Hua Hong reports record Q4 revenue as AI-driven memory crunch fuels price hikes

Chinese foundry Hua Hong Semiconductor said the global memory shortage was an opportunity to raise prices on its logic chips, as it reported record revenue for the fourth quarter of 2025.

On its earnings call on Thursday, Hua Hong chairman and president Bai Peng said the memory supercycle was “a positive thing” as it gave the company room to raise prices on logic chips.

“Memory certainly is in high demand nowadays, and that will reduce the supply on the logic side,” Bai said, adding that “if the supply gets tighter, it does give us more opportunity to increase prices”.

Hua Hong mainly focuses on making mature logic chips, regarded as the “brains” of electronic devices because they process information to complete tasks.

High-end logic chips include central processing units and graphics processing units, the latter of which are now widely used in artificial intelligence computing applications. Memory chips, on the other hand, are used to store data temporarily or permanently in electronic devices.

Hua Hong increased prices for certain products fabricated on its 12-inch production line, and the results already showed up in the 2025 results, Bai said. Hua Hong “might still have some room to go” on price increases in 2026, he added.