The AI ASIC market is booming, and Taiwanese manufacturers are benefiting from it and are optimistic about their operations.

Reporter Zhuo Yijun/Special report

As the demand for AI computing power shifts from early-stage "model training" to "terminal inference (Inference)" on a large scale, major cloud service giants (CSPs) are rushing to launch self-developed chips. The ASIC (customized chip) market has entered an era of flourishing. Sechi-KY (3661), Creativity (3443), and MediaTek (2454) have all entered the supply chain of major international CSP companies, and their operations have entered an explosive period. Faraday (3035) and Juyou (8227) ASIC businesses have also shown results, and Silicon Intellectual Property-related stocks are promising for future operations.

MediaTek’s revenue visibility is directly visible until 2029

The future growth of AI ASIC is much greater than that of GPU (graphics processor). According to estimates by foreign investment and research institutions, the growth rate of ASIC shipments in 2026 will be approximately 44.6% to 45%, and the compound annual growth rate (CAGR) in the next five years will be as high as 53%. The overall shipment volume of ASIC may even surpass GPU in 2027, and the annual compound growth rate of GPU in the next five years is estimated to be around 20%. ASIC has become a battleground for IC design manufacturers. MediaTek broke Broadcom's previous monopoly on Google TPU (tensor processor) suppliers and successfully won large TPU orders for Google v8i and v9. In addition, Huida subscribed for MediaTek's US$3.5 billion in overseas convertible corporate bonds, further establishing MediaTek's development prospects in AI data centers. U.S. foreign investors estimate that MediaTek's AI ASIC visibility is expected to continue until 2029 and 2028 AI ASIC revenue reached US$50 billion (accounting for 67% of overall revenue).

Creativity is a supplier of customized CPU chips for Google. It has also received next-generation orders from Google, as well as major ASIC orders from Microsoft and Meta. It has single-handedly controlled ASIC orders from the three major CSP customers, and its operations are expected to grow rapidly until 2028.

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The trend of self-developed chips by major CSP manufacturers has emerged, and the AI ASIC market has entered a period of explosive business opportunities. Taiwanese design service providers such as Shixin-KY, Creativity, and MediaTek have benefited from strong momentum. (Central News Agency)

Sechip's new AWS (Amazon Cloud Computing Service) 3nm AI accelerator has begun to be shipped in large quantities, and its revenue and profit in the third quarter are expected to hit new highs. Sechip pointed out that with its existing mass production projects, plus the next generation products of major customers, it can support growth momentum for at least the next 3 to 4 years. In addition, there is an opportunity to acquire another large CSP customer in the near future, and it is expected to grow with major international customers until 2029.

Juyou's operations have grown significantly this year. Juyou said that the company continues to deploy advanced processes. In addition to successfully entering high-end nanometer process design-in projects for US customers, a number of projects below 12 nanometers have entered the mass production stage. At the same time, the company has further strengthened the COT (Customer-Owned Tooling) business model and integrated TSMC (2330) Design Center Alliance and Synopsys IP OEM partnership, and cooperation with ASE (3711) in the field of packaging and testing.

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