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CVD Equipment reported second-quarter 2026 revenue from continuing operations of $2.0 million, down 42.6% year-over-year, as weak system bookings during 2025 and early 2026 continued to weigh on equipment shipments. Orders totaled $1.2 million, compared with $1.5 million a year earlier, while backlog declined sequentially to $3.9 million from $4.6 million at the end of March.
Despite lower revenue, gross margin improved to 16.8% from 14.1% in the prior-year quarter, primarily because of a higher proportion of non-system revenue. The company nevertheless recorded a $1.4 million net loss from continuing operations, or $0.20 per share, compared with a $1.3 million loss, or $0.19 per share, a year earlier.
The quarter was dominated financially by the April 1 divestiture of CVD Equipment’s SDC division for $17.4 million. The transaction generated approximately $15.0 million in net cash proceeds after transaction costs and estimated tax payments, and produced a $13.9 million gain from discontinued operations during Q2. Including transaction costs recognized in the first quarter, the total net gain from the divestiture was $13.5 million.
As a result, reported Q2 net income reached $12.6 million despite the loss in continuing operations. The transaction also significantly strengthened CVD Equipment’s balance sheet, with cash and cash equivalents rising to $23.5 million from $8.7 million at the end of 2025. Stockholders’ equity increased to $36.0 million from $24.7 million, while the company ended the quarter with no long-term debt.
Management described the SDC sale as a transformational step that provides greater financial flexibility while CVD evaluates strategic alternatives and pursues opportunities in its remaining target markets. The company has also completed a major operational restructuring intended to substantially reduce its fixed-cost base.
For the semiconductor equipment business, however, near-term demand remains challenging. Management said customer orders continue to be affected by broader economic and geopolitical uncertainty. One positive development was a $0.8 million order for a PowderCoat 450 system, representing roughly two-thirds of total Q2 bookings.
That order also introduces additional uncertainty. Following quarter-end, the customer responsible for the $0.8 million system order entered a prepackaged Chapter 11 bankruptcy process. Although unsecured trade creditors are expected to remain unimpaired under the proposed restructuring, CVD Equipment is assessing whether the situation could affect the order, backlog, financial results or cash flows.
Original – CVD Equipment
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Semiconductor Manufacturing International Corporation (SMIC) reported second-quarter 2026 revenue of $3.006 billion, up 20% sequentially from $2.506 billion in Q1 and approximately 36% from $2.209 billion in the year-ago quarter. The results indicate a significant acceleration in foundry demand during the quarter.
Gross profit increased to $760.6 million, compared with $503.6 million in Q1 2026 and $449.8 million in Q2 2025. Gross margin expanded sharply to 25.3%, up 5.2 percentage points sequentially from 20.1% and 4.9 percentage points from 20.4% a year earlier.
Management attributed the improving industry environment partly to continued momentum and spillover effects from artificial intelligence. SMIC expects these trends to persist during the second half of 2026 and drive broader demand for integrated-circuit manufacturing rather than remaining concentrated solely in processors directly associated with AI.
For the third quarter, SMIC expects revenue to increase another 2% to 4% sequentially. Based on Q2 revenue, this implies approximately $3.07 billion to $3.13 billion in Q3 sales. Gross margin is forecast at 26% to 28%, representing further improvement from the second quarter.
SMIC said it plans to flexibly allocate its existing manufacturing capacity while accelerating qualification of newly added capacity. The objective is to help address supply constraints emerging across the semiconductor industry chain as demand strengthens.
Original – Semiconductor Manufacturing International Corporation
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Toshiba reported a strong start to FY2026, with first-quarter net sales rising 27% year-over-year to ¥937.1 billion from ¥737.9 billion. Operating income increased to ¥111.9 billion from ¥40.1 billion, nearly tripling, while return on sales (ROS) expanded sharply to a record Q1 level of 11.9% from 5.4%. EBITDA reached ¥136.5 billion, more than doubling from ¥65.2 billion, with the EBITDA margin improving to 14.6%.
