ABOV Semiconductor Returns to Profitability in H1 2025, But Revenue Decline Remains a Concern

1. What Happened? H1 2025 Performance Analysis

ABOV Semiconductor recorded revenue of KRW 60.8 billion and operating profit of KRW 3.1 billion in the first half of 2025. While the company achieved profitability, revenue decreased by approximately 50% year-over-year.

2. Why These Results? Drivers of Profitability and Revenue Decline

The return to profitability is attributed to the strong performance of the MCU business segment and efficient cost management. However, the poor performance of the subsidiary WinPack (PKG and TEST business) was the main cause of the overall revenue decline, impacted by the downturn in the semiconductor post-processing market and customer inventory adjustments.

3. What’s Next? Key Insights for Investors

ABOV Semiconductor’s future hinges on the growth of its MCU business and the recovery of WinPack. The increasing demand for MCUs due to the expansion of the IoT and AI markets is a positive factor. However, WinPack’s performance and ABOV’s ability to navigate the changing macroeconomic environment will be critical variables.

4. Investor Action Plan

• Short-term investors: A cautious approach is recommended considering the declining revenue trend and sensitivity to external factors.
• Long-term investors: Focus on the growth potential of the MCU market and the possibility of WinPack’s recovery, considering investment from a long-term perspective.