At its Q3 results meeting, Hongwei Technology said profits are under pressure due to heavy investment and capacity ramping at key subsidiaries, calling it a temporary strategic-capacity ‘pain’ phase. Management will continue cost-cutting and efficiency measures to restore gross margins quarter-by-quarter and accelerate volume growth in high-margin SiC, GaN, energy-storage and AI power products to raise the share of higher-value revenue. As production capacity progressively ramps to healthy level

At its Q3 results meeting, Hongwei Technology said profits are under pressure due to heavy investment and capacity ramping at key subsidiaries, calling it a temporary strategic-capacity ‘pain’ phase. Management will continue cost-cutting and efficiency measures to restore gross margins quarter-by-quarter and accelerate volume growth in high-margin SiC, GaN, energy-storage and AI power products to raise the share of higher-value revenue. As production capacity progressively ramps to healthy levels, the company said its profit mix should continue to improve.