LOPSIDED LOAD:
AP Memory is optimistic about the future, with orders aplenty coming, but seeks to balance its offerings so no one product is too important
By Lisa Wang / Staff Reporter
AP Memory Technology Corp (愛普科技) yesterday said increasing demand for new stack silicon capacitor (S-SiCap) used in advanced packaging technology would drive revenue growth this year and next year amid the artificial intelligence (AI) boom. AP Memory, which designs low-power memory chips, is reportedly to supply integrated passive devices (IPD) for Intel Corp’s advanced packaging technology, called embedded multi-die interconnect bridge (EMIB). Intel’s EMIB technology is considered a rival to Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) chip-on-wafer-on-substrate (CoWoS) technology for AI and high-performance computing chips.
The AP Memory Technology Corp logo is displayed on the company’s Web site.
Photo: Screen grab from AP Memory Technology Corp’s Web site
“Advanced packaging technology like EMIB creates sizable business opportunities for us in the embedded-in-substrate area,” AP Memory president Hung Chih-hsun (洪志勳) said at an earnings conference. The company has received orders and expects to see its revenue contribution this year following the first shipments scheduled for this quarter, Hung said.
The silicon capacitors for IPDs are to enter volume production this quarter, he said. AP Memory did not secure an exclusive supply agreement, he added, addressing media speculation. The company has high confidence in revenue growth this year and next year, on the back of resilient demand for IPDs, interposer with silicon capacitors (IPCs) and land-side capacitors, it said. An uptrend in contract liability and customers’ prepayment serve as a positive indicator, it said. The growth is backed by robust demand for specialized memory for Internet-of-Things (IoT) and wearable devices, called IoTRAM, the company said. The DRAM shortage forced some customers to switch to IoTRAM, causing price surges, it said. AP Memory’s revenue reached NT$2.1 billion (US$66.7 million) in the first quarter from NT$975 million a year ago. IoTRAM is the largest revenue contributor, accounting for 70 percent, followed by S-SiCap’s 27 percent. S-SiCap revenue increased to NT$572 million in the first quarter from NT$66 million a year ago, the company said. Vertical hybrid memory (VHM) chips, used in AI accelerators, made up 2.6 percent of revenue, the company said, adding that it is in intensive discussions with data center operators to supply VHM chips. AP Memory has set a long term goal of having a more balanced revenue breakdown with each product to make up one-third of its revenue, it said. AP Memory is seeking extra capacity from a second foundry service provider, after Powerchip Semiconductor Manufacturing Corp (力積電) sold its 12-inch fab to Micron Technology Inc earlier this year. The company is in initial discussions with new foundry companies, it said. AP Memory reported net profit in the first quarter more than doubled from a year ago to NT$676 million, compared with NT$331 million. Earnings per share expanded to NT$4.15 from NT$2.04 in the same quarter last year. Gross margin was unchanged at 46 percent, and the company expects the figure to stay at about 45 percent for the long term, it said.