FocalTech Systems Co., Ltd. (hereinafter referred to as “FocalTech”) announced today (26th) that, following a Board resolution, the Company will recognize a goodwill impairment loss of NT$1,237,268 thousand in accordance with International Accounting Standard No. 36 ((hereinafter referred to as IAS 36). This action will reduce FocalTech’s earnings per share by NT$5.8, resulting in a net loss per share of NT$ 4.64 for 2025.

FocalTech stated that the consumer electronics display industry, particularly LCD IDC (TDDI) mobile phone products, is extremely competitive, and continuous price reductions have squeezed gross margins. In addition, the rapid rise of AI applications also created a crowding-out effect on the supply chain, which is expected to lead to a decline in mobile phone demand. Due to the slowdown in demand and decline in product gross margins, the recoverable amount of goodwill and related assets will decrease. Because the estimated recoverable amount of the display product line is lower than the previously estimated carrying value, the company decided to recognize a goodwill impairment loss in accordance with IAS 36. 

FocalTech emphasized that this impairment loss did not involve any actual cash outflow and the Company’s operations remain stable. At the same day, the Board of Directors meeting also approved a share buyback program to protect shareholders’ interests.

FocalTech believes that recognizing the aforementioned impairment loss will make the Company’s financial statement more solid. With the upcoming launch of new products, overall operations are expected to maintain steady growth.

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