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AI Server Demand Propels Topoint Technology: High-End Drill Bit Sales Surge with EPS Forecasts Hitting NT$30
Electronic Technology · Electronic Components · economic_daily · 2026-10-24
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As AI server complexity drives demand for high-layer PCB manufacturing, Topoint Technology's specialized drill bits are seeing record-breaking sales, with analysts projecting significant earnings growth through 2027.
What Happened
AI-Driven Demand for PCB Consumables: The rise of high-performance AI servers requires complex, high-layer-count PCBs, which significantly increases the wear and tear on drilling equipment. Topoint Technology has secured a competitive edge by providing specialized, high-durability drill bits that meet the stringent requirements of advanced M6 to M8 grade substrates.
Record-Breaking Financial Performance: Topoint reported a record-breaking September 2026 revenue of NT$830 million, marking seven consecutive months of growth. The company’s strategic shift toward high-end coated drill bits, which now account for over 56% of its product mix, has proven to be a major catalyst for its recent financial success.
Profitability and Margin Expansion: The company’s focus on high-value products has led to a robust gross margin of 41.8% in the second quarter of 2026. This improved product mix has significantly bolstered bottom-line results, with quarterly EPS reaching NT$2.08, reflecting a substantial year-over-year increase.
Capacity Expansion and Future Outlook: To capitalize on the tightening supply of high-end PCB consumables, Topoint is aggressively scaling its production capacity to 90 million units per month by the end of 2028. Analysts remain optimistic, projecting that the combination of increased output and sustained demand could push the company's EPS toward the NT$25–NT$30 range by 2027.