AP Memory announces personnel adjustment to enhance corporate governance.

July 6 , 2022

The board of AP Memory ( TWSE: 6531 ) resolved to promote the vice president of IT BU, Dr. Hung, Chih-Hsun, to be the President of AP Memory, effected on July 1^st, 2022. The new President will be responsible for expanding the business and managing the operations. At the same time, the Chairman, Dr. Chen, Wen-Liang, ceases to be the President but remains serving as CEO and CTO. Dr. Chen would focus on the Company strategy and technical development. Such organizational restructuring aims to enhance corporate governance and clarify the division of responsibilities.

AP Memory is divided into two business units, IoT BU and AI BU. AP Memory is the leading company of IoT RAM, with annual shipments of 1 billion units. IoT is one of the most important developments in recent years. According to the research of IoT Analytics, a research institute in Germany, enterprise IoT grew 22% in 2021, reaching $157.9 billion, and is expected to reach $525 billion in 2027.

AI BU is dedicated to building a new market and ecosystem targeting AI and HPC market. Including 3DIC memory IP licensing and wafer sales. The company licenses VHM™ (Very High-bandwidth Memory) to customers in the design stage and collects royalty based on wafer sales after mass production. The business in AI BU creates a high gross profit margin; the product mix is improving as the revenue contribution continues to increase.

Several factors negatively affect end demands, including the pull-back in the semiconductor markets, the military conflicts between Ukraine and Russia, inflation, COVID-19, etc. However, the IoT market is stably growing, and AI BU is gradually maturing. AP Memory still keeps the path on customized high-margin product solutions.

AP Memory continuously strengthens corporate governance and improves operating efficiency. Dr. Sun, Elizabeth was elected as an independent director in the 2022 Annual Shareholders’ Meeting. Together with the original independent directors, Mr. Yeh, Jui-Pin, Mr. Liu, Frank, and Ms. Wang, Hsuan, there are four seats in total, which has exceeded half of the directors’ seats. And the clarification of responsibilities between the Chairman and the President further ensures the balance in the Company’s decision-making process. AP Memory expects to escalate the operations performance and strengthen synergy and efficiency cross-functionally after the adjustment.