AP Memory Technology Corp (愛普科技) yesterday said that revenue this year would benefit from robust demand for memory chips and silicon capacitors used in artificial intelligence (AI) and high-performance computing (HPC) devices.
The growth momentum is driven by a major shift in adoption of its customized memory chips, which are mainly used in Internet-of-things (IoT) devices amid tightening supplies of standard DRAM chips, the company said.
“The demand is very strong this year,” AP Memory president Hung Chih-hsun (洪志勳) said at its earnings conference. “Surging DRAM prices signal that the standard DRAM chip market is at risk of a short supply.”
Photo courtesy of AP Memory Technology Corp
“The concern over stable supply of standard memory chips is unprecedented,” he added.
A growing number of AP Memory’s customers are replacing standard DRAM chips with customized memory chips, Hung said.
Some customers have even adapted their existing products to customized memory chips, highlighting the standard DRAM crunch, the company said.
Such a shift would fuel growth of the company’s IoT memory chips used in connectivity, wearable devices, and video and audio devices this year, Hung said.
The IoT memory business made up 61 percent of AP Memory’s revenue in the fourth quarter last year.
Another growth driver would be robust demand for its silicon interposers, which are used in embedded substrates for advanced packaging chip-on-wafer-on-substrate (CoWoS) technology, thanks to the AI boom, AP Memory said.
The company expects production of its new silicon capacitors used in silicon interposers, an advanced electrical interface used in semiconductor packaging technology, mainly CoWoS, to fuel rapid growth in the second half of this year, Hung said.
Silicon capacitors would become a major revenue contributor within two years, driven by growing deployment in AI and HPC devices, Hung said.
They accounted for 30 percent of the company’s total revenue in the final quarter of last year, with revenue more than quadrupling from a year earlier.
AP Memory is developing vertical hybrid memory (VHM) chips and expects the new product to enter volume production at the end of next year or in early 2028, Hung said.
The company’s goal is to make VHM chips a substitute for pricey high-bandwidth memory chips in the foreseeable future, he said.
AP Memory said the disposal of a chip manufacturing fab in Miaoli County’s Tongluo Township (銅鑼) by its major contract chip supplier Powerchip Semiconductor Manufacturing Corp (力積電) would have a minor impact on its operations.
AP Memory reported a 20.31 percent decline in net profit last year to NT$1.26 billion (US$39.86 million) from NT$1.58 billion in 2024 due to foreign exchange losses. Earnings per share dropped to NT$7.74 from NT$9.73.
Revenue rose 35.16 percent to NT$5.67 billion last year from NT$4.19 billion in 2024.
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