Moo Live: Exclusive IPO Investor Briefing with Skyechip Berhad

Ajouté : 2026-05-07

[00:00:03]In an AI-driven [music] world where data is the currency, Invincible chips power every breakthrough.

[00:00:10]But in a world built on silicon, [music] the ultimate question remains, who designs the heart of the machine?

[00:00:20]Skychip commenced IC design operations in 2020, led by [music] two semiconductor industry veterans who each bring over 20 years of experience.

[00:00:31]The company specializes in the design and development of cutting-edge silicon IPs and silicon products.

[00:00:38]Skychip's IP portfolio ranges from high-speed interfaces to network-on-chip [music] interconnect IPs, specifically engineered for high-performance computing and artificial intelligence.

[00:00:53]Our greatest asset is not just our technology [music] or the chips we design. It is the brilliant minds behind.

[00:01:01]Skychip is home to a team of skilled engineers [music] and industry veterans, united and guided by our core values, >> [music] >> which we call top breath.

[00:01:16]With over 360 IC designers and more than 110 patents filed across US, China, and Malaysia since inception, Skychip has built a fortress of IPs.

[00:01:29]With our in-house developed proprietary software supporting the configuration of our network-on-chip IP into our customers' ICs, we don't just design microchips. We engineer the foundational building blocks of tomorrow's technology.

[00:01:44]From architecture design to tape-out and volume production, the team at Skychip works as one force to build the ASIC chips that powers tomorrow.

[00:01:54]Skychip is ready. We'll invest in R&D to expand our silicon [music] IP portfolio and to deliver highly competitive IC products through Malaysian innovation.

[00:02:06]From Penang to the world, Skychip is scaling rapidly by setting the global standards for tomorrow's technology.

[00:02:26]Welcome back, everyone, and good evening. I hope you had your dinner ready. Welcome back to our exclusive IPO investor briefing session. Today, we have invited a very, very special company that I think we as Malaysian should be proud of. Now, this company is a company that is going to list at the IPO price of 88 cent, very auspicious number, with an expected market capitalization of 1.6 billion. The company is specialized in IP silicon IP design as well as silicon products. But I'm not going to go into too much details. I will leave the juicy part to to the management to explain. Today, we are very proud to have two management team with us here. First of all, we have Dato Fong Sze Kyun, CEO of the company.

[00:03:09]Hi, Dato. And also, we have Mr. Gavin Wong, the finance director of the company.

[00:03:15]All right, before we start, just want to do a very quick disclaimer. Today's session is solely for educational purposes only. There should not be any buy, sell, or hold recommendation. Okay?

[00:03:28]So, if you are really interested in a company, I know everyone should be. So, if you have any questions, you can ask your advisor, or you need to make your own investment decision. All right? So, this is a again, this is a education session only. Right? So, without further ado, let us jump into the session today.

[00:03:47]Now, if you have any questions that you would like to ask the company, feel free to leave it in the comment box below.

[00:03:53]I'm over here holding the iPad. I'm looking at your questions, and we will look into your questions at the tail end of this session. Now, before we go into the technical parts, before going to something more too technical. First of all, Dato SK, how do you start this journey? I know you have 35 years in the industry. Your partner has over 20 years in semiconductor. So, can you walk us through how do you start the company and how do you build it to such a scale?

[00:04:20]Okay.

[00:04:22]We started the company in 2019 when I was in Broadcom.

[00:04:27]And that was a time where we see that AI is starting to take shape.

[00:04:33]And it's in fact, 2020 was the beginning of the AI supercycle.

[00:04:38]But the signal is already very strong that in 2019, there's a lot of opportunity coming out from three perspectives.

[00:04:47]Right? One is that AI is going to be the next growth driver of semiconductor.

[00:04:53]And secondly is that the deglobalization of the semiconductor is happening.

[00:04:58]When deglobalization happened, it created opportunity for new companies to capture the market. Right? What I say about deglobalization is that >> [clears throat] >> before that, you can see that Silicon Valley basically command the whole world's market. Right?

[00:05:16]But if the ongoing that technology is war and so on, the market somehow is split into different segments. Like there'll be a US chip act, there'll be a China independence on IC, and there'll be a European chip act, and some other countries also try to get some autonomy.

[00:05:35]So, with that, the market is segmented and it created a lot of opportunity for new comers.

[00:05:40]And thirdly is that when we when we look at the talent that we have in Malaysia, we really have the talent that can actually capture this opportunity.

[00:05:50]So, in short, I would say that it's a combination of we have the right talent.

[00:05:57]We have the right technology, which is aligned to the high growth of AI supercycle.

[00:06:04]And thirdly, we have the market that's open to accept new comers.

[00:06:09]Yep. Indeed, we see a lot of deglobalization, especially on China plus one initiative and also the geopolitical tension. Now, before we go into a bit more technical part, could you briefly introduce the company in simple terms? So, what does the company actually do? We know that the company is doing the silicon IP design, uh silicon product design. You also do ASIC. So, how should investors understand the business?

[00:06:37]Okay.

[00:06:38]So, first of all, Skychip is a player in the semiconductor industry.

[00:06:46]Mic can closer. Yeah, right. Let my mic can be a bit closer. Okay.

[00:06:50]So, Skychip is a player in semiconductor industry.

[00:06:53]And in today's in today's landscape, semiconductor is a backbone for every activities. Okay? So, remember Skychip as IC design companies that sit in the upper stream of the whole ecosystem. Right? If you look at semiconductors industry, you can divide into three segments.

[00:07:16]The the lower end is the test and manufacturing, which is actually very familiar with a lot of investor because they have company listed and become a unicorn in this area. In fact, they are our role model. Right?

