Faraday Reports Second Quarter 2026 Results

• Consolidated revenues reached NT$3,314 million, up 28% QoQ, exceeding expectations;
• ASIC and MCU demands drove production revenues up 48% QoQ, boosting EPS by 90% QoQ

Hsinchu,  Taiwan -- July 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 second quarter of 2026. Second quarter consolidated revenues were NT$3,314 million, up 28% QoQ but down 27% YoY. Gross profit was NT$1,499 million, up 22% QoQ and 37% YoY, with gross margin reached 45.2%. Operating income stood at NT$271 million, surged 182% QoQ and 324% YoY. Operating margin significantly recovered to 8.2%. Net income attributed to stockholders of the parent was NT$198 million, up 90% QoQ and 666% YoY, with a basic EPS of NT$0.76.

Second Quarter 2026 Overview ^[1]:

• Revenues of NT$3,314 million (US$105.1 million)
• Gross margin was 45.2%
• Net income attributable to stockholders of the parent was NT$198 million (US$6.3 million)
• Earnings per share of NT$0.76

Looking back at the second quarter, consolidated revenues reached NT$3,314 million, representing a 28% sequential increase, exceeding the Company’s expectations which had projected growth in the high single digits. Performance across the three product lines varied: IP revenues reached NT$433 million, rising 5% QoQ and climbing a significant 50% YoY, driven by new IP deployments; NRE revenues totaled NT$451 million, down 16% QoQ, though still up 10% YoY. Mass production served as the primary growth engine for the quarter, surging 48% sequentially to NT$2,430 million. This robust expansion was driven by the synergistic effects of pricing mechanisms, capacity leverage, and increasing demand, propelling both ASIC and MCU revenues to grow by nearly 50% QoQ.

Looking back at the first half of the year, cumulative revenues reached NT$5,903 million, representing a 30% growth compared to the same period last year excluding the sales of material buy-and-sell on behalf of customers. Driven by the dual forces of tightening semiconductor supply chains and increasing customer demand, revenues expanded significantly. The primary growth engine for the first half was mass production, accounted for 70% of total revenues, climbing to NT$4,069 million with an increase 37% YoY; IP revenues totaled NT$846 million, up 22% YoY, and NRE revenues reached NT$988 million, rising 14% YoY. All three product lines are experiencing an upward trend.

Looking forward, despite the anticipated sequential decline in third-quarter revenues due to persistent constraints in the semiconductor supply chain, the Company maintains unchanged full-year revenues growth target. The dynamics of supply chain have also accelerated Faraday’s value transformation, expanding its competitiveness beyond traditional ASIC design to encompass comprehensive value chain management. By strengthening supply chain resilience and deployment capabilities, Faraday has solidified its role as a strategic partner to clients. Moving forward, to address the dynamic market demands for MCU and ASIC, the Company will adopt a hybrid business model with a ‘‘dual-track parallel strategy” for mature process technologies, aiming to maximize the synergies between ASICs and MCUs. Regarding advanced process nodes and advanced packaging, amid the ongoing capacity constraints global semiconductor supply chain and the challenge of optimizing internal resources, the Company will continue to focus on the premium projects, aiming to optimize R&D investment to drive sustained value enhancement.

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with Taiwan-International Financial Report Standards (TIFRSs). They represent comparisons among the three-month period ended June 30, 2026, the three-month period ended March 31, 2026, and the equivalent three-month period that ended June 30, 2025. For all 2Q26 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$31.53 per U.S. dollar.

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