Declared Dividend • May 30
Dividend reduced to NT$1.80 Dividend of NT$1.80 is 40% lower than last year. Ex-date: 16th June 2026 Payment date: 17th July 2026 Dividend yield will be 0.9%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is not adequately covered by earnings (96% earnings payout ratio). However, it is well covered by cash flows (21% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 6.5% to bring the payout ratio under control. EPS is expected to grow by 255% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • May 19
First quarter 2026 earnings: Revenues and EPS in line with analyst expectations First quarter 2026 results: EPS: NT$0.40 (down from NT$1.33 in 1Q 2025). Revenue: NT$2.59b (down 65% from 1Q 2025). Net income: NT$104.3m (down 70% from 1Q 2025). Profit margin: 4.0% (down from 4.7% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$196, the stock trades at a forward P/E ratio of 53x. Average forward P/E is 30x in the Semiconductor industry in Taiwan. Total returns to shareholders of 27% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$134 per share. Major Estimate Revision • Apr 29
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from NT$13.0b to NT$12.7b. EPS estimate also fell from NT$4.31 per share to NT$3.77 per share. Net income forecast to grow 20% next year vs 49% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$173 unchanged from last update. Share price fell 5.9% to NT$169 over the past week. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$175, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 5.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$84.16 per share. Announcement • Apr 14
Faraday Technology Corporation Delivers Ip Solutions to Enable Endpoint Ai Based on Umc’S 28Nm Sst Eflash Faraday Technology Corporation announced its IP solutions on the UMC’s 28nm platform with SST-ESF4 eNVM, designed to enable next-generation MCU and AIoT SoCs targeting endpoint AI applications. The comprehensive IP solution integrates SST eFlash controller and BIST, together with silicon-proven analog and high-speed interface PHY IPs, providing a stable and production-ready foundation for low-power, high-performance endpoint AI designs. Built on Faraday’s extensive 28nm design and silicon experience, the IP solutions go beyond IP delivery to offer end-to-end eFlash enablement, including characterization, verification, test-chip support, and production readiness. By consolidating peripheral and analog IPs, such as SRAM, USB, PLL, ADC/DAC, RTC library, temperature sensor, OSC and generic IO, etc., Faraday helps customers enhance test coverage, improve manufacturing yield, and accelerate production ramp-up. The solution also extends Faraday’s proven success from 55nm SST to 28nm SST, enabling a smooth, low-risk transition with improved performance and power efficiency. Announcement • Mar 24
Faraday Technology Corporation Highlights 40nm SONOS Embedded Non-Volatile Memory Solution As Nor Flash Alternative For MCU Designs Faraday Technology Corporation highlighted its 40uLP SONOS embedded non-volatile memory (eNVM) solution, offering MCU vendors a cost-efficient alternative to NOR Flash while ensuring stable memory supply for long-lifecycle applications. As AI adoption accelerates, demand from AI servers and networking systems is tightening supply for consumer DRAM, NAND, and NOR Flash while increasing memory content per system. With long lead times for capacity expansion, the NOR Flash market faces structural supply constraints and price pressure. In many SiP-based MCU solutions, reliance on external NOR Flash can introduce supply chain risks and cost fluctuations. Built on UMC’s 40uLP platform, Faraday’s SONOS eNVM solution requires only a few additional masks, helping reduce manufacturing cost. The solution is supported by Faraday’s 40uLP SONOS subsystem for easy integration and use; in addition, the testing circuit is included to ensure eNVM quality in mass production. With several successful mass-production track records in both industrial and consumer MCU applications, Faraday’s SONOS eNVM ASIC solution demonstrates proven maturity and reliability. Price Target Changed • Mar 13
Price target decreased by 7.2% to NT$159 Down from NT$172, the current price target is an average from 7 analysts. New target price is 5.1% above last closing price of NT$152. Stock is down 33% over the past year. The company is forecast to post earnings per share of NT$4.31 for next year compared to NT$2.81 last year. Announcement • Mar 03
