News / Taiwan / economic_daily
SCI's Q3 Losses Narrow as FAU Production Ramps Up
Electronic Technology · Semiconductors · economic_daily · 2026-11-05
3363
Fiber optic component maker SCI reported a significant sequential revenue increase in Q3, with management optimistic about growth driven by FAU mass production.
What Happened
Financial Results: SCI reported Q3 consolidated revenue of NT$600 million, up 39.8% sequentially and 18.3% year-over-year, with a net loss of NT$7 million and an EPS of -NT$0.06. For the first nine months, the company recorded a net loss of NT$139 million, resulting in an EPS of -NT$1.24.
Operational Recovery: Analysts noted that Q2 losses were primarily driven by initial FAU trial production costs, which have since stabilized as equipment installation and yields improved in Q3. Looking ahead to Q4, the company expects 3.2T FAU shipments to scale, benefiting from the industry-wide adoption of CPO in data center architectures.
Technical Hurdles: The industry currently faces challenges regarding CPO light engine integration yields and testing capacity, which hinder rapid equipment deployment. Research firms suggest that Near Packaged Optics (NPO) may see priority adoption over CPO between 2027 and 2028 due to higher yields, potentially pushing significant CPO volume growth to after 2028.
Strategic Outlook: Despite the technical hurdles, SCI remains focused on its CPO-related product roadmap. As FAU production scales, the company anticipates capturing demand from data center infrastructure upgrades, which is expected to drive future revenue and profit growth.