In 1Q25 X-FAB saw a better than expected 8% sequential increase in revenue and a robust EBITDA margin of 24%. X-FAB indicated that although geopolitical tensions pose challenges for the semiconductor industry, they also offer new opportunities for them due to their global presence across all major continents. X-Fab is confident in its capacity to navigate these challenges. They stress that their specialty technologies address societal megatrends and will continue to be in demand. We maintain ou...
In this sector note we take a close look at the semiconductor universe and go over end market dynamics, semi manufacturing trends and the impact on the WFE market. We provide detailed overviews of historical market trends and short term adjustments. We show that lower demand from China is a real risk for the WFE market, as we don't expect the non-China WFE revenues will increase with 28% y/y in 2025, which CSS implies. Our analysis shows a clear 10% risk on WFE estimates based on fundamentals, e...
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