Growth was broad-based across Toshiba’s Energy, Digital Infrastructure, and Devices & Technology businesses, as well as Retail & Printing. Of particular relevance to the semiconductor market, Devices & Technology recorded higher sales in both HDDs and semiconductors. Toshiba said these businesses benefited from robust data-center demand associated with the rapid adoption of generative AI. Transmission & Distribution, Thermal Power and Industrial Systems were also identified as areas benefiting from the data-center investment cycle.
The results suggest Toshiba is gaining exposure to AI infrastructure through several layers of the value chain rather than through semiconductors alone. Rising data-center electricity requirements are supporting its power and grid infrastructure businesses, while AI storage requirements are benefiting HDD operations and semiconductor demand. This combination gives Toshiba exposure to both computing infrastructure and the electrical systems required to support expanding data-center capacity.
Operating performance also benefited from management reforms, including pricing measures, improvements in marginal profit and reductions in fixed costs. Toshiba said these measures, together with higher sales, contributed to increased operating income across all business areas. The company is targeting a group-wide ROS of 10% for FY2026 under its Toshiba Revitalization Plan.
Net income surged to ¥4.467 trillion from ¥146.9 billion a year earlier. However, this extraordinary increase was predominantly driven by non-operating income associated with the valuation of Toshiba’s Kioxia shares rather than underlying operating performance. Income related to Kioxia reached ¥6.329 trillion during the quarter, compared with just ¥6.1 billion in Q1 FY2025. This distinction is important when assessing the underlying improvement in Toshiba’s core businesses.
Free cash flow increased to ¥617.3 billion from ¥262.7 billion, supported by improved operating cash flow and investing cash flow, including proceeds associated with Kioxia shares. Meanwhile, orders remained strong, particularly in the Energy business, and Toshiba’s order backlog reached its highest level since the company began the current disclosure format in FY2018.
For the power semiconductor industry, the most important takeaway is Toshiba’s explicit identification of data centers and generative AI as drivers of strength across semiconductors, industrial systems, transmission and distribution, and power-generation equipment. The results reinforce the broader trend in which AI infrastructure investment is propagating beyond processors and memory into power semiconductors, power conversion, grid equipment and supporting electrical infrastructure. Toshiba plans to accelerate investment and commercial activity around Energy, Data Center, Physical AI and Defense as it seeks further growth from FY2027.
Original – Toshiba
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Power Integrations reported second-quarter 2026 revenue of $118.9 million, up 10% sequentially and 3% year-over-year, supported by continued growth in industrial markets. The company also reported improving profitability and lower inventories both in the distribution channel and on its balance sheet.
GAAP net income reached $9.8 million, or $0.17 per diluted share, improving substantially from $0.06 per share in Q1 2026 and $0.02 in Q2 2025. Non-GAAP net income was $20.9 million, or $0.37 per diluted share, compared with $0.25 in the previous quarter and $0.35 a year earlier. Operating cash flow totaled $22.0 million during the quarter.
CEO Jen Lloyd highlighted renewable energy, grid infrastructure and AI data centers as important demand drivers, with customers increasingly requiring higher efficiency, reliability and power density. The improving industrial environment is particularly relevant for Power Integrations given its exposure to high-voltage power conversion across these applications.
Management also highlighted the company’s newly announced 2200 V PowiGaN technology as an important component of its longer-term growth strategy. The technology significantly extends Power Integrations’ high-voltage GaN capabilities and is intended to support customer roadmaps in markets including AI data centers, renewable energy and grid infrastructure.
The 2200 V development could become strategically important as higher-voltage power architectures create opportunities for GaN in applications historically dominated by silicon and SiC. Combined with Power Integrations’ existing high-voltage integrated power products, the technology gives the company an avenue to participate in emerging higher-voltage conversion architectures while benefiting from GaN’s high switching-frequency capabilities.
For Q3 2026, Power Integrations expects revenue between $122 million and $130 million. At the $126 million midpoint, this represents approximately 6% sequential growth, indicating that the recovery is expected to continue into the September quarter.
GAAP gross margin is forecast between 53.3% and 54.4%, while non-GAAP gross margin is expected between 54% and 55%. GAAP operating margin is projected at 8.3% to 10.9%, with non-GAAP operating margin of 17% to 19%. The outlook therefore points to continued revenue growth accompanied by relatively strong profitability.
