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Analysts Upgrade VPEC on Strong Optoelectronics Demand

Electronic Technology · Semiconductors · economic_daily · 2026-09-23

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VPEC's strong third-quarter sales and promising outlook for its optoelectronics segment have led analysts to upgrade the company's earnings forecast and price target.

What Happened

Operational Performance: VPEC reported strong revenue growth for July and August, totaling NT$890 million, a 57.8% year-on-year increase. Analysts attribute this success to robust shipments of optoelectronics products, which have improved the company's product mix and overall profit margins.

Strategic Focus: The company is shifting its focus toward high-margin transmitter products, which are expected to drive growth through 2027. VPEC is currently collaborating with major US and Japanese clients on CW Laser and EML technologies, positioning itself to capture significant market share in data centers.

Capacity Expansion: To meet rising demand, VPEC has increased its MOCVD equipment procurement plan to seven units for this year and next. With a total planned fleet of 69 machines, the company is actively scouting for new facility locations to support its long-term production goals.

Analyst Outlook: Reflecting confidence in the company's trajectory, analysts have raised their earnings forecasts and price targets for VPEC. The firm is expected to see optoelectronics become its primary revenue driver by 2027, accounting for 60% of total sales and enhancing its valuation.

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