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Chipbond Sees Profit Forecasts Raised as Optical Communications Drive Growth
Electronic Technology · Semiconductors · economic_daily · 2026-10-09
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Analysts have upgraded Chipbond's earnings outlook and price target, citing strong growth in optical communications and successful price hikes in driver ICs.
What Happened
Strong Financial Performance: Chipbond achieved a record-high quarterly revenue of NT$7.58 billion in the third quarter, driven by price hikes for driver ICs and new product shipments for U.S. clients. Analysts expect the company's gross margin to improve by 1.2 percentage points to 31.5% due to higher capacity utilization and pricing power.
Optical Communications Momentum: Optical communications have emerged as a core long-term growth driver for Chipbond, with significant revenue expansion projected for 2026. The increasing demand for 200G/lane optical transceiver modules is expected to boost the segment's contribution to total revenue significantly.
Profitability Optimization: The company is currently managing 40 to 50 development projects in optical communications across four major product categories, including drivers and modulators. With efficient mass production and a clearer cost structure, gross margins for these products are expected to exceed 35-40%, outperforming the company's overall average.
Long-term Outlook: Looking ahead to 2027, analysts anticipate that Chipbond's optical communications revenue will more than triple year-over-year. This growth is largely attributed to the industry-wide transition toward 1.6T optical transceiver modules, which is expected to increase the segment's revenue share to 15-20%.