Montage Technology: Building New Growth Anchors Focused on AI Computing Infrastructure

The AI era is driving a fundamental revaluation of computing infrastructure throughput and interconnection capabilities. As AI workloads progressively shift from pure model training to large‑scale inference and agentic AI applications, CPUs are regaining critical importance in task scheduling, tool invocation, data orchestration and memory management, leading to surging demand for server internal data transmission, high‑speed memory access and advanced interconnection solutions. As a long‑standing specialist in high‑speed interconnect chips bridging computing and storage layers, Montage Technology has built a comprehensive product portfolio covering RCD/DB, MRCD/MDB, CKD, PCIe Retimer and CXL MXC solutions. Ranked No.1 globally in memory interface chips and No.2 in PCIe Retimer market share in 2024, the company deeply participates in JEDEC international standard formulation, possessing solid technological reserves and high‑quality customer resources to evolve from a pure memory interconnect leader into a full‑platform high‑speed interconnect chip vendor.

Traditional Memory Interconnect Business Delivers Resilient Fundamental Growth

Memory interface chips constitute Montage’s core revenue pillar, with interconnect‑related products accounting for 94.18% of total revenue in 2025. The company posted robust financial results in Q1 2026, achieving revenue of RMB 1.46 billion, up 19.5% year‑over‑year, and net profit attributable to shareholders of RMB 847 million, representing a 61.3% annual increase, with overall gross margin advancing to 69.8%. Industry‑wide DDR5 penetration continues to accelerate, rising from approximately 40% of global server DRAM bit shipments in 2024 to an expected 60%–65% in 2025. Leading memory manufacturers plan to phase out DDR4 production by late 2025 or early 2026, completing a full generational upgrade. The sustained DDR5/MRDIMM iteration cycle drives steady volume expansion and pricing improvement, underpinning high visibility for the company’s traditional core business growth.

PCIe Retimer Mass Production Accelerates, Homologous Technological Expansion toward PCIe Switch Unlocks Upside

PCIe Retimer chips resolve high‑speed signal attenuation issues in advanced server architectures. Holding the world’s second‑largest market share of 10.9%, Montage has sampled PCIe 6.0 products and initiated R&D for next‑generation PCIe 7.0 solutions. Leveraging homologous SerDes technology, the company is expanding its product roadmap from Retimer to higher‑value PCIe Switch chips.

Serving as the critical topological hub within AI servers, PCIe Switch chips interconnect CPUs, GPU accelerators, NVMe SSDs, network cards and DPUs, breaking inherent limitations on CPU PCIe lane quantities and point‑to‑point transmission bandwidth. A single 8‑GPU AI server typically requires 2–4 PCIe Switch chips, delivering substantially higher per‑unit value compared with Retimers. Currently dominated by Broadcom, the global PCIe Switch market sees nearly blank domestic substitution capacity. The worldwide PCIe interconnect chip market is projected to reach approximately USD 7.8 billion by 2030, with PCIe Switch products emerging as the primary growth driver. Backed by identical underlying SerDes technology and highly overlapping customer ecosystems, Montage is well‑positioned to capture far larger market space than its existing Retimer business.

Global CXL MXC Leadership Pioneers Memory Pooling Innovation and Elevates Long‑Term Growth Ceiling

Built upon the PCIe physical layer, CXL (Compute Express Link) represents an open high‑speed interconnection protocol that transforms fixed local memory into cross‑node schedulable and pooled memory resources. The architecture effectively relieves memory capacity constraints and low utilization pressure brought by AI inference workloads, long‑context large models, multi‑turn conversations and explosive KV Cache demands.

As a global pioneer in CXL commercialization, Montage launched the world’s first CXL 2.0 MXC chip in 2022, was listed in the CXL Alliance’s first batch of compliant vendors in 2025, and unveiled its CXL 3.1‑based MXC chip in September 2025, with customer sampling and verification currently underway. According to Frost & Sullivan statistics, the global CXL interconnect chip market is expected to expand rapidly from USD 4.3 million in 2024 to USD 1.7 billion by 2030, registering a CAGR of 170.2%. While the CXL industry remains in the early adoption phase, structural demand for memory expansion and disaggregated pooling is highly deterministic. As a frontrunner in global MXC deployment, Montage is poised to capture first‑mover benefits and open a new long‑term growth curve in next‑generation AI interconnection infrastructure.