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ASMedia Technology, which makes high-speed transmission chips for AMD, is expected to see its annual revenues hit a new high in 2018, as the US client is gaining impressive momentum to challenge Intel and Nvidia by launching a spate of new series of processors, significantly benefiting its contract manufacturers, according to industry sources.

AMD's launching new processor platforms will help significantly drive revenue growths of its supply chain partners. For instance, ASMedia, which has shipped high-speed transmission chips to AMD since 2014, expects its revenues and earnings to soar to record highs in 2018. The company saw its revenues and EPS for 2017 hit new highs of NT$2.97 billion (US$99.22 million) and NT$7.23, respectively, and its EPS for the first quarter of 2018 reached NT$2.43, up from NT$1.93 of a year earlier.

ASMedia indicated that its third-generation USB3.1 chipset solution has passed accreditations by both Intel and AMD for high-end platform applications, which, coupled with volume shipments of customized chip solutions and Type-C interface chips, will further drive the firm's revenue growth.

While continuing to improve its existing SATA, PCIe and USB high-speed transmission interface products, the company will also benefit from the market demand for PCIe bridge chips needed for crypto mining uses, according to company sources.

After returning to profitability with net earnings of US$43 million in 2017, AMD saw its operating profit skyrocket 990% to US$120 million with net earnings of US$81 million for the first quarter of 2018 on revenues of US$1.65 billion, up 40% on year, industry sources said.

The sources continued that 2018 will be a more prosperous year for AMD, as it has released a spate of new processors since the beginning of the year. After releasing in February desktop-use Ryzen APU (accelerated processing unit) with built-in Radeon Vega cores, the company launched second-generation Ryzen DT processors including high-end Ryzen 7 2700X/2700 and midrange Ryzen 5 2600X/2600, with unit prices of US$199-399 posing great pressure on Intel to lower prices of its 8th-generation processor family.

In mid-May, AMD also unveiled brand-new Ryzen Pro processor series with Radeon Vega graphics, having won patronage from business-use PC vendors HP, Dell and Lenovo, which have rolled out different versions of notebooks and desktops fitted with Ryzen Pro processors.

AMD is slated to release the second-generation Ryzen Threaddripper processors at the upcoming Computex Taipei 2018 in early June. It also plans to debut in the second half of 2018 the first version of Radeon Instinct Vega GPU dedicated for machine learning applications, which will be fabricated on 7nm process by Taiwan Semiconductor Manufacturing Company (TSMC).