HUA HONG SEMI has announced its first-quarter financial results for 2026, showcasing robust growth across all key financial metrics, with profitability standing out significantly. The company's revenue for Q1 2026 reached $660.9 million, representing a year-on-year increase of 22.2% and a slight sequential growth of 0.2%, indicating steady expansion within the industry's recovery cycle.
Profitability continued to improve, with the quarterly gross margin reaching 13.0%, a 3.8 percentage point increase compared to the same period last year, while remaining stable sequentially. This reflects the gradual benefits from product mix optimization and economies of scale. The net profit attributable to owners of the parent company saw explosive growth, reaching $20.9 million, a substantial year-on-year surge of 458.1% and a sequential increase of 19.9%.
The company is making steady progress in ramping up its 12-inch wafer production capacity, with revenue contribution from this segment now elevated to 62.7%.
For the second quarter of 2026, HUA HONG SEMI has provided a positive outlook. It anticipates revenue to be in the range of $690 million to $700 million, indicating continued growth from the first quarter. The company also expects its gross margin to further improve to between 14% and 16%, suggesting a sustained trend of enhanced profitability.
Dr. Bai Peng, Chairman and President of HUA HONG SEMI, commented on the Q1 2026 performance: "HUA HONG SEMI achieved Q1 2026 revenue of $660.9 million, up 22.2% year-on-year, with a gross margin of 13.0%, an increase of 3.8 percentage points year-on-year. Both metrics met our guidance. This quarter's net profit attributable to owners of the parent reached $20.9 million, showing significant growth year-on-year. While rapidly ramping capacity, the company maintained high utilization rates, with all process technology platforms performing strongly. Notably, MCU, standalone flash memory, and BCD process products showed the most significant growth. Our solid performance is attributed to our continuous efforts in cost reduction and efficiency improvement, alongside positive demand signals that began to emerge at the start of the quarter and strengthened throughout the period."
Dr. Bai continued, "The global semiconductor industry is evolving at an accelerated pace as artificial intelligence and its related applications play an increasingly vital role in industry development and the market landscape. The significant boost in global semiconductor demand driven by AI, intertwined with persistent uncertainties in the global supply chain, creates a more complex market environment we currently face. HUA HONG SEMI remains steadfast in its strategic goal of being a leader in specialty process wafer foundry, continuously focusing on market demand, strengthening process capabilities, and expanding production capacity. In the first quarter, the ramp-up of our 12-inch capacity progressed steadily, with its revenue contribution rising to 62.7%; our 8-inch production lines continued to demonstrate strong profitability. Meanwhile, the proposed acquisition of HLMC has been accepted by the Shanghai Stock Exchange and has entered the substantive review stage, progressing according to plan and expected to be completed in the second half of this year. Finally, as a semiconductor professional with many years of industry experience, I remain confident in the future of the global and Chinese semiconductor industries. I am committed to driving HUA HONG SEMI to continuously enhance its industry position and influence, creating lasting value for our shareholders."
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