Chinese semiconductor company Montage Technology reported a sharp surge in revenue and profit in the March quarter, following a significant rise a year earlier, in a sign of the country’s expanding presence in the memory chip segment.
The Shanghai-based integrated circuit design firm, which supplies connectors to dynamic random-access memory (DRAM) chips, said in a filing on Wednesday that its first-quarter revenue reached 1.21 billion yuan (US$166 million), up 65.78 per cent year on year. Net profit jumped 135.14 per cent to 525 million yuan from 223 million yuan a year ago.
Montage attributed its strong growth last quarter to the artificial intelligence (AI) industry, as demand rose for DDR5 (Double Data Rate 5) DRAM chips used in high-performance computing systems and data centres. Shipments of both its DDR5 and RCD (Register Clock Driver) chips have grown substantially, the company said on Wednesday.
Montage is currently one of the world’s three main suppliers of DDR5 connector chips, along with Japan’s Renesas Electronics and US-based Rambus. Most clients of Montage are from outside China, according to its 2024 annual report.
That reflects China’s growing presence in the global semiconductor supply chain, despite US tech restrictions.
