X FAB Silicon Foundries : Financial Report (X FAB Half Year Report 2025 ENG)

About this update from X-fab Silicon Foundries Se

2025 INTERIM REPORT ‌Contents Comments on the condensed consolidated interim financial statements 04 Summary of most important developments 04 Risk factors 05 Board of Directors 06 Condensed consolidated interim financial statements 07 Condensed consolidated statement of profit and loss and other comprehensive income 07 Condensed consolidated statement of financial position 09 Condensed consolidated statement of changes in equity 10 Condensed consolidated statement of cash flows 11 Notes to the condensed consolidated interim financial statements 12 Company information 12 Acquisition of a subsidiary 12 Basis of preparation 13 Summary of material accounting policies 14 New accounting pronouncements 14 Notes 15 Revenue 15 Other income and other expenses 16 Finance income 17 Finance costs 17 Income taxes 17 Earnings per share 18 Property, plant, and equipment 19 Inventories 20 Contract assets 20 Other assets 20 Cash and cash equivalents 21 Equity 21 Loans and borrowings 22 Provisions 23 Other liabilities 24 Notes to the statement of cash flows 24 Segment reporting 25 Financial instruments - fair values and risk management 26 Transactions with related parties 27 Commitments 28 Events after the reporting period 29 Shareholder information 30 Statement of the Board of Directors 30 Statutory auditor's review conclusion on the condensed consolidated interim financial statements 31 List of abbreviations/definitions CMOS Complementary metal-oxide-semiconductor IC Integrated circuit M-MOS M-MOS Semiconductor Sdn. Bhd. MEMS Micro-electro-mechanical systems MFI X-FAB MEMS Foundry Itzehoe GmbH NRE Non-recurring engineering PCM Process control monitor SiC Silicon carbide X-FAB SE or the Company X-FAB Silicon Foundries SE X-FAB SE Group or the Group X-FAB Silicon Foundries SE together with its subsidiaries X-FAB GmbH X-FAB Semiconductor Foundries GmbH X-FAB GmbH Group X-FAB Semiconductor Foundries GmbH together with its subsidiaries X-FAB Dresden X-FAB Dresden GmbH & Co. KG and X-FAB Dresden Verwaltungs-GmbH X-FAB France X-FAB France SAS X-FAB Texas X-FAB Texas Inc. X-FAB Sarawak X-FAB Sarawak Sdn. Bhd. ‌Comments on the condensed consolidated interim financial statements Summary of most important developments The following discussion and analysis of the financial condition and results of operations should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2024. Highlights In the first half of 2025, total revenue amounted to USD 419,396 thousand (first half of 2024: USD 421,254 thousand), a slight decrease of 0.44% compared to the same period in the previous year. Revenue in X-FAB's core business, namely automotive, industrial, and medical, came in at USD 394,275 thousand (first half of 2024: USD 392,675 thousand), an increase of 0.4% compared to the same period in the previous year. X-FAB's core business generated 93.7% of total revenue (first half of 2024: 93.1%). Business in the first half of 2025 progressed more favorably than anticipated with strong sequential growth in bookings in the first and second quarter of 2025, pointing to a gradual recovery across all end markets and technologies. Among the growth drivers were EV-related automotive applications, power management applications for data centers, and medical-grade contactless temperature sensors. X-FAB's industrial business benefited from increased demand following the last-time-buy announcement for some of X-FAB's 150mm CMOS technologies, as well as from revenue generated by prototyping new customer projects. The end of the second quarter also marks the completion of X-FAB's three-year program to expand manufacturing capacities across the Group. The main focus in the first half of the year was on equipping the new clean room in Kuching, Malaysia. The expansion of capacity for X-FAB's popular 180nm CMOS processes provides sufficient capacity to serve current and future customer demand, which is key to supporting X-FAB's CMOS and microsystems business going forward. Revenue analysis in millions of USD Half-year ended Dec 31, 2023 Half-year ended Jun 30, 2024 Half-year ended Dec 31, 2024 Half-year ended Jun 30, 2025 Half-year y-o-y growth Automotive 287.1 277.9 274.6 278.8 0% Industrial 108.0 87.0 67.5 86.6 -1% Medical 33.4 27.7 28.7 28.9 4% Subtotal core business 428.5 92.5% 392.7 93.1% 370.8 92,5% 394.3 93.7% 0.4% 1% CCC 34.4 28.6 29.4 25.7 -10.1% Others 0.3 0.3 0.6 0.6 121% Total* 463.2 421.5 400.8 420.6 0% *excluding revenues from wafer sales recognized over time Business fundamentals are intact and X-FAB remains well positioned for long-term business success. X-FAB 's comprehensive and highly specialized technology portfolio enables innovative solutions to address the major megatrends of our time. The electrification of everything is inevitable in order to move away from fossil fuels and mitigate climate change, driving long-term growth in X-FAB's automotive and industrial businesses. Aging and growing populations require technological innovation to make prevention, diagnosis and treatment of disease more efficient, reliable and accessible to an ever-growing number of people. X-FAB's microsystems expertise with the combination of CMOS and MEMS supports the development of world-leading medical applications and fuels the long-term growth of X-FAB's medical business. ‌Cost of sales Cost of sales includes material expenses such as raw materials, the costs of maintaining fixed assets, depreciation, staff costs, and costs for external services. In 2025 cost of sales decreased by USD 1,196 thousand or 0.4% compared to the first half of 2024, in line with the slight decrease in revenue. Research and development expenses Research and development expenses amounted to USD 24,450 thousand in the first half of 2025, representing 5.8% of revenue (first half of 2024: USD 22,494 thousand, 5.3% of revenue). The increase of 8.7% (USD 1,956 thousand) compared to the previous year's comparable six-month period is due to higher staff and mask costs. Research and development expenses are presented net of grants in the amount of USD 3,104 thousand, (first half of 2024: USD 2,503 thousand). The Group's research and development activities focus on the development of new fabrication processes, the optimization of existing processes using the Group's key process technologies, and the development of new integrated circuit features in order to meet customers' analog/mixed signal needs. General, administrative, and