Andes Technology (TWSE: 6533) has grown its revenue five-fold in the past seven years since its initial public offering in 2017, consolidating its position as a leading company in the processor IP field. Andes has invested capital and R&D manpower to accelerate the launch of high-end products to ensure long-term competitiveness and maintain market leadership. It is expected that a competitive product portfolio will create the next wave of revenue peaks.
With close observation of market dynamics and technology trends and decisive decision-making, Andes Technology flexibly adjusts its strategic positioning and seizes emerging opportunities, such as upgrading its third-generation proprietary instruction set architecture AndeStar™ V3 in 2016. In the fifth generation of AndeStar™ V5, the RISC-V architecture was introduced, or after the trend of RISC-V entering the mainstream ISA architecture emerged, it was decided to accelerate the launch of high-end products to seize related markets such as AI acceleration, RISC-V automotive, and Application processor chip design. In 2023, even though the semiconductor industry is facing inventory pressure, the cumulative shipments of SoCs with embedded AndesCore™ will still exceed 14 billion units. According to the SHD marketing report released in January 2024, Andes Technology has a market share of 30% among RISC-V IP suppliers, making it the world's largest RISC-V CPU IP supplier.
In 2023, Andes Technology's diversified product portfolio resonated strongly with the market and contributed to the continued growth of its performance. Andes Technology successfully launched the market's first RISC-V vector processor - AndesCore™ AX45MPV, and N25F-SE - an automotive-grade core that leads the RISC-V industry revolution and is fully ISO 26262 compliant. Andes Technology has also entered the application processor market and launched the high-end out-of-order processor (OOO) - AndesCore™ AX65. AndesCore™ D23 and AndesCore™ N225 were released for streamlined, efficient and secure applications. In addition to CPU IP, Andes has also established a new AI product line, AndesAIRE™ (Andes AI Runs Everywhere), to provide comprehensive hardware and software artificial intelligence integration solutions for edge and end-side reasoning.
Andes' unwavering commitment to customer satisfaction has strengthened relationships with customers and deepened its market-leading position. The potential markets for Andes' products cover a wide range of areas, including AI/ML, 5G communications, FPGA, image processing, IoT, microcontrollers/microprocessors, sensors, storage, TDDI and wireless connections.
Looking forward to the future, Andes Technology will continue to be committed to innovation, customer satisfaction and continuous adaptation to the dynamic CPU IP licensing market. The following are a series of key factors driving Andes’ growth:
Expansion of artificial intelligence and high-performance computing applications: The continued growth in demand for artificial intelligence and high-performance computing (HPC) applications, coupled with the demand for dedicated SoCs, is one of the main driving forces for Andes. Providing processors equipped with ACE™ (Andes Automated Custom Extension) to meet the large and stringent requirements of AI and HPC workloads has made a significant contribution to Andes' market growth.
Increased demand for automotive-grade (ISO 262626) SoCs: With the rapid development of the automotive electronics industry, the demand for automotive-grade SoCs that comply with the ISO 262626 standard continues to increase. Andes Technology has grasped this trend and actively met the growing demand for automotive-grade solutions. By providing processors designed to meet the strict safety and reliability requirements of the automotive industry, Andes' products have taken a leading position in the RISC-V market and have completed multiple certifications to meet this expanding market and further improve Its successful mass production rate and market penetration rate.
The maturation of the RISC-V ecosystem: By actively participating in the RISC-V international association and development community, and as the highest-level member and event sponsor, Andes Technology contributes to the rapid expansion of the RISC-V ecosystem. Through these efforts, Andes remains at the forefront of RISC-V development, promoting a virtuous cycle that benefits both the company and the RISC-V ecosystem.
The rise of multi-core heterogeneous SoCs: The increasing complexity of application structures in various emerging fields such as artificial intelligence, Internet of Things, edge computing and data centers has led to the growth of multi-core heterogeneous SoCs. Andes Technology's strategy focuses on developing a diversified product portfolio to meet the needs of multi-core heterogeneous SoCs. Andes' diverse CPU IP portfolio delivers the performance and flexibility today's applications demand.
"Andes Technology's continued growth over the past seven years demonstrates our firm determination to lead industry trends and our commitment to our customers," said Andes Chairman and CEO Jimmy Lam. "We remain committed to shaping CPU IP through cutting-edge solutions. The future of the licensing market.”
"Andes uses the motto of "Driving Innovation" to formulate future product roadmaps. On the one hand, we are developing high-end products that push the limits of performance; on the other hand, we continue to provide powerful streamlined processors to improve energy efficiency and security ." Dr. Su Hongmeng, General Manager and Chief Technology Officer of Andes Technology, said, "Combining our expertise with the needs of this evolving industry, our outstanding team and effective collaboration with customers will continue to drive us forward. , shaping the future of high-performance, high-efficiency computing, meeting the strict safety requirements of automotive SoCs, and realizing the emerging needs of artificial intelligence."