Phison Electronics announced its operating results for September 2024. The consolidated revenue for the month reached NT$4.431 billion,bringing the cumulative revenue for the year up to September to NT$46.363 billion,reflecting a year-over-year (YoY) growth of 43%, marking the second-highest revenue for the same period in the company's history.

The annual growth rate (Bit Growth Rate) of Phison’s total NAND storage bit shipments up to September 2024 reached 30%, the highest in the company’s history for the same period, indicating a continuous rise in market demand for highcapacity NAND storage module products.

K.S. Pua, CEO of Phison Electronics, pointed out that the ongoing sluggish demand for entry-level SSDs in the retail market was expected. The main reason is that "SSD has already become the standard configuration in mainstream PC specifications," and end consumers have shifted their upgrade demand in retail channels towards increasing SSD capacity or upgrading to high-speed SSDs. This shift in demand aligns perfectly with Phison's strategy of transitioning to the midto-high-end SSD market. In other words, SSD suppliers who rely solely on lowprice competition will inevitably face increasing difficulties in the future.

K.S. Pua further elaborated that Phison has been actively expanding into the nonretail, customized mid-to-high-end SSD market for years to mitigate the impact of market supply and demand fluctuations on the company's operations. For example,1) The industrial storage market, which Phison has been cultivating for over 10 years, has recently shown strong demand, 2) Phison’s enterprise SSD brand,PASCARI, continues to ship steadily, and 3) Phison’s aiDAPTIV+ platform for on-premises fine-tuning of generative AI computations has successfully been implemented in various AI application scenarios, including recent expansions in partnerships and collaborations with software partners. Additionally, Phison has contributed to Taiwan's AI digital transformation policy by donating the aiDAPTIV+ platform to universities, aiming to accelerate the widespread adoption of AI education. Furthermore, Phison is in active discussions with industry, government,
and academia on introducing secure, affordable on-premises AI computing solutions, all of which are expected to contribute positively to future revenue and profitability.