Faraday Reports First Quarter 2026 Results

• 1Q26 Revenues Reached NT$2,589 million; Gross Margin Surged to 47.3%, Reaching 13-Quarter High
• Secured New 14nm AI ASIC and Advanced Packaging Projects

Hsinchu,  Taiwan -- April 28, 2026 -- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated operating results for the first quarter of 2026. First quarter consolidated revenues were NT$2,589 million, down 8% QoQ and 65% YoY. Gross profit was NT$1,225 million, up 3% QoQ but down 19% YoY, with gross margin reached 47.3%. Operating income stood at NT$108 million, increasing 34% QoQ while declining 71% YoY. Operating margin recovered to 4.2%. Net income attributed to stockholders of the parent was NT$104 million, with a basic EPS of NT$0.40.

First Quarter 2026 Overview ^[1]:

• Revenues of NT$2,589 million (US$82.2 million)
• Gross margin was 47.3%
• Net income attributable to stockholders of the parent was NT$104 million (US$3.3 million)
• Earnings per share of NT$0.40

Looking back at the first quarter, consolidated revenue reached NT$2,589 million, representing an approximately 8% sequential decline. Performance across the three product lines varied: IP revenue remained stable at NT$413 million; NRE revenue totaled NT$537 million, down 42% QoQ due to a high comparison base and adjustments to milestones recognition, though still up 18% YoY. Mass production outperformed expectations at NT$1,639 million, rising 12% QoQ despite a 75% YoY decrease. Gross margin for the quarter rose significantly to 47.3%, up 5 percentage points from the previous quarter and 27 percentage points higher than the same period last year, reaching the highest level in 13 quarters. As the revenue mix continues to improve throughout the year, the Company expects the gross margin to normalize toward historical levels. Regarding the development of advanced business, Faraday continued to make breakthroughs, securing new cloud AI project in advanced process as well as additional advanced packaging engagements in the first quarter, further demonstrating its design capabilities in advanced process technologies.

Looking ahead, the Company expects revenue growth momentum to continue into the second quarter, driven primarily by revenues from IP and mass production businesses. Over the past several years, Faraday has deepened its strategic presence in advanced technology fields by developing six key capabilities. These encompass comprehensive front-end and back-end IC design services, IP subsystem solutions, multiple-foundry partnerships, and 2.5D/3D advanced packaging technologies. This integrated approach has not only significantly strengthened the Company's winning position but has also laid a solid foundation for a comprehensive entry into the AI market. In the cloud AI, the Company has successfully made progress in specialized AI accelerator projects. Moving into the next phase, Faraday will focus on cloud AI inference technology and AI companion chips, aiming to provide customers with high-computing-power, low-power-consumption, and easily integrated solutions. This strategic focus is expected to further expand the Company's influence and market share in key segments such as high-performance computing, data centers, and edge computing, thereby driving sustained mid-to-long-term operational growth.

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