Everspin Technologies (NasdaqGM:MRAM) FY Conference Transcript

Everspin Technologies FY Conference Summary Company Overview - Company: Everspin Technologies (NasdaqGM:MRAM) - Industry: Semiconductor, specifically in MRAM (Magnetoresistive Random Access Memory) technology - Founded: Spun off from Freescale in 2008, went public in 2016 - Key Milestones: - Partnership with GlobalFoundries in 2014 to scale MRAM densities from less than 32 megabits to 1 gigabit using STT MRAM technology - Commercialization of DDR-like interface with 1 gigabit density, shipping to IBM since 2018 - Recent commercialization of XPi parts with densities from 4 megabit to 256 megabit, gaining traction in low Earth orbit satellite, FPGA, and aerospace markets [5][6][17] Product Portfolio - MRAM Technologies: - Toggle MRAM: Limited to 32 megabit, used in applications requiring fast data logging - Spin Transfer Torque (STT) MRAM: Scalable up to 1 gigabit, preferred for applications needing high density and low power consumption - Applications: - Industrial automation (e.g., Siemens, Mitsubishi) for real-time data logging - Casino gaming for rapid event recording - Aerospace and defense for low Earth orbit satellites due to radiation immunity and fast write speeds [12][14][15][20] Manufacturing and Partnerships - Manufacturing Facilities: - Owns an eight-inch factory in Chandler, Arizona for Toggle MRAM - Partners with GlobalFoundries for STT MRAM manufacturing on 12-inch wafers - Government Interest: U.S. government is interested in Everspin for national security applications, particularly in establishing a domestic 300mm MRAM production line [16][36][38] Market Opportunities - Low Earth Orbit Satellites: - Estimated 70,000 satellites to be launched in the next five years, with each satellite potentially using 4 to 10 MRAM units - Average Selling Price (ASP) of $50-$100 per unit, indicating significant revenue potential [27][28] - Data Center Applications: - Current focus on IBM for cache memory, with plans to develop socket-compatible products for broader market adoption [21][31] Competitive Landscape - Competitors: - Competes with NOR Flash, non-volatile SRAM, battery-backed SRAM, and ferroelectric RAM (FRAM) - Everspin does not compete in the embedded MRAM market, as it focuses on standalone MRAM [29][30] - Market Size: - Data logging market estimated at $700 million, while the NOR Flash market is $3-$4 billion [30] Licensing and Royalties - IP Portfolio: Over 650 patents developed with an investment of over $100 million - Revenue from Licensing: Targeting 10%-15% of revenue from licensing, which tends to be lumpy but high margin [22][23] Conclusion - Everspin Technologies is well-positioned in the MRAM market with a strong focus on innovation, manufacturing capabilities, and strategic partnerships. The company is targeting significant growth opportunities in aerospace, defense, and data center applications while maintaining a robust IP portfolio to support its licensing business [43][44]