Faraday Technology Corporation Expands IP Offerings On UMC’s 14nm Process For Edge AI And Consumer Markets Faraday Technology Corporation announced the continued expansion of its IP product lines on UMC’s 14nm FinFET Compact (14FCC) platform, covering USB 2.0/USB 3.2 Gen1 PHY, LVDS TX/RX I/O, DDR 3/4 combo PHY (up to 4.2 Gbps), and LPDDR 4/4X/5 PHY (up to 6.4 Gbps). Leveraging UMC’s 14nm platform, these IP solutions deliver an ideal balance of performance, power consumption, and cost, making them well suited for applications such as industrial control, AIoT, networking, smart displays, multi-function printers (MFP), and edge AI. Faraday continues building out its IP solutions on UMC’s 14nm node. All these IPs are silicon-proven to ensure production-quality, significantly reducing design risk while assisting designers in shortening development cycles and effectively managing design and manufacturing costs. For edge AI applications, Faraday’s fabless OSAT Service provides advanced 2.5D/3D packaging options, including memory controller and I/O integration, to meet the high-bandwidth and capacity requirements of AI computing and further enhance overall system-performance. Announcement • Feb 11
Faraday Technology Corporation, Annual General Meeting, May 25, 2026 Faraday Technology Corporation, Annual General Meeting, May 25, 2026. Location: no,5, li hsing 3rd rd., hsinchu science park, hsinchu city Taiwan Major Estimate Revision • Feb 11
Consensus revenue estimates decrease by 18% The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from NT$15.4b to NT$12.6b. EPS estimate unchanged at NT$5.98 per share. Net income forecast to grow 14% next year vs 39% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$170 to NT$165. Share price was steady at NT$162 over the past week. New Risk • Jan 16
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 103% Dividend yield: 1.8% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (103% payout ratio). Profit margins are more than 30% lower than last year (4.2% net profit margin). Reported Earnings • Nov 03
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: NT$0.58 (down from NT$1.01 in 3Q 2024). Revenue: NT$3.24b (up 12% from 3Q 2024). Net income: NT$151.7m (down 43% from 3Q 2024). Profit margin: 4.7% (down from 9.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.5%. Earnings per share (EPS) exceeded analyst estimates by 28%. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Major Estimate Revision • Oct 29
Consensus EPS estimates fall by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$19.0b to NT$18.2b. EPS estimate also fell from NT$2.91 per share to NT$2.07 per share. Net income forecast to grow 26% next year vs 27% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$172. Share price rose 3.7% to NT$185 over the past week. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$174, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 25x in the Semiconductor industry in Taiwan. Total returns to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$299 per share. Price Target Changed • Aug 01
Price target decreased by 9.4% to NT$217 Down from NT$240, the current price target is an average from 8 analysts. New target price is 38% above last closing price of NT$157. Stock is down 45% over the past year. The company is forecast to post earnings per share of NT$2.79 for next year compared to NT$4.04 last year. Reported Earnings • Jul 31
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$0.099 (down from NT$1.00 in 2Q 2024). Revenue: NT$4.51b (up 70% from 2Q 2024). Net income: NT$25.8m (down 90% from 2Q 2024). Profit margin: 0.6% (down from 9.9% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 92%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Major Estimate Revision • Jul 30
Consensus EPS estimates fall by 52% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$20.2b to NT$19.0b. EPS estimate also fell from NT$6.05 per share to NT$2.88 per share. Net income forecast to grow 12% next year vs 12% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$231. Share price fell 13% to NT$157 over the past week. Announcement • Jul 22
Faraday Technology Corporation Delivers DDR/LPDDR Combo PHY IP Solutions on UMC's 22ULP and 14FFC Faraday Technology Corporation announced the availability of its DDR/LPDDR combo PHY, supporting from 3rd to 5th-generation on UMC's 22ULP and 14FFC platforms, which are UMC's planar and FinFET process technologies. Faraday continues its long-standing commitment to delivering in-house IP solutions optimized to better serve the ASIC market. Faraday's DDR/LPDDR IP solutions feature robust, silicon-proven designs widely adopted in ASIC projects across diverse SoC applications. Full compliance with JEDEC specifications ensures seamless compatibility and allows for flexible performance and power optimization. The 22ULP PHY supports low operating voltage at 0.8V, making it ideal for power-sensitive applications such as mobile, 5G, and IoT devices. The 14nm PHY supports transmission rate up to 6400Mbps for DDR5/LPDDR5 and includes advanced features such as self-training mechanisms, expedance calibration, and DFE. Announcement • Jun 24
