Taiwan’s Alchip Technologies reported its highest-ever quarterly earnings, fueled by stronger-than-expected shipments of artificial intelligence chips and growing demand from North American customers.
The chip designer’s third-quarter net income surged to NT$4.61 billion (US$143 million), with earnings per share reaching NT$58.43. Revenue jumped 94.9% year-over-year to NT$14.83 billion, marking the strongest quarterly performance in the company’s history.
The performance was primarily driven by robust shipments of 7nm AI application-specific integrated circuits (ASICs) and increased deliveries of 5nm AI accelerators to North American integrated device manufacturers. The company’s gross margin improved to 19.5% due to higher design service revenue and an optimized product mix.
However, Alchip Technologies warned of a potential slowdown in the fourth quarter, citing seasonal factors and an anticipated decrease in 7nm AI ASIC shipments. The company expects this decline to be partially offset by continued growth in 5nm AI accelerator deliveries and seasonal uptick in design service revenue.
For 2025, the chipmaker projects 5nm AI chips to become its primary revenue source, while maintaining a strong pipeline of chip design projects throughout the year.
Taiwan Chip Designer Alchip Technologies Posts Record Profit on AI Demand
The company expects 5nm AI chips to drive growth starting early 2025