Power Integrations also continues returning cash to shareholders, paying a $0.215-per-share dividend in June and declaring another $0.215 dividend payable at the end of September.
For the power semiconductor market, the quarter provides two positive signals: near-term demand conditions are improving, particularly in industrial applications, while longer-term investment in AI data centers, renewable energy and grid infrastructure is creating new opportunities for high-voltage power conversion. The combination of sequential revenue growth, improving channel inventories and the expansion of PowiGaN to 2200 V positions Power Integrations to participate in both the cyclical recovery and structural shift toward higher-voltage, higher-power-density architectures.
Original – Power Integrations
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Infineon Technologies reported record revenue of €4.172 billion for the third quarter of fiscal 2026, continuing its growth trajectory as demand strengthens across AI data centers, grid infrastructure and automotive markets.
Segment Result reached €797 million, corresponding to a Segment Result Margin of 19.1%. CEO Jochen Hanebeck said an increasing number of Infineon’s target markets are showing positive trends, with power supply solutions for AI data centers remaining the company’s most important growth driver.
AI infrastructure is emerging as an increasingly significant source of long-term demand for Infineon’s power semiconductor portfolio. The company has concluded, or is negotiating, multi-year capacity reservation agreements with leading AI customers representing a cumulative revenue volume in the high single-digit billions of euros. These agreements provide increased visibility into demand as AI data centers transition toward higher-power and more efficient power architectures.
Infineon is also benefiting from rising global investment in electricity grid infrastructure, creating additional demand for power semiconductor technologies. Meanwhile, automotive orders are picking up noticeably, indicating improving conditions in another of the company’s core power semiconductor markets.
For Q4 FY2026, Infineon expects revenue to increase by a good 13% sequentially to approximately €4.7 billion, based on an assumed EUR/USD exchange rate of 1.15. The Segment Result Margin is expected to rise significantly to around 23%, implying stronger operating leverage alongside the anticipated revenue increase.
For the full fiscal year, Infineon now expects revenue of approximately €16.3 billion. The adjusted gross margin is expected to remain in the low-to-mid-40% range, while the Segment Result Margin is forecast at around 20%.
Infineon raised its adjusted free cash flow outlook to approximately €1.85 billion from €1.65 billion previously. However, its reported free cash flow forecast was reduced to approximately €0.9 billion from €1.25 billion, now reflecting the acquisition of the sensor portfolio from ams OSRAM completed in July 2026.
The combination of record quarterly revenue, accelerating AI-related demand, grid infrastructure investment and improving automotive orders points to a broadening recovery for Infineon. Most notably, the high single-digit billion-euro volume represented by AI customer capacity agreements indicates that data center power is evolving from a near-term growth driver into a potentially significant multi-year business for the company.
Original – Infineon Technologies
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Axcelis Technologies reported second-quarter 2026 revenue of $215.2 million, up 10.6% from $194.5 million a year earlier and above the company’s expectations. The stronger performance was driven by higher semiconductor equipment system shipments and increased customer service and installed base (CS&I) volume.
Demand in the memory semiconductor market remained robust, while Axcelis also reported positive momentum in power semiconductors. The company is seeing improving customer engagement and utilization trends in its General Mature market as customers respond to strengthening demand from data center, industrial and automotive applications.
GAAP gross margin was 42.4%, down from 44.9% in Q2 2025, while non-GAAP gross margin was 42.7%, compared with 45.2% a year earlier. GAAP operating margin declined to 9.4% from 14.9%, while non-GAAP operating margin was 14.7%, compared with 17.7% in the prior-year quarter.
GAAP net income was $23.3 million, or $0.75 per diluted share, compared with $31.4 million, or $0.98 per share, in Q2 2025. Non-GAAP net income was $33.0 million, equivalent to $1.06 per diluted share, compared with $36.0 million and $1.13 per share a year earlier. Adjusted EBITDA totaled $36.0 million versus $38.9 million in Q2 2025.
