v3.26.3
Segment reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment reporting

Note 37. Segment reporting

 

The Group has two operating and reportable segments that meet the criteria set forth in ASC 280-10-50: Semiconductors and ASIC.

 

Following the acquisition of IC’Alps on August 4, 2025, the Group updated its reportable segments to reflect changes in its internal management reporting structure. Prior to the acquisition of IC’Alps, the Group’s operations were primarily composed of the Semiconductors business and corporate activities. Corporate activities are now included within “Other profit or loss.” Prior period segment information has been recast to conform to the current year presentation.

 

Both the Semiconductors and ASIC reportable segments are strategic business units that offer specific products and are managed separately because they require dedicated resources and targeted marketing strategies. The Semiconductors segment encompasses the design, manufacturing, sales and distribution of high-end, Common Criteria EAL5+ and FIPS 140-3-certified secure microprocessors. The ASIC segment’s operations include a complete offering of Application Specific Integrated Circuit (ASIC) and System on Chip (SoC) development, from circuit specification and mastering design in-house through qualification and management of the entire production supply chain. The ASIC reportable segment did not exist prior to August 4, 2025, when the Group acquired IC’Alps.

 

The Semiconductors segment is subject to export controls and government procurement regulations. The ASIC segment may also be subject to customer-specific regulatory and qualification requirements depending on end-market applications.

 

The Group’s Chief Executive Officer, who is the Chief Operating Decision Maker, evaluates segment performance and allocates resources based on net sales, gross profit (where applicable), and operating income or loss. In making these decisions, the Chief Operating Decision Maker considers budgets, budget-to-actual variances and key operating metrics, and allocates resources, including employees, property, plant and equipment, and financial resources, across the reportable segments.

 

 

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies of the Group. Segment operating income includes directly attributable revenues and expenses. “Other segment items” include corporate expenses and other items that are not allocated to the reportable segments.

 

The Group accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices.

 

Unaudited 6 months ended June 30,   2026     2025  
USD’000   Semiconductors     ASIC     Total     Semiconductors     ASIC     Total  
Revenue from external customers     8,603       2,504       11,107       4,825       -       4,825  
Intersegment revenue     -       1,302       1,302       -       -       -  
      8,603       3,806       12,409       4,825       -       4,825  
                                                 
Reconciliation of revenue                                                
Elimination of intersegment revenue             (1,302 )     (1,302 )                     -  
Other revenue 2                     327                       468  
Total consolidated revenue                     11,434                       5,293  
                                                 
Less:1                                                
Cost of sales     4,910       821       5,731       3,199       -       3,199  
Segment gross profit     3,693       1,683       5,376       1,626       -       1,626  
                                                 
Less:1                                                
Total operating expenses     11,113       6,612       17,725       7,328       -       7,328  
Other segment items     (129 )     517       388       691       -       691  
Segment profit / (loss) before income taxes     (7,291 )     (5,446 )     (12,737 )     (6,393 )     -       (6,393 )
                                                 
Reconciliation of profit or loss (segment profit / (loss))                                                
Other profit or loss2                     (23,684 )                     (15,893 )
Elimination of intersegment profits                     (62 )                     -  
Income / (loss) before income taxes                     (36,483 )                     (22,286 )
                                                 
Other segment disclosures                                                
Interest revenue     -       -       -       7       -       7  
Interest expense     358       35       393       7       -       7  
Depreciation and amortization     421       2,238       2,659       313       -       313  
Profit / (loss) from intersegment sales     -       62       62       -       -       -  
Income tax recovery / (expense)     -       295       295       -       -       -  
Segment assets     21,418       29,399       50,817       13,233       -       13,233  

 

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.

 

(2) Other revenue and Other profit or loss are attributable to subsidiaries that do not meet the definition of an operating segment and the activities of which include sales, support and distribution of products, R&D, financing and non-operating investment company, and the newly acquired Wecan and Miraex. None of those segments has ever met any of the quantitative thresholds for determining reportable segments. It also includes the holding company SEALSQ Corp., which is not separately presented as a reportable segment.

 

 

Other segment items for each reportable segment are made up of non-operating expenses, including management expenses, foreign exchanges gains and losses, debt discount amortization and financing costs.

 

  As of
June 30,		     As of
June 30,		  
Asset reconciliation
USD’000		   2026 (unaudited)     2025 (unaudited)  
Total assets from reportable segments     50,817       13,233  
Other assets1     656,356       175,518  
Elimination of intersegment receivables     (45,798 )     (14,430 )
Elimination of intersegment investment and goodwill     (44,997 )     (19,332 )
Consolidated total assets     616,378       154,989  

 

(1) Other assets are attributable to subsidiaries that do not meet the definition of an operating segment and the activities of which include sales, support and distribution of products, R&D, financing and non-operating investment company, as well as the newly acquired Wecan and Miraex. Most of Other assets refers to SEALSQ Corp, as the company is currently excluded from the reportable segments and consists mostly of cash.

 

Revenue and property, plant and equipment by geography

 

The following tables summarize geographic information for net sales based on the billing address of the customer, and for property, plant and equipment.

 

Revenue by region   Unaudited 6 months ended
June 30,		  
USD’000   2026     2025  
Switzerland     584       389  
Rest of EMEA*     3,309       818  
North America     5,655       3,196  
Asia Pacific     1,886       795  
Latin America     -       95  
Total revenue     11,434       5,293  

 

* EMEA means Europe, Middle East and Africa

 

Property, plant and equipment, net of depreciation, by region   As of
June 30,
2026		     As of
December 31,		  
USD’000   (unaudited)     2025  
Switzerland     333       49  
Rest of EMEA     4,709       3,755  
Total Property, plant and equipment, net of depreciation     5,042       3,804