selling expenses General and administrative expenses and selling expenses remain on the same level compared to the first half of 2024. Net finance costs Net finance costs increased by USD 35,607 thousand in the first half of 2025 compared to the first half of previous year due to increased unrealized exchange rate losses on euro-denominated loans and borrowings (USD 30,876 thousand). Net income The Group recorded a profit for the period for the first half of 2025 of USD 11,810 thousand, compared to a profit of USD 42,880 thousand in the first half of 2024. The announcement of third quarter results will take place on October 30, 2025. Risk factors The following risk factors may affect X-FAB's business, financial condition, and results of operations; the list is not exhaustive: Structural trends in the markets for the end-user products produced by X-FAB's customers, or material volatility in demand for these products, may limit X-FAB's ability to maintain or increase sales and profit levels. A global systemic economic or financial crisis, increased political uncertainty, or increased economic protectionism could negatively affect X-FAB. A significant portion of X-FAB's revenue comes from a relatively limited number of customers Due to X-FAB's relatively fixed-cost structure, its ability to grow profitability is dependent on its ability to maintain appropriate utilization levels. X-FAB faces difficulties in forecasting demand and may therefore be unable to match its production capacity to demand. X-FAB may be unsuccessful in its attempts to increase its production capacity and capabilities. ‌X-FAB may not realize all the anticipated benefits from its acquisition of Altis' core business. X-FAB's expectations of an increase in market share by foundries might not occur. X-FAB may face increasing competition. X-FAB may face competitive pricing pressures. X-FAB may face price increases from its suppliers. X-FAB may be subject to penalties if it fails to meet the terms of long-term contracts with customers and suppliers. X-FAB's operations could be disrupted by an unreliable or insufficient power supply. X-FAB is subject to risks associated with currency fluctuations. X-FAB is subject to risks associated with any form of cyber criminality. Board of Directors X-FAB SE's Board of Directors manages the Company in accordance with the principles laid down in the Articles of Association and makes decisions on general policy, including the assessment and approval of strategic plans and budgets, supervision of reports and internal audits, and other tasks assigned by law to the Board of Directors. In accordance with the Belgian Companies and Associations Code, the Board of Directors has appointed Sensinnovat BV, represented by Rudi De Winter, as managing director (CEO), to whom it has delegated its managerial powers with the exception of general policy and all actions that are reserved to the Board of Directors by statutory provisions. The CEO is appointed by the Board of Directors for an indefinite period, unless the Board of Directors decides otherwise. The directors of the Company at June 30, 2024 were as follows : Name Position Tan Sri Datuk Amar Dr. Hamid Bin Bugo Chairman of the Board Sensinnovat BV Managing Director, CEO (represented by Rudi De Winter) Roland Duchâtelet Non-executive director Dato Sri Dr. Wan Lizozman Haji Wan Omar Non-executive director Hans-Jürgen Straub Independent Director Aurore NV Independent Director (represented by Christine Juliam) Christel Verschaeren Independent Director Estelle Iacona Independent Director ‌Condensed consolidated interim financial statements Condensed consolidated statement of profit and loss and other comprehensive income in thousands of U.S. dollars Note For the six months ended June 30 2025 2024 Revenue 2.5.6.1/2.5.6.17/ 2.5.6.19 419,396 421,254 Cost of sales (324,826) (326,022) Gross profit 94,570 95,232 Research and development expenses (24,450) (22,494) Selling expenses (4,655) (4,679) General and administrative expenses (24,791) (24,471) Rental income and expenses from investment properties 1,561 1,828 Impairment loss on trade receivables (193) (60) Other income and other expenses 2.5.6.2 763 4,663 Operating profit 42,805 50,019 Finance income 2.5.6.3 26,106 12,552 Finance costs 2.5.6.4 (50,679) (15,072) Net finance income/(costs) (24,573) (2,520) Profit before tax 18,232 47,499 Income tax 2.5.6.5 (6,422) (4,619) Profit for the period 11,810 42,880 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Condensed consolidated statement of profit and loss and other comprehensive income (continued) in thousands of U.S. dollars Note For the six months ended June 30 2025 2024 Profit for the period 11,810 42,880 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurement of defined benefit obligation (asset) 318 565 Items that are or may be transferred to profit or loss as follows: Foreign currency translation differences for foreign operations 194 (334) Other comprehensive income/(loss) for the period, net of income tax 512 231 Total comprehensive income for the period 12,322 43,111 Weighted average number of shares outstanding, basic and diluted 130,631,921 130,631,921 Earnings per share Basic and diluted (in U.S. dollars) 2.5.6.6 0.09 0.33 The accompanying notes are an integral part of these condensed consolidated interim financial statements. ‌Condensed consolidated statement of financial position in thousands of U.S. dollars Note June 30, 2025 December 31, 2024 ASSETS Non-current assets Property, plant, and equipment 2.5.6.7 1,224,295 1,144,620 Investment properties 7,159 7,412 Intangible assets 6,268 6,319 Other assets 2.5.6.10 33 42 Deferred tax assets 2.5.6.5 64,380 66,725 Total non-current assets 1,302,135 1,225,118 Current assets Inventories 2.5.6.8 288,207 281,765 Contract assets 2.5.6.9 16,880 18,092 Trade and other receivables 2.5.6.19 111,612 96,648 Income tax receivables 1,449 1,830 Other assets 2.5.6.10 72,023 67,423 Cash and cash equivalents 2.5.6.11 157,678 215,837 Total current assets 647,849 681,595 Total assets 1,949,984 1,906,713 EQUITY AND LIABILITIES Equity Share capital 2.5.6.12 432,745 432,745 Share premium 2.5.6.12 348,709 348,709 Retained earnings 253,776 241,648 Cumulative translation adjustment 656 462 Treasury shares (770) (770) Total equity 1,035,116 1,022,794 Non-current liabilities Loans and borrowings 2.5.6.13 418,230 369,616 Other liabilities and provisions 2.5.6.14 2,725 4,257 Total non-current liabilities 420,955 373,873 Current liabilities Loans and borrowings 2.5.6.13 54,041 44,517 Trade