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After decades in Silicon Valley, a former Apple and Amazon engineer started an AI chip company in his mid-50s

  • After spending decades in Silicon Valley, Stephen Huang, 55, founded AI chip startup Tranxform.

  • Tranxform is trying to build more efficient AI processors and hire top talent in Taiwan.

  • AI hardware favors deep experience over youthful speed, Huang says.

Stephen Huang had spent decades building chips in Silicon Valley. Launch of ChatGPT It convinced him that the market was ready for the artificial intelligence chip company he had been thinking about starting for a long time.

By then, Huang was working on MediaTek’s GPUs, Apple’s GPUs. Face ID technology and an Amazon AI chip team up.

When ChatGPT hits the scene in late 2022, Huang is convinced the industry has reached an inflection point. “I felt like the market was coming,” he said.

So, at the age of 55, Huang decided to start over.

In 2024, he founded Tranxform AI, a Taiwan-based AI chip startup that develops power-efficient processors designed to run AI models outside of large data centers.

The company currently employs about 40 people and is preparing its first chip, which Huang expects to be ready next year.

The CEO is among a growing number of entrepreneurs pursuing the opportunities created by the artificial intelligence boom. However, unlike many founders who build companies around large language models, he spent decades designing chips before launching his own startup.

But Huang never watched Age is a disadvantage.

Morris Chang “He founded TSMC in his 50s,” he said. Taiwan Semiconductor Manufacturing Company, He founded the world’s largest contract chip manufacturer at the age of 55.

In fact, Huang believes age may be on its side, arguing that hardware startups often favor experience in some ways. software startups can’t.

Semiconductor design is a long game, he said. Building a system-on-chip—the integrated processor that powers devices ranging from smartphones to AI systems—requires balancing numerous tradeoffs between hardware and software; this is a skill that can take decades to develop.

“To build a good SoC, you need experience,” Huang said. “Otherwise you wouldn’t know how to balance different operations.”

Huang’s initial adventure was not obvious.

Before founding Tranxform, he had a stable career and a comfortable income in the US. Starting the company meant taking a significant risk and spending most of his time in Taiwan; This decision was one that his family initially found difficult to accept.

As Tranxform grew and reached major milestones, his family’s attitude changed. “They are proud of what we accomplished today,” he said.

Timing also helped. Huang’s two sons were adults when he founded the company. One works in the technology industry and the other is a recent college graduate.

“Their independence made it easier for me to dedicate the time and energy needed to build Tranxform,” he said.

Huang in question HE He believed the risk was worth taking because the demand for specialized AI hardware would continue to grow as companies sought faster and more energy efficient ways to run increasingly complex models.

Huang’s optimism comes as investors pour new capital into AI hardware.

Venture funding for AI and machine learning chip startups rose 70% to $16.2 billion in 2025 from the previous year, according to PitchBook. But the number of deals fell from 266 to 232 during the same period as investors wrote increasingly larger checks to a smaller group of potential breakout companies.

This year, as of June 22, financing stood at $9.9 billion and the number of deals was 87, according to PitchBook.

homecoming

While artificial intelligence drew Huang to entrepreneurship, Silicon Valley’s intensifying talent wars caused him to rethink where to launch his company.

His years in Silicon Valley taught him how difficult it is for startups to compete with tech giants like Google, Apple, and Nvidia for engineering talent.

“We kept training people and they got kidnapped,” he said.

Huang founded his company in Taiwan Hsinchu’s chip center, where he believes he can build a more stable engineering team.

One of those hires was his college classmate Way-Shing Lee, who joined Tranxform as chief technology officer last year after retiring from US chip giant Qualcomm.

One of Huang’s (right) key hires was his college classmate Way-Shing Lee (left), who is now Tranxform’s CTO.Stephen Huang/Tranxform

Now startup life has replaced the stability of Huang’s previous career with fundraising, recruiting, client meetings, and constant technical problem-solving.

“Starting a company is very difficult,” Huang said. “You have to find partners. You have to sell your story. You have to find financing.”

Tranxform is preparing for its next round of fundraising, Huang said, declining to disclose details.

He said the company is still in the early stages of licensing and generating little revenue.

Still, Huang believes: The biggest opportunities in artificial intelligence stay ahead.

He said the AI ​​industry is “probably just getting started.”

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