Alchip Technologies Announces Record 2022 Financial
New highs for Revenue, Operating Income, Net Income and EPS
Taipei, Taiwan May 1, 2023 – Alchip Technologies 2022 financial performance set new records for the fifth straight year. Results include record highs for revenue, operating income, net income, and earnings per share.
Fiscal year 2022 revenue, ending December 31, reached a record $460.5 million, a 23.7% increase over FY 2021 revenue of $372 million. Operating income for FY 2022 achieved a record $77.5 million, an increase of nearly 19% over 2021 operating income of $65.2 million. FY 2022 net income reached $61.5 million a 15.6% increase over FY 2021 net income of $53.1 million. Earnings per share for the FY 2022 achieved a record NTD25.7 exceeding last year’s previous record of NTD21.34.
At the same time, Alchip reported its fourth quarter 2022 results with revenue of $148.2 million, a 66% year-on-year increase over 2021 fourth quarter revenue of $89.2 million.
Alchip achieved record revenue despite lower-than-expected performance, given that inference chip shipments to North America were greatly influenced by substrate tightness. Still, Alchip managed to deliver record-breaking top and bottom line numbers amid strong NRE demand from both North America and China. For 2022, NRE revenue accounted between 40% and 45% of total revenue, with ASIC sales accounted for 55% to 60%.
Alchip also announced a significant shift in its geographic revenue sources, with the North America region jumping into first place for the first time in Alchip history. It accounted for 39% of all revenue, a significant increase from a 14% contribution in 2021. Revenue from the Asia Pacific region accounted for 38%, a significant reduction from its 2021 contribution of 71%, while revenues from Japan accounted for 14% of 2022 global sales, up significantly from its 9% contribution to 2021 revenues.
Alchip strengthened its position as a leading high-performance computing ASIC company in 2022, with high-performance computing applications accounting for 82% of revenue, with niche and networking applications accounting for a combined 12%, consumer applications accounted for the remaining 6% of 2022 sales.
On a process node basis, advanced technologies, defined as devices manufactured at 7nm or smaller line widths, accounted for 68% of 2022 revenue, up from 60% in 2021. Devices manufactured on 16nm and 12nm technologies contributed to 20% of 2022 revenue, while ASICs at 28nm and larger processes accounted for the remainder 13%.
Approximately 88% of revenue came from advanced FinFET (16nm and below process technology) designs and the mass production of highly complex packages such as chip-on-wafer-on-substrate and MCM. Alchip also partnered with tier-one systems companies on 7nm and 5nm SoC designs targeting high-end, complex artificial intelligence, networking, and high-performance computing applications.
President and CEO Johnny Shen, in his remarks, forecasted that ASIC demand would remain strong through 2025, driven primarily by a significant growth in globally-diverse sales and the continued strength of high-performance computing in the overall semiconductor market. Alchip’s growth is expected to be significantly enhanced by Alchip’s progress in capturing a significant share of emerging ASIC applications in the Automotive IC market segment.
Alchip is traded on the Taiwan Stock Exchange and its Global Repository Receipts are traded on the Luxembourg Stock Exchange. Alchip is extremely well respected in North America, Japan, Israel, and Asia for its high-performance ASIC design methodology, flexible business model, best-in-class IP portfolio and advanced packaging technology expertise.