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1. Company Snapshot

1.a. Company Description

X-FAB Silicon Foundries SE operates as an analog/mixed-signal semiconductor technology foundry.The company manufactures silicon wafers for automotive, industrial, consumer, medical, and mobile communications, and other applications; and analog/mixed-signal integrated circuits, sensors, and micro-electro-mechanical systems.It also provides manufacturing and design support services for customers that design analog/mixed-signal integrated circuits and other semiconductor devices, as well as engineering and prototyping, outsourcing, technical, and design support services.


The company serves integrated device manufacturers, original equipment manufacturers, and fabless semiconductor companies.It operates in Belgium, Germany, the United Kingdom, Austria, France, Switzerland, Denmark, Sweden, Finland, Netherlands, Ireland, Singapore, China, Japan, Thailand, Malaysia, Korea, Taiwan, Hong Kong, New Zealand, the United States, and internationally.The company was founded in 1992 and is based in Tessenderlo, Belgium.


X-FAB Silicon Foundries SE is a subsidiary of XTRION NV.

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1.b. Last Insights on XFAB

X-FAB Silicon Foundries' recent performance was negatively impacted by a decline in net profit margins to 3.7% from 13.8% previously. The company's third-quarter revenue grew to $228.57 million, but net income fell to $16.58 million. A CEO transition was announced, with Damien Macq succeeding Rudi De Winter in early 2026. Analysts have revised their Fair Value Estimate downward to €6.86, citing conservative revenue growth forecasts and a higher discount rate. The company reaffirmed its 2025 revenue outlook of $840M to $870M.

1.c. Company Highlights

2. X-FAB's Q3 2025 Earnings: A Strong Performance Amidst Market Uncertainty

X-FAB reported a robust financial performance in Q3 2025, with revenue reaching $229 million, up 11% year-on-year and 6% quarter-on-quarter, beating guidance. The EBITDA margin stood at 23.6%, with EBITDA growing 4% quarter-on-quarter and 7% year-on-year to $354 million (though the actual figure for EBITDA is not directly stated, it can be derived from the margin and revenue). Earnings per share (EPS) came in at $0.1108, significantly higher than the estimated $0.05965. The strong revenue growth was driven by core markets, including automotive, industrial, and medical, which accounted for 94% of total revenue. Notably, the medical business saw significant growth, with revenue increasing 74% year-on-year and 40% quarter-on-quarter to $21 million.

Publication Date: Nov -04

📋 Highlights
  • Revenue Growth:: $229M reported (up 11% YoY, 6% QoQ), exceeding guidance.
  • Core Market Contribution:: Automotive, industrial, and medical (94% of revenue), with medical revenue surging to $21M (+74% YoY, +40% QoQ).
  • EBITDA Performance:: $354M EBITDA (7% YoY, 4% QoQ growth) with a 23.6% margin.
  • Silicon Carbide Recovery:: Revenue up 30% YoY and 20% QoQ, driven by data center, EV, and renewable energy demand.
  • Capacity Expansion Delay:: Texas expansion not planned for 2026; focus on qualifying existing equipment for production.

Segment Performance

The company's CMOS revenue grew 10% year-on-year and 4% quarter-on-quarter, while microsystems revenue increased 27% year-on-year and 9% sequentially. The silicon carbide business continued its recovery, driven by increasing bookings for data center, electric vehicles, and renewable energy applications, with revenue up 30% year-on-year and 20% quarter-on-quarter. As Rudi De Winter, CEO, highlighted, the company's diversified portfolio and focus on niche technologies are driving growth.

Valuation and Outlook

With a P/E Ratio of 24.67 and an EV/EBITDA of 2.98, the market seems to have priced in a certain level of growth. Given the analysts' estimates of 7.2% revenue growth for next year, the current valuation appears reasonable. The ROE of 2.95% and ROIC of 3.03% indicate that the company is generating returns, albeit modest. The net debt to EBITDA ratio of -0.78 suggests a healthy balance sheet. As the company navigates market uncertainty, its diversified revenue streams and niche technologies position it for continued growth.

Operational Highlights

X-FAB's capacity expansion plans are proceeding, with the Corbeil facility currently at a run rate of $54 million per quarter. The company is also transitioning from CMOS to micro systems business and plans to exit the 0.6 micron CMOS signal business by the end of 2026. While order intake in Q3 was weak, it was relatively flat over the quarter, with no sudden decline at the end. The company's efforts to adapt to changing market dynamics, including the impact of AI and the shift towards electric vehicles, will be crucial in driving future growth.

3. NewsRoom

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Why The Narrative Around X-FAB Is Changing After Recent Analyst and Market Updates

Nov -09

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Will X-FAB (ENXTPA:XFAB)’s CEO Transition and Lower Earnings Signal a Shift in Strategic Focus?

