Lishen Reports Highest Revenue in Four Years for July; Second-Half Operations Steadily Rebounding

MOSFET manufacturer Lishen (4923-TW) reported July revenue of NT$120 million, a 19.94% increase month-over-month and a 49.73% year-over-year rise. The company stated that the surge was driven by order overflow from major international IDM (Integrated Device Manufacturer) firms redirecting production capacity toward AI-related high-margin products, combined with Lishen’s expanded supply chain footprint, pushing July revenue to its highest level in four years. Looking ahead to the second half, the company expects further operational momentum from the gradual introduction of low Earth orbit (LEO) satellite receiver products and the launch of power components for AI edge servers.

Lishen noted that as global IDM leaders continue shifting production capacity to AI-related high-margin products, demand for low- and medium-voltage MOSFETs is being outsourced. The company has continuously expanded supply chain certifications and improved product penetration. Despite a slowdown in end-market demand growth across the broader consumer electronics sector due to memory supply constraints, Lishen delivered a record-breaking monthly revenue performance, driven by its diversified product portfolio and successful customer integration.

Regarding cost pressures, Lishen stated that upstream raw material costs have continued to rise. In response, major international semiconductor firms have begun adjusting prices, and Lishen has gradually passed on cost increases since the second quarter by adjusting product pricing. This strategy aims to mitigate the impact of rising material costs on operations while maintaining overall profitability.

On the profitability front, Lishen achieved H1 2024 revenue of NT$515 million, a 26.43% year-over-year increase. Gross margin improved to 28%, primarily due to expanded revenue scale and continuous optimization of the product mix. Operating profit reached NT$1.246 million, and with effective control of non-operating expenses, net profit after tax amounted to NT$16.698 million, translating to earnings per share (EPS) of NT$0.50—marking a shift from loss to profit compared to the prior year. This reflects ongoing improvements in operational fundamentals and steadily strengthening profitability.

In terms of product development, Lishen continues to expand its applications in power supply units. In addition to existing notebook/PC products, gaming-related products have officially entered mass production and shipment. LEO satellite receiver products are also expected to be introduced gradually in the second half, further boosting operational momentum.

Responding to the rapid growth of AI applications, Lishen continues to invest in new product development. The company has already launched market-aligned MOSFET products for compact AI edge servers, including applications for cooling fans and hot-swap (Hot Swap) power management. These products are currently undergoing sampling and certification through existing system-level partners. As the markets for AI edge computing and compact AI servers expand, Lishen anticipates gradual revenue contribution from these products.

In battery applications, Lishen has secured certifications from multiple major domestic and international manufacturers. Its products are used in drones, server backup batteries (BBU), and other fields. The company continues to invest in new product design and customer integration, actively expanding its end-application footprint to capture new business opportunities arising from AI, high-performance computing, and new energy markets.

Looking ahead to 2026, Lishen stated that its reserved foundry capacity will come online gradually starting in the second half, effectively meeting growing customer order demand. Combined with rising MOSFET demand driven by AI, ongoing order overflow, volume ramp-up of new application products, and a continued shift toward higher-value product mixes, the company maintains a cautiously optimistic outlook for second-half operations. It expects revenue and profitability to improve quarter by quarter and will continue enhancing product competitiveness and market penetration, providing stable momentum for full-year growth.