Faraday Technology Corporation Delivers Latest SerDes IP to Complete Interface Lineup on UMC's 22nm Platform Faraday Technology Corporation announced the availability of its 10G SerDes IP on UMC's 22nm process technology. Designed to meet the increasing demands of high-speed data transmission, the new SerDes IP supports a broad range of industry-standard protocols and is optimized for applications in industrial automation, AIoT, 5G modems, fiber-to-the-home (FTTH), and advanced networking. Faraday has been delivering robust and high-performance SerDes solutions since 2013. Its latest 10G SerDes IP is compliant with multiple key protocols, including PCIe Gen1/2/3, USB 3.2 Gen1/2, and xPON standards. Specifically, it supports various passive optical network (PON) technologies such as 10G-EPON, EPON, XGPON, XGSPON, and GPON, making it highly versatile for integration into optical network unit (ONU) designs. To further accelerate product development and reduce integration risks, Faraday also offers comprehensive IP customization and design services. These include subsystem integration, hardcore implementation, and signal/power integrity (SI/PI) analysis at both the package and PCB levels. This holistic approach enables customers to streamline their design process and shorten time-to-market. Announcement • Jun 10
Faraday Technology Corporation Unveils FlashKit-22RRAM: an eNVM-Based SoC Development Platform for IoT Faraday Technology Corporation introduced its latest FlashKit development platform, FlashKit-22RRAM, designed to accelerate high-performance IoT and MCU applications. Built on UMC's 22ULP process, FlashKit-22RRam combines embedded Resistive RAM (RRAM, ReRAM) technology with a rich IP ecosystem and development-ready support, providing a cost-effective and power-efficient SoC solution for edge devices. The FlashKit-22RRAM platform integrates a full-featured RRAM subsystem with DWORD access, delivering comparable performance with SST eFlash. This solution minimizes extra-mask requirements, making it highly suitable for consumer-grade eNVM applications, such as AIoT, smart home, wearables, and portable devices. It is silicon proven and fully prepared to support customers' fast ramp-up to volume production on UMC's 22UL P node. FlashKit-22RRAM supports embedded CPU options including ARM Cortex-M7 and VeeR EH1 RISC-V, and integrates a comprehensive set of integrated IPs such as USB 3.0 Type-C, GMAC, and PLL. A built-in RRAM controller with built-in self-test (BIST) ensures streamlined data access and high production reliability. In additional, embedded FPGA (eFPGA) block is included for enhanced design flexibility and enabling post-silicon logic change, EO, or GPIO re-assignment. New Risk • Jun 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 8.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (31% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Profit margins are more than 30% lower than last year (7.0% net profit margin). Declared Dividend • May 31
Dividend reduced to NT$3.00 Dividend of NT$3.00 is 30% lower than last year. Ex-date: 17th June 2025 Payment date: 18th July 2025 Dividend yield will be 1.7%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 142% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 24
Faraday Technology Corporation Approves Cash Dividend for the Year 2024 Faraday Technology Corporation at its shareholders meeting held on May 23, 2025, approved cash dividend of TWD 3.0 per share for the year 2024. Reported Earnings • Apr 26
First quarter 2025 earnings: EPS misses analyst expectations First quarter 2025 results: EPS: NT$1.33 (up from NT$1.13 in 1Q 2024). Revenue: NT$7.44b (up 188% from 1Q 2024). Net income: NT$346.2m (up 24% from 1Q 2024). Profit margin: 4.7% (down from 11% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 25%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Price Target Changed • Apr 23
Price target decreased by 7.6% to NT$243 Down from NT$263, the current price target is an average from 9 analysts. New target price is 36% above last closing price of NT$178. Stock is down 40% over the past year. The company is forecast to post earnings per share of NT$6.02 for next year compared to NT$4.04 last year. Announcement • Apr 15