payables 2.5.6.19 41,780 67,658 Income tax payable 10,546 7,737 Provisions 2.5.6.14 9,131 11,978 Other liabilities 2.5.6.15 378,415 378,157 Total current liabilities 493,913 510,046 Total equity and liabilities 1,949,984 1,906,713 The accompanying notes are an integral part of these condensed consolidated interim financial statements. issued and capital premium earnings tion adjustment shares to owners of the interests ‌Condensed consolidated statement of changes in equity in thousands of U.S. dollars Shares fully paid Share Share Retained Cumulative transla- Treasury Total attributable parent Non-controlling Total equity At December 31, 2023 130,781,669 432,745 348,710 180,159 (301) (770) 960,542 - 960,542 Profit for the period 42,880 42,880 42,880 Remeasurement of defined benefit plans 565 565 565 Currency translation effect (334) (334) (334) Total comprehensive income - - - 43,445 (334) - 43,111 - 43,111 Total transactions with owners of the parent - - - - - - - - - At June 30, 2024 130,781,669 432,745 348,710 223,604 (635) (770) 1,003,653 - 1,003,653 Profit for the period 18,646 18,646 18,646 Remeasurement of defined benefit plans (602) (602) (602) Currency translation effect 1,097 1,097 1,097 Total comprehensive income - - - 18,044 1,097 - 19,141 - 19,141 Total transactions with owners of the Company - - - - - - - - - At December 31, 2024 130,781,669 432,745 348,710 241,648 462 (770) 1,022,794 - 1,022,794 Profit for the period 11,810 11,810 11,810 Remeasurement of defined benefit plans 318 318 318 Currency translation effect 194 194 194 Total comprehensive income - - - 12,128 194 - 12,322 - 12,322 Total transactions with owners of the Company - - - - - - - - - At June 30, 2025 130,781,669 432,745 348,710 253,776 656 (770) 1,035,116 - 1,035,116 The accompanying notes are an integral part of these condensed consolidated interim financial statements. ‌Condensed consolidated statement of cash flows in thousands of U.S. dollars Note For the six months ended June 30 2025 2024 Cash flow from operating activities: Profit for the period 11,810 42,880 Income tax 6,422 4,619 Profit before taxes 18,232 47,499 Reconciliation of net income to cash flow arising from operating activities: 83,112 52,705 Depreciation and amortization, before effect of grants and subsidies 2.5.6.7 57,845 48,792 Amortization of investment grants and subsidies (2,461) (1,296) Interest income and expenses (net) 2.5.6.3/ 2.5.6.4 8,071 653 Loss/(gain) on the sale of plant, property and equipment (net) (108) (3,771) Loss/(gain) on the change in fair value of financial assets (net) and derivatives (4,160) - Other non-cash transactions (net) 2.5.6.16 23,925 8,327 Changes in working capital (32,320) 6,689 Decrease/(increase) of trade and other receivables (15,175) 18,463 Decrease/(increase) of other assets (85) 18,830 Decrease/(increase) of inventories (6,442) (5,554) Decrease/(increase) of contract assets 1,211 305 (Decrease)/increase of trade payables (5,198) (14,575) (Decrease)/increase of other liabilities and provisions 2.5.6.15 (6,631) (10,780) Income taxes (paid)/received (1,232) (2,668) Net cash from operating activities 67,792 104,225 Cash flow from investing activities: Payments for property, plant, equipment, and intangible assets (155,456) (226,789) Payments for investments in investment properties - (84) Acquisition of subsidiary, net of cash acquired - (1,634) Proceeds from the sale of property, plant, and equipment 118 3,811 Interest received 2,186 6,417 Net cash used in investing activities (153,152) (218,279) in thousands of U.S. dollars Note For the six months ended June 30 2025 2024 Cash flow from financing activities: Proceeds from loans and borrowings 2.5.6.13 50,571 92,901 Repayment of loans and borrowings 2.5.6.13 (38,551) (99,757) Receipts from sale and leaseback arrangements 30,020 26,469 Payment of lease liabilities (13,277) (4,230) Interest paid (9,668) (8,632) Net cash from financing activities 19,095 6,751 Effects of changes in foreign currency exchange rates on cash balances 8,106 (8,343) Net increase/(decrease) of cash and cash equivalents (66,265) (107,303) Cash and cash equivalents at the beginning of the period 215,837 405,701 Cash and cash equivalents at the end of the period 157,678 290,055 ‌The accompanying notes are an integral part of these condensed consolidated interim financial statements. Notes to the condensed consolidated interim financial statements Company information X-FAB Silicon Foundries SE (hereafter referred to as "X-FAB SE," "the Company," or "the parent Company" and, together with its subsidiaries, as "X-FAB SE Group" or "the Group") is a European limited company (Societas Europaea/SE) registered under the number BE0882.390.885 in Hasselt, Belgium. The Company's registered address is Transportstraat 1, 3980 Tessenderlo-Ham, Belgium. The X-FAB SE Group is one of the world's leading pure-play foundry providers specializing in analog/mixed-signal technologies. Analog/mixed-signal products are circuits capable of processing digital as well as analog signals. As a pure-play foundry, the Group develops its own technologies, offering its customers a comprehensive range of product development (design support) and production services. The X-FAB SE Group manufactures integrated circuits to customers' designs, supplying these in the form of silicon wafers. For this purpose, X-FAB SE offers special technology modules, cell libraries, and design kits, which allow the Group's customers to develop specific circuits with broad function spectrums and to accelerate their development processes. X-FAB SE Group's customers include companies that concentrate on the development of integrated circuits (ICs) and leave their manufacture to others (fabless companies). The Group's customers are primarily in the communication, automotive, consumer, and industrial product sectors, and are located in Europe, the United States, and Asia. Acquisition of a subsidiary On January 1, 2024, the Group acquired the entire share capital of M-MOS Semiconductor Hong Kong Limited (M-MOS), a limited liability company incorporated under the laws of Hong Kong, and its subsidiaries for a consideration of EUR 22,500 thousand (USD 24,863 thousand) payable in cash. M-MOS was acquired from XTRION, a related party. M-MOS is a developer of metal-oxide-semiconductor field-effect transistor (MOSFET) process technologies and designs standard and custom devices using MOSFET technologies focusing on selling wafers to its customers. The acquisition was made to generate business synergies in particular in respect