AI-driven recovery in the semiconductor industry, GigaDevice expects 25% revenue growth and 49% net profit growth in 2025 | Earnings News

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GigaDevice delivered a strong annual report card. Benefiting from the comprehensive recovery of the semiconductor industry driven by the explosive demand for AI, the company achieved substantial growth in both revenue and profit in 2025, and announced a cash dividend distribution of over 525 million yuan to shareholders.

In 2025, the company achieved operating revenue of 9.203 billion yuan for the year, a year-on-year increase of 25.12%; net profit attributable to shareholders was 1.648 billion yuan, up 49.47% year-on-year; after deducting non-recurring gains and losses, net profit was 1.469 billion yuan, an increase of 42.57% year-on-year. Profit growth significantly outpaced revenue growth, indicating a marked improvement in profitability quality.

The company also announced a profit distribution plan, proposing a cash dividend of 7.50 yuan (tax included) per 10 shares, totaling about 525 million yuan, accounting for 31.88% of the 2025 net profit attributable to shareholders as per the consolidated financial statements.

From a quarterly perspective, the company's profitability continued to accelerate, with a single-quarter net profit reaching 508 million yuan in the third quarter and further rising to 565 million yuan in the fourth quarter, showing strong performance sustainability.

Full-year Results Accelerate Quarter by Quarter, Second Half Contribution More Prominent

Quarterly data show that GigaDevice's 2025 results displayed significant quarter-on-quarter improvement. First quarter net profit was 235 million yuan, rising to 341 million in the second quarter, jumping to 508 million in the third quarter, and further increasing to 565 million in the fourth quarter. Second half net profit totaled about 1.073 billion yuan, accounting for more than 60% of the annual net profit.

Operating revenue showed a similar trend. Third quarter revenue reached 2.681 billion yuan, the highest single-quarter level for the year. Fourth quarter revenue was 2.372 billion yuan, remaining at a high level compared to the first two quarters, with the full-year revenue rising steadily.

Net cash flow generated from operating activities for the year was 2.129 billion yuan, a year-on-year increase of about 4.7%, remaining positive, demonstrating the company’s solid and steady cash generation ability from its main business.

By the end of the reporting period, the company's total assets reached 21.397 billion yuan, a year-on-year increase of 11.27%; net assets attributable to shareholders were 19.008 billion yuan, up 15.21% year-on-year. Weighted average return on net assets was 9.30%, an increase of 2.36 percentage points from the previous year.

Storage Chip Volume and Price Both Rise, Multiple Product Lines Benefit from AI Cycle Resonance

In 2025, GigaDevice's core memory business benefited from a combination of favorable factors. According to Frost & Sullivan, the global market size for specialty storage is expected to reach $15.7 billion in 2025, with niche DRAM at $9.9 billion, NOR Flash at $3.1 billion, and SLC NAND Flash at $2.7 billion.

For niche DRAM, explosive AI server demand fueled a surge in mainstream product demand such as DDR5 and HBM. Leading international manufacturers accelerated migration to new process nodes, gradually abandoning or reducing production of niche products, significantly improving industry competition, and driving niche DRAM prices higher.

For SLC NAND Flash, AI-driven demand for eSSD and other 3D NAND products rose sharply. International giants accordingly cut 2D NAND capacity, resulting in a clear market supply gap; SLC NAND Flash prices rose notably from the third quarter, closely corresponding with the company’s accelerated performance in the second half.

For NOR Flash, the development of edge AI drove continuous growth in code capacity, with relatively tight industry supply and mild price increases. This product is widely used in industrial, automotive, consumer electronics, and network communications, being a traditional advantage for the company.

MCU and Diversified Business Deployment Continues

In terms of MCU business, Frost & Sullivan predicts the global MCU market size to reach $21 billion in 2025. During the reporting period, MCU prices were still at the bottom of the cycle, but overall inventory levels were already relatively low.

The company focused on ARM and RISC-V core 32-bit general-purpose MCU products, holding a leading position in China’s 32-bit MCU market while highlighting automotive, industrial control, digital energy, and white goods markets.

For sensors and analog chips, the company’s sensor products cover touch chips, fingerprint recognition chips, and barometric sensors. The analog line includes general-purpose power, LDO, dedicated power, and motor drivers, while its holding subsidiary Suzhou Saixin specializes in domestic lithium battery protection niches.

The company as a whole adopts a Fabless operating model, focusing on IC design, sales, and customer service, while wafer fabrication and packaging/testing are outsourced to third-party partners to maintain operational flexibility.

Industry Prosperity Strong, Global Semiconductor Market Scale Hits Record High

GigaDevice’s performance growth is set against the macro backdrop of a robust rebound in the global semiconductor industry.

According to WSTS, the global semiconductor market size in 2025 will reach $772 billion, a year-on-year increase of 22%, hitting a record high. Logic chips rose 37%, memory chips 28%, both being major growth drivers.

In China, according to the China Semiconductor Industry Association, the domestic IC market size is expected to be $280 billion, with design sector revenue at about $118 billion, up 29.4% year-on-year.

The explosion of AI demand, combined with the moderate recovery of automotive and consumer electronics, together form the core driving force for the industry’s upward cycle.

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