Faraday Technology Corporation to Report Q1, 2025 Results on Apr 22, 2025 Faraday Technology Corporation announced that they will report Q1, 2025 results on Apr 22, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to NT$173, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total loss to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$137 per share. New Risk • Mar 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: NT$4.04 (down from NT$6.40 in FY 2023). Revenue: NT$11.1b (down 7.5% from FY 2023). Net income: NT$1.04b (down 35% from FY 2023). Profit margin: 9.4% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 1.7%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Feb 24
Faraday Technology Corporation, Annual General Meeting, May 23, 2025 Faraday Technology Corporation, Annual General Meeting, May 23, 2025. Location: no,5, li hsing 3rd rd., hsinchu science park, hsinchu city Taiwan Reported Earnings • Feb 24
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: NT$4.04 (down from NT$6.40 in FY 2023). Revenue: NT$11.1b (down 7.5% from FY 2023). Net income: NT$1.04b (down 35% from FY 2023). Profit margin: 9.4% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 1.7%. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Feb 22
Faraday Technology Corporation Approves Cash Dividend for Year 2024 Faraday Technology Corporation approved cash dividend of TWD 3.0 per share for year 2024. Total amount of cash distributed to shareholders: TWD 781,650,939. Par value of common stock: TWD 10. Announcement • Feb 14
Faraday Technology Corporation to Report Fiscal Year 2024 Results on Feb 21, 2025 Faraday Technology Corporation announced that they will report fiscal year 2024 results on Feb 21, 2025 Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$205, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 5.1% over the past three years. Reported Earnings • Oct 31
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$1.01 (down from NT$1.42 in 3Q 2023). Revenue: NT$2.88b (down 2.6% from 3Q 2023). Net income: NT$264.0m (down 25% from 3Q 2023). Profit margin: 9.2% (down from 12% in 3Q 2023). Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Oct 30
Faraday Technology Corporation Unveils HiSpeedKit™?-HS Platform for High-Speed Interface IP Verification in SoCs Faraday Technology Corporation announced the launch of its latest SoC platform, HiSpeedKit-HS, designed to enhance and streamline the verification process for high-speed interface IP subsystems. The platform supports Faraday's and third-party controller IP solutions, enabling comprehensive hardware and software verification through FPGA integrated with HiSpeedKit-HS. The HiSpeedKit-HS platform allows interface IP verification thorough integration and testing within a realistic SoC environment. It features holistic components, including ARM Cortex®? A53 and the high-speed interface IP test chips of Faraday's DDR 4 PHY, PCIe Gen 4 PHY, and Gigabyte Ethernet PHY. In addition to verification in SoCs, the collocated controller is further integrated to ensure the integrity and quality of the high-speed interface subsystem, reduce future integration risks, accelerate time-to-market, and provide early-stage performance simulation across diverse software system applications. Price Target Changed • Oct 30
Price target decreased by 8.0% to NT$342 Down from NT$372, the current price target is an average from 9 analysts. New target price is 45% above last closing price of NT$235. Stock is down 22% over the past year. The company is forecast to post earnings per share of NT$4.20 for next year compared to NT$6.39 last year. Major Estimate Revision • Oct 30
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$11.7b to NT$11.1b. EPS estimate also fell from NT$5.53 per share to NT$4.20 per share. Net income forecast to grow 47% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$372 to NT$342. Share price fell 12% to NT$235 over the past week. New Risk • Oct 25
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 93% Dividend yield: 1.7% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (93% payout ratio). Share price has been volatile over the past 3 months (8.1% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Shareholders have been diluted in the past year (4.8% increase in shares outstanding). Announcement • Oct 22
Faraday Technology Corporation to Report Q3, 2024 Results on Oct 29, 2024 Faraday Technology Corporation announced that they will report Q3, 2024 results on Oct 29, 2024 Announcement • Oct 08
