X-Fab Silicon (XFAB) | News Based Sentiment Analysis

• On September 9, 2025, X-FAB held an Investor Day in Brussels, reaffirming its 2025 revenue guidance of USD 840-870 million and an EBITDA margin of 24-27%. While this provides some stability for investors, it followed a Q2 2025 where revenue increased 5.0% year-over-year to US$215.3 million, but the company reported a net loss of US$392.0 thousand – a significant decline from the US$19.8 million profit in Q2 2024.
• Demonstrating a commitment to expansion, X-FAB announced a RM3 billion (approximately USD 638 million) expansion at its Sarawak facility on September 12, 2025. This will increase monthly wafer production from 30,000 to 40,000, with a future goal of 50,000, positioning the company to capitalize on the growing semiconductor market.
• Also on September 12, 2025, X-FAB opened a new cleanroom at its Malaysian site, part of a three-year program to increase capacity across the Group. This expansion aligns with Sarawak’s Semiconductor Roadmap 2030 and is projected to create 3,000 jobs and attract RM2 billion in investment.
• Following the September 9th Investor Day, X-FAB’s stock saw a 5-day change of +3.46%, and a year-to-date change of +33.93%, indicating initial positive investor reaction. However, shares closed at €6.13 on September 11, 2025, down from €6.73 on September 8, 2025, highlighting some volatility despite the reaffirmed guidance.
• On September 19, 2025, X-FAB’s stock price gained 0.0761%, closing at €6.58, up from €6.57 the previous day, and showed a 0.69% increase over the preceding two weeks. Trading volume fell by 34 thousand shares to a total of 222 thousand shares exchanged, representing a turnover of approximately €1.46 million.
• Analysts maintain a 'Buy' rating for X-FAB as of September 2025, with an average 12-month price target of €7.23, suggesting a potential upside of +18.51% from current levels. Berenberg reiterated a “Buy” rating with a €7.50 target on August 4, 2025, and Deutsche Bank similarly maintained a “Buy” rating and a €7.50 target on July 8, 2025.

The Investment Story: September was a month of strategic expansion for X-FAB, underscored by reaffirmed guidance and positive analyst sentiment, though the Q2 net loss remains a point of concern. The company is clearly investing heavily in future capacity, but translating that into profitability is key.

What It Means for Investors: The reaffirmed guidance and analyst confidence offer some reassurance, but investors should closely monitor the Q3 2025 earnings release on October 30, 2025, to see if the company can improve its bottom line. The stock's recent gains and positive analyst ratings suggest potential upside, but volatility remains a factor.

Looking Ahead: The Q3 2025 earnings release on October 30, 2025, will be a critical event. Investors should also track updates on the Sarawak expansion and the selection of a new statutory auditor, as these developments will shape the company’s future performance.

The Bottom Line: X-FAB presents a mixed investment opportunity. While the long-term growth prospects appear promising due to strategic investments, the recent financial performance and the need to improve profitability require careful consideration.