Domestic wafer giant Huahong company announces positive news; Q1 2026 guidance is optimistic

Following SMIC’s impressive 2025 quarterly report, Huahong Corporation quickly disclosed its performance.

On the evening of February 12, Huahong released its Q4 2025 results. The company’s quarterly revenue hit a new record high, with accelerated 12-inch capacity construction, demonstrating the company’s resilience and growth confidence through cycles.

Q4 2025 and Full Year Revenue Both Achieved Growth

According to the disclosure, Huahong’s sales revenue in Q4 2025 reached $659.9 million, up 22.4% year-over-year and up 3.9% quarter-over-quarter. The gross margin for the quarter was 13%, an increase of 1.6 percentage points year-over-year but a decrease of 0.5 percentage points quarter-over-quarter. In terms of profit, the net profit attributable to the parent company for the quarter was $17.5 million, compared to a loss of $25.2 million in the same period last year.

In terms of capacity, the company’s shipment of 8-inch equivalent wafers in Q4 2025 reached 1.448 million pieces, a year-over-year increase of 19.4%.

For the full year 2025, the company achieved revenue of $2.4021 billion, a 19.9% increase year-over-year; gross margin was 11.8%, up 1.6 percentage points from the previous year. The total wafers shipped (equivalent to 8-inch) for 2025 was 5.384 million, an 18.5% increase year-over-year.

Regarding this “performance report,” Bai Peng, Chairman and President of Huahong, stated that the company’s Q4 2025 revenue and gross margin both met guidance expectations, and the growth in annual performance and gross margin aligned with management’s forecasts.

Bai Peng noted that, amid the global semiconductor market driven by AI and related product demand, as well as a recovery in domestic consumer demand, the company maintained high capacity utilization, with an average annual capacity utilization rate of 106.1%, leading among foundry companies.

Dividing by technology platform, thanks to AI-driven growth, in Q4 2025, Huahong’s MCU, flash memory, MOSFET, CIS, and power management products all performed strongly across various specialty process platforms, achieving solid growth. Notably, revenue from non-volatile memory, analog, and power management product lines led the gains, strongly supporting the company’s performance growth and profit margin improvement.

Optimistic Guidance for Q1 2026

Looking ahead to Q1 2026, Huahong expects sales revenue to be approximately $650 million to $660 million, with a gross margin forecasted between 13% and 15%. Industry insiders commented that Huahong’s revenue in Q1 2025 was $540.9 million, and given depreciation pressures, the Q1 2026 guidance reflects optimism about the company’s and industry’s development.

Additionally, in capacity expansion, Huahong’s strategic layout is steadily advancing with notable results. The first phase of the Wuxi second 12-inch production line (FAB9) has exceeded expectations in capacity construction, and the acquisition of the Shanghai 12-inch manufacturing base (FAB5) is progressing smoothly, laying a solid foundation for future capacity increases and process upgrades.

Bai Peng stated that the company will continue to focus on building a world-class specialty process technology platform through innovation and rapid generational iteration, deepening cooperation with domestic and international strategic customers. The company is confident in seizing growth opportunities amid the global semiconductor industry shifts and aims to meet shareholders’ long-term expectations.

Notably, the recent shareholder meeting approved a proposal for the company to issue shares to acquire assets and raise supporting funds through related-party transactions, marking a key progress in the Huali Micro injection project. By integrating Huali Micro’s related assets and technological resources, both parties are expected to generate synergies in process optimization, yield improvement, and device structure innovation, thereby increasing the company’s revenue, reducing operational costs, and cultivating new profit growth points.

In this context, Huahong has demonstrated strong operational resilience and cost control capabilities, gaining recognition from international investment banks.

Goldman Sachs recently published a research report stating that Huahong will directly benefit from the growing demand for specialized chips driven by AI servers and AI smart edge devices. This further reinforces market recognition of Huahong’s strategic position in the AI era supply chain.

（Source: Shanghai Securities News）