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VPEC July Profit Soars 236% YoY, Shares Hit Record High on Strong InP Demand
Electronic Technology · Semiconductors · economic_daily · 2026-09-01
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Epitaxial wafer manufacturer VPEC reported a 236.9% year-on-year surge in July profit, driven by robust demand for Indium Phosphide, sending shares to a record high.
What Happened
Strong Financial Performance: VPEC reported a significant surge in its July financial results, with net profit reaching NT$115 million, a 236.9% increase year-on-year. The monthly earnings per share (EPS) hit NT$0.62, representing a 226.3% growth, which propelled the stock to a record high of NT$524.
Robust Order Visibility: The company has secured stable supply from major U.S.-based Indium Phosphide (InP) substrate suppliers and received significant orders from key optical communication chip clients. This has extended order visibility through the end of the year, with expectations for strong operational momentum starting in the third quarter.
Market Supply Constraints: The InP substrate and epitaxial market remains in a supply-constrained state, leading to multiple price hikes since late last year. Optical communication module manufacturers and AI data center operators are actively securing supplies, creating a favorable seller's market that supports VPEC's pricing power.
Capacity Expansion: To meet the overwhelming market demand, VPEC is aggressively investing in new equipment to expand production capacity. The company is also leveraging a customer-supplied material business model, which is expected to further enhance gross margins as the industry enters its peak season.