Faraday Technology (TPE:3035) Gross Margin %: 47.30% (As of Mar. 2026) — Near Median

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TPE:3035 Faraday Technology Corp TPE:3035
95 GF Score
Price NT$207.00
GF Value NT$268.93
Valuation Modestly Undervalued
! 9 Warning Signs
View Full Analysis

What is Faraday Technology Gross Margin %?

Faraday Technology TPE:3035 95 Gross Margin % is 47.30% as of Mar. 2026, which is 3% below its 10-year median of 48.70. GuruFocus rates TPE:3035 with a GF Score™ of 95/100 and a GF Value™ of NT$268.93 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,011 Semiconductors companies, Faraday Technology ranks better than 59.05% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Faraday Technology's Gross Profit for the three months ended in Mar. 2026 was NT$1,224 Mil. Faraday Technology's Revenue for the three months ended in Mar. 2026 was NT$2,589 Mil. Therefore, Faraday Technology's Gross Margin % for the quarter that ended in Mar. 2026 was 47.30%.

Warning Sign:

Faraday Technology Corp gross margin has been in long-term decline. The average rate of decline per year is -8.8%.


The historical rank and industry rank for Faraday Technology's Gross Margin % or its related term are showing as below:

TPE:3035' s Gross Margin % Range Over the Past 10 Years
Min: 27   Med: 48.7   Max: 53.11
Current: 34.8


During the past 13 years, the highest Gross Margin % of Faraday Technology was 53.11%. The lowest was 27.00%. And the median was 48.70%.

TPE:3035's Gross Margin % is ranked better than
59.05% of 1011 companies
in the Semiconductors industry
Industry Median: 29.61 vs TPE:3035: 34.80

Faraday Technology had a gross margin of 47.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Faraday Technology was -8.80% per year.


Faraday Technology  (TPE:3035) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Faraday Technology had a gross margin of 47.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Faraday Technology Gross Margin % Related Terms


Faraday Technology Gross Margin % Historical Data

* Premium members only.

The historical data trend for Faraday Technology's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Faraday Technology Gross Margin % Chart

Faraday Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.59 48.80 44.35 45.65 27.00

Faraday Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.28 24.18 33.21 42.16 47.30

TPE:3035 vs AMAT, LRCX, KLAC: Gross Margin % Comparison

For the Semiconductor Equipment & Materials subindustry, Faraday Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Faraday Technology Gross Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Faraday Technology's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Faraday Technology's Gross Margin % falls into.


TPE:3035
95GF Score
Faraday Technology Corp TPE:3035
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Faraday Technology Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Faraday Technology's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=4857.5 / 17992.808
=(Revenue - Cost of Goods Sold) / Revenue
=(17992.808 - 13135.315) / 17992.808
=27.00 %

Faraday Technology's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1224.4 / 2588.502
=(Revenue - Cost of Goods Sold) / Revenue
=(2588.502 - 1364.067) / 2588.502
=47.30 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 47.30% mean?
Faraday Technology (TPE:3035) has a Gross Margin % of 47.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Faraday Technology and its competitors. This is near median its historical median of 48.70. Over the past decade, Faraday Technology's Gross Margin % has ranged from 27.00 to 53.11. According to the industry distribution chart, Faraday Technology ranks #414 out of 1011 companies in the Semiconductors industry, placing it in the top 40.9%.
Is Faraday Technology's Gross Margin % too high?
Faraday Technology's current Gross Margin % of 47.30% is near median its 10-year median of 48.70. Over the past 10 years, this metric has ranged from a low of 27.00 to a high of 53.11. The Semiconductors industry median Gross Margin % is 29.61. Faraday Technology's value of 47.30% is 59.7% above this industry median. Based on the distribution chart, Faraday Technology ranks #414 out of 1011 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Faraday Technology has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faraday Technology's Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Faraday Technology ranks #414 out of 1011 companies for Gross Margin %. This puts Faraday Technology in the upper half of its industry. The industry median Gross Margin % is 29.61. Faraday Technology's value of 47.30% is 59.7% above this benchmark. Historically, Faraday Technology's own Gross Margin % has ranged from 27.00 to 53.11 over the past decade. While the company's 10-year median is 48.70 vs. the industry median of 29.61, Faraday Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Faraday Technology's current Gross Margin % of 47.30% is 59.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Faraday Technology and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faraday Technology's current Gross Margin % is 47.30%, which is near median its own 10-year median of 48.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faraday Technology stock overvalued right now?
Based on GuruFocus' analysis, Faraday Technology (TPE:3035) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$268.93, compared to a current price of NT$207.00 — trading 23% below its estimated fair value. The current Gross Margin % is 47.30%, which is near median its 10-year median of 48.70 and 59.7% above the Semiconductors industry median of 29.61. Faraday Technology's overall GF Score™ is 95/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Faraday Technology (TPE:3035), the current Gross Margin % is 47.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Faraday Technology (TPE:3035) Overvalued in 2026?

Based on GuruFocus' analysis, Faraday Technology stock appears to be undervalued. The current stock price of NT$207.00 is trading 23% below its estimated GF Value™ of NT$268.93. GuruFocus considers Faraday Technology to be Modestly Undervalued.

Key valuation signals for TPE:3035:

  • Gross Margin %: 47.30% (near median its 10-year median of 48.70)
  • GF Value™: NT$268.93 vs. price of NT$207.00 (23% below fair value)
  • GF Score™: 95/100 with 9 warning signs
  • Industry Position: 59.7% above the Semiconductors median (#414 of 1011)

No single metric tells the full story. See the TPE:3035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Faraday Technology Business Description

Address Li-Hsin Road III, No. 5, Hsinchu Science Park, Hsinchu, TWN, 30078
Faraday Technology Corp is a fabless ASIC vendor and silicon intellectual property and system platform provider. It offers a comprehensive range of ASIC solutions, including total 3DIC packaging, Neoverse CSS design, FPGA-Go-ASIC, and design implementation services. Furthermore, its silicon IP portfolio encompasses a wide array of offerings, such as I/O, Cell Library, Memory Compiler, ARM-compliant CPUs, USB 3.1/2.0, 10/100 Ethernet, Giga Ethernet, SATA3/2, etc. Faraday generates revenue from the sale of goods, the rendering of services, and silicon intellectual property licenses. Geographically, the company generates maximum revenue from Taiwan, and the rest from China, Singapore, the United States, Japan, and other markets.
95GF Score

Get the complete analysis for TPE:3035

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$207.00
Price
NT$268.93
GF Value