of the MOSFET wafer business. No acquisition costs were recorded as expenses in the current or previous financial year in respect of the acquisition. ‌The fair values of the assets and liabilities determined as at January 1, 2024 exceeded the carrying values recorded by the acquiree by USD 73 thousand and were as follows: in thousands of U.S. dollars Property, plant, and equipment 238 Deferred tax assets 66 Inventories 2,878 Accounts receivable 4,483 Other assets 4,532 Cash and cash equivalents 23,229 Total assets 35,426 Non-current loans and borrowings 26 Trade payables 2,691 Other current liabilities 7,712 Deferred tax liabilities 134 Total liabilities 10,563 Total identifiable assets and liabilities acquired 24,863 The above amounts represent the Group's estimates of the fair values of the assets and liabilities assumed at the acquisition date. No material differences between the carrying amounts and fair market values of the assets and liabilities acquired were identified due to the fact that the assets acquired primarily consisted of cash and cash equivalents and in view of the short-term nature of the receivables and liabilities. No goodwill was recognized as a result of the business combination. M-MOS contributed revenues of USD 9,395 thousand and a profit of USD 1,287 thousand) to the Group results in the first half of the financial year 2025 (first half of the financial year 2024: revenues of USD 8,796 thousand and a profit of USD 1,152 thousand). Basis of preparation Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 Interim Financial Reporting as endorsed by the European Union. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended December 31, 2024. The condensed consolidated interim financial statements of X-FAB SE Group were authorized for issue in accordance with a resolution of the directors on August 28, 2025. ‌Use of estimates and judgements In preparing these condensed consolidated interim financial statements, management has made judgments, assumptions, and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2024. Measurement of fair values A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. If third-party information is used to measure fair values, the evidence obtained from third parties is assessed to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are classified into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques that use inputs which have a significant effect on the recorded fair value that are not based on observable market data. If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group measures transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Summary of material accounting policies The accounting policies applied are consistent with those applied in the annual consolidated financial statements ended December 31, 2024. New accounting pronouncements Amendments to standards effective for the period beginning on January 1, 2025 The following amendments to IFRS standards, which are effective for annual periods beginning on or before January 1, 2025, have been applied by the Group for the first time in preparing these condensed consolidated interim financial statements. Standard/interpretation Effective date: effective for annual periods beginning on or after Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability January 1, 2025 ‌The amendments to standards did not have any effect on the condensed consolidated interim financial statements of the X-FAB SE Group. New standards and interpretations not yet effective A number of new standards, amendments to standards, and interpretations are not yet effective for the year ending December 31, 2025, and have not been applied in preparing these condensed consolidated interim financial statements: Standard/interpretation Effective date: effective for annual periods beginning on or after Annual Improvements Volume 11 January 1, 2026 Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) January 1, 2026 Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) January 1, 2026 IFRS 18 Presentation and Disclosure in Financial Statements* January 1, 2027 IFRS 19 Subsidiaries without Public Accountability: Disclosures* January 1, 2027 *Not yet endorsed by the EU Earlier application of these standards is permitted; however, the Group has not early-adopted the new or amended standards which are applicable to future periods in preparing these condensed consolidated interim financial statements. The Group is still in the process of assessing the impact of the new standard IFRS 18, particularly with respect to the structure of the Group's statement of profit or loss, the statement of cash flows, additional disclosures required, and how information is grouped in the (interim) financial statements. Notes Revenue Revenue comprises the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Gross revenue PCM wafer 390,273 378,274 Gross revenue NRE and technology services 39,608 46,532 Impact from PCM wafer revenue recognized over time (1,211) (305) Other revenue 3 6 Discounts and warranty credits (9,277) (3,253) Total 419,396 421,254 In the first half of 2025 there was a downward adjustment of USD 1,211 thousand to report recognized for sales made in 2025 based on the recognition over time basis in accordance with IFRS 15 compared to the amounts recognized based on the date the wafers were delivered. In contrast, in the same period of the previous year the adjustment of revenue recognition to reflect the sale of PCM wafers over time resulted in a decrease in revenues recognized of USD 0.3 million. The Group reports revenues from wafer sales which are recognized over time in compliance with IFRS 15 Revenue from Contracts with Customers. For transparency purposes, the Group also reports revenue from PCM wafer sales based on recognizing the associated revenues at the specific point in time when the wafers are delivered to the customer as well as the amount of the reconciling item between the revenue recognized on the over time basis and the revenue recognized on the basis of the delivery of the wafers. ‌Revenue for wafer sales recognized over time represents the Group's rights to consideration for work completed but not invoiced at the reporting date on wafer sales under long-term contracts which meet the criteria for revenue recognition over time. The Group has recognized no revenues of variable consideration from customers in respect of shortfalls of orders from customers in the first half of the financial year 2025 (2024: none) as, at the current time, it is anticipated that all