$XFAB

@aleabitoredditMay 27, 2026 · 4:35 PM

Bro media… how is $XFAB a meme stock? Can you not repeat the same mistake with $RPI this time? They’re literally getting CHIPS ACT funding from the EU because of how critical they are. And have $NVDA / $NOK evaluating their SiPH side of things, while they traded at a low ~1.28 P/B. This just reminded me of $SOI low p/b but high growth verticals out of legacy segment drag. $XFAB was literally mentioned for CHIPS ACT 2 next week in the blueprints… Which focuses around photonics. The main revenue ramp was around power semis with $NVDA pushing 800 vdc. So $NVTS, $POWI, $WOLF and everyone have been taking off recently. Markets just missed $XFAB, because they’re a lesser known foundry in power semis…But US Dpt. Of commerce pointed them out as the only high volume SiC foundry in the US 2Y ago. I just happened to point out the connections. Just because you don’t understand something, don’t just go call it a “meme stock” with price detached from fundamentals.

@aleabitoredditMay 27, 2026 · 2:45 PM

@MalteAnkan20 $XFAB is more tethered to power semis growth. With silicon photonics upside optionality depending on how $NVDA / $NOK evaluations go

@aleabitoredditMay 27, 2026 · 9:05 AM

Yeah would not be surprised to see $SIVE, $SOI, and $XFAB funding with EU Chips Act 2. Glad to all my longs there (aside from $IQE) listed on the blueprint, I didn’t see that earlier in my research! Looks like formal announcement got pushed back to next week though. https://t.co/2SdG4Gocql

@aleabitoredditMay 27, 2026 · 7:53 AM

@DisruptivePoltx Yeah they have close relationships with $IQE, $SOI and my other longs. Was familiar with a lot of the private photonics companies working with $XFAB so liked it a bit more.

@aleabitoredditMay 27, 2026 · 7:35 AM

Yep, there’s a lot of interesting things going on with $XFAB in terms of European’s photonics ecosystem and existing gov funding. Basically power semi exposure, for primary revenue growth, and silicon photonics in EU ecosystem as extra. Regardless I like the idea of supporting and securing Western supply chains for AI.

@aleabitoredditMay 27, 2026 · 7:29 AM

$XFAB (photonics + power semis) is an interesting long idea at $1.28B MC, that I took positions in. Given EU CHIPS act 2 is today as the catalyst for European photonics players. > 800 VDC power semi exposure to $NVDA push through $NVTS + $POWI > Silicon Photonics / CPO exposure with $NVDA as evaluation stage for high volume manufacturing (optical transceivers/switches) > The only high-volume SiC foundry in the US. > One of the critical MEMS foundries > ~1.29 P/B, which was around what $SOI was sitting at when I went long. Depressed valuations due to legacy drag > ~6.5-8.5 fwd p/e 2028 personal est. > backstopped by Government: - EU CHIPS act, $128M Euros - US CHIPS act $50M PMT (department of commerce). With likely more coming (just signals critical importance to Western supply chains). So at a certain point with all the grants, they’re just getting the capex funded by the Governments. EU CHIPS act 2 is coming out this week, and I’m gonna go ahead and guess $XFAB might get included given they were before, and this package is specifically targeting photonics. ~$1.3B MC seems compelling to me if it can pull a Soitec reversal (low p/b, very high growth segments, auto legacy drag). As for the $NVDA silicon photonics relationships it’s under “photonixFAB”. Markets probably missed this silicon photonics relationship (like $TSEM when I went long) with Nvidia since XFab leads this… Just under a different name. For power semis, XFAB is named for SiC + $NVTS. In PCN-22181, $POWI explicitly names XFAB as its foundry.  Given its exposure to power semis and photonics as growth, low P/B, gov backstop (of course dyor, just sharing my personal thoughts) Thought it personally seemed compelling.

@thevalueistApr 28, 2026 · 2:21 PM

$XFAB X-FAB Strategic Analysis, Executive Management Review, and Investment Thesis. X-FAB Silicon Foundries is a specialty semiconductor foundry with a concentrated position in automotive, medical, and industrial end markets. The company has completed a major capacity expansion and is now shifting focus to driving utilization and recovering cash flow from the enlarged asset base. Competitive positioning remains strong, with deep process expertise and long qualification cycles creating durable switching costs. Near-term headwinds include declining order intake and elevated fixed costs, with depreciation from the expansion weighing on margins. A recent CEO transition is underway alongside more aggressive cost-efficiency measures designed to offset the depreciation drag. The strategic platform carries clear long-term value, but the current stock price appears to discount much of the expected recovery. This leaves minimal margin for execution error, particularly if the demand environment remains soft. The thesis depends on X-FAB proving it can fill the new capacity quickly enough to convert fixed-cost leverage into earnings growth rather than sustained margin compression.