ASMedia to develop high-speed chips for AI

ASMedia Technology Inc announced plans to develop high-speed data transmission chips for AI servers, edge AI devices, robots, and automobiles to drive revenue growth to US$800 million by 2030, up from US$400 million in 2023. The company aims to diversify its revenue streams amid a projected 15-20% decline in global PC shipments this year, citing DRAM shortages and rising PC prices as key factors suppressing demand. The shift includes expanding automotive-related chip production, which will account for 15-20% of revenue, following its acquisition of Techpoint Inc last year to strengthen high-definition image chip development for security and automotive applications. ASMedia also plans to accelerate production of next-generation high-speed products, including PCIe Gen 6 and Gen 7 chips, USB 4, embedded USB, and package switches, targeting AI PCs and AI server markets. The company secured a long-term partnership with Advanced Micro Devices (AMD) for designing motherboard southbridges, known as I/O controller hubs, which accounted for 60% of its chipset revenue last quarter. Additionally, ASMedia signed a new deal with an unnamed second customer—believed to be Qualcomm—for designing I/O controller hubs used in Windows-on-ARM laptops. Production is expected to ramp up later this year, securing a significant portion of orders from AMD next year. To meet demand for higher data transfer speeds, ASMedia established a new team of 20-30 engineers at its Hsinchu office in March, focusing on high-speed DSP-based SerDes technology. The company also plans to adopt Taiwan Semiconductor Manufacturing Company’s (TSMC) 12-nanometer technology for PCIe packet switches, upgrading from its current 28-nanometer process to address thermal issues. Shareholders approved a record cash dividend distribution of NT$45 per share, representing a 62% payout ratio based on last year’s earnings per share of NT$72.7. The company’s president, Lin Che-wei, attributed this year’s slower revenue growth to short-term DRAM supply imbalances rather than product issues, while emphasizing long-term expansion in AI and automotive markets.