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VPEC August Revenue Hits Record High on Surging AI Indium Phosphide Demand
Electronic Technology · Semiconductors · economic_daily · 2026-09-03
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VPEC reported a 71% year-over-year revenue increase for August, driven by robust demand for indium phosphide epitaxy in AI data centers.
What Happened
Revenue Growth: VPEC reported August revenue of NT$471 million, marking a 71.2% year-over-year increase and a second consecutive monthly record. The company's cumulative revenue for the first eight months reached NT$2.818 billion, up 35.8% from the previous year.
Business Mix: The company is seeing a significant shift in its revenue composition, with the share of optoelectronics rising from 24.7% last year to 46.1% in August. This transition toward higher-margin products is expected to structurally improve overall profitability.
Market Demand: Driven by AI data center requirements, indium phosphide epitaxy is currently in short supply. VPEC noted that its production lines are operating at full capacity, with order visibility extending through the end of the year.
Industry Outlook: The long-term outlook for indium phosphide remains bullish due to the development of 1.6T products and CPO technology. As a key supplier in the upstream supply chain, VPEC is well-positioned to benefit from the sustained expansion of AI optical communication infrastructure.
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