1. What Happened? FADU Signs a KRW 4.7 Billion Contract!
On August 18, 2025, FADU announced a KRW 4.7 billion contract with a major overseas NAND flash memory manufacturer for the supply of enterprise SSD controllers. This represents approximately 10.88% of FADU’s 2024 revenue. The contract period runs for six months, from August 18, 2025, to February 25, 2026.
2. Why Does it Matter? Validation of Growth Potential & Enhanced Market Competitiveness
This contract signifies more than just revenue growth. It validates FADU’s technological prowess and strengthens its market competitiveness. Securing a contract with a leading global memory manufacturer enhances the credibility of FADU’s SSD controller technology and paves the way for potential future contracts. Moreover, coupled with the growing trend of data center investments driven by AI market expansion, it brightens FADU’s mid-to-long-term growth prospects.
3. What’s Next? Short-Term Stock Momentum + Long-Term Growth Potential
This contract is expected to positively impact FADU’s stock price in the short term. However, investors should focus on FADU’s continued efforts to improve profitability and its long-term growth potential rather than short-term price fluctuations. The trend of operating loss improvement and the securing of additional large-scale contracts will be crucial factors determining FADU’s future enterprise value.
4. Investor Action Plan: Leverage Short-Term Momentum + Maintain a Long-Term Perspective
- Short-term investors: Can capitalize on the short-term stock price momentum generated by the contract announcement.
- Long-term investors: Should continuously monitor profitability improvement, securing of additional contracts, and benefits from AI market growth, and establish investment strategies based on a long-term perspective.