# Alchip Technologies (3661.TW)

Canonical: https://gigainvestors.com/s/3661.TW

Analysis as of: 2026-10-16T07:35:54.971Z. Financial observations: FY2009–FY2026.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 3,705.00 per share; close as of 2026-10-15.

Estimated value: low TWD 1,124.08 per share, central TWD 1,344.48 per share, high TWD 1,472.82 per share. Buy at or below the central value TWD 1,344.48 per share. Valuation as of 2026-10-16T07:35:54.971Z; scenarios are not confidence intervals.

Expected annual return: 4.7% at the stated quote. About 4.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.09×

- FY2019: 0.13×

- FY2020: 0.16×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.14×

- FY2024: 0.13×

- FY2025: 0.16×

- LTM to Jun 2026: 0.23×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- Recent gross margin fell 7.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 40.6%

- ROIC, second-lowest year: 21.2%

- Typical minus recent gross margin: 7.9 pp

- Typical gross margin (annual median): 30.2%

- Recent gross margin (lower of latest and 3-year median): 22.3%

- Years with nonpositive capital: 1

- Capital spending / revenue: 13.2%

- ROIC including acquisitions, ten-year median: 46.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -9.6%

- FY2017: 26.5%

- FY2018: 31.1%

- FY2019: 50.1%

- FY2020: 21.2%

- FY2021: 70.1%

- FY2022: 30.4%

- FY2023: 79.8%

- FY2024: 52.4%

- FY2025: >100%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 20B

- Net income, five-year total: TWD 19B

- Return on incremental invested capital: 39.3%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 14.7 pp

- Working capital / revenue, final three-year average: 34.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 1.37×

- FY2023: 0.99×

- FY2024: 1.00×

- FY2025: 1.13×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 26.5% vs 79.8%

- Per-share earnings: 2.10 to 68.86 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: 5.8%

- Market cap gain: TWD 283B

- Cumulative retained earnings: TWD 13B

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 5.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 54.7%

- Per-share value change: TWD 66.76

- Per-share value, starting three-year median: TWD 2.10

- Per-share value, ending three-year median: TWD 68.86

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 1.3%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 520M

- Cumulative net income, 10 years: TWD 20B

- ROIC, first three-year median: 26.5%

- ROIC, last three-year median: 79.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD -3.47

- FY2017: TWD 5.09

- FY2018: TWD 4.17

- FY2019: TWD 7.21

- FY2020: TWD 13.59

- FY2021: TWD 19.96

- FY2022: TWD 24.52

- FY2023: TWD 44.74

- FY2024: TWD 79.12

- FY2025: TWD 68.86

### accounting: pass

- Sloan accruals: -19.2%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.99×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -22.7%

- FY2017: -30.0%

- FY2018: -20.5%

- FY2019: -23.6%

- FY2020: -40.8%

- FY2021: 8.6%

- FY2022: 10.5%

- FY2023: -18.4%

- FY2024: 6.1%

- FY2025: -19.2%

## Holders

## Price story

Price needs cash profits to grow 25.2% a year for ten years · sales -25.2%

Story as of 2026-10-16T10:00:06.308Z; price observation 2026-10-15.

Price needs cash profits to grow 25.2% a year for ten years

### Sales · FY2025–2026

sales -25.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: TWD 4.3B 

- FY2018: TWD 3.5B 

- FY2019: TWD 4.3B 

- FY2020: TWD 7.1B 

- FY2021: TWD 10B 

- FY2022: TWD 14B 

- FY2023: TWD 30B 

- FY2024: TWD 52B 

- FY2025: TWD 31B 

- FY2026: TWD 23B 

### Gross margin · FY2025

gross margin 26.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.2% 

- FY2017: 28.2% 

- FY2018: 37.4% 

- FY2019: 37.2% 

- FY2020: 32.6% 

- FY2021: 34.2% 

- FY2022: 32.3% 

- FY2023: 22.3% 

- FY2024: 19.6% 

- FY2025: 26.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are TWD 30.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2025: revenue 30926092000; grossProfit 8154375000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 3661.TW: Alchip Technologies, Limited, together with its subsidiaries, engages in the research, design, development, and manufacturing of application specific integrated circuits and system on a chip in the United States, China, Japan, Taiwan, and internationally. It offers ASIC design services, including SoC frontend design, physical backend design, and design for testability, as well as low power, high performance, and advanced package solutions; production services, such as advanced packaging, advanced testing, and product engineering services, as well as quality assurance and policy; and IP services comprising IP integration and verification. The company is also involved in general investment activities; provision of product technical support and consultation services; and software development and services. Its products are used in AI, HPC/supercomputer, mobile phones, entertainment device, networking equipment, and electronic product sectors. The company was founded in 1992 and is headquartered in Taipei, Taiwan.