Despite lower year-over-year margins and earnings, management highlighted improving operating leverage as equipment demand strengthens. Axcelis expects its financial performance to improve through the remainder of 2026, supported by stronger systems demand and continued strength in its CS&I aftermarket business.
The improving power semiconductor environment is particularly important for Axcelis. Management specifically highlighted positive momentum in the Power market, alongside stronger utilization and customer activity in mature-node applications. The company recently completed a successful evaluation of its Purion XEmax high-energy ion implanter at a leading foundry for production of power management ICs, highlighting increasing implantation requirements for advanced power devices.
Axcelis now expects to deliver year-over-year revenue growth in 2026, with the improving market momentum expected to continue into 2027. The revised outlook reflects continued strength in memory alongside improving conditions across power, data center, industrial and automotive semiconductor markets.
For Q3 2026, Axcelis expects revenue of approximately $230 million, representing sequential growth of about 6.9%. GAAP diluted EPS is expected to be approximately $0.76, while non-GAAP diluted EPS is forecast at approximately $1.11.
Axcelis is also progressing toward completion of its pending merger with Veeco. The company said it is focused on satisfying the remaining closing conditions and continues to expect the transaction to close during the second half of 2026.
Original – Axcelis Technologies
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Veeco Instruments reported second-quarter 2026 revenue of $193.5 million, up 16.5% from $166.1 million in Q2 2025, as strengthening demand associated with AI infrastructure supported the company’s portfolio of advanced semiconductor manufacturing technologies.
GAAP net income reached $11.9 million, compared with $11.7 million a year earlier, while diluted EPS was $0.18 versus $0.20 in Q2 2025. On a non-GAAP basis, net income increased slightly to $21.8 million from $21.5 million, with diluted EPS of $0.33 compared with $0.36 a year earlier. Non-GAAP operating income remained unchanged year-over-year at $23.1 million.
CEO Bill Miller said the rapid expansion of AI is generating increased demand across Veeco’s technology portfolio, resulting in robust order activity and deeper customer engagement. The company is also seeing improved visibility into 2027 and is executing a manufacturing expansion strategy to support its longer-term growth expectations.
The combination of double-digit revenue growth and strong order activity indicates improving demand for semiconductor capital equipment exposed to AI-related investment. Veeco’s comments on deeper customer engagement and greater 2027 visibility are particularly significant, suggesting that current demand is translating into a broader and potentially more durable equipment investment cycle rather than only near-term shipment growth.
For Q3 2026, Veeco expects revenue of $200 million to $220 million. At the $210 million midpoint, revenue would increase approximately 8.5% sequentially from Q2. GAAP diluted EPS is expected between $0.20 and $0.34, while non-GAAP diluted EPS is forecast at $0.35 to $0.49.
Veeco also revised its full-year 2026 outlook, forecasting revenue of $780 million to $810 million. At the midpoint, this implies approximately $795 million in annual revenue. GAAP diluted EPS is expected at $0.78 to $1.02, with non-GAAP diluted EPS of $1.36 to $1.61.
The results reinforce the improving outlook for semiconductor equipment demand tied to AI infrastructure. For the broader power semiconductor supply chain, Veeco’s strengthening orders and manufacturing expansion are also noteworthy given the company’s exposure to advanced materials and compound-semiconductor processing. Combined with management’s improving visibility into 2027, the Q2 results point toward continued equipment investment as customers expand capacity to address AI-driven semiconductor demand.
Original – Veeco Instruments
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Vishay Intertechnology reported second-quarter 2026 GAAP revenue of $888.6 million and adjusted revenue of $918.6 million, with adjusted revenue increasing 9.5% sequentially and exceeding the upper end of the company’s guidance. The difference between reported and adjusted revenue reflects $30.0 million of tariff refunds passed through to customers, which had no impact on gross profit.
The quarter showed a notable improvement in profitability. Gross margin reached 23.3%, up from 21.0% in Q1 2026 and 19.5% in Q2 2025. Operating margin improved to 6.0%, compared with 2.6% in the previous quarter and 2.9% a year earlier. Net earnings reached $28.1 million, or $0.19 per diluted share, compared with $7.2 million and $0.05 per share in Q1. Adjusted EBITDA increased to $104.8 million, representing an adjusted EBITDA margin of 11.4%, up from 9.3% sequentially and 8.3% a year earlier.
