X-FAB announces Q2 results
X-FAB has announced its Q2 2026 results with revenue of $199.8m, down 7 percent year-on-year (YoY) and up 2 percent quarter-on-quarter (QoQ).
Damien Macq, CEO of X-FAB Group, said: “In Q2, we saw clear signs of the anticipated recovery. Stronger automotive bookings reinforce our view that the first half of 2026 marked the bottom, with X-FAB’s automotive business set for a gradual recovery in the second half."
He added: "At the same time, data centre opportunities are expanding, Microsystems continues to gain traction, and SiC prototyping activity is increasing. Our diversified technology portfolio and broad momentum across multiple end markets support our strategic focus on specialisation and diversification, while our available capacity enables us to provide customers with long-term business continuity. I am convinced that X-FAB is firmly positioned for sustainable business success.”
Business development
In Q2 2026, X-FAB recorded revenue of $199.8m, down 7 percent year-on-year and up 2 percent quarter-on-quarter. Excluding the impact from revenue recognised over time, quarterly revenue was $196.0m, within the guided range of $190-200m. Q2 revenue in X-FAB’s core markets – automotive, industrial, and medical – amounted to $182.1m, down 11 percent year-on-year and down 6 percent quarter-on-quarter, accounting for a share of 93 percent of total revenue.
Q2 order intake reached $173.3m, up 2 percent sequentially, continuing its gradual quarter-by-quarter increase and gaining momentum into the third quarter. Backlog at the end of the quarter was $291.8m, down 5 percent from $308.4m at the end of the previous quarter.
In Q2, automotive revenue came in at $116.0m, down 19 percent year-on-year and down 5 percent quarter-on-quarter. Inventory adjustments weighed on demand in the first half of 2026, while structural growth drivers such as vehicle electrification, customisation, and ADAS remained intact. X-FAB’s second- quarter automotive bookings improved sequentially, with the book-to-bill ratio reaching its highest level in two years. Combined with the rising number of design wins, this points toward an anticipated recovery in the automotive end market.
Industrial revenue in Q2 amounted to $45.2m, down 4 percent year-on-year and down 13 percent quarter-on-quarter, with the sequential decline primarily driven by temporary order volatility from a major SiC customer, which is expected to recover in the third quarter.
In Q2, medical revenue was $21.0m, up 39 percent year-on-year and 9 percent quarter-on- quarter, driven by strong growth in pacemaker and ultrasound applications.
X-FAB’s technology portfolio addresses key data centre infrastructure applications, including power management, protection devices, monitoring sensors, optical connectivity, cooling actuators, and timing ICs. In Q2, X-FAB saw a growing number of data centre opportunities in smart CMOS and SOI technologies, complemented by three SiC design wins. Across its business units – Smart CMOS & SOI, Microsystems & Photonics, and Wide Bandgap – X-FAB expects data centre applications to become an increasingly important growth driver over the coming years with a long-term annual revenue potential of approximately $300m.
Microsystems & Photonics revenue in Q2 amounted to $28.7m, up 14 percent year-on- year and down 15 percent quarter-on-quarter. The sequential decline reflects normal fluctuations in this highly customised business, while X-FAB’s Microsystems opportunities continue to shift toward scalable high- volume applications.
Highlights in Q2 included a new high-volume microfluidics application for blood analysis, new opportunities for X-FAB’s AlN offering from industrial and medical customers as well as healthy demand for MEMS sensors. X-FAB also advanced in the development of photonics applications and saw strong traction for customer-specific opportunities across co-packaged optics, quantum computing, AR/VR, and data communications. Photonics volume production is expected to begin in 2028.
In June 2026, X-FAB secured €127.4m in public funding under the EU Chips Act to expand its microsystems and photonics manufacturing at its Erfurt site in Germany (see press announcement here). The new facility, which is scheduled to begin initial production by the end of 2028, is essential to meet existing customer demand in X-FAB's fastest-growing business.
Q2 wide bandgap revenue was $10.6m, up 34 percent year-on-year and down 30 percent quarter- on-quarter. The sequential decline was mainly due to temporary order volatility from one customer, while underlying momentum remained positive, with SiC prototyping activities continuing to grow.
Looking ahead, the transition toward 800V power distribution in data centres is expected to support demand for both SiC and GaN technologies, strengthening the long-term growth prospects of X-FAB’s wide bandgap business.
Despite an increased opportunity pipeline, overall prototyping revenue was still soft at $17.7m, down 16 percent year-on-year and down 7 percent quarter-on-quarter.
