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Visual Photonics Epitaxy Revenue Hits Record High on Strong InP Demand
Electronic Technology · Semiconductors · economic_daily · 2026-11-09
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Visual Photonics Epitaxy reported record October revenue and doubled its September profit, driven by surging demand for InP epitaxy in AI data centers.
What Happened
Financial Performance: Visual Photonics Epitaxy (VPEC) reported a September net profit of NT$86.62 million, a 10.6% year-over-year increase, with Q3 EPS reaching NT$1.80. October revenue hit a record NT$471 million, up 32.7% year-over-year, as the company continues to see strong cumulative growth for the year.
Market Demand: The company is benefiting from robust shipments of AI-related epitaxial products. Its microelectronics division is supported by strong demand from a major US smartphone client, while the optoelectronics division is seeing high demand for Indium Phosphide (InP) epitaxy from AI data centers, with order visibility extending through the end of the year.
Supply Chain Status: VPEC noted that InP substrates and epitaxy are currently in short supply, making raw material procurement critical. Recent supply agreements with a leading US InP substrate supplier, combined with customer-provided materials, have eased constraints and bolstered the company's production capacity for the second half of the year.
Future Outlook: VPEC expects significant growth across both its microelectronics and optoelectronics segments in the second half of 2026. With improved order visibility and stabilized material supplies, the company is well-positioned to meet client demand and maintain its strong growth momentum.