With industrial-control application demand warming up and DDR4 market prices rising, industrial-control memory vendor Innodisk's operations in 2025 have improved. Revenue has grown for six consecutive months, and the first-half revenue reached a record high. With the third quarter revenue and gross margin maintaining positive growth, the second half of 2025 has a chance to outperform the first half, and full-year 2025 could break a new high.
DDR4 pricing pressures boost short-term gains
Major DRAM vendors are discontinuing DDR4, leading to heightened market price volatility. Pricing has surged, and industrial-control applications cannot quickly upgrade to DDR5.
Innodisk states that it has prepared sufficient stock for customer needs in the second half of 2025 and, having long focused on industrial-control applications, has had stable project orders and shipments this year. While short-term price changes and customers' front-loading have supported operations, stable progress on industrial-control projects is the main driver of revenue growth.
Navigating global uncertainties with strong fundamentals
Tariffs, exchange rates, and other global political and economic uncertainties must continue to be monitored in the second half of 2025, but Innodisk reports that strong demand from AI applications has tightened memory supply across the board. Long-term close collaboration with memory suppliers has secured the supply. With ongoing industrial-control project deployments, sufficient stock, and gradual edge-AI demand, operations in the second half of 2025 are expected to be positive, though Innodisk remains cautious.
Preliminary estimates expect revenue and gross margin to increase in the third quarter of 2025. Although some customers pulled orders aggressively in the first half of 2025, the customer mix is diverse without clear front-loading imbalance. The second half is predicted to outperform the first half of 2025.
Record-breaking performance trajectory
Innodisk's May and June 2025 revenues each exceeded NT$1 billion (US$34.1 million). May revenue grew 51.10% year-over-year; June grew 37.52% year-over-year, marking the third-highest single-month revenue ever. Total consolidated revenue for January to June 2025 reached NT$5.65 billion, reflecting near-30% annual growth.
In 2022, the first half revenue was about NT$5.46 billion, and the full year revenue hit a record NT$10.3 billion. The first half of 2025 has already surpassed the 2022 first-half level. With stable market growth in the second half of 2025, full-year operations could hit a new record.
Edge AI expansion drives product diversification
As end-use shifts from cloud to edge AI, Innodisk is accelerating its AI-related product shipments. From approximately 23% at the start of 2025, the share is expected to exceed 30%. Innodisk's second factory in Yilan was launched in 2024, with plans for a third facility to support future AI growth demand.
Through expanding edge AI opportunities, Innodisk's subsidiary Aetina has deepened the development of NVIDIA Jetson AI modules, focusing on industrial automation and intelligent monitoring. Related projects have already begun rolling out. Some deferred initiatives from the first half of 2025 are now underway, and growth momentum is expected to accelerate in the second half, providing medium- to long-term stable support.
Innodisk is building EDSFF Gen 5 SSDs and DDR5 extreme-temperature memory tailored for various edge-AI devices and anticipates that system-level AI solutions will accelerate. It expects to reach 10% in two to three years, with total growth surpassing industrial-control memory.
Article edited by Jerry Chen
