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LuxNet Gains Analyst Favor as Foundry Business Drives Margin Expansion
Electronic Technology · Semiconductors · economic_daily · 2026-10-16
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LuxNet has turned profitable following a surge in foundry business, with analysts projecting significant margin growth and a tripling of capacity by 2027.
What Happened
Analyst Optimism: LuxNet has received a buy rating from analysts, driven by a significant improvement in its profit structure following the integration of foundry operations. The company officially turned profitable in July, with revenue expected to maintain a steady month-over-month growth trajectory.
Margin Expansion: Driven by increased NRE revenue and higher capacity utilization, LuxNet's second-quarter gross margin reached 19.9%. Analysts project that continued momentum in foundry services will push the gross margin to approximately 31.4% in the third quarter.
Aggressive Capacity Growth: To meet growing customer demand, LuxNet is implementing a quarterly expansion plan with steadily increasing wafer input volumes. Analysts estimate that by the end of 2027, the company's total production capacity will be three times that of 2026.
Market Performance: Supported by positive fundamental developments, LuxNet's stock price surged toward the end of the trading session on the 16th. The stock closed at NT$176.5, reflecting a 5.06% gain on a trading volume of 2,225 shares, signaling strong investor confidence.