Overview

1. 2025 Operating Results

      Despite fluctuations in tariffs and macroeconomic conditions impacting the end market during the first half of the year, robust demand for AI accelerators and high-performance computing (HPC) fueled a supply shortage and price increase in memory products, driving strong growth momentum in the semiconductor industry in 2025. According to the latest estimates from the World Semiconductor Trade Statistics (WSTS), global semiconductor industry revenue was projected to reach US$772 billion in 2025, representing a 22.5% increase over 2024. This growth was primarily driven by two segments: logic products, which are expected to grow by 37% year-over-year, and memory products, which are projected to increase by 28%. Against this backdrop, Realtek’s core markets—including personal computers, networking, consumer electronics, and automotive—demonstrated operational resilience, supported by stable market demand, ongoing optimization of product portfolios, and the trend toward specification upgrades. Thanks to the dedication of all employees and close collaboration with customers and the supply chain, Realtek Group continued to achieve revenue growth and maintain stable profitability in 2025. The Group’s consolidated annual revenue reached NT$122.71 billion, an increase of 8.21% from the previous year. Operating gross profit was NT$61.37 billion, representing a year-over-year increase of 7.4%. Net profit after tax amounted to NT$14.75 billion, down 3.5% compared to the prior year, and earnings per share were NT$28.77.

      Innovation is the driving force behind Realtek’s continued growth. We are committed to enhancing product performance and creating differentiated advantages to build robust market competitiveness. In terms of intellectual property achievements, we have strengthened our R&D capabilities. According to the Taiwan Intellectual Property Office's 2025 ranking of top domestic patent applicants, Realtek submitted 286 invention patent applications, placing us at rank 6 and highlighting our strong R&D output. Furthermore, Realtek has been included in Clarivate’s “Top 100 Global Innovators” for the fifth consecutive year, with both domestic and international recognition affirming our solid patent portfolio and deep innovation capabilities. In addition, Realtek’s products stood out in multiple industry evaluations in 2025, receiving numerous honors and accolades. At the 2025 Computex Taipei, our ultra-low-power multimodal AI system-on-chip (RTL8735C) won the Best Choice Golden Award. Our multifunction wireless high-speed transmission chip (RTL8922D) and enterprise edge AI switch chip (RTL9335) both received Best Choice Category Awards. The smart wearable Bluetooth audio SoC (RTL8773DO) was honored with the 2025 EE Awards Asia Gold Selection Award for “Best RF/Wireless IC of the Year.” The ultra-low-power multimodal AI SoC (RTL8735C) also earned the Hsinchu Science Park Outstanding Company Innovative Product Award for 2025. Additionally, in terms of supply chain partnerships, Realtek received the Bosch Global Supplier Award in the category ‘Materials and Components’. This prestigious honor recognizes Realtek’s technological strength, product competitiveness, quality, and customer service. Our automotive-related products are positioned to further contribute to the company’s future growth momentum.

      To realize our vision for sustainable corporate development, Realtek is committed to strengthening corporate governance. In 2025, we established the “Sustainable Development Committee” under the Board of Directors to oversee the implementation and effectiveness of key sustainability strategies. Crossfunctional project teams are responsible for executing various sustainability initiatives and regularly report their progress to the Board, ensuring that project outcomes meet expectations. Additionally, we have linked sustainability performance metrics to management compensation structures to reinforce governance and accountability. In terms of environmental sustainability, Realtek actively advances product design to develop chip solutions that are more efficient, smarter, and lower in power consumption. We integrate green operational practices, establish carbon reduction pathways aligned with leading international initiatives, and collaborate with supply chain partners to create a green value chain. Our goal is to become a pivotal driver in the development of the AI world while fulfilling our environmental responsibilities. We regard our employees as our most valuable asset. Realtek continuously improves diverse recruitment channels and talent development systems while striving to build a safe, supportive, and rewarding workplace with competitive compensation and benefits. To enhance employee cohesion and share business success, we officially launched an Employee Stock Purchase Plan (ESPP) in June 2025. Regarding employee satisfaction, we regularly conduct engagement surveys and implement targeted improvement plans based on the feedback received.

2. 2026 Business Plan

      Realtek remains committed to technology and product innovation at its core. While maintaining its leadership in established markets, we are proactively expanding into new application areas with the goal of achieving simultaneous growth in both revenue and profitability. Looking ahead to 2026, Realtek is poised to capitalize on momentum from mainstream specification upgrades and the emergence of new opportunities driven by generative AI at the edge. We will continue to invest resources in networking communications, consumer electronics, personal computers and peripherals, automotive, and other emerging application fields. By developing highly competitive solutions, Realtek not only facilitates technological upgrades in mainstream markets but also further extends its presence in niche application segments.

