Core Insights - The article emphasizes that computational power is becoming the "first productive force" in the era of accelerated AI large models, with China's intelligent computing scale expected to grow by 74.1% year-on-year in 2024 [1] - The industry is facing significant challenges, including the "memory wall," "process wall," and "interconnect wall," prompting rapid advancements in technologies such as Chiplet advanced packaging, heterogeneous computing, RISC-V architecture innovation, and distributed clusters [1] - A live forum titled "Building the AI Computing Ecosystem in China" is being organized to address these challenges, featuring key players in the semiconductor industry [1] Group 1: Event Details - The live forum will take place on November 20, 2025, from 14:00 to 16:00 [2] - The event will be accessible via a live streaming platform, with prior registration encouraged [2][8] Group 2: Technical Challenges - In the EDA tools layer, AI-assisted design is crucial for ensuring that domestic AI computing remains autonomous and controllable [6] - The Chiplet architecture layer faces new challenges in system verification, interconnectivity, and standardization across different processes and packages [6] - The computing fusion layer is characterized by a diverse landscape of CPU, GPU, NPU, FPGA, DPU, and emerging architectures like RISC-V, necessitating intelligent collaboration for both Scale-Up and Scale-Out [6] - The ecosystem co-construction layer highlights the need for a closed-loop ecosystem that integrates EDA, Chiplet, NPU, and cloud services, which is still under development [6] Group 3: Roundtable Discussion Topics - The roundtable will discuss how to initiate breakthroughs in autonomous computing systems [7] - It will explore the construction of an evolving computing architecture from Chiplet to system [7] - The discussion will address how to achieve collaborative advancement in a multi-faceted computing ecosystem [7] - It will also focus on igniting collaboration between upstream and downstream players in the industry chain to enhance global competitiveness in AI [7] Group 4: Event Participation - The ICCAD 2025 event is expected to gather over 8,000 industry professionals, 2,000 IC companies, and 300 service providers from the IC industry [7] - For those unable to attend in person, there will be opportunities to virtually explore the event and witness the latest industry trends [7]

Financial Data and Key Metrics Changes - First-quarter revenue reached $978 million, a 22% increase year-over-year and an 8% increase from Q4 [4][7] - Non-GAAP earnings per share (EPS) were $2.92, reflecting strong revenue growth directly impacting the bottom line [4][9] - Gross margin for the first quarter was 12.3%, down 30 basis points from Q4, but in line with expectations [9] Business Line Data and Key Metrics Changes - Optical communications revenue was $747 million, up 19% year-over-year and 8% from Q4 [7][8] - Telecom revenue hit a record $412 million, surging 59% year-over-year and 15% from Q4, primarily driven by data center interconnect (DCI) products [7][8] - DCI revenue was $138 million, representing a 92% increase year-over-year and a 29% increase from Q4 [8] - DataCom revenue totaled $273 million, down 17% year-over-year but only 1% from Q4, indicating stronger-than-expected demand [8] - Non-optical communications revenue was $231 million, up 3% year-over-year and 5% from Q4, driven by high-performance computing (HPC) revenue of $15 million [8] Market Data and Key Metrics Changes - Automotive revenue was $122 million, up 19% year-over-year but down 5% from Q4 [8] - Industrial laser revenue was $40 million, up 12% year-over-year and flat sequentially [8] Company Strategy and Development Direction - The company is optimistic about extending strong momentum into the second quarter, with multiple growth drivers across its business [6][11] - Construction of Building 10, totaling 2 million square feet, is on track for completion by the end of calendar 2026, with portions expected to be completed by mid-2026 to support growth [6][10] - The introduction of a new revenue category for HPC products is expected to scale significantly over the coming quarters [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand trends across various segments, particularly in telecom and HPC [4][11] - The company anticipates second-quarter revenue to be in the range of $1.05-$1.1 billion, representing a 29% increase year-over-year at the midpoint [11][12] - Management acknowledged ongoing component constraints but remains optimistic about overall demand trends [5][49] Other Important Information - The company ended the first quarter with cash and short-term investments of $969 million, up $35 million from Q4 [10] - Capital expenditures of $45 million were above maintenance levels due to ongoing construction of Building 10 [10] Q&A Session Summary Question: What is embedded in your December quarter outlook for DataCom? - Management refrained from commenting on individual components but emphasized their position to capitalize on the ongoing transition to photonics [15] Question: Does the HPC program take into account other customer engagements? - The HPC program was broken out as a separate category due to its complexity and potential for growth, with initial engagements going well [17][19] Question: How do the ramps of the HPC customer compare to the new telecom customer? - The HPC product is complex and has a slower ramp, while the new telecom product is a new offering that will grow as it gains market traction [23][25] Question: How many customers drove the sequential growth in telecom? - The growth was driven by a mix of customers across traditional telecom and DCI, indicating broad-based demand [30] Question: Can you discuss the share repurchase activity? - The share repurchase was limited due to a focus on capital allocation for growth, particularly in Building 10 expansion [36][37] Question: Is the component supply situation improving? - Management indicated that while some components remain in tight supply, they expect improvements as suppliers ramp up capacity [49][50]