Shanghai Chip Maker Montage Technology Doubles Profit Amid AI Demand Surge
- tech360.tv
- Apr 24
- 2 min read
Shanghai-based semiconductor firm Montage Technology reported a 135.14% increase in net profit for the first quarter of 2024, driven by rising global demand for AI-related memory chips.
The company posted a net profit of 525 million yuan (USD 72 million), up from 223 million yuan a year earlier. Revenue rose 65.78% year on year to 1.21 billion yuan (USD 166 million), according to a company filing on Wednesday.
Montage attributed the growth to increased shipments of DDR5 and RCD (Register Clock Driver) chips, which are used in high-performance computing systems and data centres.
The firm is one of the world’s top three suppliers of DDR5 connector chips, alongside Japan’s Renesas Electronics and US-based Rambus. Most of Montage’s clients are located outside China, according to its 2024 annual report.
The results reflect China’s expanding role in the global semiconductor supply chain, despite ongoing US technology restrictions.
Montage’s full-year 2024 revenue rose 59.2% to 3.64 billion yuan, while net profit surged 213.1%, the company said in its annual report published earlier this month.
Founded in 2004 by Chairman and Chief Executive Howard Yang Chonghe, Montage has benefited from China’s push for technology self-sufficiency. Yang previously worked in chip design at US-based National Semiconductor.
Other Chinese chipmakers have also reported strong earnings. Beijing-based Cambricon Technologies, which designs AI chips as domestic alternatives to Nvidia’s GPUs, posted a 4,230% year-on-year increase in first-quarter revenue to 1.11 billion yuan.
Meanwhile, Nvidia announced it would take USD 5.5 billion in charges after the US government imposed new licensing requirements for exports of its H20 AI chip to China.
Chinese semiconductor equipment makers have also seen growth. Naura Technology Group projected a 51% year-on-year rise in first-quarter revenue.
Advanced Micro-Fabrication Equipment, based in Shanghai, reported a 44.73% increase in 2024 revenue. Its founder and CEO, Gerald Yin Zheyao, recently renounced his US citizenship and restored his Chinese nationality, according to the company’s latest annual report.
Montage Technology’s Q1 profit rose 135.14% to 525 million yuan
Revenue increased 65.78% to 1.21 billion yuan
Growth driven by AI demand and DDR5 chip shipments
Source: SCMP
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