[00:07:31]How can they actually go into unicorn?

[00:07:34]So, in the middle part is a fabrication parts.

[00:07:37]High capital investment, but only a few small player can take part.

[00:07:43]And only some company or countries that have a deep pockets, you can take part in that.

[00:07:50]But then, the best opportunity is actually in the IC design side.

[00:07:54]And this is asset light and talent intensive.

[00:07:57]So, Skychip, you want to remember what Skychip Skychip is a IC design company that sit on the upper end of the whole semiconductor ecosystem, riding on the high growth of the AI supercycle.

[00:08:13]All right, thank you so much.

[00:08:18]Now, Dato, you mentioned that Penang is actually well known for back end semiconductor manufacturing, right? And Skychip is in the more front end, we would say, which is in the chip design.

[00:08:30]So, for beginners, could you explain a bit more, maybe in terms of a back end or maybe in front end? Yeah.

[00:08:37]Okay, I just continue what what I mentioned just now. So, semiconductor can divide into back end, middle end, and the front end.

[00:08:45]And if you look at who are the players in this, most of the company in Malaysia are in the back end. Like they are doing assembly and test manufacturing. And there's also a lot of companies doing the automations to support the assembly and test manufacturing.

[00:09:01]And the middle end, you you know about name like TSMC, Samsung, and even Intel is trying to be a player in the middle end by being a foundry vendor or foundry supplier.

[00:09:13]And the top end is very simple. The world's most valuable company, Nvidia, is at the upper end of the semiconductor ecosystem. Right.

[00:09:26]Not only Nvidia, there's company like Broadcom, Qualcomm, AMD, MediaTek, so on and so forth. Right? So, for Skychip, our aspirations is to sit in the upper end of the semiconductor industry.

[00:09:40]We'll compete with players at the global level with our own technologies and with our own strength.

[00:09:49]Right. Thank you so much. All right. The next question will be if you look into the prospectus, we can see a lot of slightly, I would say, technical terms for new investors, right? We have terms like IP, we have terms like IC, ASIC, DDR, high bandwidth memory, HBM. So, can you maybe explain a bit in simpler terms? Now, everyone is talking about data center, right? So, what do all these items take role in the data center, perhaps? Okay. So, the best thing, actually, I think most of the reader will will do is go and do a ChatGPT on what's IP, IC, ASIC, and DDR and HBM. But, to keep things very simple, IP is a building blocks.

[00:10:30]Imagine Mercedes, right? Mercedes, they don't design every components in a car.

[00:10:36]The tire maybe was supplied by Michelin, and then the engine block maybe done by Mercedes, but the infotainment maybe done by Bosch, right? Or Sony, right?

[00:10:47]So, a chip is like this.

[00:10:49]We supply the component that's needed to build the chips, and the customer put their most important IP into the chip to create that complete uh chip per se, right? So, IC is integrated circuit. So, in short, we call chips, right?

[00:11:08]ASIC is a combination of application-specific IC. So, it's one form of IC that target and optimize for certain applications.

[00:11:18]And DDR and HBM is a memory technology that cater for different applications.

[00:11:25]DDR or LPDDR, they are for low power applications, edge computing applications. You can see that in your handphone, in your laptop, maybe in your car infotainment, right?

[00:11:38]And then for HBM, high bandwidth memory, it belongs to the data center.

[00:11:44]It belongs to the AI chip. It belongs to the AI center where you need a lot of data to be transferred and stored from the CPU to the memory through the HBM interface, right?

[00:11:58]So, in a way, DDR is for common application, broad market. HBM is for specialized market. Both of is for storage purposes, right?

[00:12:07]All right. And if you look at data center, chips work.

[00:12:12]The data center chips, as I say, will be will consist of a multiple IP.

[00:12:17]And Skymear chip supply to about two or three of them, right? One is the IP that talk to the memory.

[00:12:25]And one of the IP is controlling the traffic inside the chips, Mhm. right?

[00:12:29]So, in a data center, like for example, when you run a Mumu, a lot of data is being processed.

[00:12:38]So, those data need to be stored in the memory and then processed by the CPU or the processor.

[00:12:44]Our IP basically handle the interface between the memory and the CPU. I see. I see. So, it's about when CPU is processing for I think everyone understands CPU, right? We are using computer The computer, the chip that you plug in.

[00:12:59]>> Yes. Yes. If you're working on the phone, probably on the phone, too. So, it's between the memory segment and also the communication to the CPU. So, back and forth.

[00:13:08]>> All right. All right. All right. That's very cool. Right. Um on the next question, maybe we can have one real-life example, right? Of how Skymear chip's technology helps to power a particular product or power a particular system.

[00:13:23]That would I think that would helps in visualizing what does the company really do. Okay.

[00:13:28]I'm not going to talk about how the [clears throat] chip work.

[00:13:32]Let me give an analogy of how a city as as a as a chip, right? So, in the city, you have infrastructure.

[00:13:41]You have hospital, you have police station, you have shopping mall, and you maybe have a train station, and you have a residential area, right? All this infrastructure need to be connected so that people can be moved, goods can be moved, right? Service can be provided.

[00:13:57]So, one of our IP called network on chips is like the highway system in a city.

[00:14:03]It connect all the components inside the chip to make sure that the data is being trans- transferred and processed in the most efficient manner.

[00:14:12]Then, we also have a IP called memory interface IP, we just mentioned DDR or HBM. These are like the seaport or the airport where if you need to export and import goods, you need a very efficient seaport or airport, right? So, our memory interface serve as the port that allow the city to import and to export goods.