customer orders will be supplied to customers in full without any shortfalls. Revenue from NRE and technology services is recognized over time, based on milestones that are a reasonable approximation of the progress to complete the performance obligation. Other income and other expenses Other income comprises the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Income from recharges 557 1,696 Income from sales of materials 337 33 Income from other admin services/cost sharing 282 230 Gains on disposals of property, plant, and equipment 118 3,772 Income other periods 80 212 Other 345 304 Total 1,719 6,247 Gains on disposal of fixed assets in the prior year relate to sales of tools which are not needed any longer due to changes in technology and production portfolios. Other expenses comprise the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Expenses from recharges (557) (1,696) Expenses prior periods (124) (98) Losses on disposal of property, plant, and equipment (10) (1) Other (265) 211 Total (956) (1,584) ‌Finance income Finance income comprises the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Interest on financial assets measured at amortized cost: Interest on cash and cash equivalents 2,186 6,473 Change in fair value of financial assets and liabilities at fair value through profit or loss: Change in fair value of derivative financial instruments 4,160 - Other: Income from exchange rate differences 19,760 6,080 Total 26,106 12,553 Income from exchange rate differences includes unrealized exchange rate gains (net of expenses) of USD 974 thousand (2024 loss of: USD 4,272 thousand) resulting from the translation of cash balances denominated in Malaysian ringgit and of USD 7,131 thousand (2024: USD 3,421 thousand) from cash balances denominated in euros. Finance costs Finance costs comprise the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Interest on financial liabilities measured at amortized cost: Loans and borrowings (9,850) (6,494) Other interest (407) (632) Other : Expenses from exchange rate differences (40,421) (7,946) Total (50,678) (15,072) Exchange rate expenses include realized and unrealized exchange rate losses of USD 30,876 thousand (2024: income of USD 4,272 thousand) on euro-denominated loans and borrowings. Income taxes Income tax expense is recognized at an amount determined by multiplying the profit before tax for the interim reporting period by the expected effective tax rate of the year. ‌The income tax expense comprised the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Current taxes: Actual income tax charge for the period (4,025) (3,658) Adjustment of prior years' tax charges (16) (304) (4,041) (3,962) Deferred taxes (2,381) (657) Total (6,422) (4,619) Changes in recognized deferred tax assets resulted in a decrease of deferred tax assets of USD 2,345 thousand (2024: a decrease of USD 599 thousand). The decrease in deferred tax assets is primarily due to the derecognition of previously recognized deferred tax assets on timing differences arising on property, plant, and equipment of X-FAB Sarawak amounting to USD 2,586 thousand (2024: derecognition of USD 594 thousand) to reflect the current estimate of realizable deferred taxes on reversals of timing differences based on the Group's updated business planning. The assumptions made and the method applied to calculate deferred taxes were consistent with the methods used at December 31, 2024. The actual income tax expense for the period primarily consists of accruals made for income taxes for the year to be paid in Malaysia, France, and Germany. Belgium, the jurisdiction where the "ultimate parent entity" (i.e. X-FAB Silicon Foundries SE) of the X-FAB group is located, formally adopted the Pillar Two (Global Minimum Tax) legislation in December 2023, effective from 2024 onwards (i.e. for financial years starting on or after December 31, 2023). Up to and including the financial year starting on January 1, 2025, the X-FAB Group did not yet meet the criteria to be subject to the Pillar Two legislation. However, as from the financial year starting on January 1, 2026, the X-FAB Group expects to fall within the scope of this legislation. The X-FAB Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax (if any) and will account for such top-up tax as a current tax when it is incurred. Earnings per share The earnings per share is calculated by dividing the profit for the period attributable to the ordinary shareholders (as reported in the condensed interim statement of profit and loss and other comprehensive income) by the weighted average number of shares in issue during the period. There were 130,781,669 shares in issue at January 1 and June 30 in both periods, and the weighted average number of ordinary shares outstanding was 130,631,921 in both periods. There are no diluting effects on the earnings per share in the current or previous period. ‌Property, plant, and equipment in thousands of U.S. dollars Land Buildings Technical machinery and equipment Factory and office equipment Assets under construction Total Net book value January 1, 2025 14,078 49,581 440,158 7,105 633,696 1,144,618 Accumulated historical cost January 1, 2025 14,360 134,731 1,503,433 38,930 633,696 2,325,150 Additions - 1,019 9,288 175 123,471 133,953 Disposals - - (6,415) (255) - (6,670) Reclassifications - 5,746 38,945 517 (45,019) 189 Effect of changes in exchange rates - - - - - - Changes in consolidation - - - - - - Accumulated historical cost June 30, 2025 14,360 141,496 1,545,251 39,367 712,148 2,452,622 Accumulated depreciation January 1, 2025 (282) (85,150) (1,063,275) (31,825) - (1,180,532) Additions (18) (2,204) (50,403) (1,644) - (54,269) Disposals - - 6,406 255 - 6,661 Reclassifications - - (187) - - (187) Effect of changes in exchange rates - - - - - - Accumulated depreciation June 30, 2025 (300) (87,354) (1,107,459) (33,214) - (1,228,327) Net book value June 30, 2025 14,060 54,142 437,792 6,153 712,148 1,224,295 Assets under construction contain purchases of technical machinery and equipment in all X-FAB sites as a result of its group-wide capacity expansion program. This three-year program was completed in the second quarter of 2025. In the first half of 2025, the Group received USD 0 thousand investment tax credits within the U.S. related to the acquisition of qualifying assets (2024: USD 10,195 thousand). The acquisition costs of technical equipment have been reduced accordingly. The carrying values of right-of-use assets presented as property, plant and equipment were as follows: in