Semiconductors - Asia-Pacific: Semiconductor IP & distributor: raise PO and reiterate Buy on eMemory & WT Micro

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Semiconductors - Asia-Pacific: Semiconductor IP & distributor: raise PO and reiterate Buy on eMemory & WT Micro

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Semiconductors - Asia-Pacific

Semiconductor IP & distributor: raise PO

and reiterate Buy on eMemory & WT Micro

Price Objective Change

Flagging several positives learnt from 1Q26 earnings calls 12 May 2026

Thanks to the benefits from node migration, sustained growth in AI-related Equity

products/solutions, and some green shoots in non-AI areas, as shared in the 1Q26 Asia-Pacific

earnings calls, we lift our 2027-28E net income estimates for eMemory and WT Micro Semiconductors

by 3-4% and 7-15% respectively. The estimate changes drive an increase in our PO for Mike Yang >>

eMemory to NT$5,500 (from NT$4,950) based on DCF valuation (unchanged), and our Research Analyst

PO for WT Micro to NT$320 (from NT$270) based on 11x 2027E P/E (unchanged). We Merrill+886 2Lynch2376 (Taiwan)3729

reiterate our Buy rating on both names in view of their rising exposure to AI/datacenter- mike.c.yang@bofa.com

related businesses. Haas Liu >>

Research Analyst

Merrill Lynch (Taiwan)

+886 2 2376 3727eMemory: stronger growth profile on node migration

haas.liu@bofa.com

During the 1Q26 earnings call, eMemory’s management cited sustained licensing

Cathy Hsu >>

activities in 3nm for AI (artificial intelligence) server-related projects, including controller Research Analyst

chips, as well as extension toward high-speed interface solutions. Looking ahead, the Merrill Lynch (Taiwan)

+886 2 2376 3726

company expects its licensing business to be boosted by increasing number of license cathy.hsu3@bofa.com

projects from both foundry and fabless customers, while the growth in royalty revenue

to continue to accelerate. Specifically, for 2026, we flag benefits from process node