Faraday Reports Fourth Quarter 2025 Results

• 4Q25 Revenue Reached NT$2.8 billion; NRE Hit Quarterly High
• 2025 Revenue Soared 63% YoY to Record NT$18 billion, Marking 5th Consecutive Year of NRE Growth
• Secured a 5nm ASIC and New Advanced Packaging Project from North American Client

Hsinchu,  Taiwan -- February 10, 2026 -- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated financial results for the fourth quarter of 2025. Fourth quarter consolidated revenue was NT$2,808 million, down 13% QoQ and 5% YoY, with a gross margin of 42.2%. Net income attributable to stockholders of the parent was NT$208 million, with basic EPS of NT$0.80. For the fiscal year of 2025, consolidated revenue totaled NT$17,993 million, up 63% YoY, with a gross margin of 27.0% and net income attributed to stockholders of the parent was NT$730 million, with a basic EPS of NT$2.81.

 Fourth Quarter 2025 Highlights[1]:

• Revenue of NT$2,808 million (US$90.8 million)
• Gross margin was 42.2%
• Net income attributable to stockholders of the parent was NT$208 million (US$6.7 million)
• Earnings per share of NT$0.80

Looking back at the fourth quarter, IP revenue remained stable at NT$412 million; NRE revenue increased by 89% QoQ and 183% YoY, reaching NT$931 million, a new quarterly high, driven by contributions from advanced process projects. Mass production revenue decreased by 37% QoQ and 33% YoY, reaching NT$1,465 million. The gross margin rose by 9 percentage points to 42.2%, thanks to optimized product mix. For the full year of 2025, IP revenue was NT$1,518 million, a 3% decrease YoY; NRE revenue was NT$2,288 million, setting a new record and marking the fifth consecutive year of growth; mass production revenue surged 96% YoY to NT$14,187 million, also setting a new historical high. Notably, the Company not only demonstrated significant growth in revenue scale but also a structural business transformation. Advanced process and advanced packaging have become the main drivers of growth. In the fourth quarter, 56% of NRE revenue came from advanced processes, and the full-year proportion reached 49%, a significant increase compared to 2024.

Faraday has continued to make breakthroughs in its advanced business. In 2025, the Company not only increased the project volume but also achieved remarkable progress in design processes, driving the order amounts of design wins to double compared to 2024 and injecting robust momentum into future NRE revenue. In terms of AI strategy, Faraday has been deepening its focus on the "Cloud, Edge, and Endpoint" three levels: for cloud AI, the Company is concentrating on specialized AI accelerators and key companion chips; in the edge AI field, Neural Processing Units (NPUs) are essential for optimizing local inference performance. Faraday has successfully completed multiple NPU-integrated project designs, targeting both the AI upgrade of existing applications and demands from emerging applications, demonstrating the Company's technical strength in the edge AI market; while in endpoint AI, the integration of MCU and NPU is becoming a trend. Leveraging the complete development platform, Faraday is quickly seizing AI ASIC business opportunities across the cloud, edge, and endpoint segments. Additionally, following the successfully secured the Company’s first 4nm AI project last quarter, Faraday won another 5nm networking ASIC design in the first quarter of this year, and also secured another project from a North American customer in the advanced packaging business, once again proving the Company's design capabilities in advanced processes.

Looking ahead, the Company expects revenue in the first quarter to experience a short-term decline due to seasonal factors, yet remains optimistic about the full-year performance. Faraday has successfully transformed from a traditional ASIC provider into a system integrator, partnering with multiple foundry partners and offering advanced packaging solutions. This shift has expanded the Company’s value proposition from pure chip design to comprehensive system-level integration, significantly strengthening its competitive edge in the industry. With advanced technology and packaging businesses gradually gaining traction, Faraday is well positioned to drive medium- to long-term growth.