Gigadevice Semiconductor Inc. reported strong annual results, with significant growth in both revenue and net profit for 2025, driven by the broad-based recovery of the semiconductor industry fueled by booming AI demand. The company also announced a cash dividend distribution of over 525 million yuan to shareholders.
Full-year 2025 operating revenue reached 9.203 billion yuan, up 25.12% year-over-year. Net profit attributable to shareholders of the listed company was 1.648 billion yuan, an increase of 49.47% compared to the previous year. After excluding non-recurring gains and losses, net profit stood at 1.469 billion yuan, rising 42.57% year-over-year. Profit growth significantly outpaced revenue growth, indicating a clear improvement in earnings quality.
The company also unveiled a profit distribution plan, proposing a cash dividend of 7.50 yuan per 10 shares (tax inclusive), totaling approximately 525 million yuan in cash dividends. This represents 31.88% of the net profit attributable to shareholders of the listed company in the 2025 consolidated financial statements.
On a quarterly basis, the company's profitability showed continuous acceleration. Third-quarter net profit reached 508 million yuan, climbing further to 565 million yuan in the fourth quarter, demonstrating strong earnings momentum.
**Quarterly Performance Accelerated Throughout the Year, with Stronger Second-Half Contribution**
Gigadevice's 2025 performance exhibited a clear trend of sequential quarterly improvement. First-quarter net profit was 235 million yuan, rising to 341 million yuan in the second quarter, jumping to 508 million yuan in the third quarter, and increasing further to 565 million yuan in the fourth quarter. Combined net profit for the second half of the year was approximately 1.073 billion yuan, accounting for over 60% of the full-year total.
Operating revenue followed a similar pattern. Third-quarter revenue reached 2.681 billion yuan, the highest quarterly level for the year. Fourth-quarter revenue was 2.372 billion yuan, remaining at a high level compared to the first two quarters, indicating a steady upward trajectory for annual revenue.
Net cash flow from operating activities for the full year was 2.129 billion yuan, an increase of approximately 4.7% year-over-year. The sustained positive cash flow reflects the solid and robust cash-generating ability of the company's core business.
As of the end of the reporting period, total assets reached 21.397 billion yuan, up 11.27% year-over-year. Net assets attributable to shareholders of the listed company stood at 19.008 billion yuan, an increase of 15.21%. The weighted average return on equity was 9.30%, an improvement of 2.36 percentage points compared to the previous year.
**Memory Chips See Volume and Price Increases, Multiple Product Lines Benefit from AI Cycle Synergy**
In 2025, Gigadevice's core memory business benefited from the convergence of multiple favorable factors. According to Frost & Sullivan data, the global market size for specialized memory is projected to reach $15.7 billion in 2025, comprising $9.9 billion for niche DRAM, $3.1 billion for NOR Flash, and $2.7 billion for SLC NAND Flash.
In the niche DRAM segment, booming demand for AI servers has driven a sharp increase in demand for mainstream products like DDR5 and HBM. Leading international manufacturers are accelerating their migration to new process nodes, gradually phasing out or reducing production of niche products. This has significantly improved the competitive landscape within the industry, leading to substantial price increases for niche DRAM.
For SLC NAND Flash, AI-driven demand for products like eSSD, which utilizes 3D NAND, has surged significantly. In response, major international manufacturers have cut back on 2D NAND capacity, creating a noticeable supply gap in the market. SLC NAND Flash prices have risen markedly since the third quarter, strongly correlating with the acceleration in the company's second-half performance.
In the NOR Flash segment, the development of edge-side AI is driving continuous growth in code capacity. Industry supply remains relatively tight, leading to a moderate upward trend in prices. This product is widely used across various fields including industrial, automotive, consumer electronics, and network communications, and represents one of the company's traditional strengths.
**Ongoing Progress in MCU and Diversified Business Layout**
Regarding the MCU business, Frost & Sullivan estimates the global MCU market size will be $21 billion in 2025. During the reporting period, MCU industry prices remained near the bottom of the cycle, but overall inventory levels have decreased to relatively low positions.
The company focuses on 32-bit general-purpose MCU products based on ARM and RISC-V cores. It holds a leading position in the domestic 32-bit MCU market, with strategic emphasis on sectors such as automotive-grade applications, industrial control, digital power, and white goods.
In sensors and analog chips, the company's sensor products include touch control chips, fingerprint recognition chips, and barometric pressure sensors. Its analog product line covers categories like general-purpose power management, LDOs, specialized power solutions, and motor drivers. Its controlling subsidiary, Suzhou Saixi, specializes in the domestic lithium battery protection segment.
The company operates on a Fabless model overall, focusing on integrated circuit design, sales, and customer service. Wafer manufacturing and packaging and testing are outsourced to third-party partners to maintain operational flexibility.
**Strong Industry Sentiment as Global Semiconductor Market Hits Record High**
Gigadevice's performance growth occurred against the macroeconomic backdrop of a strong rebound in the global semiconductor industry.
According to WSTS data, the global semiconductor market size reached $772 billion in 2025, a 22% year-over-year increase, setting a new historical record. Logic chips grew 37% and memory chips grew 28%, serving as the primary growth engines.
In the Chinese market, data from the China Semiconductor Industry Association indicates that the scale of the local integrated circuit market is expected to reach $280 billion, with design segment revenue reaching approximately $118 billion, a year-over-year increase of about 29.4%.
The explosion in AI demand, combined with a moderate recovery in automotive electronics and consumer electronics, jointly formed the core drivers for the industry's upward trend.
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