Alphawave Semi: Q2 2024 Trading and Business Update
-
Third consecutive quarter of bookings above
$100m atUS$107m , up 27% year-over-year - Record design win quarter with 14 new design wins
- Multiple new chiplet design wins reflect industry adoption of chiplet architectures
- Restructured debt facility strengthens balance sheet and provides flexibility
US$m |
Q2 2024 |
Q2 2023 |
Change |
Licence and NRE (non-recurring engineering) |
94.6 |
47.7 |
98% |
Royalties and Silicon Orders |
12.8 |
36.4 |
-65% |
New Bookings |
107.4 |
84.1 |
27% |
|
|
|
|
Additional design win activity - FSA drawdowns and |
- |
3.4 |
Nm |
|
|
|
|
Due to rounding, numbers presented in the table may not add up to the totals provided and percentages may not precisely reflect the absolute figures.
Expanding Technology Leadership in IP, Chiplets, Custom Silicon and Silicon Products
Alphawave Semi held its Capital Markets Day in early June and reiterated the importance of continued and expanded technology leadership in connectivity solutions in all solution spaces – IP, custom silicon, chiplets, and silicon products. The design wins in the second quarter demonstrate this continued and expanded technology leadership.
Design win activity in the quarter was a record, with 14 new design wins from new and existing end-customers. Several of these were for hyperscalers and leading semiconductor companies requiring advanced 112G, PCI-Express, UCIe and High Bandwidth Memory technology solutions, as well as Arm-based chiplet solutions. These wins reflect Alphawave Semi’s continued strength in AI and the data infrastructure markets that require the world’s most advanced connectivity technology.
Alphawave has continued to demonstrate design win leadership in chiplets for AI and the data infrastructure markets for hyperscalers and semiconductor companies. As of the end of the second quarter, Alphawave has seven designs leveraging advanced packaging and chiplet-based designs on advanced nodes. Most of these chiplets are expected to enter production in 2025 and contribute revenues in 2025 and beyond.
Development of Alphawave Semi’s first connectivity silicon products remains on schedule and first silicon shipments are expected by the end of 2024. These first products will be shipped to one of the world’s leading hyperscalers, with the potential for aggregate sales to exceed
In Q2 2024, Alphawave booked a Flexible Spending Account (“FSA”) with a leading semiconductor company, providing it with access to Alphawave’s leading portfolio of connectivity IPs in the most advanced nodes. In the same quarter, there were no FSA2 drawdowns (Q2 2023: US$nil FSA drawdowns and
Shortly after Q2 ended, Alphawave amended its existing debt facility to align covenants more closely to operational metrics and provide for additional debt capacity. This increased flexibility will allow the Company to capitalise on its strong pipeline of opportunities.
About Alphawave Semi
Alphawave Semi is a global leader in high-speed connectivity for the world’s technology infrastructure. Faced with the exponential growth of data, Alphawave Semi’s technology services a critical need: enabling data to travel faster, more reliably and with higher performance at lower power. We are a vertically integrated semiconductor company, and our IP, custom silicon, and connectivity products are deployed by global tier-one customers in data centres, compute, networking, AI, 5G, autonomous vehicles, and storage. Founded in 2017 by an expert technical team with a proven track record in licensing semiconductor IP, our mission is to accelerate the critical data infrastructure at the heart of our digital world. To find out more about Alphawave Semi, visit: awavesemi.com
Trademarks
Alphawave Semi and the Alphawave Semi logo are trademarks of
LEI: 213800ZXTO21EU4VMH37
1 Both FSA (Flexible Spending Account) drawdowns and
2 FSAs or Flexible Spending Accounts represent contracts with customers who have committed to regular periodic payments. These payments are not in respect of specific licences but can be used as credit against future deliverables. FSA drawdowns represent the design win value of transactions signed during the period, against which FSA payments will be credited and will convert to revenue over time.
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Alphawave Semi
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Source: Alphawave Semi