Faraday Technology Corporation and Kiwimoore Announces Their Jointly Developed 2.5D Packaging Platform Successfully Enters the Mass Production Stage Faraday Technology Corporation and Kiwimoore announced that their jointly developed 2.5D packaging platform has successfully entered the mass production stage. The one-stop advanced packaging platform and service developed through collaboration between Faraday and Kiwimoore, which incorporates Kiwimoore’s Chiplet interconnect and NDSA (network domain specific accelerator) solutions, highlight the significant achievements both companies have made in the Chiplet market. Faraday effectively integrates multi-source Chiplets from different semiconductor manufacturers, covering compute dies, HBM design and production. Kiwimoore, on the other hand, provides various Chiplets including a high-performance 3D general-purpose base die, high-speed IO die, and high-performance NDSA; these can be customized and integrated according to specific customer needs. The two companies work together to offer comprehensive Chiplet SoC/interposer design integration, testing and analysis, outsourced procurement, and production planning services. This comprehensive solution accelerates system-level product design integration, allowing customers to focus on core die development, thereby shortening design cycles and reducing R&D costs. Major Estimate Revision • Aug 06
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$12.0b to NT$11.8b. EPS estimate also fell from NT$6.45 per share to NT$5.51 per share. Net income forecast to grow 68% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$379. Share price fell 23% to NT$238 over the past week. Reported Earnings • Jul 31
Second quarter 2024 earnings: EPS misses analyst expectations Second quarter 2024 results: EPS: NT$1.00 (down from NT$1.67 in 2Q 2023). Revenue: NT$2.65b (down 9.2% from 2Q 2023). Net income: NT$261.0m (down 37% from 2Q 2023). Profit margin: 9.9% (down from 14% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jul 29
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.9% to NT$289. The fair value is estimated to be NT$368, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 53% in 2 years. Earnings are forecast to grow by 143% in the next 2 years. Upcoming Dividend • Jun 19
Upcoming dividend of NT$4.29 per share Eligible shareholders must have bought the stock before 26 June 2024. Payment date: 26 July 2024. Payout ratio is on the higher end at 82%, however this is supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.1%). Declared Dividend • Jun 13
Dividend reduced to NT$4.29 Dividend of NT$4.29 is 14% lower than last year. Ex-date: 26th June 2024 Payment date: 26th July 2024 Dividend yield will be 1.4%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (82% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 3.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 185% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 13
Faraday Technology Corporation Announces Changes to Compensation and Remuneration Committee Faraday Technology Corporation announced changes to Compensation and Remuneration Committee. Name of the previous position holder: Ning-Hai Jin, Bing-Kuan Luo, Wan-Fen Zhou. Resume of the previous position holder: Ning-Hai Jin, Independent Director, Faraday Technology Corporation. Name of the new position holder: Bing-Kuan Luo, Wan-Fen Zhou, Li-Ying Yeh. Resume of the new position holder: Bing-Kuan Luo,Independent Director, Faraday Technology Corporation. Wan-Fen Zhou, Independent Director, Faraday Technology Corporation. Li-Ying Yeh,Independent Director, Faraday Technology Corporation. Circumstances of change: Term expired. Effective date of the new member is June 11, 2024. Original term is from July 8, 2021 to May 29, 2024. Announcement • May 30
Faraday Technology Corporation Approves Cash Dividend for the year 2023 Faraday Technology Corporation announced that at the cash dividend shareholders meeting held on May 29, 2024, approved cash dividend of TWD 4.5 per share for the year 2023. Major Estimate Revision • Apr 25
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$13.4b to NT$12.0b. EPS estimate fell from NT$8.29 to NT$6.45 per share. Net income forecast to grow 40% next year vs 27% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$427 to NT$352. Share price fell 13% to NT$279 over the past week. Reported Earnings • Apr 24
First quarter 2024 earnings: EPS misses analyst expectations First quarter 2024 results: EPS: NT$1.13 (down from NT$2.02 in 1Q 2023). Revenue: NT$2.58b (down 21% from 1Q 2023). Net income: NT$280.3m (down 44% from 1Q 2023). Profit margin: 11% (down from 15% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.8%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 20
