Faraday Technology posted lackluster second-quarter results with earnings per share of just NT$0.10 ($0.003), underscoring the challenges facing Taiwan’s ASIC design sector. The Hsinchu-based company generated consolidated revenue of NT$4.51 billion ($150 million), down 39% from the previous quarter despite a 70% year-over-year increase.
Net profit attributable to shareholders dropped to NT$30 million ($1 million), while gross margins compressed to 24.2%. The company cited Taiwan dollar appreciation and broader market headwinds for the sequential decline, though first-half revenue of NT$11.95 billion ($398 million) surpassed last year’s full-year total.
Performance varied sharply across business segments. Mass production revenue fell 42% quarterly to NT$3.81 billion ($127 million) due to weakness in advanced packaging services. Non-recurring engineering revenue declined 9% to NT$410 million ($13.7 million), while intellectual property licensing dropped 28% to NT$290 million ($9.7 million).
Management warned that third-quarter revenue will likely fall from current levels, tempering optimism about the artificial intelligence chip boom. The company has made progress diversifying beyond China, with non-Chinese markets now representing over half of new design projects, and secured its first 3D packaging contract during the quarter.
While Faraday positions itself for AI-related opportunities, near-term execution remains challenging as traditional semiconductor demand softens.
