Memory control chip factory Huirong Technology (SIMO) announced its second quarter financial report for 2025, with revenue of US$198.68 million, a 19% increase from the previous quarter and a slight decrease of 6% compared with the same period in 20...
Memory control chip factory Huirong Technology (SIMO) announced its second quarter financial report for 2025, with revenue of US$198.68 million, a 19% increase from the previous quarter and a slight decrease of 6% compared with the same period in 2024. The second quarter gross profit margin was 47.7%, with a net profit of US$23.01 million, with a profit of US$0.69 per unit of rare US deposit certificate (ADS).
Gou Jiazhang, president of Huirong Technology, said that the second quarter of 2025 saw strong recovery and the revenue performance was better than expected. The leading PCIe Gen5 SSD control chip business grew by more than 75% compared with the previous quarter, mainly benefiting from the fact that edge AI personal computers have begun to gain attention in the market and white brand AI server manufacturers continue to introduce mainstream hardware components. In addition, Huirong's eMMC and UFS control chips also grew strongly in the second quarter, mainly from the smart phone market growth exceeded expectations, and coupled with the increase in market share, it grew by nearly 45% compared with the previous quarter.
Looking ahead, Gou Jiazhang said that while continuing to invest in new products and opening new markets, diversified strategies are bringing more business opportunities to Huirong. In 2025, we will benefit from the launch of a number of new products, including the 8-channel consumer PCIe Gen5 SSD control chips with a 6-nanometer process, the new eMMC and UFS control chips, and the microSD control chips for Nintendo Switch 2.
Gou Jiazhang emphasized that many new products will also begin shipping in the second half of 2025, and it is expected to gradually expand a large scale in 2026, including the new 4-channel PCIe Gen5 mainstream SSD control chip using a 6-nanometer process, the first MonTitan enterprise/AI-level product, and a drive storage solution designed for DPU network accelerator to enhance the overall SSD data storage ecosystem. In addition, the leading industry's vehicle product combination has continuously obtained a large number of new projects and strong demand. As customers gradually adopt more complete solutions, converting them to purchase higher-priced products will help improve the overall revenue performance in the future. It is expected that the second half of the year will be stronger and maintain the goal of achieving the Revenue Run-Rate by the end of the year.
Estimated that Huirong's closing in the third quarter of 2025 will be between 219 million and 28 million US dollars, up 10% to 15% from the previous quarter, and gross profit margin between 48% and 49%.