Faraday Technology Corporation to Report Q1, 2024 Results on Apr 23, 2024 Faraday Technology Corporation announced that they will report Q1, 2024 results on Apr 23, 2024 Announcement • Feb 25
Faraday Technology Corporation announced that it expects to receive TWD 96 million in funding Faraday Technology Corporation announced a private placement of 9,600,000 shares at a price of TWD 10 per share for the gross proceeds of TWD 96,000,000 on February 23, 2024. The transaction has been approved by the shareholders of the company and is expected to close from March 20, 2024 to March 26, 2024. Major Estimate Revision • Feb 21
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$14.7b to NT$13.3b. EPS estimate also fell from NT$10.90 per share to NT$8.08 per share. Net income forecast to grow 26% next year vs 23% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$423. Share price fell 9.1% to NT$380 over the past week. Announcement • Feb 21
Faraday Technology Corporation, Annual General Meeting, May 29, 2024 Faraday Technology Corporation, Annual General Meeting, May 29, 2024. Location: No.5,Li-Hsin Rd.III,Hsinchu Science Park Hsin-Chu City Taiwan Agenda: To consider The 2023 Business Report; to consider Audit Committee's Review Report on the 2023 Financial Statements; to consider The distribution of employees' bonus and Directors 'remuneration in 2023; to report 2023 directors' compensation; and to consider other matters. Reported Earnings • Feb 21
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: NT$6.39 (down from NT$9.88 in FY 2022). Revenue: NT$12.0b (down 8.4% from FY 2022). Net income: NT$1.59b (down 35% from FY 2022). Profit margin: 13% (down from 19% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 95% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 21
Faraday Technology Corporation Announces Dividend Faraday Technology Corporation announcement of the Dividend Distribution has been approved by the Board of Directors. Appropriations of earnings in cash dividends to shareholders: TWD 4.5 per share. Total amount of cash distributed to shareholders TWD 1,118,476,409. Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$391, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 648% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$327 per share. Announcement • Nov 17
Faraday Technology Corporation Unveils Enhanced Gigabit Ethernet PHY on UMC's 28HPC+ Process Faraday Technology Corporation announced the availability of its 4-port Gigabit Ethernet PHY on UMC's 28HPC+ process. This silicon-proven GPHY features an SAR ADC for superior PPA advantages and an advanced digital algorithm that significantly enhances SNR (signal-to-noise ratio). Designed to meet the growing demands for highly integrated SoC solutions in networking, consumer, and industrial automation applications, Faraday's latest offering aims to expedite product development while boosting performance. One key feature of this 28nm 4-port Gigabit EthernetPHY is its impressive 33% reduction in power consumption per port compared to the previous design. Additionally, its advanced DSP (digital signal processing) mitigates signal noise from multi-port crosstalk, improving signal quality with a notable 1-2 dB SNR enhancement compared to Faraday's 40nm 4-port GPHY. This GbE PHY supports various industry-standard protocols, including 1000BASE-T, 100BASE-TX, 10BASE-Te, 100BASE-FX, IEEE 802.3, 802.3u, 802.3ab, and ANSI X3.263-1995 (FDDI-TP-PMD). Furthermore, it seamlessly integrates with UMC's 3.3V and 1.8V I/O, making it an ideal choice for the 28HPC+ low-power SoC platform, ensuring exceptional power efficiency and performance. Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: NT$1.42 (down from NT$2.41 in 3Q 2022). Revenue: NT$2.96b (down 8.7% from 3Q 2022). Net income: NT$353.9m (down 41% from 3Q 2022). Profit margin: 12% (down from 19% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.2%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has increased by 95% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 26
Faraday Technology Corporation Announces the Appointment of Li-Ying Li as Chief Internal Auditor Faraday Technology Corporation announced the appointment of Li-Ying Li as Chief internal auditor, effective October 24, 2023. Li-Ying Li is Senior Administrator of Faraday Technology Corporation. Announcement • Oct 25
