ASMedia Technology, which has received orders from AMD for its southbridge chip R&D and manufacturing, may feel the impact of AMD's poor peformance in the PC industry recently, according to sources from the upstream supply chain.
To save costs, AMD decided to cooperate with ASMedia in 2014 to license ASMedia's SATA Express patents and outsources its chip R&D and manufacturing to the chip designer.
In 2014, ASMedia achieved net profits of NT$228 million (US$7.38 million) and EPS of NT$4.04, and expected its revenues and profits to be driven by USB 3.1 demand in 2015.
However, for the first quarter, ASMedia only achieved EPS of NT$0.64 and combined consolidated revenues for the first five months of 2015 were down 11.2% on year to reach only NT$585 million and had a monthly EPS of NT$0.12 in May.
Although USB 3.1 and Type-C business opportunities have started showing up recently, Intel's aggressive moves on integrating USB 3.1 chip into its chipsets could still pose a great risk for ASMedia, the sources noted.
Article translated by Joseph Tsai
