X-Fab: very volatile
Update Q1 2025
Short description
X-Fab is a Belgian semiconductor company listed in Paris. It has grown into a major player in the semiconductor industry, with production facilities in Europe (1 in France, 3 in Germany), the United States (Lubbock, Texas), and Malaysia.
X-Fab offers a wide range of services and solutions for the development and production of advanced semiconductor products. The company specializes in analog and mixed-signal designs, where analog and digital circuits are integrated on a single chip. This allows customers to implement complex functions that require both analog and digital components.
X-Fab's services cover the entire production process, from design and manufacturing to testing and packaging ICs. They also provide technical support and advice to help customers optimize their designs and achieve the desired performance. X-Fab has expertise in various technology platforms, such as CMOS (Complementary Metal-Oxide-Semiconductor), bipolar, and BCD (Bipolar-CMOS-DMOS).
The automotive, industrial, and medical sectors are X-Fab's key markets, together accounting for 93% of last year’s revenue.
Why we selected X-Fab
X-Fab is a cyclical company that offers opportunities for investors with a long-term vision. As a contrarian investor, you can regularly buy and sell in such companies.
When you can invest at 0.6 times the tangible book value in a company with a solid balance sheet, capable management, and active in growth markets, it’s not always necessary to know exactly where you are in the cycle, especially when investor sentiment is already negative.