      In the wireless networking sector, Realtek’s Wi-Fi Certified 7™ solutions have demonstrated steady growth in both the PC and router markets. With ongoing specification upgrades, Wi-Fi 7 penetration is expected to increase significantly in 2026. Beyond traditional applications, rising demand for greater bandwidth and faster speeds is driving the adoption of Wi-Fi 7 technology in game consoles and broadband telecommunications equipment. Realtek is also proactively advancing next-generation Wi-Fi 8 solutions and plans to participate in the Wi-Fi Alliance’s interoperability Plugfest in 2026. Building on years of experience in the IoT market, Realtek’s solutions have evolved from intelligent control to voice and real-time video applications. Future strategies will focus on integrating advanced human and spatial sensing technologies, including Wi-Fi Radar, Wi-Fi Sensing, and channel sounding, alongside cloudbased generative AI, enabling customers to seamlessly connect to the AI ecosystem. In addition, Realtek is developing an on-premise large language model (LLM) platform to empower smart home products, delivering intuitive and convenient solutions for end users. In the Bluetooth chip domain, supported by leading technology companies such as Apple, Google, and Amazon, demand is rising for smart home devices that integrate IEEE802.15.4 multi-mode capabilities and support Matter over Thread, aligning with global standards. Realtek assists brand clients in adopting these specifications to access global markets. As a key driver in Bluetooth audio solutions, Realtek offers lowlatency gaming headset solutions for an enhanced user experience. Moving forward, the company will introduce new Bluetooth single-chip solutions supporting wireless bidirectional communication and nearfield object localization, expanding into new application segments. Furthermore, leveraging its Bluetooth audio platform and proprietary low-power IoT chips, Realtek has successfully launched smart glasses and digital voice recorder solutions, extending Bluetooth technology from personal entertainment and smart home applications to intelligent cloud-based use cases.

      In the Ethernet sector, Realtek is dedicated to maintaining its market leadership and expanding nextgeneration products. Driven by the increasing demand for high bandwidth stemming from AI, 5G, and IoT applications, we are actively investing in optical communication technologies to ensure long-term competitiveness in high-speed data transmission environments. This demonstrates our commitment to technological innovation and future infrastructure planning. In the short term, the adoption of 2.5GbE, 5GbE, and even 10GbE Ethernet chips in the motherboard market continues to rise due to ongoing specification upgrades. Realtek’s 10GbE series products, launched in 2025, have successfully penetrated server-grade edge AI platforms, opening new application markets. The next phase will see the introduction of 25GbE Ethernet solutions to maintain our technological edge and expand market influence. As AI, big data, and cloud services rapidly evolve, the market’s need for high bandwidth and low latency continues to grow, making 100G, 800G, and even 1.6T optical networks increasingly critical. To address this, Realtek has mapped out a comprehensive Optical PHY chip development plan, with 100G Optical PHY products launched in 2025 and PAM4 DSP chips under development to support cutting-edge 400G and 800G modules. Leveraging our strengths in high-speed SerDes and low-power design, we are strategically positioning ourselves in data center and telecommunications backbone networks, high-performance computing (HPC), and AI server markets. In the switch and PON space, governments and telecom operators worldwide are accelerating the deployment of 10GPON and Wi-Fi 7 router infrastructure, driving demand for Multi-G Ethernet switches. Realtek’s comprehensive product portfolio has secured our position in the supply chains of major global telecom operators and leading networking brands. At the same time, we continue to accumulate key clients in the mid- to high-end managed switch market, with mass production expected in 2026 for applications covering urban infrastructure and enterprise campuses. Our high-end campus network aggregation-level 24/48*10GbE switch solutions, launched in 2025, have already been adopted by major telecom companies and brand customers and are projected to drive significant growth in 2026. As global fiber-optic network upgrades advance, Realtek’s XG-PON products, combined with our Wi-Fi technology, are steadily increasing market share worldwide, and we are progressively rolling out 25 Gbps fiber access solutions.

      In the personal computer sector, according to IDC data, PC shipments in 2025 are expected to grow approximately 4% year-over-year, driven by the upgrade cycle from Windows 10 to Windows 11 and the increasing penetration of AI PCs. Realtek’s PC-related products have outperformed the market. In addition to ongoing improvements in power efficiency for its audio products, Realtek has integrated proprietary multi-model AI algorithms. By leveraging neural network technologies and combining expertise in imaging and wireless networking, Realtek has developed more comprehensive decision-making models. Together with ongoing advancements in automatic speech recognition and speech synthesis, these innovations will significantly enhance the PC user experience, positioning Realtek’s solutions as indispensable AI assistants for consumers. Looking ahead to 2026, Realtek will further strengthen customer engagement, providing comprehensive support from microphone and speaker design recommendations to VoIP, voice wake-up, and recognition testing and calibration tools—all aimed at delivering optimal user experiences. Through diversified solutions, Realtek will boost generative AI (GAI) applications on PCs, ensuring leadership in both technology specification and market share. For imaging signal processing chips, Realtek has fully launched its third-generation Edge AI PC webcam SoC, featuring the latest imaging technologies. This solution not only enhances computational performance but also significantly reduces power consumption, delivering a differentiated and competitive humanmachine interaction experience for AI PCs. The product has already attracted major brand clients, with clear development progress and mass production scheduled to begin in 2026, providing new revenue growth momentum and further strengthening Realtek’s technological leadership and market share in the mid- to high-end PC segment. This will consolidate Realtek’s global leadership in PC imaging and edge AI applications. As high-speed interface standards advance, Realtek is building upon its successful USB4 40Gbps hub experience by actively developing the next-generation USB4 v2 80Gbps hub controller chip. This proactive approach positions Realtek to capture opportunities in the ultra-high-speed transmission market, widening the technology gap with competitors and securing future product competitiveness. Additionally, in response to new business opportunities arising from AI PCs, Realtek’s new product lines— such as fingerprint recognition and embedded controller (EC) chips—are progressively being adopted by major PC manufacturers, demonstrating the effectiveness of Realtek’s diversified development strategy.