[00:14:37]So, in a way, we basically control how efficient the chip will do the computing because we control the data inside the chip, and we also control how the chip is going to read and write the data from the memory, right?

[00:14:53]Right. I think that's very important in nowadays era, especially everyone if you have a slightly slow loading, right? You will start complaining. Just imagine in a data center scale. Okay.

[00:15:04]So, what do you think that What do you think is Skymear chip's strongest technical capabilities in your opinion?

[00:15:10]Okay.

[00:15:12]If you look at Skymear chip, we are not born 6 years ago.

[00:15:17]I will say the Skymear chip team was built over the last 30 years.

[00:15:23]Why am I saying that?

[00:15:25]Because when the MNC started to invest in Malaysia since 1972, they bring the first wave of assembly and test manufacturing.

[00:15:35]And then in the late 1980s to early 1990s, they started to do IC design, right? In fact, I'm the first engineer sent to US from Intel to learn about IC design, Oh.

[00:15:47]>> right? And since then, the IC design activity has continued to grow, and today I say Penang will have a maybe 3 to 4,000 IC design engineers, right?

[00:15:58]And some of these engineers has actually accumulated very, very deep technical expertise.

[00:16:05]And that technical expertise is the one that enable Skymear chip to compete at a global level, right?

[00:16:12]In a way, I would I would say that our engineer in Skymear chip are doing the same level of complexity as engineer in the Silicon Valley, right?

[00:16:22]So, that capability is the is is the foundation on how Skymear chip can compete at a global level. Yep. I find not mistaken, you can also see Skymear chip's name in some of the competitors annual report, if I'm not mistaken. Yeah. Yeah. So, you will know who are the competitors for those who are asking the question. Now, uh we talk about IP, we talk about uh ASIC for a bit. So, how does >> [snorts] >> uh because all the IP, silicon IP that is created is owned by the company itself. So, how does owning an IP also helps you in growing your ASIC or we call silicon product segment as well or vice versa? Okay.

[00:17:04]>> [clears throat] >> So, first of all, silicon IP is a building block to the chips, right?

[00:17:09]As as a company who want to pursue a silicon product business, there's two way you can do it. The first is you license all the component you need from a third party and build [clears throat] into a chip.

[00:17:26]And another way is you create your own differentiations because you have certain IP that you master and is cutting edge.

[00:17:35]And it allow you to control your own destiny, right? So, do you For Skymear chip, our preference is to be a product company that have our own IP that create differentiations, right? We We think by having our own IP and having a competitive IP, we are positioned in a much favorably compared a product company that don't have IP at all, right?

[00:17:59]Yep. I would Can we say that if your competitor want to compete with you in, let's say, ASIC, but they would rely on one of the building blocks of the ASIC, Mhm. right? Which is your uh memory IP, >> Mhm. so they would perhaps they would need to get the licensing from you to use that.

[00:18:20]So, that would be also be your competitive advantage when you are going for the same project. Can we say that?

[00:18:25]You can say that as long as legally we can do that.

[00:18:28]>> [laughter] >> Okay. Because there's also anti-competitive anti-trust rules. But, as long as a company is concerned, we can use our cutting edge IP to win the deal. I give examples.

[00:18:41]Our network on chip IP is one of the best in the industry, right?

[00:18:45]So, we have a customer who need this network on chips technical strength.

[00:18:51]And for us, we say that since they're using our network on chip, why not let us build a chip for you?

[00:18:57]It become an easy sell rather than why not I do the chip for you at a lower cost, but I will still have to source IP from third party.

[00:19:08]But, for Skymear chip, we can offer saying that use our IP, which give you certain competitive advantage, and since we know the IP, it's easier for us to build the chip for you.

[00:19:18]So, having IP and having a ASIC design, they are actually complementing each others. All right. All right. For layman, for me to understand is that [snorts] Skymear chip is easier Skymear chip is easier for you to get some customers. All right. So, I think there's a couple of questions also asking uh I will consolidate your questions. Don't worry, I'm looking at your questions, right?

[00:19:39]Uh a lot of investors, they are not sure how does the company make make money, right? Uh does the the company is obviously not in manufacturing. So, your revenue, when we talk about licensing, is it project-based? Is it license-based? Is it recurring or is it one-off basis?

[00:19:57]Okay.

[00:19:58]So, for IP, we have two [clears throat] type of business. We have silicon IP business. We also have silicon product business.

[00:20:06]Let me explain what is a silicon IP business.

[00:20:09]When we design the IP, we design it to a international specifications, right? So, customer who want to use this IP can use it without worry that whether it's compatible.

[00:20:21]Just like our USB, right? You You will never think that when I plug in my USB device whether it will work.

[00:20:28]Because the USB is defined by international standard.

[00:20:32]Same for IP. So, when we When we design those IP, we design to the international standard.

[00:20:37]And then we license it to our customer by collecting a licensing fee, right?

[00:20:43]For some of the customer that we know, they are just at the startup level, we are not going to sue the royalty, but we prefer to collect the payment up front, right?

[00:20:54]But when this company grow into a bigger size, when they have a visible volume, then our business model will be a combination of licensing fee and royalty, right? We optimize these two payment to make sure that it's fair to the customer, but also it's beneficial to to Sky chip. All right. So, can we say that uh just for the sake of understanding, right? Royalty is on per unit basis on how much they make uh they use using your technology. And on licensing basis is a one-off, for example, 3 to 5 years they are able to use your technology. No, only for one project. One year. One project.

[00:21:29]>> One project. If one year you have two projects, you need to license two times.

