China chip foundry Hua Hong Grace Semiconductor reported a 147.1 percent year-on-year increase in third-quarter profit as revenue reached a record and demand improved across several specialty semiconductor products.
Net profit attributable to shareholders of the parent company rose to $123.4 million in the quarter ended September 30, from $50 million a year earlier, according to the company’s results filed with the Hong Kong Stock Exchange on November 5.
Revenue increased 19.9 percent year on year and 9.9 percent from the previous quarter to $987.1 million. Gross margin reached 24.6 percent, up 7.6 percentage points from a year earlier and 4.7 percentage points from the second quarter.
The reported figures include Shanghai Huali Microelectronics, which Hua Hong Grace completed acquiring during the quarter. Excluding Huali Micro, revenue was $803.4 million, above the company’s earlier guidance of $770 million to $780 million. Gross margin excluding the acquired business was 19.9 percent, also above the guided range of 16 percent to 18 percent.
Hua Hong Grace shipped 1.91 million eight-inch-equivalent wafers during the quarter, an 11.5 percent increase from a year earlier. Capacity utilization was 102.9 percent, compared with 108.7 percent in the same period of 2025.
China, including mainland China and Hong Kong, generated $760.8 million of revenue, or 77.1 percent of the total. China revenue rose 14.6 percent as demand increased for microcontrollers, flash memory, smart-card chips, logic products and general-purpose MOSFETs, partially offset by weaker analog demand. Revenue from other Asian markets was roughly unchanged at $76.9 million.
Embedded non-volatile memory revenue increased 42.5 percent to $252.5 million, while standalone non-volatile memory revenue grew 28.2 percent to $147.6 million. Power discrete revenue climbed 19.5 percent to $202 million, and analog and power-management revenue rose 13.5 percent to $199.9 million.
The company said artificial intelligence-related products continued to support global semiconductor demand, while industrial and automotive markets were gradually improving. It also cited tighter supply in some microcontroller, flash, power-management and power-discrete segments. These demand assessments are company commentary rather than independent market findings.
Twelve-inch wafers accounted for 70.7 percent of quarterly revenue, up from 68.6 percent a year earlier. Hua Hong Grace operates fabrication facilities in Shanghai and Wuxi and said construction of its Wuxi III 12-inch production line was underway. The expansion sits within China’s broader effort to strengthen its domestic semiconductor supply chain, which TNGlobal previously reported.
For the fourth quarter, Hua Hong Grace expects revenue of approximately $1.08 billion to $1.09 billion and a gross margin of 25 percent to 26 percent.
China tech self-sufficiency drive to boost semiconductor supply chain – S&P
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Source: https://www1.hkexnews.hk/listedco/listconews/sehk/2026/1105/2026110500668.pdf
Score 89/100 (impact 25, APAC relevance 20, freshness 13, source quality 20, reader value 11). Web discovery from the official Hong Kong Stock Exchange filing, corroborated by regional financial coverage; no direct current Gmail pitch found. Gmail search surfaced only an unrelated October Media OutReach item and no Sent/assignment signal. TNGlobal company/event/source-URL search, Ready/Review/Posted folders and Automation Draft Log checks were clear. Regional relevance: China-based specialty foundry, 77.1 percent of revenue from mainland China and Hong Kong, with direct implications for China’s semiconductor capacity and AI supply chain. Figures are unaudited company results; demand, supply-tightness and market-outlook statements are attributed to the company. The acquisition of Huali Micro affects comparability, so both consolidated and exclusion figures are stated. No embargo. No image: no reusable connector-backed official media asset was obtained; featured_image omitted rather than using an unverified visual. Editor should retain the acquisition comparability caveat and attribution of forecasts and demand claims.