Taiwanese fabless IC designer ASMedia, which specializes in high-speed transmission chips is a key supplier to AMD. Shortages in ABF substrate have impeded AMD’s CPU packaging and, in turn, impacted AMD’s large share of contribution to ASMedia’s revenue.
AMD had contributed to 64.6% of the IC designer’s revenue in 2020, but owing to ABF substrate shortages, the number went down to 50% of ASMedia’s yearly revenue in the first quarter of 2021.
ASMedia’s new USB4.0 products and new chipsets will only enter a new product cycle from the fourth quarter to boost growth. The overwhelming demand for ABF substrate is met with a shortfall in supply that may continue throughout the year although “the worst time is over,” as described by a foreign investor.
Luckily not being affected by the U.S. blacklisting Tianjin Phytium Information Technology, ASMedia has also made multiple successes in the Chinese market within standard I/O products segments, such that on average, every four Chinese-made CPUs will contain one of which made by ASMedia.
Meanwhile, ASMedia’s potential growth in 2022 to 2023 is not being held back by the ABF substrate shortages, thanks to clear and niche product lines including having USB, PCIe and SATA combo IP at the same time, and maintaining an industry leader with its chipsets and host controller.
ASMedia has seen the highest combined monthly revenue in June since February and reached the highest combined revenue in the first half of the year. Looking into the second half of the year, despite ABF substrate supply is still tight, but under better supply chain management, the IC designer can expect to increase 18% in the third quarter and 17% of yearly growth.