REG - Alphawave IP Group - Q1 2025 Trading and Business Update

Alphawave IPAnnouncement

24/04/2025 07:02

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RNS Number : 9360F  Alphawave IP Group PLC  24 April 2025

Q1 2025 Trading and Business Update

 

·     Q1 Design wins demonstrate strength of IP, Custom Silicon, and
Chiplet portfolio

·     Increasing number of IP and Custom Silicon design awards from both
leading North American hyperscalers and new emerging hyperscalers

·     Continued industry leadership demonstrated through partnerships and
products announced through the quarter

LONDON, United Kingdom and TORONTO, Ontario, Canada 24 April 2025 - Alphawave
IP Group plc (LN: AWE, the "Company" or "Alphawave Semi"), a global leader in
ultra-high-speed data connectivity for AI, compute and network architectures,
is pleased to publish its trading and business update for the three months
ended 31 March 2025 ("Q1 2025").

 

 Bookings; US$m                Q1 2025  Q1 2024     Y-O-Y Change
 Licence and NRE               $73.1    $108.9      (33%)
 Royalties and Silicon Orders  $21.9     $9.0       143%
 New Bookings                  $95.0     $117.9     (19%)

 

 

Tony Pialis, President and Chief Executive Officer of Alphawave Semi said: "We
are pleased to report a strong trading performance in this period. Our success
with hyperscalers and AI accelerators continues to grow due to the diversity
and robustness of our IP and chiplet portfolio targeting AI-centric data
centres. This is highlighted by our recent custom silicon win in Q1, where we
received a design award from an emerging hyperscaler for a leading-edge AI
accelerator. The design award features our multi-protocol I/O chiplet and
implements a powerful AI accelerator chiplet with multiple HBM memories. This
chiplet-based connectivity and compute architecture is realised in leading
semiconductor process nodes and ultimately integrated into the world's most
advanced 3D packaging. We anticipate finalising the commercial details for
this win in Q2 2025. With additional IP and custom silicon commercial wins in
early April, our momentum in a challenging macroeconomic environment showcases
the strength of our offerings and reinforces our confidence in the long-term
outlook for the business."

 

Expanding Design Wins and Deepening Strategic Engagements

 

Alphawave Semi saw strong momentum in Q1 2025, with continued progress across
both IP and custom silicon engagements. The pipeline of new design
opportunities remains robust, reflecting growing demand for our differentiated
technology.

 

Alphawave Semi secured five new IP design wins in the first quarter,
underscoring the versatility and performance of the IP portfolio and its
relevance across diverse market verticals. IP design wins included a library
access agreement with a key hyperscaler, and multiple IP uses across product
lines from PCIe and UCIe to enable AI and compute infrastructure. In addition,
a strategic 3nm 224G based I/O chiplet design win secured within the quarter
highlights the increasing adoption of Alphawave Semi's IP in advanced process
nodes and high-performance computing applications, leveraging advanced
packaging using UCIe technology.

 

Total royalties and silicon purchase orders for the quarter reached US$21.9
million, demonstrating solid commercial execution.

 

The chiplet strategy continues to gain traction, particularly in optical I/O
for co-packaged optics (CPO) applications. At the Optical Fiber Conference
(OFC), Alphawave Semi showcased demos and announced collaborations with
industry leaders including Lightmatter, Ayar Labs, GlobalFoundries, and
others, reinforcing its leadership in this critical new form of optical
connectivity.

 

 

Continued Technology Leadership

 

In the first quarter of 2025, Alphawave Semi showcased substantial progress in
developing high-speed connectivity and computing silicon technologies,
solidifying its leadership in the chiplet, interconnect, and AI infrastructure
markets. The Company formed partnerships with industry leaders like Arm,
Keysight, Amphenol, and Siemens to highlight innovations at several
high-profile events.

 

Specifically, at the Chiplet Summit, Alphawave Semi showcased advancements in
64Gb per second UCIe, HBM4, and multi-protocol I/O chiplets designed for AI
systems. Meanwhile, at DesignCon, it collaborated with leading ecosystem
partners to display PCIe cabling, 112G SerDes, and interposer solutions.

 

During the quarter, we also announced a significant reseller agreement with
Siemens. This partnership will enable the global distribution of Alphawave
Semi's IP portfolio-including Ethernet, PCIe, CXL, HBM, and UCIe-through
Siemens' EDA sales channel. This collaboration will enhance customer access to
Alphawave Semi's silicon IP platforms for SoC and 3D-IC designs.

