Alchip Technologies third quarter of 2020 achieved a record net income $7.87 million on record revenue of $67.68 million. The company also reported continued growth in the high-performance computing market segment.
Net income increased by 111% increase year-on-year from Q3 2019 net income of $7.09 million and by 22.7% quarter-on-quarter from Q2 2020 net income of $6.41 million. Revenue increased by 132% year-on-year from Q3 2019 revenue of $51.83 million and 23.2% quarter-on-quarter from Q2 2020 revenue of $54.96million. The increases were primarily driven by strong CPU demand.
President and CEO Johnny Shen stated that the overall ASIC market demand is growing to the point that it has exceeded pure ASIC supplier’s support. The outlook for Alchip will continue to look strong since only very few ASIC companies have accomplished designs at advanced technology nodes. High-performance computing and artificial intelligence applications accounted for 70% of the company’s revenue in Q3 2020.
Nearly 40% of the company’s revenue was derived from designs targeting 12nm and 7nm advanced technology, while 41% of it revenue was derived from designs targeting 16nm-20nm manufacturing nodes. Only 15% of revenue was driven by 28nm designs, while 40nm and 55nm and larger designs accounted for the remaining 4% of revenue.
Alchip expects that demand from both server and pc market segments will remain strong for the rest of the year.