design RISC-V chip architectures integrated with post-quantum cryptography [6] - It aims to personalize and test post-quantum cryptographic chips for Internet of Things (IoT) applications [6] - The project will also integrate quantum-resistant encryption modules into satellite systems to enhance secure space communications [6][8] Market Potential - The global post-quantum cryptography (PQC) market is projected to grow from $1.1 billion in 2024 to between $4 billion and $9 billion by 2030-2033, with a compound annual growth rate (CAGR) of 37-45% [7] - The Asia-Pacific region is identified as one of the fastest-growing markets for PQC, with South Korea leading in quantum key distribution and secure communications infrastructure [7] Strategic Importance - The initiative positions South Korea as a leader in both semiconductor and cybersecurity innovation, reinforcing its digital sovereignty [5][11] - SEALSQ's focus on compliance with international standards, particularly NIST's PQC guidelines, ensures its alignment with emerging regulatory frameworks [10]

Core Viewpoint - The quantum computing sector in the US stock market experienced a significant rally, driven by the announcement of a joint US-UK benchmarking working group aimed at accelerating advancements in quantum computing standards [1] Group 1: Market Reaction - Quantum computing stocks surged, with Quantum Computing (QUBT.US) rising by 21%, Rigetti Computing (RGTI.US) increasing by over 9%, and IonQ Inc gaining more than 4% [1] - The most notable increase was seen in Quantum Machines (QMCO.US), which jumped over 34% [1] Group 2: Strategic Developments - The US and UK announced the formation of a benchmarking working group on September 18, focusing on hardware, software, and algorithm testing in quantum computing [1] - This initiative is viewed as a crucial step towards the practical application of quantum computing and aims to enhance collaboration in technology standard-setting between the two nations [1]

Core Viewpoint - SEALSQ Corp is set to launch the Quantum Shield QS7001, the world's first secure chip embedding NIST-standardized quantum-resistant algorithms, aimed at protecting critical applications from future quantum computing threats [3][4][5]. Product Launch - The Quantum Shield QS7001 will be unveiled in mid-November 2025, with the first commercial development kits available for purchase [3][9]. - The chip integrates lattice-based, quantum-resistant cryptography, providing secure key storage, efficient signing, and key exchange operations [6]. Technological Innovation - The QS7001 is designed to secure cryptocurrency transactions, defense systems, healthcare infrastructure, and IoT devices against vulnerabilities posed by quantum computing [4][5]. - Unlike competitors that use software implementations for post-quantum cryptography, SEALSQ's chip embeds these algorithms directly at the hardware level, offering 10X faster performance and enhanced security features [7]. Market Position - SEALSQ has a proven track record of securing over 1.75 billion devices globally and continues to lead in quantum-resistant innovation [10]. - The company emphasizes its commitment to advancing secure solutions across various sectors, including IoT, banking, and automotive [10][12]. Future Developments - SEALSQ plans to launch a Trusted Platform Module version, the QVault TPM, in the first half of 2026 [6]. - The company is also supporting organizations transitioning to quantum-safe encryption through its SEALQUANTUM.com Lab [10].

Core Viewpoint - Quantum computing stocks experienced a significant rally, with notable increases in share prices for several companies following IonQ's acquisition of Oxford Ionics, which is expected to enhance IonQ's technology roadmap and support its global market expansion [1] Group 1: Stock Performance - Sealsq Corp (LAES.US) rose over 6.5% [1] - Rigetti Computing (RGTI.US) increased by more than 10% [1] - IonQ Inc (IONQ.US) saw a rise of over 5% [1] - Quantum Computing (QUBT.US) experienced an increase of more than 3% [1] Group 2: Acquisition Details - IonQ successfully completed the acquisition of UK-based quantum computing company Oxford Ionics [1] - This acquisition is aimed at accelerating the development of more powerful and high-fidelity quantum computers [1] - The deal supports IonQ's expansion into the UK, Europe, Asia, and other global markets [1]

Core Insights - SEALSQ Corp is focused on developing and selling semiconductors, PKI, and post-quantum technology hardware and software products [2] - The company will present its new post-quantum chip, Quantum Shield "QS7001", at the IQT Quantum + AI 2025 event [3][7] - The QS7001 chip features post-quantum cryptography with NIST-standardized algorithms and is designed for various applications including IoT and automotive systems [4][5] Company Developments - CEO Carlos Moreira will deliver the keynote titled "AI Meets Quantum: Building Unbreakable Post-Quantum Security" at the upcoming event [2][7] - The QS7001 has successfully completed the cryptographic toolbox validation stage, confirming the performance of post-quantum cryptographic algorithms [3] - SEALSQ is pursuing Common Criteria EAL5+ certification for the QS7001 with Serma labs [3] Product Features - The QS7001 is a RISC-V-based secure hardware platform that offers flexibility and quantum-resistant security [4] - Key features include low-power design, hardware accelerators for encryption, and tamper-resistant security measures [4] - The chip aims to provide quantum-resistant protection across various industries, ensuring regulatory compliance and cost efficiency [5] Future Plans - SEALSQ is also developing the QVault TPM, targeting PCs, laptops, and IoT devices, expected to launch in H1 2026 [6] - The company emphasizes the importance of building a security foundation to protect critical infrastructure and data against future threats [6][8]

