Korean Semiconductor Firm Fadu Reports Record Q3 Earnings, Revenue Up 460% YoY

South Korean data center semiconductor company Fadu announced on October 19 that its third-quarter revenue reached 143.6 billion KRW with an operating profit of 36.3 billion KRW, setting new all-time highs for the company. These figures significantly surpass the previous quarter's records (73.2 billion KRW in revenue and 16.2 billion KRW in operating profit), indicating a rapid strengthening of its position in the AI infrastructure supply chain.

In terms of growth, Fadu's Q3 revenue increased by 460% year-over-year and 96% quarter-over-quarter. Cumulative revenue for the first three quarters hit 276.3 billion KRW, a 303% surge compared to 68.5 billion KRW in the same period last year. Crucially, the company achieved a major turnaround in profitability: while it recorded an operating loss of 11.4 billion KRW in the same quarter last year, it successfully swung to a large-scale profit this year. Cumulative operating profit through Q3 has exceeded 60 billion KRW, establishing a solid foundation for earnings.

The strong performance is attributed to the expansion of AI data center investments by global Big Tech companies, which has led to an explosion in demand for storage solutions. Fadu revealed that its cumulative new order value for this year has reached 456.3 billion KRW, nearly five times its total annual revenue from last year (92.4 billion KRW), suggesting high visibility for future income.

On the technology front, Fadu is advancing product upgrades to maintain competitiveness. Beyond the Gen5 controllers currently supplied to multiple global tech giants, the company has completed development of the next-generation Gen6 controller with significantly improved performance, scheduled for mass production and sales starting at the end of the year. Additionally, the Gen7 controller, targeted for sample delivery in 2028, is under development. The company is also expanding its portfolio into power management ICs (PMIC) and high-speed signal solutions, aiming to transform into a comprehensive 'AI Data Center Solution Fabless' provider.