      Realtek continues to advance in the multimedia application sector by integrating cutting-edge artificial intelligence (AI) technology into its TV system-on-chip (SoC) solutions. These SoCs combine industryleading image enhancement and audio optimization to deliver an outstanding audiovisual experience. The latest intelligent display SoC integrates multi-core CPU and high-performance GPU architectures, supporting ultra-high-definition 4K/5K displays and 120Hz refresh rates. This enables smooth video processing, precise voice control, and high-bandwidth streaming capabilities. Additionally, the built-in AI image enhancement engine automatically adjusts brightness, contrast, and color based on scene detection, providing visual quality comparable to premium TVs. The product features a multi-system compatible platform supporting major operating environments, including Android and Linux, offering brand clients exceptional development flexibility. For intelligent display SoC applications, this solution integrates Wi-Fi and Bluetooth control modules, allowing seamless connectivity with keyboards, mice, smartphones, and cloud services. This redefines the user experience for "hostless workspaces," enabling effortless remote work, streaming entertainment, or mobile device mirroring—all through a single intelligent display. Leveraging robust computing power, outstanding energy efficiency, and highly integrated AI multimedia technologies, Realtek empowers clients to accelerate next-generation smart display product development and secure early market leadership.

      In the automotive sector, Realtek continues to outperform the broader market by leveraging a comprehensive portfolio of automotive Ethernet physical layer (PHY) solutions and highly integrated switch products. The upcoming fourth-generation switch chip, set for mass production, leads the industry by supporting the highest functional safety standard, ASIL-D. In addition, the company is actively developing a series of high-speed asymmetric PHY bridge transceivers (Automotive SerDes Alliance Motion Link, ASAML), aiming to establish these products as industry standards and ensure broad applicability for in-vehicle camera data bridging to meet diverse customer requirements. Realtek is also focusing on key applications for advanced autonomous driving by developing automotive gateway solutions. For the smart cockpit market, Realtek has introduced a range of single-chip products targeting multiple market segments, utilizing a modular architecture and supporting open ecosystems to enable rapid deployment across various brands and vehicle models. On the wireless connectivity front, Realtek’s automotive Wi-Fi 7 solutions are fully compliant with automotive standards and meet the high bandwidth demands of in-car audio-visual entertainment systems. These solutions deliver superior performance in integration and reliability compared to peer offerings. By combining additional products such as automotive AI-enabled voice digital signal processor SoCs, power amplifier chips, and display-related chipsets, the automotive domain will continue to be a major driver of Realtek’s future growth.

3. Strategy for Future Development and Impact by Competitive, Regulatory, and Macro Conditions

      Looking ahead, Realtek will strategically capitalize on key business opportunities arising from advancements in edge AI devices and various connectivity technology upgrades. We will continue to enhance our core technology and product portfolio while integrating AI-powered intelligent tools into product design, R&D processes, and daily operations to significantly boost innovation and organizational efficiency. In alignment with our commitment to environmental sustainability, we are dedicated to optimizing our product mix, increasing the share of high-value-added and clean technology products, and driving sustainable company development through robust R&D capabilities.

      To address external competitive pressures, Realtek will focus on expanding our technology leadership, building high barriers to entry, and leveraging flexible customer technical support capabilities and cost optimization strategies to maintain our market-leading position. Concurrently, we actively implement green design principles and strengthen cybersecurity management to ensure our products meet the stringent standards of leading international clients.

      Regarding the overall business environment, we are mindful of geopolitical factors, demand fluctuations caused by inflation, and key material supply uncertainties stemming from the growth of high-performance computing (HPC). Realtek will continue to reinforce supply chain resilience by diversifying wafer foundry and packaging/testing operations to spread risk, while closely monitoring inventory levels and market trends across our operations and downstream customers. With agile operational strategies, we are well positioned to navigate macroeconomic uncertainties.

      Finally, we sincerely thank our shareholders for their ongoing support and trust. We remain committed to creating new growth opportunities and enhancing shareholder value.

      We wish you all health and success in the future.

Chairman   Chiu, Sun-Chien

President  Yen, Kuang-Yu   

Controller  Chang, Jr-Neng