FADU Achieves Operating Profit of 7.7 Billion Won in Q1, Returns to Profitability

Net Profit Turns Positive at 10.2 Billion Won

New Orders Reach 166.3 Billion Won as Disclosed

On April 27, FADU, a semiconductor company specializing in data center solutions, announced through a provisional earnings disclosure that it achieved a turnaround in the first quarter of this year, recording sales of 59.5 billion won and an operating profit of 7.7 billion won.

After the semiconductor downturn in 2023, FADU has steadily increased its market share by leading with next-generation products such as the 5th generation high-speed data transmission standard (PCIe Gen5) and fully integrating into the global hyperscaler ecosystem. Annual sales doubled each year, reaching 43.5 billion won in 2024 and 92.4 billion won in 2025.

In the first quarter, the company’s enterprise solid-state drive (eSSD) business played a pivotal role in driving growth, supported by the expansion of artificial intelligence (AI) data centers. In particular, orders for FADU’s core controller business from global hyperscaler companies have increased rapidly, suggesting even steeper growth in the second half of the year. As of April, new orders alone totaled 166.3 billion won, already surpassing last year’s total sales of 92.4 billion won.

The notable point is the rising proportion of controller sales. Since last year, FADU has focused on increasing its controller business, and in the first quarter of this year, controller sales accounted for approximately 80% of total revenue, significantly improving the company’s profit structure. As a result, the company turned last year’s first-quarter operating loss of 12 billion won into an operating profit of 7.7 billion won this year. Net profit also reached 10.2 billion won, reversing from a net loss of 12.1 billion won in the same period last year.

FADU plans to make this year a ‘quantum leap’ where both revenue and profit grow together, accelerating its growth momentum. The company aims to strengthen new growth engines such as power management ICs (PMICs) to diversify its profit structure, and it will actively target not only the U.S. market but also expand into the broader Asian market to diversify its customer base.

Its research and development (R&D) capabilities are also being enhanced. Last month, FADU recruited Professor Kim Jinsu, one of the nation’s top experts in computer architecture and system software from the Department of Computer Science and Engineering at Seoul National University, as Chief Research Officer (CRO) to lead the development of next-generation storage systems. The goal is to move beyond simply supplying SSD controllers to become a comprehensive storage solution provider designing and delivering storage architectures optimized for AI workloads.

Nam Ihyun, CEO of FADU, said, “This turnaround to profitability is a result of our dedication and technological expertise being recognized by our customers,” adding, “Now that we are fully established within the global hyperscaler ecosystem, both sales and profits will enter a full-fledged growth phase.” He continued, “I sincerely thank all our shareholders and customers who have put their trust in FADU, and we will set a model example of success as Korea’s leading fabless company.”

This content was produced with the assistance of AI translation services.