Chroma Powers AI Hardware with Essential Testing Solutions

Chroma, a Taiwanese testing equipment company, has become a critical player in the AI hardware supply chain, according to an exclusive interview with CEO I-Shih Tseng. The company's system-level test (SLT) equipment is essential for Nvidia GPUs, and its power testing solutions are key for Delta Electronics and TSMC. Chroma's revenue surged 91% in the first half of this year, driven by its 800V high-voltage direct current (HVDC) power testing solutions for data centers and its work on co-packaged optics (CPO), a technology heavily promoted by Nvidia.

While Chroma is best known for its SLT equipment, which accounts for less than 40% of its revenue, its oldest business, power testing, remains its biggest moneymaker. Morgan Stanley estimates that Chroma's handler business commands as much as 70% of the global market. The company is also deeply involved in advanced packaging technologies, further solidifying its unique position in Taiwan's supply chain.

Chroma's testing solutions for next-generation hardware are already shipping in large volumes, with Morgan Stanley projecting that its CPO business could account for 9% of its revenue this year. The company's long-standing involvement in critical technological shifts underscores its indispensable role in the AI hardware ecosystem.