DiaoWei Microelectronics reported a split H1 2026: net profit of RMB 139M ($19M) – a swing from a RMB 4.2M loss a year ago – but core operating loss stood at RMB 89M, revealing that mainstream chip business remains under pressure.
The paper profit came largely from fair‑value gains on equity holdings (Lingxin Qiaoshou), not operations. Revenue fell 25.2% to RMB 229M, dragged by consumer products. Gross margin dropped 12.8 points to 39.7%. Meanwhile, R&D spending rose 10.6% to RMB 111M, accounting for a heavy 48.3% of revenue – a major drain on operating profit.
Bright spots in optical communications:
AFE chips for 1.6T optical modules, CPO, and silicon‑photonics integration
Industry‑first 2GHz ultra‑low‑leakage sampling switch for long‑haul optical baseline drift
TEC controller + load‑switch + DC‑DC portfolio for one‑stop optical module power solutions
Revenue mix: Power management ICs (RMB 138M, 60.5%) and signal‑chain ICs (RMB 90M, 39.5%). Overseas breakthroughs: multiple products entered high‑end global compute supply chains, gained reference designs from top‑tier firms, and added several new overseas optical‑module customers.
Other growth bets: eUSB repeater ICs passed validation with leading AI notebook platforms and are being adopted by domestic AI glasses and AR‑VR OEMs – positioning for next‑gen edge terminals.
The company now offers over 2,000 product models, serving Samsung, OPPO, Xiaomi, BYD, Qualcomm, Google, Unitree, and others, across servers, optical modules, automotive, AI devices, and industrial robotics.
ICgoodFind Takeaway:
Core business is soft today, but DiaoWei is betting big on optical and AI‑edge analog – with overseas design‑wins already visible. The payoff may come as high‑speed interconnect demand scales.
