Innoscience reported H1 2026 revenue of RMB 834 million ($116M) , up 50.6% year‑on‑year, with gross profit surging 156.5% to RMB 97.1M. Gross margin climbed to 11.6% – up from -21.6% in H1 2024 and 6.8% in H1 2025 – marking a three‑year consecutive margin recovery. Most notably, operating cash flow turned positive for the first time, signaling a shift toward self‑sustaining operations.
The company shipped 547 million GaN chips in H1, bringing cumulative shipments to over 2.5 billion. Innoscience holds 42% global shipment share and 33.7% revenue share in silicon‑based GaN power devices – both ranking No. 1 worldwide. Customer base expanded by 747 new accounts, reducing reliance on any single client.
Business mix shift: AI data center, NEV, and industrial energy storage together generated RMB 532M , up 70% YoY, now accounting for 63.8% of total revenue – compared to <36% for consumer electronics (down from the majority share).
AI data center: shipments surged 183% to 9.63M units; products now in NVIDIA, Google, and Delta supply chains.
NEV: 10.3M automotive‑grade chips shipped (+103% YoY), used in OBC, DC‑DC, and LiDAR.
Industrial storage: RMB 471M revenue (+83% YoY), the largest single segment.
Humanoid robotics: 465K chips shipped (+50% YoY), entering joint drive and LiDAR modules.
Cost advantages: Innoscience operates an 8‑inch IDM model (design, fab, packaging in‑house) – the world’s first 8‑inch GaN‑on‑Si mass production line. Its Gen‑4 process platform is expected to reduce wafer costs by 30% once fully deployed. Overall fab yield remains stable above 95%, continuously lowering unit costs. The company plans to ramp monthly capacity from current levels to 30‑35K wafers by end‑2026 and 70K by early 2028, with significant future capacity already locked under long‑term agreements.
The company's IP portfolio exceeds 1,100 global patents; a recent patent litigation victory over Infineon has cleared a key legal hurdle for international expansion.
Net loss narrowed to RMB 309M (‑27.9% YoY), mainly due to heavy R&D and fab expansion spending. Gross margin, though significantly improved, still trails leading international power semi vendors – leaving room for further upside.
ICgoodFind Takeaway:
Innoscience has crossed the GaN commercialization chasm. With AI data center, NEV, and energy storage now driving over 60% of revenue, the company is transforming from a consumer‑focused player into a diversified power semiconductor contender. Cash flow positive is the real milestone – profitability is the next target.
