Seoul Semiconductor turns losses into profits in Q1

Recently, Seoul Semiconductor announced its consolidated financial results for the first quarter of 2026.

Despite the uncertainty of the global economy, Seoul Semiconductor still maintained a comparable revenue scale in the first quarter compared with the same period last year. At the same time, profitability continued to improve, and the profit before interest, taxes, depreciation, and amortization (EBITDA) profit margin successfully exceeded 10%. In terms of specific financial data, Seoul Semiconductor achieved sales of 238.2 billion won (approximately RMB 1.27 billion) in the first quarter of 2026, a slight decrease of only 0.4% year-on-year.

On the profit side, the company achieved a significant turnaround, with operating profit in the first quarter reaching 1.8 billion won and an operating profit margin of 0.7%, compared with a loss of 20.7 billion won in the same period last year; net profit also turned a profit, reaching 8.8 billion won. In addition, Seoul Semiconductor's EBITDA reached 24.8 billion won in the first quarter, and the EBITDA profit margin increased significantly from 1.3% in the same period last year to 10.4%. At the same time, the company continues to optimize its expense structure, investing 20.7 billion won in research and development, accounting for 8.7% of revenue.

Seoul Semiconductor said that it was able to establish a stable revenue growth foundation in the first quarter, mainly due to the company's integrated production of chips, packaging and modules through its Vietnam factory, and established a competitive cost structure with economies of scale. In addition, in terms of technology, Seoul Semiconductor has achieved strong core competitiveness by relying on more than 15,000 patents including WICOP and No-package technology.

Seoul Semiconductor has given an optimistic outlook for its second quarter performance. It expects revenue in the second quarter of 2026 to reach between 270 billion won and 290 billion won, with a year-on-year growth of 7% to 15% and a month-on-month growth of 13% to 22%.

Seoul Viosys aims to expand into the optical communications market

While the performance of the parent company is recovering overall, Seoul Viosys, a subsidiary specialized in optical semiconductors under Seoul Semiconductor, is also actively opening up a new growth curve, targeting the US$60 billion AI data center optical communications optical semiconductor market.

With the explosive growth of artificial intelligence, global data centers are transforming from traditional copper cable architecture to optical network architecture. Seoul Viosys is following this trend closely and is gradually upgrading to become an optical communication solution provider by virtue of its short-range communication vertical cavity surface emitting laser (VCSEL) technology accumulation and 100G (25G×4) level technology reserves.

Currently, Seoul Viosys is in in-depth negotiations with two global leaders in the field of data optical interconnect interfaces on joint technology development, joint ventures or OEM manufacturing, and is simultaneously exploring expanded cooperation with multiple potential partners in the United States and Japan. Seoul Viosys is establishing its position as a full solution provider in the transceiver market by building an ecological network of optical communication strategic partners covering design, devices, driver chips and modules.

In addition, Seoul Viosys also stated that in the field of Micro LED optical communication, the company has mature patented optical semiconductor device technology, original WICOP technology, and 1,800 micro optical semiconductor patents related to optical communication, which can accelerate the development of Micro LED optical communication technology, achieve efficient and high-density ultra-high-speed data transmission, and meet the needs of high-density infrastructure such as future AI data centers. (Compiled by LEDinside)

Please indicate the source when reprinting! For more LED information, please pay attention to the official website (www.ledinside.cn) or search the WeChat public account (LEDinside).