Pure-play foundry Hua Hong Semiconductor delivered strong full-year 2025 results, highlighted by record quarterly revenue and a successful return to profitability.
In Q4 2025, the company achieved record quarterly sales of $659.9 million, marking a 22.4% year-over-year increase and a 3.9% sequential gain. Gross margin improved to 13.0% , up 1.6 percentage points from the prior year. Notably, the company swung to a profit of $17.5 million attributable to parent owners, compared to a loss of $25.2 million in the same period last year.
For the full year, Hua Hong reported revenue of $2.4 billion with a gross margin of 11.8% , both meeting expectations and showing year-over-year growth. Annual average capacity utilization reached an impressive 106.1% , among the highest in the foundry industry, driven by global AI-related demand and a recovery in domestic consumer markets.
Growth was primarily fueled by strong performance in specialty process platforms, particularly standalone flash memory and power management technologies. On the capacity front, the company made significant progress with its Wuxi 12-inch fab (FAB9) Phase 1 expansion and continued its acquisition of the Shanghai 12-inch manufacturing facility (FAB5) , laying a solid foundation for future growth.
For Q1 2026, Hua Hong forecasts revenue between $650 million and $660 million with gross margin in the 13% to 15% range , indicating sustained momentum.
ICgoodFind : Hua Hong's 2025 results demonstrate the strength of its specialty process leadership. Record revenue, industry-leading utilization, and strategic capacity expansion position the company well for continued growth amid recovering end markets.
