Taipei, Taiwan, May 27, 2026 (GLOBE NEWSWIRE) -- Alchip Technologies reported slight year-over-year net income growth in the first quarter of 2026, despite a decline in revenue, as strong year-over-year NRE revenue growth helped offset the decrease.
Net income for first quarter 2026 is $45.1 million, up 1.6% from first quarter 2025 net income of $44.4 million, but down 5.7% from fourth quarter 2025 net income of $47.9 million. Pre-tax profits of $56.4 million for the first quarter of 2026 are up 3.5% year-over-year, compared to pre-tax profits of $54.5 million for the first quarter of 2025, and up very slightly when compared to pre-tax profits of $55.9 million for the fourth quarter of 2025.
First quarter 2026 revenue is $132.4 million, down from first quarter 2025 revenue of $318.7 million and fourth quarter 2025 revenue of $152.7 million.
Commenting on first quarter 2026 revenue, Chairman of the Board, CEO and President Johnny Shen, pointed to a postponed tape-out milestone for the slightly lower than expected results, but added that the first quarter of 2026 gross margin provides a pleasant upside surprise by going over 50% on a favorable revenue mix.
Mr. Shen also pointed out that design demand from the North American region remains strong, especially for the AI related sectors and commented that the company is seeing AI-related designs migrate from 5nm/3nm process technologies to 3nm/2nm nodes.
On a technology basis 3nm/2nm advanced geometry designs account for 21% of first quarter 2026 revenue, while 7nm/5nm node designs account for 63%. Designs at nodes ranging from 12nm and larger geometries account for the remaining 16%.
Geographically, Asia Pacific contributed 47% of first quarter 2026 revenue, while North America accounted for 23% of first quarter 2026 revenue, with Japan accounting for 8%, and the remaining 22% coming from the rest of the world.
Looking ahead to the rest of 2026, Mr. Shen expects revenue momentum to strengthen in the second quarter, followed by very strong quarter-on-quarter revenue and profit growth beginning in the third quarter. He attributed the expected improvement to North American demand for 3nm AI accelerator shipments. He also expects 2026 revenue to be weighted heavily toward the second half, supported by those same 3nm AI chip shipments and strong NRE revenue from an anticipated 2nm accelerator tape-out by year-end.
Alchip is traded on the Taiwan Stock Exchange, and its Global Depository 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, scalable business model, best-in-class IP portfolio, and advanced packaging technology expertise.
About Alchip
Alchip Technologies Ltd., founded in 2003 and headquartered in Taipei, Taiwan, is a leading global High-Performance Computing and AI infrastructure ASIC provider of IC and packaging design, and production services for companies developing complex and high-volume ASICs and SoCs. Alchip provides faster time-to-market and cost-effective solutions for SoC design at mainstream and advanced process technology. Alchip has built its reputation as a high-performance ASIC leader through its advanced 2.5D/3D CoWoS packaging, chiplet design, and manufacturing management,Customers include global leaders in artificial intelligence, high-performance computing, supercomputing, mobile communications, entertainment device, networking equipment, and other electronic product categories. Alchip is listed on the Taiwan Stock Exchange (TWSE: 3661).
For more information, please visit our website: http://www.alchip.com
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