### Why customers stay

Margins ranged from 19.6% to 26.4% during 2023–25; it earns 40.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2023: grossProfit / revenue = 22.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2024: grossProfit / revenue = 19.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2025: grossProfit / revenue = 26.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); 10-year return on capital observations [[2016,-0.09644756134543488],[2017,0.2652872155563327],[2018,0.3114461657157827],[2019,0.5006159529225476],[2020,0.21225053309317776],[2021,0.7008773119930732],[2022,0.30411834335577437],[2023,0.7980733169822062],[2024,0.5240237969119295],[2025,1.8579348442189145]]; median 0.40603105931916517. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2017: growth capex 50869152.35597062; upkeep 546205847.6440294; owner earnings 263720152.35597062. Growth capex / owner earnings = 0.19289065284365228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2018: growth capex 0; upkeep 865221000; owner earnings 178173000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2019: growth capex 0; upkeep 863577000; owner earnings 476406800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2020: growth capex 252341706.23758364; upkeep 1360767293.7624164; owner earnings 544568106.2375836. Growth capex / owner earnings = 0.4633795173591974.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2021: growth capex 178576000; upkeep 1531720000; owner earnings 1472472800. Growth capex / owner earnings = 0.12127626398260125.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2022: growth capex 0; upkeep 1363737000; owner earnings 2504665800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2023: growth capex 1237522000; upkeep 2021317000; owner earnings 3279905000. Growth capex / owner earnings = 0.3773042207015142.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2024: growth capex 0; upkeep 2613053000; owner earnings 6434788000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); FY2025: growth capex 0; upkeep 2287050000; owner earnings 6304720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); Dividend observations: [[2016,29679000],[2017,64008000],[2018,64008000],[2019,90685000],[2020,214111000],[2021,465387000],[2022,845743000],[2023,930917000],[2024,1818236000],[2025,2945750000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 3.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 3661.TW SharesStats.PercentInsiders = 3.1419999999999995 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 25.2% yearly over ten years; actual growth was 35.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:54.971Z); Ten-year compound average after fade. Initial solved rate 0.35505174443515164. Price 3705; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.793221984724865 → FY2025 77.57268532759151. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 27.75 per share