[00:21:32]Ah, okay. All right. All right. That's cool. Okay, next uh we are seeing, again, as you mentioned just now data center is a hot topic and uh HBM specifically has been talking about oh a lot of shortage and everything. So, how should I I know you guys are very strong in terms of memory. So, uh how can an investor understand your opportunities in the uh HBM-related sector?

[00:21:58]I I would say that the opportunity actually is not just limited to HBM sector.

[00:22:04]The opportunity actually is propelled by the super AI cycle, right? So, for super AI cycle, you need a very efficient memory interface system.

[00:22:14]You need also a die-to-die interface system because in the modern chips, you have more than one die inside the package. You also need a very efficient data traffic system in your chips. So, I will not just limit it to memory technology. I will limit I will I will rather say is that Sky chip, we have the key technologies that's needed to build a high-performance computer chips or a high-performance H AI or a data center AI chips.

[00:22:44]Okay.

[00:22:46]All right. So, in your opinion, right?

[00:22:49]Just for sharing and based on your years of experience, where do you think investors should uh put their focus or pay closer attention uh in terms of semiconductor for the next few years?

[00:23:02]Oh, this is a very broad question.

[00:23:04]>> Broad question. Yes.

[00:23:06]I I would say as an investor, you probably want to invest in IC design company because IC design company is talent-heavy, asset-light, right?

[00:23:18]And this talent and asset-light model continue to allow us to keep track of the advancement of the technology as long as the engineer can learn.

[00:23:30]Whereas, if you just a a manufacturing company or equipment-heavy company, every generation of the technology may force you to upgrade your equipment, right? Which is a capital-intensive, Or you have to stay true by keeping your cost low and your pricing low by reusing old So, I prefer to be in the the trend where human is full of potential, right? So, as long as they learn, they'll continue to advance themselves. And as as long as they advance themselves, they can actually maintain to be competitive without having to worry about capital expenditures.

[00:24:10]So, but in order to identify the IC companies, I think that there's three important element that you need to look out for.

[00:24:20]First of all is the IC company, are they working on cutting-edge technology?

[00:24:26]So, do they file patents?

[00:24:29]Do they file patents on the technologies that essential or do they file patent on the technologies that's of high growth?

[00:24:36]In this case, AI, right? So, that's one.

[00:24:40]And second thing is do they have the talent, right?

[00:24:44]So, if the talent is all junior people or do not have the relevant experience, then there's not much technology they can offer, right?

[00:24:54]And the third one is do they have a market?

[00:24:57]So, all these are very important and they are super enforcing each others.

[00:25:03]But even more importantly is do they have the ecosystem support?

[00:25:08]So, as IC company, I need to make sure that when I design the chips, I can fabricate it or build it. So, having foundry support, especially foundries foundry support with advanced process technology >> [clears throat] >> is very important.

[00:25:23]And having OSAT support and advanced OSAT support OSAT stand for outsourced assembly and test, right?

[00:25:30]Having OSAT support is also very important because it's through this advanced OSAT you build your advanced package chips, So, these are the few elements that if you want to invest, you invest in IC company. But if you invest [clears throat] in IC companies, watch out for some of these key considerations. Yeah, that'll be very helpful. Also, I think for talent retention, someone talked about talent retention and I thought I mentioned two very important elements. The first one being the uh patent being filed. I believe the company uh is filing for 110 plus uh IP.

[00:26:02]>> 113 patent today. Yeah, and 36 of them has been approved uh and 77 outstanding.

[00:26:07]Yeah. Yeah, that's a very important indicator when you want to look for IP-related companies. And also the second part is that the company also have access to um the 3 nanometer process node technology that your partners will provide the PDK. Uh these are the things that a IP design company uh that you should look for, right? Some of the things. So, Okay, the next question would be I know everyone will ask about this question, so I prepared in advance, right? Does uh sorry.

[00:26:39]Um Just give me a moment. Okay. Yeah, does Sky chip have any dividend policy? And uh how does the company actually balance between growth and also rewarding the shareholders? Okay.

[00:26:52]So, first of all, our shareholder is not only the shareholder that buy our shares outside of the company. In fact, our employees is our shareholders, right?

[00:27:02]So, what we believe is that in order for the employee to fully commit to the company missions, they need to be shareholders.

[00:27:11]So, we have a very generous equity scheme where employee can actually subscribe to our stock options, right?

[00:27:17]Now, we talk about dividend, right?

[00:27:20]To me, referencing to a lot of hydro company in the Silicon Valley, dividend is the last thing issuing dividend is actually the last thing that they will do, right?

[00:27:31]When they have so much opportunity to grow, the obvious choice is to actually pour back whatever you earn to do further R&D so that you can capture more market, you can continue to advance your solutions.

[00:27:44]And through this advancing of the solutions and for this broadening of the market, your return return to your shareholder is much better than paying them a dividend and having them to put the money in the FD, >> [snorts] >> So, to us, growth and continue to growth sponsored by the earning that we have is a primary focus, right?

[00:28:09]And in what in on in one day, maybe Sky chip when our growth stagnant, then we will start paying dividend. But when the time happen, you may want to consider investing in another company.

[00:28:21]Okay. Okay, I think the key point [clears throat] here is to look for uh capital potential capital gain. I'm not saying that guarantee capital gain and to look for potential capital gain to ride along with the growth of the company. And based on the track record of the company, I believe the company would put the cash into good use, all right? So, the next question is uh I will leave actually the last the next question to the Yeah. Sorry. Yeah, I think your hand is also a bit tired.

[00:28:49]Yeah. So, I will leave the last actually the question to the last of this [clears throat] section. We will now jump into uh taking the questions from the public. I saw so many so many questions, right? So, uh before that, maybe uh just want to do a quick reminder for those who are interested in the company, right? Just give me a moment. Let us change the slide.