Demand indicators were particularly strong. Vishay reported an overall book-to-bill ratio of 1.32, including 1.23 for semiconductors and 1.40 for passive components, while backlog reached 6.1 months. Management said demand strengthened across all end markets, sales channels and geographic regions, indicating that the improvement is relatively broad rather than concentrated in a single application or customer group.
CEO Joel Smejkal said Vishay is focused on supplying its growing customer base and taking advantage of the current industry upcycle while positioning the company for multi-year demand. For the power semiconductor market, the semiconductor book-to-bill above 1 is an encouraging indicator that order intake is running ahead of shipments as market conditions recover.
For Q3 2026, Vishay expects revenue of $945 million to $975 million. At the midpoint of $960 million, this would represent approximately 4.5% sequential growth from Q2 adjusted revenue. Gross margin is expected to reach approximately 24.0%, plus or minus 50 basis points, suggesting further profitability improvement as higher volumes support manufacturing utilization.
The company’s first-half results also show a substantial recovery from 2025. H1 revenue reached $1.73 billion versus $1.48 billion a year earlier, while operating income increased to $75.7 million from $22.9 million. Adjusted EBITDA rose to $182.8 million from $118.0 million, with the adjusted EBITDA margin expanding to 10.4% from 8.0%.
Vishay is simultaneously maintaining significant investment in manufacturing capacity. Capital expenditures reached $205.9 million during the first six months of 2026, compared with $126.2 million a year earlier. Free cash flow remained negative at $36.6 million for H1, although this represented a substantial improvement from negative $118.4 million in H1 2025. Cash and cash equivalents increased to approximately $1.30 billion following the company’s follow-on public offering.
The combination of a 1.23 semiconductor book-to-bill ratio, six months of backlog, improving margins and another sequential revenue increase expected in Q3 provides evidence that Vishay is moving further into an electronics demand recovery. For the discrete semiconductor market specifically, the figures suggest improving utilization and order momentum, while the company’s continued capacity investments position it to capture stronger demand across automotive, industrial, computing and other power-electronics applications.
Original – Vishay Intertechnology
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GlobalFoundries reported Q2 2026 revenue of $1.786 billion, exceeding the high end of its guidance range as demand strengthened across strategic growth markets. Revenue increased 6% year-over-year and 9% sequentially, supported by higher wafer shipments and growing demand in areas including optical networking for AI data centers. Wafer shipments reached 625,000 300mm-equivalent wafers, up 8% both year-over-year and sequentially.
Gross margin improved to 28.3%, compared with 24.2% a year earlier and 27.6% in Q1 2026. On a non-IFRS basis, gross margin reached 29.9%, up 470 basis points year-over-year. Non-IFRS operating income increased 16% year-over-year to $298 million, corresponding to a 16.7% operating margin. Adjusted EBITDA was $587 million, broadly flat year-over-year, with an adjusted EBITDA margin of 32.9%.
Net income was $167 million, or $0.30 per diluted share, compared with $228 million and $0.41 per share in Q2 2025. On a non-IFRS basis, net income increased 9% year-over-year to $256 million, while diluted EPS rose 10% to $0.46. Cash generated from operations totaled $405 million, while capital expenditures of $411 million resulted in adjusted free cash flow of negative $3 million.
CEO Tim Breen highlighted accelerating customer demand and revenue growth across GlobalFoundries’ strategic growth areas, particularly optical networking for AI data centers. The company said its silicon photonics and silicon germanium technologies are supporting customer requirements for next-generation high-speed optical connectivity.
In July 2026, GlobalFoundries signed a letter of intent with the U.S. Department of Commerce for an expected $300 million award aimed at advancing U.S. silicon photonics capabilities. The planned funding is intended to support next-generation optical materials, wafer technologies, and advanced packaging for applications including AI infrastructure.
The company also completed the acquisition of Photeon Technologies’ integrated voltage regulator business in July. The transaction adds IVR technology, specialized engineering expertise, and additional R&D capabilities, complementing GlobalFoundries’ existing BCD, GaN, and integrated inductor technologies for power delivery applications in AI data centers.