Faraday Technology Corporation Approves to Establish the Nominating Committee The Board of Directors of Faraday Technology Corporation approved to establish the Nominating Committee. Name of the new position holder: Chia-Tsung Hung; Bing-Kuan Luo; Wan-Fen Zhou. Resume of the new position holder: Chia-Tsung Hung, Chairman of Faraday Technology Corporation; Bing-Kuan Luo, Independent Director of Faraday Technology Corporation; Wan-Fen Zhou, Independent Director of Faraday Technology Corporation. Effective date of the new member is October 24, 2023. Valuation Update With 7 Day Price Move • Sep 21
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$298, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 635% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$278 per share. Announcement • Sep 13
Faraday Unveils 2.5D/3D Advanced Package Service for Chiplets Faraday Technology Corporation announced the launch of its 2.5D/3D advanced package service [1]. With an unique interposer manufacturing service for chiplets connection and close collaboration with top-tier foundry and OSAT suppliers to secure capacity, yield, quality, reliability, and schedule in production, Faraday assures seamless integration of multi-source dies, leading to project success. Faraday goes beyond technology by offering flexible business models tailored to each customer's unique 2.5D/3D package project needs. Positioned neutrally and strategically, Faraday enhances flexibility and efficiency in advanced package service for multi-source chiplets, packaging, and manufacturing. In a long-term partnership with leading semiconductor foundry UMC and premier OSAT vendors in Taiwan, Faraday is capable of supporting custom passive/active interposer manufacturing with TSV, and proficiently managing 2.5D/3D package logistics. Furthermore, Faraday deeps dive into package feasibility studies of chiplets and interposer based on the die information including die size, TSV, bump pitch and count, floorplan, substrate, power analysis, and thermal simulation. This comprehensive analysis not only comes up with an optimal package structure for each project in the early stage but also increases the success probability of the advanced package. Announcement • Aug 18
Faraday Technology Corporation Announces Infineon's SONOS eFlash is Fully Qualified on UMC's 40ULP Process Faraday Technology Corporation announced the successful qualification of Faraday’s Ariel™ IoT SoC with UMC’s 40nm ultra-low-power (40ULP) process. Exclusively offering the SONOS eFlash solution on UMC’s 40ULP, Faraday aims at AIoT, MCU, and smart grid projects that necessitate superior performance and low-power consumption. Faraday’s Ariel SoC, implemented with SONOS eFlash macro, has successfully passed the reliability test with HTOL (High Temperature Operating Life Latent Failure Rate) of 1000 hours at 125°C, characterization of data retention at 125°C, and more than 100k cycles of endurance test. Through the extensive testing on real silicon under rigorous conditions, Infineon’s SONOS eFlash has been confirmed that it is a qualified eNVM solution on UMC’s 40ULP. In a strategic collaboration with UMC and Infineon, Faraday has rolled out the 40ULP SONOS eFlash ASIC turnkey service, which supports the SONOS subsystem IP, wafer manufacturing, chip packaging and testing; the SONOS subsystem IP includes eFlash controller, eFlash macro IP, complete BIST on eFlash, and additional cache functions for easy data access and control. Customers can simplify integration efforts for SONOS eFlash and proceed with mass production by utilizing the cost-effective eNVM solution on UMC 40ULP. New Risk • Aug 03
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 26
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: NT$1.66 (down from NT$2.66 in 2Q 2022). Revenue: NT$2.92b (down 13% from 2Q 2022). Net income: NT$413.8m (down 37% from 2Q 2022). Profit margin: 14% (down from 20% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 18%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has increased by 93% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jul 21
Price target increased by 10% to NT$225 Up from NT$204, the current price target is an average from 7 analysts. New target price is 41% below last closing price of NT$380. Stock is up 110% over the past year. The company is forecast to post earnings per share of NT$7.06 for next year compared to NT$9.88 last year. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to NT$329, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 564% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$179 per share. Announcement • Jul 12