Company Overview - SEALSQ Corp focuses on developing and selling semiconductors, PKI, and post-quantum technology hardware and software products [1][6] - The company is pioneering post-quantum semiconductors that provide robust protection for sensitive data across various applications, including healthcare, defense, and industrial automation [8] Upcoming Satellite Launch - SEALSQ's engineering team is preparing for the next WISeSat satellite launch scheduled for November 2025, which will deploy post-quantum-ready satellites [1] - This mission aims to enhance the security of space-based communications and financial transactions [1] Technological Innovations - The WISeSat satellite will embed SEALSQ's Post-Quantum Cryptographic (PQC) chip to establish a quantum-resilient transaction framework in orbit [2] - The integration of blockchain technology and quantum-resistant encryption aims to create the world's first PQC-enabled blockchain-secured satellite ecosystem [2] Market Growth - The global satellite communication market was valued at approximately USD 90 billion in 2024 and is projected to grow to USD 159.6 billion by 2030, with a CAGR of over 10% [3] - The Mobile Satellite Services (MSS) segment is expected to grow from USD 5.5 billion in 2023 to between USD 8.6 billion and USD 9.6 billion by 2030, with some estimates projecting USD 19.5 billion by 2032 [3] Future Plans - Following a successful mission in January 2025, SEALSQ and WISeSat plan to launch five PQC-enhanced satellites by the end of 2026, starting with the November 2025 launch [4] - Each new satellite will feature enhanced PQC hardware and deeper integration with Hedera for secure transactions [4]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new technology launches [18] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [19] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [20] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][7] - The TPM engagement more than doubled from 35 customers at the end of 2024 to 82 customers by mid-2025, validating the relevance of the company's roadmap [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distribution in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, with a strong emphasis on regulatory compliance and resilience against emerging threats [3][4] - The acquisition of IC'ALPS has strengthened the company's ASIC capabilities, particularly in the medical, automobile, and IoT industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and financial resources, positioning it to capitalize on growing demand for post-quantum resilient technology [23] - The outlook for 2025 anticipates revenues between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [15][21] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of $7.2 million for the year [13][20] - A strategic project with the Swiss Army has been signed, focusing on the use of the company's satellite technology [12] Q&A Session Summary Question: Clarification on full-year R&D budget - The company mentioned a one-off expense for stock-based compensation that affected the first half's R&D spending [27] Question: Annual R&D run rate estimate - The estimated run rate for R&D, excluding the one-time expense, would be around $500,000 to $550,000 per month [36] Question: Pipeline estimate process - The pipeline estimate of $170 million includes identified opportunities evaluated with a low success percentage initially, moving through various stages until reaching design win [39]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new product launches [18][19] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [19] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [20] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][7] - The number of customers for TPM engagement more than doubled from 35 at the end of 2024 to 82 by mid-2025, indicating strong demand for the company's offerings [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distribution in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, positioning itself to capitalize on the growing demand for post-quantum technologies [3][4] - The acquisition of IC'ALPS has strengthened the company's ASIC capabilities, particularly in the medical, automobile, and IoT industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and financial resources, anticipating a critical year in 2026 for the quantum industry, particularly with regulatory frameworks favoring PQC adoption [22][23] - The company expects revenues for 2025 to be between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [21][15] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of $7.2 million for the year, up from $5 million in the prior year [13][20] - The company is also investing in space technologies, deploying a secure quantum-ready satellite constellation, with plans to scale to 102 satellites by 2027 [11][12] Q&A Session Summary Question: Clarification on full-year R&D budget - The CFO clarified that the first half included a one-off expense for stock-based compensation under R&D, which would not repeat in the second half [27] Question: Annual R&D run rate estimate - The CFO estimated the underlying business R&D run rate to be around $500,000 to $550,000 per month after adjusting for the one-time expense [36] Question: Pipeline estimate process - The CFO explained that the pipeline estimate of $170 million includes identified opportunities evaluated with a low success percentage initially, moving through stages of qualification and design-in before reaching design win [39][40]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new product launches [17][18] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [18] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [19] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][6] - The number of customers for TPM engagement more than doubled from 35 at the end of 2024 to 82 by mid-2025, indicating strong demand for the company's offerings [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distributors in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, positioning itself uniquely to meet regulatory compliance and resilience against emerging threats [4][5] - The acquisition of IC'ALPS, a French ASIC design specialist, is expected to enhance the company's capabilities in post-quantum ASIC technology [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and momentum entering the second half of 2025, with a clear vision to lead in quantum resilience and cybersecurity [23] - The outlook for 2025 anticipates revenues between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [20][15] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of over $7 million for the year, up from $5 million in the prior year [19][13] - The company is also investing in space technologies, with plans to expand its secure quantum-ready satellite constellation to 102 satellites by 2027 [12] Q&A Session Summary Question: Clarification on full-year R&D budget - Management confirmed that the first half included a one-off expense for stock-based compensation, which would not repeat in the second half [25][26] Question: Annual R&D run rate estimation - The estimated run rate for R&D, excluding the one-time expense, would be around $500,000 to $550,000 per month [38] Question: Pipeline estimate process - The pipeline estimate of $170 million includes opportunities identified over the next three years, with a standard process of evaluating and applying success percentages at various stages [39][40]

HALF YEAR REPORT 2025 January to June 2025 INDEX | 1. INTRODUCTION | ന | | --- | --- | | 1.1. CEO LETTER TO SHAREHOLDERS : SEALSQ MID-YEAR UPDATE AND OUTLOOK | ব | | 1.2. INTRODUCTION | 00 | | 1.3. MANAGEMENT DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND | 10 | | RESULTS OF OPERATIONS | | | 1.3.1. H1 2025 KEY FINANCIAL MILESTONES | 10 | | 1.3.2. DISCUSSION & ANALYSIS | JJ | | 2. BUSINESS UPDATE | 17 | | 2.1. PRODUCT PORTFOLIO EVOLUTION | 18 | | 2.1.1. QVAULT TPM PROGRAM UPDATE | 18 | | 2.1.2. POST-QUANTU ...