thousands of U.S. dollars 2025 2024 Net book value January 1 39,323 17,588 Additions 337 1,027 Depreciation (2,486) (3,690) Reclassifications 13 18,210 Effects of changes in currency exchange rates - 26 Net book value Dec 31 37,187 33,161 ‌In 2025, the Group entered into a sale and leaseback transaction under which machinery was sold at book value and leased back. The contractual arrangements include a purchase option to buy the underlying asset at a price that is expected to be sufficiently lower than the expected fair value of the underlying asset on the date at which the option becomes exercisable. The Group continues to be able to direct the use of the assets and obtain substantially all of the remaining benefits from their use. Accordingly, the transaction was wholly recognized as a financing arrangement and no sale or gain or loss is recognized on the transaction. A similar sale and leaseback transaction with a net book value of USD 17,830,000 that was entered into in 2024 was excluded from the beginning balance as of January 1, 2025. Inventories The increase in raw materials and supplies and work in progress resulted from the build-up of inventories to secure the material supplies required to meet anticipated higher output levels resulting from the overall increase in business activity. Inventories for the manufacture of wafers under contracts for which sales are recognized over time are not recognized in work in process; instead they are recorded as an expense within cost of sales with the associated rights to consideration for work completed but not invoiced at the reporting date recognized within contract assets (note 2.5.6.9 below). Allowances of USD 602 thousand (2024: USD 55 thousand) have been recorded against inventories and recognized as an expense in the period. Contract assets The contract assets relate to the Group's rights to consideration for work completed but not invoiced at the reporting date on wafer sales recognized over time. No impairment charges have been recognized on contract assets. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. Other assets Other assets comprise the following: in thousands of U.S. dollars June 30, 2025 December 31, 2024 R&D grants receivable 35,287 26,795 Prepaid expenses 16,197 17,538 Investment grants and subsidies receivable 9,844 9,890 Derivatives 4,160 - Receivables from energy surcharges 2,781 5,706 Taxes (other) 2,381 6,337 Deposits 565 483 Other 808 674 Total 72,023 67,423 Prepaid expenses primarily relate to prepayments made for raw materials such as raw wafers. Research and development grants receivable at June 30, 2025 include research and development tax credits and competitiveness and employment tax credits totaling USD 18,430 thousand attributable to X-FAB France (December 31, 2024: USD 13,440 thousand). Derivatives presented within other assets represent the fair value of two currency forward contracts (derivatives) which provide for the sale, in exchange for euros, of USD 60 million at December 31, 2025 which correspond to the amounts of loan repayments payable in euros at December 31, 2025. There was no acquisition cost associated with these instruments. The changes in the fair value of these currency forward contracts are intended to offset the currency gains or losses on exchange associated with those euro denominated loan repayments. The Group does not apply hedge accounting. Accordingly, the change in fair value of the derivatives is presented in the consolidated statement of profit and loss as finance income (2025: USD 4,160 thousand; 2024: USD 0 thousand). Other taxes primarily relate to VAT receivables. ‌Cash and cash equivalents Cash and cash equivalents comprise the following: in thousands of U.S. dollars June 30, 2025 December 31, 2024 Cash and bank balances 109,654 153,164 Restricted cash 2,668 4,189 Term deposits 45,356 58,484 Total 157,678 215,837 An analysis of the movements of cash and cash equivalents is reported in the statement of cash flows. Equity Share capital X-FAB Silicon Foundries SE had 130,781,669 fully paid-in shares in issue throughout the reporting period for the first six months of the current and the comparative period. Share premium The share premium of X-FAB Silicon Foundries SE amounts to EUR 348,709 thousand (December 31, 2024: USD 348,709 thousand). Retained earnings Retained earnings represent the accumulated profits and losses of the Group together with the accumulated balance of the remeasurement of the Group's post-employment defined benefit plans. Cumulative translation adjustment The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations that have functional currencies other than USD. Treasury shares At June 30, 2025 and December 31, 2024 the Group held 149,748 treasury shares (after the 2017 share split) of X FAB Silicon Foundries SE held by its fully-owned subsidiary X-FAB GmbH. Based on the purchase price of EUR 11.25 per share (before the 2017 share split), the treasury shares reduced the equity capital of the parent company by USD 770 thousand (December 31, 2024: USD 770 thousand). ‌Loans and borrowings The carrying amounts of the Group's loans and borrowings are shown in the following table: in thousands of U.S. dollars June 30, 2025 December 31, 2024 Bank loans and overdrafts Fixed interest bank loans denominated in EUR 62,089 64,142 Maturity: 2025-2029 Interest rates: 0.9%-4.27% Repayments in monthly or quarterly installments Fixed interest bank loans denominated in USD 494 530 Maturity: 2025-2028 Interest rates: 8.25%-8.5% Repayments in monthly installments/at the maturity date Variable interest bank loans denominated in EUR 25,818 26,110 Maturity: 2029 Interest rates: EURIBOR + 0.95% Repayments in monthly or quarterly installments Variable interest Revolving Credit Facility denominated in USD 143,516 143,231 Maturity: 2026 Interest rates: SOFR + 1.67% Repayment on maturity Variable interest Revolving Credit Facility denominated in USD 20,000 - Maturity: 2029 Interest rates: SOFR + 1.7% Repayment on maturity Variable interest Revolving Credit Facility denominated in EUR 66,713 75,197 Maturity: 2026 Interest rates: EURIBOR + 1.0% Repayment on maturity Variable interest Revolving Credit Facility denominated in EUR 27,109 6,825 Maturity: 2029 Interest rates: EURIBOR + 1.35% Repayment on maturity in thousands of U.S. dollars June 30, 2025 December 31, 2024 Leasing arrangements Leasing liabilities denominated in EUR 92,092 62,360 Maturity: 2025-2034 Interest rates: 0.15-4.67%; 3M EURIBOR + 1.0% Repayment in monthly installments Leasing