Tong Hsing Electronic Raises Annual Performance Forecast, Boosted by AI Optical Communication and Ceramic Substrates
Tong Hsing Electronic's President, Lu Shao-Ping, expects Q2 revenue to grow by a high single-digit percentage sequentially and has revised the full-year performance growth forecast upward. The main growth drivers are high-frequency fiber optic communication modules, ceramic substrates for AI data centers, and automotive and mobile imaging products. The company plans a capital expenditure of NT$1 billion to NT$1.4 billion for the year and will expand its Philippine plant's capacity for ceramic substrates and power semiconductor packaging.
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- 📰 Published: April 14, 2026 at 18:31
- 🔍 Collected: April 14, 2026 at 19:01 (29 min after Published)
- 🤖 AI Analyzed: April 14, 2026 at 21:06 (2h 4m after Collected)
(CNA, Taipei, April 14) Semiconductor packaging company Tong Hsing Electronic's President, Lu Shao-Ping, stated in an online investor conference this afternoon that he expects Q2 revenue to grow by a high single-digit percentage sequentially and has revised the full-year performance growth forecast upward. This is mainly due to promising growth in high-frequency fiber optic communication modules, as well as a positive outlook for ceramic substrates for artificial intelligence (AI) data centers, automotive, and mobile phone imaging products.
Lu Shao-Ping said that Tong Hsing's performance this year is expected to return to its usual seasonal pattern, with sequential growth projected through Q3 and a relatively optimistic outlook for Q4.
Lu explained that Tong Hsing's high-frequency communication module products are primarily for low-earth orbit satellite and fiber optic communication applications. The growth in fiber optic applications is expected to be significant this year, possibly the largest among all application items, with its share of revenue projected to expand. As for low-earth orbit satellite customers, they are currently transitioning applications, which could boost volume if successful.
Regarding ceramic substrate products, Lu stated that the demand for laser and thermal dissipation ceramic substrates for AI data center applications is currently strong, and he expects their proportion to continue growing.
In Q1, the automotive sector accounted for 61% of Tong Hsing's total sales. When asked by investors about the recovery of the automotive market, Lu pointed out that while the growth momentum of electric vehicles had slowed, there are signs of a market rebound influenced by international oil price fluctuations due to the Middle East war. He is observing whether this is a short-term effect or a strong growth trend.
Regarding the capacity layout of the Philippine plant, Lu mentioned that Tong Hsing is actively expanding its new plant there. The Philippine plant currently accounts for about 30% of revenue, and this share is expected to increase after the expansion. The new plant will focus on ceramic substrate and power semiconductor packaging production lines, as well as some imaging product capacity expanded from Taiwan.
Looking ahead at this year's capital expenditure, Lu expects Tong Hsing's capital expenditure to be similar to the past two years, in the range of NT$1 billion to NT$1.4 billion.
Observing the product mix, according to data, in Q1, high-frequency wireless communication modules accounted for about 12% of Tong Hsing's total revenue, hybrid integrated circuit modules for 19%, ceramic circuit boards for 18%, and imaging products for 49%.
Tong Hsing's self-reported Q1 consolidated revenue was NT$2.819 billion, with a gross margin of 28% and an operating profit margin of 14%. The net profit for the quarter was NT$394 million, with basic earnings per share of NT$1.89. (Editor: Yang Kai-Hsiang) 1150414
Lu Shao-Ping said that Tong Hsing's performance this year is expected to return to its usual seasonal pattern, with sequential growth projected through Q3 and a relatively optimistic outlook for Q4.
Lu explained that Tong Hsing's high-frequency communication module products are primarily for low-earth orbit satellite and fiber optic communication applications. The growth in fiber optic applications is expected to be significant this year, possibly the largest among all application items, with its share of revenue projected to expand. As for low-earth orbit satellite customers, they are currently transitioning applications, which could boost volume if successful.
Regarding ceramic substrate products, Lu stated that the demand for laser and thermal dissipation ceramic substrates for AI data center applications is currently strong, and he expects their proportion to continue growing.
In Q1, the automotive sector accounted for 61% of Tong Hsing's total sales. When asked by investors about the recovery of the automotive market, Lu pointed out that while the growth momentum of electric vehicles had slowed, there are signs of a market rebound influenced by international oil price fluctuations due to the Middle East war. He is observing whether this is a short-term effect or a strong growth trend.
Regarding the capacity layout of the Philippine plant, Lu mentioned that Tong Hsing is actively expanding its new plant there. The Philippine plant currently accounts for about 30% of revenue, and this share is expected to increase after the expansion. The new plant will focus on ceramic substrate and power semiconductor packaging production lines, as well as some imaging product capacity expanded from Taiwan.
Looking ahead at this year's capital expenditure, Lu expects Tong Hsing's capital expenditure to be similar to the past two years, in the range of NT$1 billion to NT$1.4 billion.
Observing the product mix, according to data, in Q1, high-frequency wireless communication modules accounted for about 12% of Tong Hsing's total revenue, hybrid integrated circuit modules for 19%, ceramic circuit boards for 18%, and imaging products for 49%.
Tong Hsing's self-reported Q1 consolidated revenue was NT$2.819 billion, with a gross margin of 28% and an operating profit margin of 14%. The net profit for the quarter was NT$394 million, with basic earnings per share of NT$1.89. (Editor: Yang Kai-Hsiang) 1150414
FAQ
What is Tong Hsing Electronic's revenue forecast for Q2 2026?
President Lu Shao-Ping expects Q2 2026 revenue to see a high single-digit percentage increase compared to Q1.
What are the main growth drivers for Tong Hsing this year?
The main growth drivers are high-frequency fiber optic communication modules, ceramic substrates for AI data centers, and products for automotive and mobile imaging.