Alchip Technologies (3661) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue, operating income, net income and EPS as N3 accelerator shipments ramped at full speed.

• Triple-digit revenue growth is expected in 2027, with a further step-up from N2 production in 2028.

Financial highlights

• Revenue was US$819.314M, up 238.9% QoQ and 267.4% YoY; operating income was US$113.975M, up 118.7% QoQ and 194.1% YoY.

• Net income was US$102.009M, up 96.8% QoQ and 131.1% YoY; EPS was NT$37.7, versus NT$20.0 in Q2.

• Gross profit was US$147.468M, up 75.1% QoQ and 138.9% YoY; gross margin was 18%, pressured by production mix and delayed NRE revenue recognition.

Outlook and guidance

• Q4 is expected to be another record quarter, driven by higher production revenue and major design tape-outs; gross margin is expected to be similar to Q3.

• 2027 revenue is expected to grow at a triple-digit rate, including N3 accelerator revenue; a US$4bn–US$5bn revenue level was described as achievable, not guaranteed.

• New-customer production revenue is expected to start in Q2 2027 and continue through the year; a signed major design win is expected to generate about US$1bn in revenue at high-volume production.

• N2 is in final implementation, with tape-outs planned and low-volume production targeted for Q4 2027; high-volume production is expected to drive growth from 2028.

• Full-year blended gross margin target remains above 20%; long-run operating margin target is in the high teens.