Revenue and profit have risen sharply in tandem at edge AI chip designer iTeng Technology, good news for shareholders and the supply chain, though cost pressure in the notebook market is a concern.

• August revenue rose more than 60% year on year, and cumulative revenue for the first eight months was also up 60%, with further growth expected in the third quarter.
• Growth came from across-the-board volume increases in four major applications — mobile phones, notebooks, game consoles and headphones — and second-quarter net profit after tax nearly doubled from a year earlier.
• The company has agreed phased price increases with its main major customers, taking effect from the fourth quarter, to absorb rising costs for wafers, packaging and memory.
• Tight memory supply and rising end prices for notebooks have made the outlook for growth in the notebook segment in the second half more conservative.
• Taiwan shares rose the same day, with TSMC and ASML announcing an upgrade of EUV photomasks from 6-inch to 12-inch, sending photomask maker Taiwan Mask Corp to its daily limit up at the open.

Outlook: iTeng Technology has set next year's targets at double-digit revenue growth with profit rising in step, hinging on whether the fourth-quarter price increases can be implemented smoothly.