Fadu grew 112 percent from a year earlier as the artificial intelligence data center market expanded. Fadu, a data center semiconductor specialist, said on Feb. 12 it posted 2025 annual revenue of 92.4 billion won. That was up 112.4 percent from a year earlier. Operating loss was 61.7 billion won, an improvement of 35 percent from a year earlier. The company said the result came as high-performance Gen5 products targeting AI data centers entered full-scale mass production from 2025.

Fadu relied on Gen4 products through 2024 and suffered weak performance. The situation changed with growth in the AI data center market. The enterprise SSD market grew steeply from the second half of 2025, including as Nvidia flagged demand for storage for AI data center inference.

Acceleration in results is expected in 2026. The company said it expects to post sharply higher quarter-on-quarter revenue from the first quarter, including by adding multiple global hyperscalers to its customer base since the start of this year.

An improvement in the earnings structure also stands out. The share of controller revenue, which has higher profitability than complete SSD products, rose to 70 percent in 2025 from 55 percent in 2024. The company said it has reshaped its portfolio around the controller business since 2023 by focusing on cooperation with global NAND flash memory companies.

The reduction in operating loss was large. As 11.0 billion won in development costs for next-generation Gen6 controllers was spent in the fourth quarter last year, annual operating loss came to 61.7 billion won. That was down 33.3 billion won from 95.0 billion won a year earlier. Selling, general and administrative expenses stayed at a similar level to the previous year.

Fourth-quarter net loss was affected by derivatives valuation losses. As the end-period share price for a convertible bond issued in May 2025 rose from the issuance date, 10.0 billion won in derivatives valuation losses was reflected in financial costs. Annual net loss was 72.1 billion won, an improvement of 21.2 percent from a year earlier.

A Fadu official said, "The market has finally proven Fadu's technological capabilities, and both revenue and profitability have entered a phase of structural growth," and added, "With development investment coming to an end, revenue growth is being achieved without an increase in selling and administrative expenses, and it is expected to lead to a clear improvement in profitability."