Hua Hong Flags Memory Shortage as Pricing Tailwind After Posting Record Quarterly Revenue

Hua Hong Semiconductor reported record quarterly revenue for the fourth quarter of 2025, citing resilient demand and improved market dynamics, while executives pointed to the ongoing global memory shortage as a supportive factor for pricing across the broader semiconductor sector. The Shanghai based foundry said tighter conditions in memory markets are indirectly benefiting its logic chip business, offering room for firmer pricing in 2026.

During its latest earnings briefing, company leadership described the current memory cycle as constructive for overall supply demand balance. As memory manufacturers ramp up production to meet strong global demand, wafer capacity allocated to non memory segments such as logic chips can become more constrained. According to management, this dynamic may help stabilize or lift pricing for logic products produced at mature process nodes.

The global semiconductor industry has experienced cyclical swings over the past several years, with memory chips often leading upturns and downturns. After a period of oversupply and weak pricing in 2023, memory markets have tightened again due to recovering demand from data centers, artificial intelligence workloads and consumer electronics restocking. Analysts say the renewed momentum in memory has improved overall sentiment across the chip industry.

Hua Hong, which focuses primarily on specialty and mature node logic chips used in power management, automotive electronics and industrial applications, has benefited from steady domestic demand and increasing localization trends within China. The company’s fourth quarter revenue reached a record level, reflecting strong shipments and improved average selling prices compared with earlier quarters.

Executives indicated that supply discipline across the sector has also contributed to more balanced conditions. As capacity utilization improves and inventories normalize, foundries are seeing greater negotiating power with customers, particularly in segments where supply remains tight. Industry observers note that while leading edge chips attract global attention, mature node logic components remain critical for electric vehicles, renewable energy systems and smart devices.

The company’s outlook aligns with broader trends in China’s semiconductor strategy. Policymakers have emphasized the importance of strengthening domestic chip production capacity, especially in areas less exposed to advanced export controls. Mature process technologies, where Hua Hong has established expertise, are considered vital for supporting local manufacturing ecosystems.

Market participants will be watching whether the positive spillover from memory markets persists through 2026. While demand from artificial intelligence infrastructure and automotive electronics remains robust, global economic conditions and geopolitical factors continue to shape supply chain decisions.

For now, Hua Hong’s record quarterly performance highlights how shifting dynamics in one segment of the semiconductor market can create pricing leverage in another. As memory tightness reduces available capacity elsewhere, logic chip producers may find improved opportunities to defend margins in an increasingly competitive industry landscape.