[00:31:18]>> have already subscribed. I myself Obviously, I have conflict of interest.

[00:31:21]I already subscribed. But if you have subscribed, you can type in a yes, but if you have not, this is your first time seeing a company or you are on the fence, you do not know whether to go to or to not go to, right? So, you can type in a two. Just want to see how many of you already have skin in the game. Okay?

[00:31:39]So, if you have any further questions about the subscription, please feel free to leave your comment below so the Moomoo team can contact you. If you have any further questions, we will now move into the public Q&A portion. All right.

[00:31:52]So, keep your questions pouring in. We still have some time for the public Q&A.

[00:31:56]Now, I think this question for Gavin has been sitting here for half an hour.

[00:32:01]>> [laughter] >> Now now is the time for you Yeah, now is the time for you to shine.

[00:32:05]There's an investors here. Fabian has been asking about gross margin. Gross margin has been maintained at a very high level over the past couple years.

[00:32:14]But with increasing competition in the AI chip market, customer bargaining power, I'm not sure if that is applicable to the company, right? How do you see the gross margin would do or would perform in the going future, right? Just a just a high level high level understanding. I think you if you look at our recently today released prospectus, you would see that gross margins I think on October 2025 basis compared to October 2024 it dipped slightly two percentage points.

[00:32:47]But I think the more important thing is to look at net margin cuz that's where the net profits are. And if you look at that net margins actually they've been stable year on year. So, I think profitability has been consistent outside. And on top of that, we've grown actually 39.5% top line year on year. And that because margins are stable, that's actually contributed to 40% profit growth year on year. Yeah.

[00:33:11]So, margins looking at our October numbers have been very stable. All right. All right. Thank you so much. And when we talk about competitiveness in a company, we talk about margin, right? I think that you could share a bit when a new competitor would like to There's some questions about competitive landscape, right? When a new competitor they want to enter into say the HBM segment, how far is the runway for them to just catch up not to pass you guys, just to catch up to the company. How far is the runway?

[00:33:41]Okay. So, the the beauty of the IP business is that when you when you spend the when you design the first IP, that is actually the hardest. Like for example, HBM3. It take us about 1 and 1/2 years to design the HBM3.

[00:33:56]But for every upgrade or every new generations, you can actually use a foundation that you have built and you just add on top of it. Right? So, for example, now we already at HBM4. Right?

[00:34:09]And for competitor to come in and start to build a HBM4, it's almost like you have to climb the HBM3 hill followed by HBM3E hill and do the HBM4. Right? So, time-wise, Skychip definitely have the advantage because we already have a base and we just do a incremental. So, it's less resources and shorter durations. For competitor, you have to prepare to spend more time and more resources. Right? So, that created some natural competitive advantage for for Skychip. Right. And this competitive advantage is also very important for those who are asking about margin in protecting the company's margin. Now, there's The next question will be about your new customer momentum. If you look at the prospectus, obviously because of disclosure reason, I believe the management couldn't share with you who are the customers. I saw a lot of questions asking about customers.

[00:35:04]But can you share in terms of your current Can we call it order book? What's the order book size, right, that you have now? And Perhaps you can talk about your diversification strategies in terms of I I If I look at your customer base, actually they are rotating year by year.

[00:35:22]They won't be a fixed client that contributes over the past few financial years.

[00:35:26]Some points. So, I think you asked about order book. We disclosed in the prospectus that our order book is about 130 million currently. And about COVID, about 94.6 million will be recognized actually in this coming financial year.

[00:35:41]So, there's very strong momentum in terms of the order book. And talking about diversification, the business has actually diversified by across customers, across projects, and across geographies.

[00:35:52]So, in FY23, we actually had we start we had four customers.

[00:35:58]In FY25, we had 14. Now, October 2025, we announced that we had 18 customers.

[00:36:04]So, October alone, 7 months, we already have more customers than a full year FY25. Projects even higher than that 18 number.

[00:36:12]And we also start seeing revenue contribution from North America. North America contribution was about 5.7% in October. So, the business is diversifying geographically, across projects, and across customers even as we scale.

[00:36:26]Scale on it.

[00:36:28]I think when you mention about across projects, it's actually across IP. So, from a company in the beginning that we only have one IP, now we have four main IP.

[00:36:38]Each of these IP actually can stand alone as a business. But we have four of them.

[00:36:44]Or namely, our memory interface IP HBM, our LPDDR interface IP, our network-on-chip IP, our die-to-die IP.

[00:36:53]All right. Thank you so much for the answer. I believe that's very clear. I think that we can go higher. Some of them Some of them I think have some Yeah, a bit slightly Yeah.

[00:37:04]Okay. When we talk about the industry as a whole, right? I think this is a overall competitive landscape question.

[00:37:11]What I think this has been answered partially our conversation just now. Maybe I go into the second part. What's your strategy in the way We see a lot of our IPO proceeds will be poured into further R&P. Now, based on your experience and the years of running the company, how do you select where to deploy the capital to ensure that's a good return from the R&D that the money that you're putting in?

[00:37:36]Okay.

[00:37:37]So, if you look at our prospectus, we have four growth area.

[00:37:41]And this growth area is not like imagined from the sky. It's actually a very common sense approach.

[00:37:46]First of all is as IP company, we will continue to expand our IP portfolio. Right? So, there's one area that after have four IP for high performance computing, you you can be sure that you'll be finding opportunity to build another IP which is aligned to high performance computing. Or not not one IP, two IP, or three IPs. Like that that's a natural directions.

[00:38:12]And another area is we're going to grow beyond AI and high performance computing.

