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IET-KY Sees Strong InP Demand, Eyes H2 Recovery Despite Substrate Supply Constraints
Electronic Technology · Semiconductors · cnyes · 2026-08-27
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IET-KY reports a return to profitability in H1, driven by AI data center demand, and remains optimistic about H2 growth as it navigates supply shortages.
What Happened
Financial Results: IET-KY reported H1 revenue of 588 million TWD, a 15.57% year-on-year increase, resulting in a return to profitability with an EPS of 2.31 TWD. Although Q2 earnings were impacted by substrate supply delays, strong demand for high-speed optical communications in AI data centers helped optimize the product mix.
Operational Challenges: Chairman Kao Yung-chung identified substrate supply as the primary factor influencing short-term performance. The company is mitigating shortages by diversifying suppliers, securing quotas, and encouraging customer-supplied substrates, with expectations that Q3 performance will improve as supply constraints ease.
Product Strategy: The company maintains stable shipments for GaAs products and is conducting deep validation for new products like quantum dot lasers and 200G VCSELs. Additionally, GaSb and GaN product lines are progressing, with plans to adjust pricing to offset rising raw material costs.
Future Outlook: The second phase of the Texas plant is expected to be completed in Q1 2027, with ongoing efforts to secure U.S. CHIPS Act subsidies. Driven by sustained demand from AI data centers, the company is optimistic about a recovery in H2 and is diversifying its business model through equipment leasing and management services.
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