X-FAB Silicon Foundries SE
X-FAB manufactures analogue, mixed-signal and other specialist chips for customers that design electronic products.
Overview
Latest results
Jan–Sep 2026 · Reported in USD
Latest financial publication
Third-quarter and nine-month 2026 results
Investment Thesis
Specialist chip demand must fill expensive factories
European Tech Equities analysis ·
The opportunity is in demanding applications
X-FAB Silicon Foundries SE manufactures analogue and mixed-signal chips for automotive, industrial and medical customers. A successful design can support production over several years, which gives specialised processes a useful commercial role. The investment case depends on filling the factories at prices that cover their substantial fixed costs, while developing newer opportunities in power electronics and photonics.
The current cycle is still weighing on earnings
H1 2026 revenue was US$395.4 million and operating profit US$4.4 million, down from US$42.8 million a year earlier. Q2 automotive revenue fell 19% year on year, while medical revenue rose 39%, excluding the IFRS 15 recognition adjustment. That mix shows a specialist portfolio with different demand cycles, rather than a business automatically lifted by the headline semiconductor boom.
Electrification and data centres create different routes to growth
The IEA expects 23 million electric cars to be sold globally in 2026, including roughly 20% growth in Europe. More complex power and sensing requirements can support specialist semiconductor demand, but suppliers must win the relevant designs. X-FAB also identifies a long-term US$300 million annual revenue potential from data-centre applications. That is management’s opportunity estimate, not contracted sales, and it should be kept separate from the automotive recovery case.
Depreciation and cash investment both matter
Operating cash flow of US$15.9 million in H1 was below cash capital expenditure of US$50.2 million, before investment subsidies. Net debt reached US$312.3 million at June-end. Capacity and process investment can support future sales, but the near-term economics require better utilisation. A recovery that needs repeated additional borrowing without generating enough cash would leave ordinary shareholders with a much weaker outcome.
Use a normal factory load, not a normal semiconductor headline
A sensible valuation needs sustainable utilisation, process mix and maintenance investment. Applying a multiple to depressed EBIT may miss the recovery opportunity, while assuming a rapid return to peak margins can ignore idle capacity and pricing pressure. Medical and data-centre growth would strengthen the case if they diversify earnings and improve cash returns on the assets already installed.
What would weaken the case
- Automotive demand remains weak or customers reduce inventories for longer than expected.
- Newer applications require investment well before they contribute enough revenue.
- Low utilisation and price pressure leave cash generation insufficient for capital spending and debt reduction.
Sources
Financials
The business in numbers
Latest
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Q2/H1 2026 release, pp. 7–10. Figures are in US dollars. Revenue includes the IFRS 15 recognition adjustment. Debt comprises loans and borrowings. Free cash flow here subtracts cash purchases of tangible and intangible assets, before investment subsidies.
Half-year
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
H1 2025 · Q2/H1 2026 results, pp. 7–10
H1 2026 · Q2/H1 2026 results, pp. 7–10
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Q2/H1 2026 release, pp. 7–10. Figures are in US dollars. Revenue includes the IFRS 15 recognition adjustment. Debt comprises loans and borrowings. Free cash flow here subtracts cash purchases of tangible and intangible assets, before investment subsidies.
Quarterly
Income statement
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
Q3 2025 · Comparative unaudited issuer statement. USD millions except EPS.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Q2/H1 2026 release, pp. 7–10. Figures are in US dollars. Revenue includes the IFRS 15 recognition adjustment. Debt comprises loans and borrowings. Free cash flow here subtracts cash purchases of tangible and intangible assets, before investment subsidies.
Year to date
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Q2/H1 2026 release, pp. 7–10. Figures are in US dollars. Revenue includes the IFRS 15 recognition adjustment. Debt comprises loans and borrowings. Free cash flow here subtracts cash purchases of tangible and intangible assets, before investment subsidies.
Performance
About these figures
Dates link to the original reports. Bars compare the same period a year earlier, on a consistent accounting basis. Arrows show whether the number rose or fell, not whether it is good or bad for the business.
Research & updates
Interviews
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Sources
Sources & data dates
Financial figures link to the company’s publications and retain their reporting period. Share prices have their own closing dates.
Q3 2026 · Published Oct 29, 2026 · Checked Oct 29, 2026
Q3 2025 · Published Oct 29, 2026 · Checked Oct 29, 2026
9M 2026 · Published Oct 29, 2026 · Checked Oct 29, 2026
9M 2025 · Published Oct 29, 2026 · Checked Oct 29, 2026
H1 2026 · Published Jul 30, 2026 · Checked Sep 14, 2026
Checked 2026-09-14
Checked 2026-09-14
Checked 2026-09-14
Checked 2026-10-23
Checked 2026-09-14