Montage Technology Buys Back A-Shares, Pays Cash Dividend; Interconnect Chip Revenue Up 26.4% in H1 2026
Montage Technology repurchased 500,000 A-shares (0.04% of total) on July 29, 2026, for about RMB 103 million, and paid a 2025 annual cash dividend of RMB 0.39 per A-share, totaling over RMB 400 million. Driven by AI demand and DDR5 adoption, its interconnect chip revenue rose 26.4% year-on-year to about RMB 3.111 billion in the first half of 2026, with second-quarter revenue up 28.2% year-on-year and 19.5% quarter-on-quarter.
Montage Technology repurchased 500,000 A-shares on July 29, 2026, through centralized auction trading, representing 0.04% of its total share capital, for a total consideration of about RMB 103 million, with the purchase price ranging from RMB 192.18 to RMB 210.00 per share. The buyback followed a proposal by the company's chairman and chief executive officer, Yang Chonghe, to use between RMB 300 million and RMB 600 million of the company's own funds to repurchase shares in order to safeguard the company's value and shareholders' interests.
On the same day, Montage Technology distributed its 2025 annual cash dividend, paying RMB 0.39 per A-share, for a total distribution of over RMB 400 million to A-share shareholders.
The company's performance was primarily driven by the AI industry trend and strong market demand. The penetration rate of DDR5 increased and its sub-generations continued to evolve, leading to a significant rise in shipments of DDR5 RCD chips, with the share of third- and fourth-generation RCD chips further increasing. Revenue from new interconnect chip products, including MRCD/MDB, PCIe Retimer, CKD and CXLMXC chips, also climbed notably.
In the first half of 2026, Montage Technology's interconnect chip product line generated sales revenue of about RMB 3.111 billion, up approximately 26.4% year-on-year. In the second quarter alone, interconnect chip product line sales revenue reached about RMB 1.694 billion, representing a year-on-year increase of about 28.2% and a quarter-on-quarter increase of about 19.5%.