SAN FRANCISCO — Alchip Technologies Ltd. recorded NT$7.43 billion (U.S.$230 million) in consolidated revenue for July, a new all-time monthly high representing a 181.8 percent increase from the same period last year and more than double June's NT$3.57 billion.
The surge reflects increased shipments of application-specific integrated circuits designed for a major North American cloud provider. Those custom AI chips, identified as Amazon Trainium3, are manufactured on TSMC's N3P process and entered mass production near the end of the second quarter.
Alchip's first-half revenue totaled NT$11.83 billion, a 39.74 percent decline year-on-year. The drop stemmed from a product transition — moving from older designs to new 3-nanometer AI chips — alongside delays in chip design finalization.
The economics here are straightforward: ASIC mass production revenue dwarfs what a design-phase contract generates. As Trainium3 volume shipments ramp, Alchip expects additional contributions from wafer production, advanced packaging and related manufacturing services.
Industry analysts project the AI ASIC market to grow from roughly $13 billion in 2024 to more than $150 billion by 2030, a compound annual growth rate nearing 50 percent. The broader data center ASIC segment is forecast to reach $50 billion to $70 billion by 2028.
The same North American cloud provider has already selected Alchip as its primary partner for a next-generation AI ASIC. That chip will use a 2-nanometer process, with design work currently underway. Supply chain sources indicate tape-out is expected in the fourth quarter of this year, with initial mass production scheduled for the fourth quarter of 2027.
Alchip's advanced driver assistance system chips began mass production in the fourth quarter of last year and started contributing meaningfully to revenue in the first quarter of this year. The company expects automotive to become its second-largest revenue source starting in 2026, backed by a next-generation automotive chip targeting mass production in the third quarter of 2027.
Alchip remains heavily dependent on a small number of customers and projects — a concentration risk that July's numbers do nothing to reduce, even as they confirm the company has successfully entered a new production cycle.
The broader context reinforces the demand signal. TSMC reported record July sales of NT$442.68 billion, up 44.7 percent year-on-year and 5.6 percent from June, reflecting sustained appetite for leading-edge process capacity.
Alchip's market capitalization now exceeds NT$300 billion, placing it second only to MediaTek among Taiwanese fabless design companies. In 2025, 87 percent of its revenue came from devices built at process nodes of 7 nanometers or below, with 14 percent from 3nm and 2nm processes.
