Hua Hong Semiconductor Ltd
HKEX:1347
Hua Hong Semiconductor Ltd
In the bustling heart of Shanghai's tech district, Hua Hong Semiconductor Ltd. stands as a pillar of the rapidly evolving semiconductor industry. Founded in 1997, the company has grown to become a major player in the semiconductor manufacturing arena, playing a crucial role in China's ambition to achieve technological self-sufficiency. Hua Hong specializes in the manufacturing and sale of high-quality wafers used in integrated circuits, a critical component in a broad spectrum of electronic devices ranging from smartphones to industrial equipment. Their operations hinge on proprietary technologies like eFlash, RF CMOS, and embedded non-volatile memories, enabling them to provide customized solutions that cater to the diverse needs of their global clientele.
The company generates revenue primarily through its fabrication plants, which operate on a foundry model, meaning it produces semiconductor chips designed by external clients. This model allows Hua Hong to capitalize on economies of scale while adopting innovations in process nodes and packaging technologies. By continuously investing in R&D, Hua Hong sharpens its technological edge and attracts partnerships with leading technology firms. Their strategic base in China, combined with a customer-centric approach, positions them favorably amidst the global chip shortage, while fostering robust relationships with electronics giants worldwide. Through these meticulously crafted strategies and relentless innovation, Hua Hong Semiconductor has carved out a significant niche in the industry, impacting modern electronics on a literal and figurative level.
In the bustling heart of Shanghai's tech district, Hua Hong Semiconductor Ltd. stands as a pillar of the rapidly evolving semiconductor industry. Founded in 1997, the company has grown to become a major player in the semiconductor manufacturing arena, playing a crucial role in China's ambition to achieve technological self-sufficiency. Hua Hong specializes in the manufacturing and sale of high-quality wafers used in integrated circuits, a critical component in a broad spectrum of electronic devices ranging from smartphones to industrial equipment. Their operations hinge on proprietary technologies like eFlash, RF CMOS, and embedded non-volatile memories, enabling them to provide customized solutions that cater to the diverse needs of their global clientele.
The company generates revenue primarily through its fabrication plants, which operate on a foundry model, meaning it produces semiconductor chips designed by external clients. This model allows Hua Hong to capitalize on economies of scale while adopting innovations in process nodes and packaging technologies. By continuously investing in R&D, Hua Hong sharpens its technological edge and attracts partnerships with leading technology firms. Their strategic base in China, combined with a customer-centric approach, positions them favorably amidst the global chip shortage, while fostering robust relationships with electronics giants worldwide. Through these meticulously crafted strategies and relentless innovation, Hua Hong Semiconductor has carved out a significant niche in the industry, impacting modern electronics on a literal and figurative level.
Record Revenue: Q4 2025 revenue hit an all-time high of $659.9 million, up 22.4% year-on-year and 3.9% sequentially, in line with guidance.
Margin Expansion: Gross margin improved to 13% in Q4, up 1.6 percentage points year-on-year, though down 0.5 points sequentially due to higher labor costs.
Turnaround in Profitability: Net profit attributable to shareholders was $17.5 million in Q4, a turnaround from a $25.2 million loss the previous year.
Capacity Expansion: Fab9A ramped up faster than expected; Fab9B construction will start in 2026 with major CapEx expected in 2027.
Guidance: Q1 2026 revenue expected between $650 million and $660 million with gross margin guidance of 13% to 15%.
Strategic Acquisition: The acquisition of Fab5 strengthened scale, operational efficiency, and specialty technology capabilities.
AI Demand & Pricing: AI-driven demand and tight supply continue to support pricing power, particularly on the 12-inch side.
