Taiwan-based Alchip Technologies, dedicated to supplying ASICs, expects to see its fourth-quarter revenue hit a peak for 2023 in the fourth quarter.
According to company president Johnny Shen, revenue at Alchip fell marginally in the third quarter compared to the previous quarter but remained significantly higher than the same period in 2022.
Alchip's fourth-quarter sales will outperform the second quarter and reach a year high as advanced CoWoS packaging capacity constraints ease, Shen indicated.
Additionally, Shen continued that Alchip is optimistic regarding its revenue growth in the coming year. Demand from significant clients will continue to increase through 2024. Furthermore, it is anticipated that commencing in the fourth quarter, shipments to a North American client for AI training chips will increase steadily, positioning that client as the second largest customer, Shen said.
In response to the US ban on supplying more AI chips to China, Shen stated that a single customer has been added to the Entity List, which will have a minimal impact of 1-2% on company revenue in 2023. China currently contributes less than 15% to Alchip's total revenue.
Alchip reported revenue of NT$7.61 billion (US$236 million) for the third quarter of 2023, down about 4% on quarter but up a robust 114% on year. Gross margin for the quarter came to 23.69%, rising 2.05pp on quarter but falling 8.16pp from a year earlier. Alchip generated net profits of NT$888 million in the third quarter, up 20.9% sequentially and 100% from the same period in 2022.
Alchip's revenue for the first three quarters of 2023 totaled NT$21.26 billion, up 132.5% from a year ago, but gross margin slid 12.58pp on year to 22.09%. The company generated net profits of NT$2.21 billion during the nine-month period, up 67.1% from the same period in 2022.
Geographically, North America accounted for 61% of Alchip's overall revenue in the first three quarters of this year, followed by Asia Pacific (23%), Japan (7%), and others (9%).