- 2016-11: TWD 30.70 per share

- 2016-12: TWD 31.25 per share

- 2017-01: TWD 29.80 per share

- 2017-02: TWD 37.45 per share

- 2017-03: TWD 49.30 per share

- 2017-04: TWD 59.90 per share

- 2017-05: TWD 56.70 per share

- 2017-06: TWD 61.00 per share

- 2017-07: TWD 80.00 per share

- 2017-08: TWD 81.00 per share

- 2017-09: TWD 95.20 per share

- 2017-10: TWD 117.00 per share

- 2017-11: TWD 84.20 per share

- 2017-12: TWD 90.50 per share

- 2018-01: TWD 118.00 per share

- 2018-02: TWD 115.50 per share

- 2018-03: TWD 119.00 per share

- 2018-04: TWD 137.00 per share

- 2018-05: TWD 133.00 per share

- 2018-06: TWD 135.00 per share

- 2018-07: TWD 120.50 per share

- 2018-08: TWD 114.00 per share

- 2018-09: TWD 88.60 per share

- 2018-10: TWD 69.30 per share

- 2018-11: TWD 84.10 per share

- 2018-12: TWD 69.00 per share

- 2019-01: TWD 76.90 per share

- 2019-02: TWD 86.50 per share

- 2019-03: TWD 74.40 per share

- 2019-04: TWD 81.10 per share

- 2019-05: TWD 86.30 per share

- 2019-06: TWD 92.60 per share

- 2019-07: TWD 101.00 per share

- 2019-08: TWD 137.00 per share

- 2019-09: TWD 159.50 per share

- 2019-10: TWD 186.50 per share

- 2019-11: TWD 219.00 per share

- 2019-12: TWD 234.50 per share

- 2020-01: TWD 230.50 per share

- 2020-02: TWD 218.00 per share

- 2020-03: TWD 197.00 per share

- 2020-04: TWD 294.00 per share

- 2020-05: TWD 300.00 per share

- 2020-06: TWD 500.00 per share

- 2020-07: TWD 599.00 per share

- 2020-08: TWD 527.00 per share

- 2020-09: TWD 487.50 per share

- 2020-10: TWD 484.50 per share

- 2020-11: TWD 668.00 per share

- 2020-12: TWD 621.00 per share

- 2021-01: TWD 825.00 per share

- 2021-02: TWD 885.00 per share

- 2021-03: TWD 900.00 per share

- 2021-04: TWD 497.00 per share

- 2021-05: TWD 583.00 per share

- 2021-06: TWD 611.00 per share

- 2021-07: TWD 633.00 per share

- 2021-08: TWD 699.00 per share

- 2021-09: TWD 928.00 per share

- 2021-10: TWD 1,030.00 per share

- 2021-11: TWD 1,020.00 per share

- 2021-12: TWD 1,020.00 per share

- 2022-01: TWD 935.00 per share

- 2022-02: TWD 1,075.00 per share

- 2022-03: TWD 1,100.00 per share

- 2022-04: TWD 886.00 per share

- 2022-05: TWD 935.00 per share

- 2022-06: TWD 694.00 per share

- 2022-07: TWD 706.00 per share

- 2022-08: TWD 857.00 per share

- 2022-09: TWD 867.00 per share

- 2022-10: TWD 649.00 per share

- 2022-11: TWD 927.00 per share

- 2022-12: TWD 788.00 per share

- 2023-01: TWD 843.00 per share

- 2023-02: TWD 944.00 per share

- 2023-03: TWD 1,240.00 per share

- 2023-04: TWD 1,185.00 per share

- 2023-05: TWD 1,655.00 per share

- 2023-06: TWD 1,795.00 per share

- 2023-07: TWD 1,990.00 per share

- 2023-08: TWD 2,470.00 per share

- 2023-09: TWD 2,690.00 per share

- 2023-10: TWD 2,625.00 per share

- 2023-11: TWD 3,110.00 per share

- 2023-12: TWD 3,275.00 per share

- 2024-01: TWD 3,900.00 per share

- 2024-02: TWD 4,140.00 per share

- 2024-03: TWD 3,340.00 per share

- 2024-04: TWD 3,120.00 per share

- 2024-05: TWD 2,870.00 per share

- 2024-06: TWD 2,455.00 per share

- 2024-07: TWD 2,620.00 per share

- 2024-08: TWD 2,650.00 per share

- 2024-09: TWD 1,975.00 per share

- 2024-10: TWD 2,040.00 per share

- 2024-11: TWD 2,215.00 per share

- 2024-12: TWD 3,280.00 per share

- 2025-01: TWD 3,130.00 per share

- 2025-02: TWD 3,285.00 per share

- 2025-03: TWD 2,740.00 per share

- 2025-04: TWD 2,125.00 per share

- 2025-05: TWD 2,810.00 per share

- 2025-06: TWD 3,095.00 per share

- 2025-07: TWD 3,885.00 per share

- 2025-08: TWD 4,055.00 per share

- 2025-09: TWD 3,465.00 per share

- 2025-10: TWD 3,495.00 per share

- 2025-11: TWD 3,305.00 per share

- 2025-12: TWD 3,510.00 per share

- 2026-01: TWD 3,125.00 per share

- 2026-02: TWD 3,490.00 per share

- 2026-03: TWD 2,485.00 per share

- 2026-04: TWD 4,135.00 per share

- 2026-05: TWD 4,415.00 per share

- 2026-06: TWD 4,180.00 per share

- 2026-07: TWD 3,060.00 per share

- 2026-08: TWD 4,075.00 per share

- 2026-09: TWD 3,740.00 per share

- 2026-10: TWD 4,055.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 19.85 per share, central TWD 20.55 per share, high TWD 21.48 per share

- FY2017: low TWD 61.49 per share, central TWD 66.26 per share, high TWD 72.61 per share

- FY2018: low TWD 59.02 per share, central TWD 63.37 per share, high TWD 69.16 per share

- FY2019: low TWD 100.00 per share, central TWD 125.80 per share, high TWD 140.82 per share

- FY2020: low TWD 171.15 per share, central TWD 202.62 per share, high TWD 223.67 per share

- FY2021: low TWD 254.54 per share, central TWD 317.16 per share, high TWD 353.63 per share

- FY2022: low TWD 361.61 per share, central TWD 479.15 per share, high TWD 547.60 per share

- FY2023: low TWD 795.22 per share, central TWD 1,058.00 per share, high TWD 1,211.01 per share

- FY2024: low TWD 1,422.28 per share, central TWD 1,882.44 per share, high TWD 2,150.39 per share

- FY2025: low TWD 1,201.22 per share, central TWD 1,514.23 per share, high TWD 1,696.50 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:30.966Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations