RE: Build it and they will come.25 Sep 2023 20:28
Seems to happening. Increasingly their direction is trending towards high spec, high value collaborations.
Todays interim presentation : https://www.youtube.com/watch?v=07A8Bpy4iMM
Slide 11
H1 bookings ($187m) primarily in licensed IP and custom silicon, primarily in less than 7nm technology, mostly in AI infrastructure. 4 design wins in 3mn (involves 2 hyper scalers). The fact that most of the bookings are for licensed IP and custom silicon mean bookings will continue to deliver revenue for years to come.
Slide 12
Addressable market x10 since 2021. Expected to grow by 80% over next 3 years. Uniquely placed with a basket of complementary technologies
- High Speed connectivity
- Advanced Silicon (moving into 2nm)
- Chip design capability (seen as essential for advanced silicon). One of only 5 companies currently with chiplet capability.
- Opto Electronics
Slide 22
2023 guidance : Revenue $340-360m, EBITDA $87m
2025 guidance : Revenue $500m, EBITDA $150m
Other
At the forefront of UCIe seen as an enabler for chiplets, in turn seen as an enabler of shrinking dies, in turn seen as an enabler of AI, hyper scaler operations, etc. 60% (last year 20%) of pipeline is in licensed IP and custom silicon involving chiplets.
They believe their only competitor capable of providing solutions in 3mn with comparable connectivity is Marvell. Other players have point solutions.
Generally they believe that data scaling and AI will drive a requirement for custom silicon solutions. Some hyper scalers (a very few) might have the wherewithal to tackle this in house. Most will not / not have the appetite for this. AWE are uniquely positioned with solutions at the very high end to partner with. They do seem to be in the right place at the right time. There is always execution risk but I'd not be betting against them in the long term.
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