It is reported that high-speed transmission chip suppliers have obtained sufficient production capacity support from foundries

According to industry sources, high-speed transmission chip suppliers in Taiwan have obtained commitments from foundry manufacturers to provide sufficient production capacity support next year to welcome the industry's prosperity.

Digitimes reported that sources said that suppliers have launched a variety of high-speed transmission chip solutions, including wireless 5G, Wi-Fi 6E, wired 2.5G Ethernet chips, USB 4.0 and PCIe 5.0 interface solutions to match the ever-increasing CPUs, GPUs, AI and other high-performance computing chips.

Sources said that since the new generation of high-speed transmission chips involves higher unit prices and gross profit margins, suppliers with strong production capacity support from foundry partners are expected to perform much better next year.

"Many of these companies have entered the supply chains of major chipmakers such as Intel, AMD, Nvidia, Broadcom and Qualcomm, and are expected to benefit significantly from booming market demand in 2022," the source said.

It is reported that since the beginning of 2021, IC design service providers Global Unichip, Alchip and Faraday Technology have received a large number of orders for PCIe 5.0, USB 4.0 PHY chips and related controllers, while IP experts Andes Technology, M31 and PowerMemory Electronics have also seen quarterly growth in orders for high-speed transmission application IPs.

Meanwhile, ASMedia and Parade Technology are expected to achieve record revenue and profit in 2021 due to their early deployment of PCIe 4.0 interface. Given that their order visibility is already evident next year, the growth momentum will continue into 2022.

In addition, benefiting from the upgrade effect of the next-generation high-speed transmission interface solutions, USB power supply controller chip suppliers such as Genesys Technology, Weltrend Electronics, and Etron Technology, as well as power management IC suppliers such as Richtek Technology, Zhixin Technology, and Tongjia Technology are also ready to go.