Taiwan’s Alchip Technologies expects growth to moderate in 2025 as its North American cloud service provider customers transition between product generations and uncertainty lingers around AI chip demand from a key integrated device manufacturer.
The semiconductor design house projects revenue growth will slow to about 10% next year, down from an estimated 76% surge in the first 11 months of 2024 when it posted NT$47.49 billion ($1.52 billion) in sales. However, the company anticipates a stronger 2026 with 30% growth potential as next-generation products from North American cloud providers come online.
A major project with Amazon Web Services for its Trainium 3 AI chip using TSMC’s 3-nanometer process is set for tape-out in early 2025. The company also expects revenue contribution from N5 ADAS chips for the Chinese market starting next year, while continuing work on AI ASIC chips for a North American IDM through 2026.
For the first three quarters of 2024, Alchip reported net income of NT$4.61 billion ($147.5 million), up 109% year-over-year, with earnings per share of NT$58.43.
The company is actively expanding its customer base beyond existing cloud service providers to diversify revenue streams.