[00:38:18]In fact, EV to me is a high performance computer on wheels. Right? So, if our IP can be used on high performance computing, we can actually port it to be used on the computer on wheels. Right? So, that's talking about taking our IP and qualify it on the 26262 specifications so that we can actually expand our market from the data center, from the high performance computing applications into EV and automotive.

[00:38:49]Right?

[00:38:49]And the third one is actually we are going into a trend where computing is not one chip alone.

[00:38:57]If you look at the modern data centers, >> [clears throat] >> a lot of these data center are powered by Nvidia chip, AMD chip, Intel chips, but there's also a trend where this data center need a custom built chips so that in combination, you can actually get the data center even more efficient, more cost effective, and also lower power consumptions. And this is a business model that we are pursuing.

[00:39:22]All right. I think that's a very good answer. Especially it's very interesting when we talk about HBM on wheels.

[00:39:28]Sorry. High processing power on wheels.

[00:39:31]Yeah, computer on wheels. Sorry. So, there's another question about your talent retention which I believe is quite clear that you have a very good compensation plan that you mentioned just now, towards your talent retention plan.

[00:39:44]Maybe you want to talk about when you just started, there is a very senior group of people that join you who sticks with the company until now. So, how do you actually retain them? Okay.

[00:39:54]I I will actually group it into talent retention and also talent sourcing.

[00:40:01]Right? Because by retaining the current talent, it will not be enough for us to scale our business or to grow business. So, beside retaining our talent, we also want to continue to inject new talents to the company.

[00:40:17]So, the vehicle that we use is a combination of cash and also equity. Right? And this model, again, is borrowed from the Silicon Valley.

[00:40:27]You know, in the Silicon Valley in the last 50 years, successful company retain their employee and share their success and make the employee a shareholder by giving stocks options to the employees.

[00:40:40]And in this case, the burden to the company is less because it's not consuming the cash the reward actually is coming from the market. Right? When you're performing, your business is growing, the shareholder reward you by increasing your share price and indirectly they are rewarding our employee who contributed to the success. Right? So, that's one way.

[00:41:02]So, it's not burdening the company in term of cash, but at the same time, because of the stock power, it help us to retain the employees. At the same time, you're also attracting new employee who want to have a a good job.

[00:41:16]Good job means that technically they are challenging.

[00:41:20]Technically they are rewarding. At the same time, financially is promising. Right? Success translate into more wealth for them. Right? So, the retention power is through competition of cash and stocks.

[00:41:35]And we are not only looking at retention, but we are looking into growing the talent pool.

[00:41:42]Yeah, now the workforce is around 300 plus, right? 391. 391. Wow, that's a huge team. Now, the next question that comes in is on your competitive advantage.

[00:41:54]Is there any disclosed market share in the prospectus in terms of IC design?

[00:42:01]We don't disclose the market share.

[00:42:03]>> All right. Actually, it's it's a very complicated because we are our business so broad.

[00:42:08]It's not like just one business segment.

[00:42:11]We are in the IP segment and the IP segment divide to memory, network on chips, light to die and and also LPDDR.

[00:42:18]Right? Then in the silicon segment, that's divided into maybe the AI accelerator segment, the custom computer segment, the two and a half D 3D segment. So, it's a it's a very broad uh market segment that we are in. Yeah, it's not your typical manufacturing that Well, at at our scale, honestly, we are still a very very small company compared to the existing players. Right?

[00:42:41]So, we are not worried about how much market share we captured.

[00:42:46]We are focusing on how much revenue we can grow.

[00:42:49]Right?

[00:42:50]I think the long the runway is still very long and >> Very very long.

[00:42:55]All right, that's a question. I think probably go back to Galvin.

[00:42:59]It's on the tax exemption, which I think has expired by last year September.

[00:43:05]September. Yeah, what's the latest status in terms of the tax exemption? We are still working with the government on this application. We are still working with the government on this application, but I think also in the prospectus what we've mentioned actually we have applied for and we also actually received income tax exemption in Vietnam. Oh, yeah. Okay. So, it's combination of having it Vietnam and continuing to work on the Malaysian income tax exemption.

[00:43:29]Yeah.

[00:43:30]We a new a new tax exemption in Malaysia.

[00:43:33]All right. All right. I think we'll stay tuned in terms of the tax benefits.

[00:43:37]All right. The next question is I think This is I wouldn't say it's export focused, right, for the company, but if you look at the revenue generated, I think over I think 90 plus percent is in US dollar, if I'm not mistaken. Yes, that's right. And how has the company been affected by the current geopolitical risk and also the currency fluctuation?

[00:44:00]I think it's a two-part question. Now, first we talk about the currency fluctuation because your input, you also buy 84% in terms of US dollar, I believe. Uh how does the that have a head natural hedge in terms of currency fluctuation? Then we go into second part, which is the geopolitical risk.

[00:44:18]So, maybe I cover the currency part.

[00:44:21]So, the currency bit, you're right, more than 90 more than 80 plus percent, closer to 90% of our revenue is actually US dollar. So, the weakening of the US dollar has had impact on us over the past two years, but yet you can see our compounded revenue growth rate the past three years has been close to 45% and even in October we grew by close to 40%.

[00:44:45]So, what's actually been happening is that the US dollar revenue growth rate of the business has been faster than that 40% that you're seeing. So, the forex rate has had an impact, that's why you see it in ringgit, it's come down to 40%, but the underlying business growth has actually been faster. The momentum has been quite strong. Yeah. Right. So, we so I've been able to offset that by by growing Yeah. Yeah, in the if you look at the absolute number, I think it's quite not very significant in terms of the impact.

[00:45:16]So, maybe on Dato, you want to talk about the geopolitical risk.

