Sivers Semiconductors: A Bright Spot in the Semiconductor Industry

Sivers Semiconductors AB (publ) has published its Year-end Report Q4, January - December 2024, and the results are nothing short of impressive. The company, which specializes in advanced photonics and wireless technologies, has demonstrated sustained progress in addressing two critical secular trends: AI acceleration and mmWave adoption. Let's dive into the key highlights and explore what makes Sivers Semiconductors a bright spot in the semiconductor industry.

Record Revenue and Positive AEBITDA

In Q4 2024, Sivers Semiconductors reported record revenue of SEK 76.7m, up 4% year-over-year and 31% sequentially. This strong performance was accompanied by positive Adjusted EBITDA of SEK +15.5m, indicating progress towards sustained profitability. The company's full-year 2024 revenue reached SEK 243.7m, a 3% increase from 2023, showcasing consistent growth in these strategic areas.

Strategic Focus on AI Acceleration and mmWave Adoption

Sivers Semiconductors' strategic focus on AI acceleration and mmWave adoption has driven its success. The company's Photonics division announced a strategic relationship with a leader in optical infrastructure solutions through a signed SEK 47m (USD 4.3m) MOU focused on product qualification and manufacturing readiness for production ramps in 2027. This partnership advances the crucial transition to next-generation optical interconnects.

The Wireless division achieved significant milestones, including securing a major chip development program with a leading Tier-1 Telecom infrastructure vendor valued at SEK 60m (USD 5.4m) and a development contract with Intelsat, a global leader in SATCOM, for digitizer development with volume deployment starting in 2026. These achievements highlight the company's ability to engage with blue-chip customers and strengthen manufacturing partnerships.

Operational Efficiency and Product Revenue Growth

Sivers Semiconductors has successfully transformed into a product delivery business, with product revenue increasing to SEK 25.1m in Q4 2024. This strategic shift contributes to the company's profitability and growth, as product sales typically have higher margins than NRE (Non-Recurring Engineering) revenue. The company's approach to operational efficiency and product revenue growth has been instrumental in its competitive advantage in the market.



Industry Recognition and Outlook

The company enters 2025 with a good backlog and healthy order intake of SEK 234m for projects and products over the next couple of years. Sivers Semiconductors is actively working to convert an expanding pipeline of sizeable opportunities towards revenue growth in the coming years, validating its strategic focus on AI acceleration and mmWave adoption.

In conclusion, Sivers Semiconductors AB (publ) has demonstrated remarkable growth and progress in addressing two critical secular trends: AI acceleration and mmWave adoption. The company's strategic focus, operational efficiency, and product revenue growth have contributed to its competitive advantage in the market. As Sivers Semiconductors continues to expand its engagements with blue-chip customers and strengthen manufacturing partnerships, it is well-positioned to capitalize on the growth opportunities in these two key secular market trends.