Alchip: Future Momentum Promising, ASIC Growth Expected to Outpace GPU

ASIC manufacturer Alchip held its annual shareholders' meeting today. Chairman Shen Xianglin stated that "the company's most difficult time has passed" and expressed optimism about future operational momentum. He expects that ASICs, which possess cost-efficiency and differentiation, will have the opportunity to replace some of the graphics processing unit (GPU) market in the future, and that ASIC growth momentum is stronger than that of GPUs. Alchip's revenue last year fell to NT$30.926 billion, a year-on-year decrease of more than 40%. Shen said that because one generation of products was not followed by another, revenue faced greater pressure last year; however, the most difficult time has passed, and with the mass production of major customers' products, he is optimistic about future operational momentum. Shen stated that while GPUs have dominated the AI computing market over the past three years, ASICs have cost-efficiency and differentiation advantages and may replace some of the GPU market in the future. It may take some time for the scale of ASICs to exceed that of GPUs, but currently, the growth momentum of ASICs is stronger than that of GPUs. Shen said that Alchip continues to promote 3nm and 2nm advanced process designs, deeply penetrating market areas such as hyperscale cloud service providers, customized systems, and AI startups, and is actively expanding in the North American market and accelerating the expansion of talent in its Southeast Asian design centers to meet the rapidly changing needs of customers with more flexible and global service capabilities.