SkyeChip scales up global AI silicon value chain - The Star

PETALING JAYA: SkyeChip Bhd – which was recently listed on Bursa Malaysia – continues to expand its global footprint, with new markets in the United States and South Korea contributing 24% of financial year 2026 (FY26) revenue. In a note to clients, Phillip Capital Research said the group expanded its active customer base to 26 in FY26 (versus 14 in FY25), supported by new customer wins, including two key US customers. The research house said strong demand for artificial intelligence (AI) infrastructure and next-generation computing continues to support SkyeChip’s project pipeline, with engineering utilisation reaching 100% in the first quarter (1Q) of FY27. “The group continues to expand its technical capabilities to support growing project requirements, with technical headcount increasing to about 400 personnel as of May 2026 (from 365 as of March 2026) and expected to reach approximately 426 personnel by FY27.” Phillip Capital Research said the increased engineering team will enhance SkyeChip’s execution capacity and enable the group to capture more design opportunities in AI, high-performance computing and data centre applications. Incorporating higher project value assumptions and stronger AI semiconductor design demand, Phillip Capital Research has raised SkyeChip’s FY28 to FY29 estimated earnings by 11% to 12%, respectively. “Accordingly, we raise our 12-month target price to RM3.50 (from RM1.75 previously), based on a higher 65 times price-to-earnings (PE) multiple (from 45 times) and rolling forward our valuation base year to the FY28 estimate. “Our higher PE multiple is based on a 30% premium to global silicon intellectual property (IP) and custom application-specific integrated circuit peers, justified by SkyeChip’s differentiated position as Malaysia’s only listed semiconductor IP player with proprietary silicon IP capabilities at the front end of the semiconductor value chain,” the research house added. It noted that SkyeChip is also prioritising growth over dividends. SkyeChip did not declare a FY26 dividend, despite its initial public offering (IPO) prospectus indicating a target payout ratio of up to 25% of profit after tax. “Management highlighted that retaining cash remains a priority to fund its growth strategy, including overseas market expansion, talent acquisition and further development of its semiconductor IP portfolio. “In line with this growth-oriented capital allocation strategy, we remove our dividend assumptions and expect earnings to be fully reinvested into growth initiatives over FY27 to FY29.” At last look, the stock traded at RM2.95. SkyeChip was listed in May at an IPO price of 88 sen. Follow us on our official WhatsApp channel for breaking news alerts and key updates! Tags / Keywords: SkyeChip Bhd , semiconductor design , Phillip Capital Research , proprietary silicon IP capabilities , Topic: Corporate News Report a mistake What is the issue about? Spelling and grammatical error Factually incorrect Story is irrelevant This field is mandatory. Please provide details of the report. Email (optional) Please enter valid email. Report issue Cancel Invalid captcha response. Please re-try again. Thank you for your report!