 

In April of this year, at OFC, Alphawave Semi introduced its new line of
optoelectronics DSP products: Cu-Wave™, O-Wave™, and Co-Wave™. These
advancements are designed for 800G/1.6T PAM4 and Coherent-lite applications,
specifically targeting the needs of hyperscale AI data centre connectivity.
This launch marks a significant expansion in Alphawave Semi's semiconductor
portfolio, leveraging our advanced connectivity technologies to accelerate
traditional networks while also catering to the increasing demands of AI
deployments for both scale-up and scale-out computing. At OFC, Alphawave Semi
also showcased next-generation technologies including 224G extra-long reach
(XLR) SerDes, 1.6 Terabit-per-second I/O chiplets, and UCIe IP for Co-Packaged
Optics and optical chiplets. These innovations reinforce the Company's
position at the forefront of high-speed interconnect and compute solutions for
AI and data infrastructure.

 

Outlook 2025 and beyond

 

As stated in our recent full year results announcement, in 2025 we will
complete our business integration and expect to start delivering silicon for
AI and data centres. We are executing on our strategy and remain excited about
the growth potential of our business. Due to current global economic
uncertainty and the rapidly developing nature of the recently imposed tariff
regimes, we are not in a position to provide guidance for full year 2025 or
beyond at this point in the financial year.  While timing of customer
programmes is currently uncertain, we remain optimistic about the future
growth opportunities of the business and will manage investments carefully
through this period.

 

High-speed connectivity IP is the DNA of our business, and we have been
recognised by the world's largest foundries as the premier leader in this
space. Most importantly, we are building on these strengths to deliver
long-term value for our shareholders and other stakeholders.

 

 

 

About Alphawave Semi

 

Alphawave Semi is a global leader in high-speed connectivity for the world's
technology infrastructure. Faced with the exponential growth of data,
Alphawave Semi's technology services a critical need: enabling data to travel
faster, more reliably and with higher performance at lower power. We are a
vertically integrated semiconductor company, and our IP, custom silicon,
connectivity products, and chiplets are deployed by global tier-one customers
in data centres, compute, networking, AI, 5G, autonomous vehicles, and
storage. Founded in 2017 by an expert technical team with a proven track
record in licensing semiconductor IP, our mission is to accelerate the
critical data infrastructure at the heart of our digital world. To find out
more about Alphawave Semi, visit: awavesemi.com (http://www.awaveip.com/)

 

Disclaimers & Cautionary Notes

 

Use of non-IFRS measures

 

We use certain alternative performance measures such as Adjusted EBITDA,
bookings, backlog etc. to make financial, operating, and planning decisions
and to evaluate and report performance. We believe these measures provide
useful information to investors and as such, where clearly identified, we have
included certain alternative performance measures in this document to assist
investors in analysing our business performance and enable greater
comparability. To do so, we have excluded items affecting the comparability of
period-over-period financial performance. Adjusted results and other non-IFRS
measures may be considered in addition to, but not as a substitute for or
superior to, information presented in accordance with IFRS. The Company
incudes an explanation on these alternative performance measures in its Annual
Reports.

 

Forward looking statements

 

This document contains certain statements that are, or may be deemed to be,
"forward-looking statements." Forward-looking statements give the Company's
current expectations and projections about future events, including strategic
initiatives and future financial condition and performance. Any
forward-looking statements made by or on behalf of the Company speak only as
of the date they are made and are based upon the knowledge and information
available to the Company on the date of this document. These forward-looking
statements and views may be based on a number of assumptions and, by their
nature, involve known and unknown risks, uncertainties and other factors
because they relate to events and depend on circumstances that may or may not
occur in the future and/or are beyond the Company's control or precise
estimate. Such risks, uncertainties and other factors could cause the
Company's actual results, performance or achievements to differ materially
from those in the forward-looking statements.

 

Subject to our obligations under English law in relation to disclosure and
reporting of information (including under the Market Abuse Regulation and the
UK Listing Rules), we undertake no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. You should, however, consult any additional disclosures
that the Company may make in any documents which it publishes and/or files
with Companies House or on its website and take note of these disclosures,
wherever you are located.

 

Trademarks

 

Alphawave Semi and the Alphawave Semi logo are trademarks of Alphawave IP
Group plc. All rights reserved. All registered trademarks and other trademarks
belong to their respective owners.

 

Contact Information:

 

 Alphawave Semi       Tony Pialis, CEO                   ir@awavesemi.com

                      Rahul Mathur, CFO                  +44 (0) 20 7717 5877
 IFC / Grand Bridges  Graham Herring        press@awavesemi.com

 Marketing Limited    Florence Staton       +44 (0) 75 6218 2327

                      Claudia Cano-Manuel

 

LEI: 213800ZXTO21EU4VMH37

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