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Chicony Power Q3 Profits Plunge 80% as Notebook Market Enters Early Off-Season
Electronic Technology · Electronic Components · economic_daily · 2026-11-04
Chicony Power reported a sharp 80% year-on-year decline in Q3 net profit due to memory shortages and weak notebook demand, prompting a strategic shift toward AI servers.
What Happened
Weak Financial Results: Chicony Power reported Q3 revenue of 7.414 billion TWD, with net profit falling 80% year-on-year to 144 million TWD. Earnings per share dropped to 0.36 TWD, marking a multi-year low for the company.
Key Drivers of Decline: The company attributed the poor performance to severe memory shortages affecting notebook clients, which dampened shipment momentum. Additionally, rising component costs and unfavorable product mix shifts put significant pressure on gross margins.
Early Off-Season: Due to persistent memory supply issues, brand clients began inventory adjustments in October, leading to an early start to the off-season. Consequently, Chicony Power's October revenue declined by 22.7% compared to the previous year.
Strategic Pivot: To mitigate the impact of the notebook market downturn, Chicony Power is focusing on non-NB segments, particularly AI servers and communications power supplies. The company aims to improve its profit structure by expanding these high-demand product lines.