Formosa Sumco Technology (3532) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q-2026 increased 10.87% year-over-year to NT$3,308 million, but profitability declined sharply, with net income turning negative at -NT$68 million compared to NT$238 million in 1Q-2025.

• Sequentially, revenue grew 1.22% from 4Q-2025, but net income and operating income both swung to losses.

• The company operates solely in the silicon wafer segment, with all revenue derived from this business line.

Financial highlights

• Gross margin dropped to 0.8% in 1Q-2026 from 14.74% in 2025 and 21.43% in 2024, due to operating costs rising to 99% of revenue.

• Operating margin fell to -4.3% in 1Q-2026, with net profit margin at -2.1%.

• EPS for 1Q-2026 was -0.18, down from 1.58 in 2025.

• EBITDA for 1Q-2026 was NT$732 million, with an EBITDA margin of 22.12%.

• Cash and cash equivalents stood at NT$1,958 million at the end of 1Q-2026.

Outlook and guidance

• 300mm wafer shipments improved due to stronger memory demand; 200mm wafer shipments expanded, driven by AI server applications.

• For 2Q-2026, continued favorable outlook for 300mm wafers, with AI and memory demand leading growth; 200mm wafers expected to recover further.

• Long-term optimism for silicon wafer demand, supported by AI-related applications and advanced packaging trends.

• The company is monitoring the impact of new IFRS standards, particularly IFRS 18, which will affect financial statement presentation and disclosure starting 2028.

• Management is focused on capital structure optimization and maintaining liquidity to support ongoing operations and shareholder returns.