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OptiWorks to Invest NT$2.27 Billion in Capacity Expansion and Secure Indium Phosphide Supply
Electronic Technology · Semiconductors · economic_daily · 2026-08-26
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OptiWorks has announced a major capital expenditure of NT$2.27 billion to expand production and secured long-term supply contracts for Indium Phosphide to meet surging demand.
What Happened
Capacity Expansion: OptiWorks' board has approved an investment of up to NT$2.27 billion for new equipment to scale up production capacity. This strategic move is designed to accommodate the robust order flow from clients and strengthen the company's market position.
Supply Chain Security: To mitigate risks associated with the global shortage of Indium Phosphide substrates, the company has finalized long-term procurement agreements with suppliers in the U.S. and Japan. Securing these critical raw materials is essential for maintaining consistent production levels amidst industry-wide supply constraints.
Financial Performance: Driven by strong demand in optical communications, OptiWorks reported record-breaking monthly revenue of NT$501 million in July, representing a 176.5% year-over-year increase. The company's net profit for July surged 503% year-over-year to NT$211 million, with earnings per share reaching NT$2.07.
Market Outlook: Prices for Indium Phosphide substrates and epitaxial wafers are expected to remain on an upward trajectory until new capacity comes online around 2028. Industry players including OptiWorks, Visual Photonics, and IET-KY are well-positioned to benefit from this two-year period of explosive growth.