Nov -07

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X-FAB (ENXTPA:XFAB) Margin Decline Challenges Bull Case Despite Strong Forward Earnings Growth Forecasts

Nov -01

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X-FAB Third Quarter 2025 Results

Oct -30

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X-FAB announces CEO succession plan

Oct -30

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X-FAB (ENXTPA:XFAB): Exploring the Valuation Behind Recent Stock Fluctuations and Investor Sentiment

Sep -11

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X-FAB Silicon Foundries (ENXTPA:XFAB) Reaffirms 2025 Revenue Outlook of US$840M to US$870M

Sep -10

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X-FAB Investor Day: On track for long-term growth with a focused technology strategy

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.87%)

6. Segments

Process Control Monitor Wafer

Expected Growth: 8%

X-FAB Silicon Foundries SE's Process Control Monitor Wafer growth is driven by increasing demand for IoT and 5G devices, adoption of advanced semiconductor technologies, and rising need for quality control in wafer manufacturing. Additionally, growing investments in Industry 4.0 and smart manufacturing initiatives are fueling the segment's 8% growth.

Non-Recurring Engineering and Technology Services

Expected Growth: 7%

X-FAB Silicon Foundries SE's 7% growth in Non-Recurring Engineering and Technology Services is driven by increasing demand for customized semiconductor solutions, expansion into emerging markets, and strategic partnerships with leading OEMs. Additionally, investments in R&D and process improvements have enhanced the company's competitiveness, further fueling growth.

Discounts and Warranty Credits

Expected Growth: 6%

X-FAB Silicon Foundries SE's 6% growth in Discounts and Warranty Credits is driven by increasing demand for semiconductor products, effective cost management, and strategic partnerships. Additionally, the company's focus on quality and reliability has led to a reduction in warranty claims, resulting in higher warranty credits. Furthermore, X-FAB's competitive pricing strategy has enabled it to offer attractive discounts, boosting sales and revenue.

Other

Expected Growth: 5%

X-FAB Silicon Foundries SE's 5% growth is driven by increasing demand for specialized semiconductor products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on analog and mixed-signal technologies, as well as its ability to adapt to changing market conditions, contribute to its growth momentum.

7. Detailed Products

Analog and Mixed-Signal ICs

Custom and standard analog and mixed-signal integrated circuits for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

RF and Microwave ICs

Custom and standard RF and microwave integrated circuits for wireless communication systems, including 5G, Wi-Fi, Bluetooth, and satellite communications.

Power Management ICs

Custom and standard power management integrated circuits for voltage regulation, power conversion, and battery management.

Microcontrollers and Processors

Custom and standard microcontrollers and processors for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

Sensors and Actuators

Custom and standard sensors and actuators for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

Foundry Services

Custom IC design, manufacturing, and testing services for fabless companies and system companies.

8. X-FAB Silicon Foundries SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for X-FAB Silicon Foundries SE, as there are alternative technologies and suppliers available in the market.

Bargaining Power Of Customers

The bargaining power of customers is high, as they have multiple options for sourcing silicon wafers and can negotiate prices and terms with X-FAB.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as X-FAB has a diversified supplier base and can switch to alternative suppliers if needed.

Threat Of New Entrants

The threat of new entrants is low, as the capital requirements for entering the silicon wafer manufacturing industry are high, and there are significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high, as the silicon wafer manufacturing industry is highly competitive, and companies like X-FAB face intense competition from established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.36%
Debt Cost 4.80%
Equity Weight 78.64%
Equity Cost 13.54%
WACC 11.67%
Leverage 27.17%

11. Quality Control: X-FAB Silicon Foundries SE passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Elmos

A-Score: 4.9/10

Value: 4.5

Growth: 6.4

Quality: 7.5

Yield: 1.9

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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X-FAB Silicon Foundries

A-Score: 4.6/10

Value: 7.3

Growth: 7.3

Quality: 3.8

Yield: 0.0

Momentum: 7.5

Volatility: 1.7

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SÜSS MicroTec

A-Score: 4.3/10

Value: 8.2

Growth: 8.9

Quality: 7.9

Yield: 0.6

Momentum: 0.5

Volatility: 0.0

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First Sensor

A-Score: 4.3/10

Value: 2.9

Growth: 3.8

Quality: 6.6

Yield: 1.2

Momentum: 1.5

Volatility: 9.7

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Oxford Instruments

A-Score: 4.0/10

Value: 2.3

Growth: 4.7

Quality: 6.2

Yield: 1.2

Momentum: 4.0

Volatility: 5.3

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Valens Semi

A-Score: 2.9/10

Value: 7.8

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.32$

Current Price

5.33$

Potential

-0.00%

Expected Cash-Flows