FARADAY TECHNOLOGY Business Summary

Faraday Technology Corp (3035.TW) operates as a premier fabless ASIC design service and silicon intellectual property (IP) provider, primarily generating revenue through a three-tiered model: Non-Recurring Engineering (NRE) fees for custom chip design, mass production turnkey services (wafer fabrication and packaging), and high-margin silicon IP licensing and royalties. The company’s business is segmented into ASIC/SoC Design Services, Production Turnkey Services, and a comprehensive Silicon IP portfolio that includes processor cores, memory compilers, and analog/interface IPs. Faraday distinguishes itself in the market by leveraging its deep strategic alliance with United Microelectronics Corporation (UMC) to provide vertically integrated solutions for AIoT, networking, and automotive sectors. It competes directly with major ASIC design houses such as Global Unichip (GUC), Alchip Technologies, and Socionext, positioning itself as a leading mid-to-large scale specialist with a focus on mature-to-advanced process nodes and specialized IP customization. The company was founded in 1993 as a strategic spinoff from United Microelectronics Corporation (UMC), which remains its largest shareholder with a 13.8% stake. The leadership team is composed of industry veterans with significant pedigrees in the Taiwanese semiconductor ecosystem. Chairman Stan Hung, who also serves as Chairman of UMC, brings over three decades of financial and strategic leadership from his tenure as UMC’s CFO. President and CEO Steve Wang (Kuo-Yung Wang) leads the executive team with more than 30 years of experience in IC design and foundry operations, having previously held senior roles at both UMC and TSMC. Other key executives include Chief Operating Officer Flash Lin (Shih-Chin Lin), an expert in design flow and embedded memory, and Chief Financial Officer Grace Tseng (Wen-Ju Tseng). The board is heavily influenced by UMC’s institutional presence, alongside notable institutional investors such as Fubon Life Insurance and BlackRock.