PETALING JAYA: SkyeChip Bhd’s growing foothold in Japan’s semiconductor ecosystem could open up new opportunities in silicon intellectual property (IP) licensing and custom chip design.
The integrated circuit design company has been seeking to broaden its exposure to the artificial intelligence and high- performance computing markets.
According to Phillip Capital Research, North-East Asia emerged as a key growth driver, with revenue surging more than 20-fold quarter-on-quarter (q-o-q) to account for 25% of group revenue in the second quarter of financial year 2027 (FY27), largely driven by contributions from Japan.
SkyeChip is further expanding its presence in Japan’s semiconductor industry through its appointment as a design solution associate under Rapidus CORE, which supports customers developing chips using Rapidus’ 2nm process, as well as its collaboration with Tokyo-based SoftBank subsidiary Saimemory Corp on the Z-Angle Memory programme.
“These developments could unlock further IP licensing and application-specific integrated circuit design opportunities as Japan’s advanced-node ecosystem expands, supporting management’s strategy to deepen its presence in Japan and broaden its foundry partnerships,” Phillip Capital said in a note to clients.
The research house reiterated a “buy” rating on the stock with an unchanged 12-month target price of RM3.50, based on 65 times FY28 price-to-earnings ratio.
It viewed SkyeChip’s core earnings for the first six months of FY27 (6M27) as within expectations
In the second quarter of FY26, the group’s revenue increased by 9% q-o-q to RM54mil, with core net profit at RM19mil.
This brought 6M27 core earnings to RM35mil, which accounted for 49% and 55% of the firm’s and consensus full-year forecasts, respectively.
Kenanga Research, which kept an “outperform” rating and RM3.64 target price on the stock, noted that SkyeChip has demonstrated strong customer acquisition momentum since its listing in May.
The research house expects further customer wins, which potentially could drive earnings upside through new design engagements, follow-on licensing and eventually royalty income.
However, it said quarterly earnings may remain lumpy due to milestone-based revenue recognition, making annual earnings a more meaningful gauge of underlying performance.
Meanwhile, Hong Leong Investment Bank (HLIB) Research maintained a “hold” rating on SkyeChip with an unchanged target price of RM2.85.
The research house cited limited near-term upside despite SkyeChip’s positive long-term growth prospects.
With newer opportunities still at an early stage and subject to long development cycles, HLIB Research sees limited room for further re-rating until these initiatives translate into tangible progress and drive upside to long-term earnings growth.
“We, therefore, view the risk-reward as balanced at current levels,” the research firm added.
SkyeChip shares were trading at RM2.69 at the time of writing, about 20% higher than at the start of the year and more than three times its initial public offering price of RM0.88.