liabilities denominated in USD 8,165 8,376 Maturity: 2025-2038 Interest rates: 3.32% Repayment in monthly installments Leasing liabilities denominated in MYR 26,275 27,362 Maturity: 2025-2034 Interest rates: 4.66% Repayment in monthly installments Total 472,271 414,133 Current loans and borrowings 54,041 44,517 Non-current loans and borrowings 418,230 369,616 ‌Variable interest bank loans include loans amounting to USD 162,000 thousand and EUR 82,000 thousand (December 31, 2024: USD 142,000 thousand and EUR 78,500 thousand) under the Group's two EUR 200,000,000 multicurrency revolving facility agreements ("the facilities") entered into between the parent company and its principal subsidiaries and a syndicate of eight international banks on December 1, 2021 and August 1, 2024 respectively. Both credit facilities are for a five-year period until December 2026 and July 2029 respectively, with an option for X-FAB to request an extension of the facility's maturity date for a further year until December 2027 and July 2030 respectively. The options are exercisable not earlier than 90 days prior to and not 45 days later than prior to the respective initial termination dates. The movement in loans and borrowings includes income for realized and unrealized exchange rate losses of USD 30,876 thousand (2024: gains of USD 4,272 thousand) resulting from the effect of changes on exchange rates of euro-denominated loans. Loans and lease obligations totaling USD 51,828 thousand (2024: USD 103,987 thousand) have been repaid in the first six months of 2025. Leasing liabilities denominated in euro include liabilities from sale and leaseback in the amount of USD 83,279 thousand (2024: USD 57,732 thousand). Regarding new sale and leaseback transactions reference is made to note 2.5.6.7. Provisions The movements on provisions during the period were as follows: in thousands of U.S. dollars Warranty provisions Employee provisions Other Total January 1, 2025 11,484 416 132 12,032 Provided for 1,953 - 351 2,304 Utilized (5,399) (14) - (5,413) Released - (1) - (1) Effect of changes in exchange rates 147 10 52 209 June 30, 2025 8,185 411 535 9,131 ‌Provisions primarily relate to warranties. Warranty provisions are estimated based on the Group's experience of past claim rates and knowledge of current claims together with an assessment of rectification costs. Other liabilities Other current liabilities comprise the following: in thousands of U.S. dollars June 30, 2025 December 31, 2024 Accrued liabilities 29,008 29,968 For trade payables 28,108 28,048 Royalties 404 622 Sales commission 530 481 Staff association 116 588 Other 102 229 Advances received 321,221 323,915 Deferred income 1,838 814 Employee-related liabilities 26,096 23,458 Wages 4,433 2,078 Earned holiday entitlement, incentives 13,968 15,758 Payroll taxes 3,265 1,310 Social security costs 4,430 4,312 Other - 2 Total 378,415 378,157 Advances received relate to prepayments from customers for future wafer sales of USD 28,644 thousand (December 31, 2024: USD 40,718 thousand) and capacity reservation deposits received under long-term agreements concluded with customers of USD 292,577 thousand (December 31, 2024: USD 283,197 thousand). These amounts represent contract liabilities as defined in IFRS 15 and, depending on the respective agreements with the customer, will be settled by offsetting advances received against deliveries of wafers made or by repayment of the respective capacity reservation deposit periods. All prepayments from customers for future wafer sales and capacity reservation deposits are recorded as current or non-current based on the usual classification principles, i.e., items that are settled within the normal operating cycle are classified as current, even if they are expected to be settled after twelve months. However, the Group expects prepayments from customers for future wafer sales and capacity reservation deposits totaling USD 177,392 thousand to be settled after more than twelve months (December 31, 2024: USD 225,311 thousand). Notes to the statement of cash flows Cash flows from operating activities in the first half of the financial year 2025 and 2024 include significant amounts of receipts of prepayments from customers for the future supply of wafers and receipts and repayments of capacity reservation deposits received under long-term agreements concluded with customers. The amounts of prepayments from customers and capacity reservation deposits carried forward for offsetting against trade accounts receivable or for repayment to customers are disclosed within other current liabilities as reported in note 2.5.6.15. ‌Non-cash transactions include currency effects from exchange rate differences of USD 20,661 thousand (2024:1,866 thousand) and increases in provisions of USD 2,303 thousand (2024: USD 4,039 thousand). Segment reporting The following table shows an analysis of revenue based on the customer's billing location for the reporting period: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Europe 282,449 284,115 Belgium 185,578 187,453 Germany 50,786 44,882 United Kingdom 20,409 30,905 Austria 6,447 8,057 Switzerland 5,177 3,210 France 5,841 2,981 Sweden 2,341 1,086 Other 1,854 1,197 Netherland 1,386 1,232 Denmark 938 1,118 Finland 879 385 Ireland 813 1,609 Asia 100,579 92,469 China 50,514 54,449 Japan 26,576 15,245 Singapore 7,104 5,767 Thailand 5,071 10,003 Taiwan 4,194 2,617 South Korea 3,890 3,811 New Zealand 1,567 233 Malaysia 1,218 - Other 445 344 United States of America 35,621 44,267 Rest of the world 747 403 Total 419,396 421,254 ‌Financial instruments - fair values and risk management Financial instruments measured at amortized cost The carrying amount of cash and cash equivalents, bank overdrafts, trade and other receivables, and trade payables approximates their fair value due to the short-term maturity of these financial instruments. The fair value of the Group's non-current liabilities is based on their present values calculated by discounting future cash flows at current rates of interest available for debt with the same maturity profile. The Group's principal financial instruments not carried at fair value are cash and cash equivalents, trade receivables, other current assets, other non-current assets, trade and other payables, bank overdrafts, and long-term borrowings. Financial instruments measured at fair value Financial assets and liabilities accounted for at fair value through profit or loss As described in 2.5.6.10, the Group has entered into two currency forward contracts (derivatives) which provide for the sale, in exchange for euros, of USD 60 million at December 31, 2025 which correspond to the amounts of two loan repayments payable in euros at December 31, 2025. There was no acquisition cost associated with these instruments. The changes in the fair value of these currency forward contracts, are intended to offset the currency gains or losses on exchange associated with those euro denominated loan repayments. The fair value of the derivatives is presented in the consolidated statement of profit and loss as finance income (2025: USD 4,160 thousand; 2024: USD 0 thousand). The fair values of the foreign currency forward contracts are determined by reference to the forward rates of the respective currency amounts over the life of the contract, discounted to the present value. The Group held no financial instruments measured at fair value in the previous financial year and did not make use of forward foreign exchange or interest rate swaps in the current or previous reporting period. There have been no transfers of assets or liabilities between levels of the fair value hierarchy in the current or previous year. Accounting classifications and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. in thousands of U.S. dollars Carrying amount Fair value Total Level 1 Level 2 Level 3 Total June 30, 2025 Financial assets measured at amortized cost Trade and other receivables 107,452 Derivatives 4,160 4,160 Cash and cash equivalents 157,678 Financial liabilities measured at amortized cost Trade payables (41,780) Bank loans, overdrafts, and lease liabilities (472,271) - (475,651) - (475,651) in thousands of U.S. dollars Carrying amount Fair value Total Level 1 Level 2 Level 3 Total December 31, 2024 Financial assets measured at amortized cost Trade and other receivables 108,980 Cash and cash equivalents 290,054 Financial liabilities measured at amortized cost Trade payables (55,103) Bank loans, overdrafts, and lease liabilities (270,876) - (270,528) - (270,528) ‌Management of risks arising from financial instruments There have been no significant changes to the Group's financial risk management objectives or in the nature and extent of risks arising from financial instruments described in the consolidated financial statements for the year ended December 31, 2024. There has been no significant effect on the carrying value or fair values of financial instruments arising from the Russia-Ukraine war. Transactions with related parties Transactions with shareholders and their subsidiaries As part of its normal business activities, the Group undertakes transactions with entities in the XTRION Group, a group of companies controlled by XTRION NV, which holds equity stakes in a range of portfolio companies in the semiconductor industry which include X-Display and X-Celeprint and their subsidiaries. XTRION NV and the companies controlled by it are related parties of X-FAB SE due to the fact that XTRION NV is controlled by Sensinnovat BV. Acquisition of a subsidiary On January 1, 2024, the Group acquired the entire share capital of M-MOS Semiconductor Hong Kong Limited (M MOS), a limited liability company incorporated under the laws of Hong Kong, and its subsidiaries for a consideration of EUR 22,500 thousand (USD 24,863 thousand) payable in cash from XTRION, a related party. Details of this transaction are provided in note 2.5.2. The tables below show the balances with shareholders and their subsidiaries included in the condensed consolidated statement of financial position. in thousands of U.S. dollars June 30, 2025 December 31, 2024 Trade accounts receivable due from X-Celeprint - 32 Trade accounts receivable due from X Display Company Technology - 140 Total - 172 in thousands of U.S. dollars June 30, 2025 December 31, 2024 Other - 18 Total - 18 ‌Sales and other income comprise the following: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Sales to X-Display Company 196 205 Other income X-Display Company - 11 Total 196 216 Purchases, expenses, and other transactions recorded with shareholders and their subsidiaries were as follows: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Services provided from Elex - 17 Services purchased from X-Celeprint 10 19 Total 10 36 Transactions with management No significant transactions with the Board of Directors or management occurred in the reporting period. Remuneration of directors and other persons with key management positions: in thousands of U.S. dollars For the six months ended June 30 2025 2024 Short-term employee benefits 734 755 Short-term employee benefits for members of management that are not on the payroll of the Company (CEO, CFO and COO) 687 496 Directors' compensation 86 70 Total 1,507 1,321 Commitments Purchase commitments comprise the following: in thousands of U.S. dollars June 30, 2025 December 31, 2024 Purchase commitments for: Property, plant, and equipment 90,887 167,821 Intangible assets 1,074 34 Investment property 473 - Material and services 4,265 4,503 Total 96,699 172,358 Purchase commitments primarily refer to purchase orders placed for investments in technical machinery to expand the Group's production capacity. ‌Events after the reporting period There have been no reportable events subsequent to the reporting date. Tessenderlo, August 28, 2025 Managing Director, CEO Sensinnovat BV Represented by Rudi De Winter CEO ‌Shareholder information The following table describes the structure of shareholdings in X-FAB Silicon Foundries SE at June 30, 2025: Company Number of shares % of total Elex NV 32,672,778 25.0% Sensinnovat BV 32,572,329 24.9% Sarawak Technology Holdings Sdn. Bhd. 14,948,655 11.4% Public 50,587,907 38.7% Total 130,781,669 100% Statement of the Board of Directors The Board of Directors certifies, on behalf and for the account of the Company, that to their knowledge, the condensed consolidated interim financial statements which have been prepared in accordance with IFRS as adopted by the EU give a true and fair view of the assets, liabilities, financial position, and profit or loss of the Company and the entities included in the consolidation as a whole; and the interim management's discussion and analysis provides a fair overview of the important events and major transactions of the issuer which occurred during the first six months of the financial year, their impact on the set of condensed consolidated interim financial statements, and a description of the main risks and uncertainties which the issuer is exposed to.

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