Faraday's Launches SerDes Advanced Service to Accelerate Asics into Production Faraday Technology Corporation launched its SerDes (serializer/deserializer) total solution comprises SerDes IP design on UMC 28nm and the corresponding IP advanced (IPA) service which includes IP subsystem integration, PHY hardcore implementation, and signal integrity/power integrity (SI/PI) analysis on the system with package and PCB design. Already, Faraday has successfully integrated the SerDes total solution into mass-produced ASICs for Fiber-to-the-Home (FttH), home gateways, Ethernet switches, SSD, industrial automation, and 5G baseband, and other applications. Combining silicon-proved SerDes IP with Faraday's IPA service speeds customer into mass production. That's because the IP subsystem integration reduces the time needed to perform IP verification of interface protocol function in the system and the PHY hardcore implementation ensures the interface performance based on the customer's dedicated configuration. Meanwhile, IPA service provides the PCB layout guideline and supports the SI/PI analysis to increase data transfer throughput without system error. Using in-house IC Automatic Test Equipment (ATE) and compliance measuring instruments, the IPA service can accelerate the testing flow at different temperatures in the lab for problem-solving before mass production. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to NT$251, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 416% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$179 per share. Price Target Changed • Jun 26
Price target increased by 9.6% to NT$197 Up from NT$179, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of NT$202. Stock is up 2.0% over the past year. The company is forecast to post earnings per share of NT$7.08 for next year compared to NT$9.88 last year. Upcoming Dividend • Jun 08
Upcoming dividend of NT$5.00 per share at 3.0% yield Eligible shareholders must have bought the stock before 15 June 2023. Payment date: 18 July 2023. Payout ratio is a comfortable 54% but the company is paying out more than the cash it is generating. Trailing yield: 3.0%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.2%). Reported Earnings • Apr 30
First quarter 2023 earnings: EPS misses analyst expectations First quarter 2023 results: EPS: NT$2.02 (down from NT$2.70 in 1Q 2022). Revenue: NT$3.26b (up 1.7% from 1Q 2022). Net income: NT$501.9m (down 25% from 1Q 2022). Profit margin: 15% (down from 21% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.5%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 56% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 28
Price target decreased by 8.5% to NT$192 Down from NT$210, the current price target is an average from 6 analysts. New target price is 17% above last closing price of NT$164. Stock is down 37% over the past year. The company is forecast to post earnings per share of NT$8.63 for next year compared to NT$9.88 last year. Price Target Changed • Apr 27
Price target decreased by 8.5% to NT$192 Down from NT$210, the current price target is an average from 6 analysts. New target price is 21% above last closing price of NT$159. Stock is down 39% over the past year. The company is forecast to post earnings per share of NT$8.63 for next year compared to NT$9.88 last year. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$159, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 287% over the past three years. Major Estimate Revision • Apr 26
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$13.8b to NT$12.1b. EPS estimate fell from NT$9.76 to NT$8.94 per share. Net income forecast to shrink 29% next year vs 23% decline forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$210 to NT$196. Share price fell 9.3% to NT$171 over the past week. Price Target Changed • Feb 23
Price target increased by 8.3% to NT$190 Up from NT$176, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$189. Stock is down 24% over the past year. The company is forecast to post earnings per share of NT$9.69 for next year compared to NT$9.88 last year. Reported Earnings • Feb 22
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$9.88 (up from NT$4.65 in FY 2021). Revenue: NT$13.1b (up 62% from FY 2021). Net income: NT$2.45b (up 112% from FY 2021). Profit margin: 19% (up from 14% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 58% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$195, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 335% over the past three years. Price Target Changed • Nov 16
Price target decreased to NT$176 Down from NT$190, the current price target is an average from 6 analysts. New target price is 5.3% above last closing price of NT$167. Stock is down 19% over the past year. The company is forecast to post earnings per share of NT$10.03 for next year compared to NT$4.65 last year.