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Tong Hsing Shares Hit Record High on Surging Demand for Optical Filters

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

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Tong Hsing shares surged to a record high as strong demand for data center interconnects drives production capacity to its limits.

What Happened

Stock Performance: Shares of optical communication component manufacturer Tong Hsing surged to a record high of 391.5 TWD, hitting the daily limit. Strong market interest is centered on the company's growth potential within the data center interconnect sector.

Profitability Trends: The company reported a significant jump in second-quarter gross margin to 56.2%, an increase of 16 percentage points quarter-over-quarter. Production lines are currently operating near full capacity, with extended lead times signaling robust customer demand for their filter products.

Capacity Expansion: To address the overwhelming order backlog, Tong Hsing has initiated a capacity expansion plan, with new production lines expected to come online in the first quarter of next year. This strategic move is intended to alleviate supply constraints and support long-term growth driven by AI infrastructure.

Technical Positioning: Tong Hsing has successfully secured a presence in three out of the four key segments of AI infrastructure, including Scale-up, Scale-out, and Scale-across. By supplying critical components such as FAU coatings and high-speed TOSA/ROSA filters, the company is well-positioned to capitalize on the ongoing AI infrastructure boom.

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