1. Above Semiconductor H1 2025 Performance: Key Highlights
Above Semiconductor’s H1 2025 revenue decreased by 47.18% year-over-year to KRW 122.63 billion. While operating profit turned positive, Q2 preliminary earnings fell short of market expectations for both operating and net income, negatively impacting investor sentiment. Notably, net income swung to a loss.
2. Reasons for Underperformance: Market Dynamics and Internal Factors
The primary reasons for this underperformance are the overall slowdown in the semiconductor market and the contraction of the consumer electronics and IT device markets. Sales decline was particularly pronounced in the ‘Consumer’ and ‘Packaging (PKG)’ segments. Macroeconomic uncertainty and geopolitical risks also contributed to the challenges.
3. Future Growth Potential: MCU Competitiveness and Overseas Expansion
Despite the challenging market environment, Above Semiconductor demonstrates growth potential, driven by its technological competitiveness in the MCU business. Its proprietary analog IP design technology and continuous R&D investment are expected to be long-term growth drivers. The company is also pursuing sales diversification through overseas market expansion.
4. Action Plan for Investors: Monitoring Key Metrics and Managing Risks
Investors should closely monitor upcoming quarterly earnings releases for signs of easing revenue decline and improving profitability. The success of new market entries in AI and IoT, as well as the effectiveness of its high-value-added product portfolio strategy, will be crucial factors to consider. Investors should also remain mindful of risk factors such as semiconductor market volatility and intensifying competition.