In June, GlobalFoundries completed its acquisition of Synopsys’ ARC Processor IP Solutions business. Together with MIPS, the acquired capabilities expand GlobalFoundries’ RISC-V processor IP, software tools, custom design, and advanced manufacturing offering, supporting a broader software-to-silicon platform for Physical AI and related applications.
The company also highlighted the launch of Quantum Technology Solutions in May 2026, building on its work in cryogenic CMOS, advanced packaging, and materials science. The initiative is expected to be supported by a proposed $375 million U.S. Department of Commerce grant under a letter of intent.
GlobalFoundries ended the quarter with $3.3 billion in cash, cash equivalents, and marketable securities. The company also paid its first quarterly cash dividend of $0.12 per share on July 14, 2026, and its Board approved another $0.12 per share dividend payable on October 9, 2026 to shareholders of record as of September 23, 2026.
For Q3 2026, GlobalFoundries expects revenue of $1.885 billion, plus or minus $25 million. IFRS gross margin is forecast at 29.5%, plus or minus 100 basis points, while non-IFRS gross margin is expected at 30.5%. Diluted EPS is projected at $0.37, plus or minus $0.05, with non-IFRS diluted EPS expected at $0.51, plus or minus $0.05.
Original – GlobalFoundries
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onsemi reported second-quarter 2026 revenue of $1.604 billion, up 9% year-over-year, with revenue, gross margin and earnings per share coming in above the midpoint of the company’s guidance. GAAP gross margin reached 38.4%, while non-GAAP gross margin was 39.3%. GAAP operating margin was 16.1%, with non-GAAP operating margin reaching 20.8%.
Profitability improved faster than revenue, with GAAP diluted EPS of $0.56 and non-GAAP EPS of $0.74. Management said year-over-year EPS growth was four times the rate of revenue growth, reflecting gross-margin expansion and continued cost discipline.
Cash generation was particularly strong. Cash from operations increased 150% year-over-year, while free cash flow quadrupled to $425.4 million. This represented a free cash flow margin of approximately 27%, compared with roughly 7% a year earlier. onsemi repurchased $332 million of shares during the quarter, bringing year-to-date shareholder returns to approximately 105% of free cash flow.
AI data centers remain onsemi’s fastest-growing business, with the company now expecting AI data center revenue to more than double in 2026. Growth is being driven by increasing adoption of its intelligent power portfolio across the data-center power tree, including high-voltage power solutions, EliteSiC silicon carbide devices, silicon MOSFETs, controllers and its recently introduced GaN portfolio.
The company highlighted an expanded role in the NVIDIA MGX ecosystem as AI infrastructure power requirements increase. It also secured strategic AI data-center platform wins with Great Wall, a major Chinese cloud-infrastructure power supplier, expanding its content in EliteSiC, silicon MOSFETs and controllers. These wins indicate that onsemi is positioning its portfolio across multiple stages of AI power conversion rather than relying on a single device category.
onsemi also launched GaNEXUS, its GaN power portfolio covering voltages from 40 V to 650 V and targeting AI data centers, robotics and industrial infrastructure. The addition of GaN alongside the company’s established silicon and SiC portfolios broadens its ability to address different voltage and switching-frequency requirements across emerging high-density power architectures.
Beyond AI, onsemi reported continued automotive design activity, including an expanded role in Rivian’s R2 platform for zonal power distribution and onboard charging. The company also announced its planned acquisition of Synaptics, which is intended to add connected-compute capabilities and expand its addressable market in physical AI while complementing its existing power and sensing businesses.
For the power semiconductor market, the results provide another indication that AI infrastructure is becoming a meaningful growth engine for suppliers traditionally exposed primarily to automotive and industrial markets. onsemi’s combination of silicon MOSFETs, SiC, GaN, gate/control technologies and high-voltage solutions gives it exposure across an increasingly complex AI data-center power chain, while the expected doubling of AI data-center revenue in 2026 suggests this market is beginning to have a material impact on the company’s growth profile.
Original – onsemi
