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Analyst Upgrades Large Tech on Strong AI-Driven Demand and Capacity Expansion
Electronic Technology · Electronic Production Equipment · economic_daily · 2026-09-22
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Large Tech sees full capacity utilization for its PCB drilling equipment as AI chip demand surges, prompting analysts to raise profit forecasts and price targets.
What Happened
Operational Momentum: Driven by the rising demand for AI chip specifications, Large Tech is experiencing full capacity utilization for its high-end PCB CCD drilling machines. The company is actively expanding production to meet a surge in orders, with analysts projecting significant shipment growth through 2026.
Product Strategy: Beyond its core drilling equipment, the company is rolling out its TM measurement machine series to capture higher margins. The transition to advanced TM3 and TM4 platforms is expected to boost average selling prices and overall profitability starting in mid-2026.
Financial Outlook: Contract liabilities have doubled from 750 million TWD at the end of 2025 to 1.5 billion TWD by Q2 2026. This surge suggests a backlog exceeding 7.5 billion TWD, which already surpasses the company's total revenue for the 2025 fiscal year.
Revenue Recognition: The company follows a strict installation and acceptance-based revenue recognition model, typically spanning three to four quarters from order placement. Given the robust order backlog, analysts have revised their earnings estimates and price targets upward to reflect the strong growth trajectory.