[00:45:22]I think for the geopolitically risk, every business will have risk. Right?

[00:45:26]The important thing is that diversification is always our focus.

[00:45:30]Right? So, because of the de-globalization of the semiconductors, the market is divided at least into four main pieces. Right? So, while we are doing business, it's very important that we stay we stay within the guardrail of the US government export control.

[00:45:50]Right? And we always be mindful that who we do business with and who we don't do business with. Right? At the same time, we also continue to expand our market in US, in Japan, in Korea, or in Taiwan, or in Europe. It's all in our plan.

[00:46:07]Right? So, diversification is is a key. Right? And also make sure that we always stay within the guardrails.

[00:46:15]Right. I think that's also very important. Now, I like this specifically specific username wrote to 1 million. So, I think also a bit clarification in terms of can Skyship design CPU, GPU, or TPO? I think maybe a bit of clarification on that.

[00:46:32]>> Actually, if you read if you if you if you if attend the the prospectus launch speech, I have said that Skyship want to be Broadcom of Malaysia. Right? If you look at the Broadcom business, Broadcom, one of the division in Broadcom is actually focusing on custom compute and AI accelerator hardware. Right? It's not competing with big player or established player in the GP GPU side or in the CPU side, but it play a complementary role to allow the overall system to be more efficient and more cost-effective.

[00:47:08]Right?

[00:47:09]So, if I want to take a single message, we are not trying to be Nvidia of Malaysia or we are not trying to be AMD, but we rather play a complementary role so that we provide our customer our system customer the best value for their investment.

[00:47:28]All right. Thank you so much. Another question is coming in about your China side. Right? So far, based on your operating, is there any delay, any I don't think there is any cancellation because of the US export control, right?

[00:47:43]Any impact due to the US export control so far? So far, we haven't seen any.

[00:47:48]Okay. Okay. Cool.

[00:47:49]All right. So, let's look at the Okay. I think there's a question about your standard silicon IP licenses. You already explained the difference between one-time and also future royalties, potential royalties. I think that's a long answer. Right.

[00:48:07]Let me look at more questions.

[00:48:09]There are also questions that are asking your potential uh K guy growth, but I don't think the management can answer.

[00:48:18]>> Yeah, I don't think the management can answer, but what I can ask for you is Dato, can you share again in terms of your growth plans for the next three years, three to five years?

[00:48:28]Okay, I think again, if you read the prospectus, our growth plan and growth strategy is clearly stating that we will continue to play out to our strength.

[00:48:37]We will expand our IP portfolio that's relevant to AI and high-performance computing.

[00:48:44]We will expand into new applications which is relevant to automotive and EV.

[00:48:50]Right? We are focusing on the custom compute and AI accelerator hardware that allow us to help the system company to achieve a better and more efficient system.

[00:49:01]And we will also will focus on uh advanced packagings solutions where in the modern chips, we have more than one chip in the package. There's some chips that designed by company and then there's some chips that are reusable.

[00:49:16]So, our goal is actually design those reusable chips and make it a a new business. Right? And that is also aligned with Malaysia's direction of advanced packagings to build advanced packagings ecosystem.

[00:49:31]Yep.

[00:49:31]Yep. And also the question is about if you look at the recent announcement and also news, Uh this question is about what partnerships do you have with other major companies? Uh in prospectors, I can see names like a Samsung and also we can see names like ARM and also we can see names like uh there's a Intel partnership program if I'm not mistaken.

[00:49:52]So, can you share uh in terms of all three collaborations, what are they for?

[00:49:58]I I won't be able to give details, all right? If you want, I think the prospectuses will be the best source of your information.

[00:50:06]But as a as a small and emerging players, we are leveraged on the big players to help our growth and also to help our competitiveness.

[00:50:15]But in return, we need to add value back to our partners. So, we always seek a win-win partnerships, all right? To continue to tap into their strength, at the same time we contribute to their success or to to their business using our strength.

[00:50:32]Okay, thank you so much. And I think this is a question for Gavin, maybe. Can you share in terms of your breakdown of IPO proceeds, how are you going to utilize them and how much going into business growth? The question about pairing down debt, I don't think there's also no offer for sales. There's no pairing down debt. So, I think you can explain in a bit more depth in terms of utilization.

[00:50:55]>> So, out of the 100%, we're going to spend 16% of that growing the R&D for our IP portfolio.

[00:51:03]And 44% of that for R&D of IC products.

[00:51:06]So, IC products will be AI and high-performance computing platforms, for example, and the 2.5D and 3D products that SK mentioned just now. So, combined this 60% will be focusing on R&D of IP and also IC products, all right? Then on top of that, we will spend roughly about 5% in terms of expansion of our operational facilities. This will be R&D office spaces, sales offices in Japan, and for example, and US because these are markets that we want to go into.

[00:51:39]Another 11% will be spent on compute infrastructure. So, when we do R&D, our R&D activities, these are run on essentially server rooms that we have.

[00:51:50]So, we have to spend purchasing servers, purchasing network equipment to support our R&D activities.

[00:51:56]Another 10% is spent on EDA tools. When we do designing, we require to license or to subscribe to electronic design automation software, EDA tools. So, these are the software tools we essentially do our IC design on, all right? The final 9% is for working capital and the I think there's another 4 more percent that's for spending on the IPO expenses. So, that makes up the 100%. All right, thank you so much. And I think this question is Well, that's a long very long question.

[00:52:27]Okay. So, he's asking about your IP licensing revenue and also your custom ASIC project.

