Alchip Technologies (3661) investor relations material

Executive summary

• Q2 revenue was $241.7M, up 82.6% sequentially and down 18.7% year-over-year.

• Q2 net income was $51.8M; H1 net profit rose to NT$3.065bn despite lower H1 revenue of NT$11.827bn.

• N3 AI accelerator production began in May, with shipments starting in June and ramping through Q3.

• China automotive ADAS shipments remained stable, and its next-generation program advanced toward tape-out.

Financial highlights

• Q2 gross profit was NT$2.662bn, with gross margin of 35%, versus NT$1.887bn and 20% a year earlier.

• Q2 operating income was $52.1M, up 20.5% QoQ and 38.7% YoY; operating margin was 22%, versus 12% a year earlier.

• H1 gross margin reached 40%, versus 22% YoY; H1 operating profit was NT$3.014bn, versus NT$2.645bn.

• H1 operating expenses were NT$1.749bn, with R&D expense rising to NT$1.250bn from NT$961m; Q2 expenses rose 38.6% sequentially.

Outlook and guidance

• Q3 and Q4 are expected to deliver record revenue and earnings, with sequential growth anticipated.

• N3 accelerator production is expected to ramp further in Q3 2026.

• H2 gross margin is projected in the low-to-mid-20% range; operating margin is targeted in the high teens as scale increases.

• Growth momentum is expected to continue for at least three to four years, driven by AI and the next-generation design pipeline.