Shanghai, Jan 25, 2026, 09:06 GMT+8 — Market closed.
- GigaDevice Semiconductor’s Class A shares ended lower, slipping 1.4% to 297.25 yuan
- The chip designer projected a 46% jump in net profit for 2025, alongside revenue climbing 25%
- Investors are focused on DRAM investment funding moves ahead of a Feb. 11 shareholder vote concerning related-party spending and auditors
GigaDevice Semiconductor Inc. (603986.SS) Class A shares slipped 1.4% to close at 297.25 yuan on Friday. Mainland China markets remained closed over the weekend.
Beijing-based chip designer forecasted a roughly 46% jump in 2025 net profit attributable to shareholders, targeting about 1.61 billion yuan. Revenue, it said, should climb around 25% to approximately 9.2 billion yuan. The company cited stronger AI computing capacity build-out, solid demand from PCs, servers, and car electronics, plus a rebound in the memory market.
Traders are watching this update closely, seeing it as a sign that China’s storage-chip cycle might have shifted, despite the stock not jumping on Friday’s news. Guosheng Securities analyst She Lingxing noted “三大产品全线涨价” — a broad price increase across three key product lines — and maintained a “buy” rating on the shares. NxNy
The board took action on funding as well. GigaDevice plans to channel 500 million yuan from its A-share proceeds into Zhuhai Hengqin Xincun Semiconductor. That company, in turn, will allocate 30 million yuan and 50 million yuan to two wholly owned subsidiaries in Hefei and Xi’an, backing their DRAM (dynamic random access memory, found in computers and servers) R&D and industrialisation efforts.
Another notice outlined a more tactical move: covering certain project expenses upfront using its own cash or foreign currency, then replenishing that outlay with an equal sum from A-share proceeds within six months. GigaDevice reported it had already swapped out 46.54 million yuan of earlier payments by Jan. 20, divided between the DRAM project and an automotive electronics chip initiative.
GigaDevice revealed in a Hong Kong exchange filing a larger related-party purchase plan involving a company tied to insiders. The firm expects to buy foundry-made DRAM-related products from ChangXin group worth $221 million (around 1.55 billion yuan) in H1 2026. It noted that rising DRAM prices are driving up wafer foundry costs. The filing also disclosed that chairman Zhu Yiming, who leads ChangXin group, abstained from voting on this deal.
The board hasn’t finalized all spending approvals yet. According to a company notice, shareholders will cast their votes on the related-party transaction cap and the overseas audit appointment on Feb. 11 at an extraordinary general meeting.
GigaDevice announced it will appoint KPMG Hong Kong as its overseas auditor for 2025, following its secondary listing in Hong Kong on Jan. 13. The company will retain KPMG Huazhen as its mainland auditor, it said.
The storage-chip sector has drawn in a wide range of players, from designers to foundries. Chinese outlet CLS flagged hopes for a “supercycle” this week, referencing ShenGang Securities, which noted that stronger memory prices might squeeze wafer capacity and bolster foundries like SMIC and Hua Hong. CLS
But the profit forecast remains unaudited, with the company warning that final numbers hinge on its 2025 annual report. Investors are also keeping an eye on policy risks tied to AI chips. Nvidia is awaiting Beijing’s call on whether it can sell its H200 chip to Chinese buyers, Reuters reported— a move that could heavily influence data-centre demand across China’s supply chain.
Trading picks up again Monday, putting GigaDevice’s stock to the test. Can gains from profit growth and DRAM funding offset concerns over rising foundry expenses and trade tensions? The next key date is Feb. 11, when shareholders head to the polls.