[00:52:36]Basically, he's asking about your revenue segmentation. How many percent from which segment and so forth? Okay, I think also again, you can see this in the prospectus, but I can talk about our latest full financial year. Our latest full financial year about 70 I think about 70 slightly above 70% is silicon IP, about 26.7% is custom ASIC and the remaining is a small percentage of others. Right. And this has also Dato has talked about diversification, right? This has also changed in terms of the contribution from last time 100% from silicon IP now to more different products. Plus, we can see even more diversification in the future as Dato mentioned just now.

[00:53:21]The I think this part the question second part of the question is actually asking about the top three to five clients concentration, but we talked about that just now. Uh maybe you can talk about the Are you allowed to talk about Intel foundry accelerator IP alliance? Uh how much of revenue is from there?

[00:53:40]I don't think you can I I don't think we can talk about that. We can talk about a privilege because Intel foundry is one of the emerging foundry and offer very advanced process technology. So, being in the IP alliances allow us to assess the process technology not only for IP, potentially also can for our products.

[00:54:01]Right.

[00:54:02]Okay.

[00:54:04]Okay, there Uh okay, I think couple of questions that a lot of questions has been answered.

[00:54:09]All right, I think there are some confusion in terms of the uh business model, right? How different is uh on a very high-end, very high technical uh what we call IP design as compared to uh post validation validation services that are in the industry.

[00:54:32]Okay.

[00:54:33]I think I'll try to give an analogy.

[00:54:36]>> [clears throat] >> For a company like Skychip, you can imagine that we are JK Rowling, right?

[00:54:43]We have our IP of our product. Just like JK Rowling, they have the Harry Potter series, right? So, our IP is like the story that JK Rowling created, right? So, that is JK Rowling's IP.

[00:54:59]So, after he created the story, he can actually sell the story as book, the story book, millions of copies at very low cost, right? So, for us, we also design our IP one time and we can actually license it to multiple customer without additional R&D cost, right? So, that's the business of being being an IP owner and running on IP licensing, right? Same also for silicon products. Once they have designed a silicon product and qualified it, we can sell hundreds thousands or millions copy of that silicon product without having to invest in R&D. We only invest in cost of sale. Just like JK Rowling, right? After he created the story, the cost of the book is only paper and ink or the printing cost, right? There's no longer he don't have to spend another three years or five years to write a story book because that same story book can multiply and scale, right?

[00:55:56]And it's different from design service.

[00:55:58]Design service to me, I will say that it's like a typist who type the story book for JK Rowling.

[00:56:06]No matter whether the story sell for 1 million copies or 10 copies, he only charge a fixed fee, right?

[00:56:13]He will not get additional pay because uh the book was a a blockbuster, right?

[00:56:19]So, and after he completed the the typing one book, he have to find another book to type in order to generate a revenue, right?

[00:56:28]So, I hope it created some analogy that you can use Yeah. comparing to post-silicon validation services, which is part of uh service design services compared to a company have your own IP and products.

[00:56:42]Yeah, I would say that it's very different in terms of a scalability, the potential scalability. Right, we are at 8:27 now. I will take two last final questions before we end the session.

[00:56:54]Now, um maybe this one last question, right? Uh based on your years of experience, how how strong can you say the company is in in terms of pricing competitiveness?

[00:57:08]That that's another good questions and it also differentiate between a company that provides services where your only differentiation is actually how much you charge the customer, right?

[00:57:20]But for IP company and for product companies, it's not the cost that differentiate you or earn you the competitiveness. It's a technology leadership.

[00:57:30]It's the innovation that you put into your solutions.

[00:57:33]And it is also how we address the customer need that create the value, right?

[00:57:39]So, I will not say that we don't face any price pressure, but I think it's more important that we focus on keeping our technology edge rather than worrying about how how cheap should we sell, right? We are less cost-sensitive compared to other part of business. Right. Right. Okay, I think that's a very good answer. Now, that comes down to our final question.

[00:58:04]Uh for those who are watching live now, I appreciate you joining us. Hope you are having dinner alongside with this live.

[00:58:11]And for those who are watching the replay, Dato and also Gavin, do you have anything to say to the potential investors or people already subscribed?

[00:58:19]Any final remarks to share?

[00:58:23]Uh to me, when when I founded Skychip together with my partners, we are here not only to build a business ourselves.

[00:58:33]Actually, we are trying to help to move the Malaysia's semiconductors activities from the assembly and test into the high-end or the the upper end of the ecosystem, which is IC design.

[00:58:50]We believe that we have the talent and we have the technology and we have the market for Skychip.

[00:58:57]And this is not only an investment on Skychip, but it also investment on Malaysia's ambitions in advanced IC design.

[00:59:07]All right. Gavin, do you have anything to add? I think um as as Skychip, you know, the market is there. As SK mentioned, the market is there and we have the team to continue executing. And as we continue to execute and we continue to grow, we hope to be able to partner with investors, right?

[00:59:26]Yourselves, institutional investors alike to be able to grow uh company longer term, all right? So, do stay with us as long-term investors, right? And uh we hope to be able to continue executing and to growing in this market going forward. Yeah, what I can hear is the company is here to stay.

[00:59:44]Yeah, for many, many years. All right, I think that concludes our session today.

[00:59:48]Thank you once again, everyone, for joining our session today. And for those who are watching the replay, I hope this session has been insightful for you, especially in clearing the air on what SkyShip is doing and also their future expansion plan. Now, just once again, a quick disclaimer, the today's session is purely for educational purposes only, and you're liable for your own investment choices. If you do need any investment advice, please consult a professional. Right, thank you so much, Dato, and also Gavin Tan. Thank you so much. It's been very insightful. And thank you to everyone who joined us today. I'll see you in the next IPO briefing.