Wisechip Semiconductor Inc. (5245) AI Stock Analysis

Wisechip Semiconductor Inc.

(TPEx:5245)

Select Model

Rating:24Underperform

Price Target:TWD 14.00▼(-22.65% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by severely deteriorating financials: shrinking revenue, a gross margin that has fallen to near zero, three straight years of losses, rising leverage above 1.2x equity, and NT$211 million of negative free cash flow that raises the risk of further debt or equity raising. Technicals reinforce the negative picture, with the stock trading well below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings suggest scope for short-term bounces. Valuation provides no cushion given negative earnings and the absence of a dividend. Earnings call and corporate event components were excluded for lack of data, with their weight redistributed across the remaining factors.

Positive Factors

Fabless IC Design ModelA fabless design model concentrates the company on semiconductor product development rather than owning fabrication facilities. Its specialization in display driver ICs can support focused engineering capabilities and participation across display-equipped electronic applications over the medium term.

Negative Factors

Severe Margin and Earnings DeteriorationThe collapse from historical gross margins of roughly 33–35% to about 1% indicates substantially weaker pricing, mix, or cost absorption. Sustained net losses reduce internal funding capacity and make earnings recovery less predictable over the next several quarters.

Wisechip Semiconductor Inc. (5245) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 777.18M
Dividend Yield: ―
Average Volume (3M): 134.39K
Price to Earnings (P/E): -4.4
Beta (1Y): 1.01
Revenue Growth: -19.50%
EPS Growth: -4.71%
Country: TW
Employees: 298
Sector: General
Sector Strength: 55
Industry: Semiconductors

Wisechip Semiconductor Inc. Business Overview & Revenue Model

Company Description

WiseChip Semiconductor Inc. is a global leader in the development, manufacturing, and distribution of Organic Light Emitting Diode (OLED) displays. The company's diverse product portfolio encompasses character displays, full-color and monochrome OLED...

Wisechip Semiconductor Inc. Financial Statement Overview

Summary

Wisechip's fundamentals are deeply impaired across all three statements. Revenue has fallen roughly 45% from its 2021 peak to NT$776 million, gross margin has collapsed from about 35% to just 1.1%, and the company has posted three consecutive years of operating losses, with the 2025 net loss widening to NT$212 million. The balance sheet reflects this damage: equity has nearly halved since 2022 while debt more than doubled, pushing debt-to-equity to 1.24x and ROE to -31.7%. Cash flow is the weakest link, with operating cash flow swinging to a NT$173 million outflow and free cash flow at negative NT$211 million, confirming genuine cash burn rather than non-cash charges. Partial offsets are a still-positive equity base, assets exceeding debt, and flexibility to cut capital spending, but there is no visible path to breakeven in the current numbers.

Income Statement

14Very Negative

Balance Sheet

29Negative

Cash Flow

13Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	721.43M	775.78M	899.24M	895.58M	1.42B	1.45B
Gross Profit	-13.63M	8.73M	87.21M	98.18M	462.98M	505.36M
EBITDA	-76.09M	-77.73M	-2.38M	-24.93M	335.23M	370.06M
Net Income	-189.87M	-211.90M	-134.90M	-138.85M	176.57M	197.86M
Balance Sheet
Total Assets	1.63B	1.70B	1.80B	1.79B	1.93B	1.71B
Cash, Cash Equivalents and Short-Term Investments	289.82M	243.53M	289.88M	291.47M	401.54M	225.74M
Total Debt	524.90M	828.52M	651.29M	558.16M	390.82M	194.62M
Total Liabilities	1.03B	1.02B	884.35M	780.97M	713.61M	531.63M
Stockholders Equity	606.66M	669.17M	876.59M	975.52M	1.22B	1.18B
Cash Flow
Free Cash Flow	-112.31M	-210.88M	-19.15M	-134.06M	173.28M	316.08M
Operating Cash Flow	-83.37M	-173.37M	39.78M	-12.86M	215.76M	325.69M
Investing Cash Flow	-12.29M	37.08M	-107.94M	-228.21M	-133.91M	-12.74M
Financing Cash Flow	169.97M	155.70M	126.67M	39.62M	40.54M	-210.60M

Wisechip Semiconductor Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5245 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6164	49Neutral	TWD 790.93M	43.14	―	4.55%	-10.87%	115.91%
TW:3128	48Neutral	TWD 900.31M	16.15	―	2.23%	-12.58%	-22.95%
TW:3623	45Neutral	TWD 634.79M	22.64	―	―	-0.21%	―
TW:3373	40Underperform	TWD 788.09M	-22.47	―	0.60%	-2.28%	36.05%
TW:5245	24Underperform	TWD 741.85M	-4.37	―	―	-19.50%	-4.71%

* General Sector Average

Performance Comparison

TW:5245 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5245	Wisechip Semiconductor Inc.	18.10	-4.00	-18.10%
TW:2255	Jet Optoelectronics Co., Ltd.	11.95	-14.90	-55.49%
TW:3128	Hi Sharp Electronics Co., Ltd.	17.90	-8.24	-31.52%
TW:3373	Radiant Innovation Inc.	16.60	-1.44	-7.98%
TW:3623	Transtouch Technology Inc.	21.25	0.80	3.91%
TW:6164	Ledtech Electronics Corp.	10.90	0.70	6.86%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Wisechip Semiconductor Inc. AI Stock Analysis