FocalTech Systems Co., Ltd. (TWSE: 3545) today (07) held its investor conference to report its consolidated financial results for Third quarter 2025.  

Benefiting from the launch of new mid- to high-end smartphone models and inventory buildup for Q4 promotional events in mainland China, shipments of touch products continued to grow this quarter. In non-cellphone product lines such as automotive, tablet, and industrial control applications, shipments also started to increase due to the introduction of new projects. Overall, total shipment volume rose by nearly 10% compared with the previous quarter. 

However, the intense competition (“involution”) in China’s consumer and automotive markets remains severe, which led to continuing price decline and affected revenue outcome. As a result, revenue for the quarter increased only 1.8% QoQ to NT$3.107 billion. As to comparing with the same period last year, although total shipment volume remains at similar level, the product price decline in LCD smartphone and automotive display drivers resulted in 18.5% YoY revenue decrease. 

Strong shipments of mid- to high-end touch products resulted in a more favorable product mix, driving the gross margin up in the third quarter. With gross margin of 26.2%, the gross profit increased to NT$810 million. However, FocalTech’s continued emphasis on technology advancement and product optimization led to higher R&D investment, raising operating expenses to NT$800 million. Including non-operating income, the net profit after tax for Q3 reached NT$82 million, which translated to earnings per share (EPS) of NT$0.39. 

Domestic market in China remains gloomy and the overall uncertainty in the economic environment made end demand weak. In addition, the promotional effects of events such as “Double 11” have gradually diminished, leading brand customers to become conservative in inventory buildup. As a result, while the Company expects shipment volume to increase slightly in Q4, yet the continued decline in ASP may cause revenue to remain flat or show a slight decrease compared to Q3. 

On the OLED touch IC side, our product specifications have been continuing upgraded in recent years. The product portfolio has expanded to cover from GOLED panels to POLED panels, and from straight phone to foldable models. Recently, active stylus feature has also been added. These have helped in both shipment volume and the overall product mix, which resulted in more revenue and better profitability. 

Mass production with POLED panels in cellphone has started for a major international brand in Q3. This is a significant step to expand the business outside mainland China market. In addition, a new-generation touch IC has been adopted by several high-end cellphone models in China mainland. Volume production is expected to ramp up early next year. This will further strengthen the Company’s market share in the high-end segment and continue to drive up the average selling price (ASP).

On the OLED display driver side, FocalTech initially entered market with products for wearable applications. After several years of technological and product iterations, the Company has gradually moved into the mainstream market. Its solutions are now recognized by multiple leading international and mainland Chinese brands. Mass production has begun following rigorous engineering test and certification. As for smartphone applications, products are currently undergoing engineering evaluation, with volume production planned for the second or third quarter of next year.

About FocalTech

FocalTech Group is founded in 2006 and leading in human and machine interface technologies, providing solutions for sensing and display. FocalTech has strong capabilities in α-TFT, LTPS, and OLED display driver design, capacitive 2D/ 3D touch controller/algorithm, ITO sensing pattern and capacitive fingerprint. FocalTech offers TFT LCD / OLED driver IC, touch controller IC, force touch controller IC, integrated driver controller (IDC/TDDI) and capacitive fingerprint IC.

For more information, please visit http://www.focaltech-electronics.com