Chung-Hsin Electric: Aiming for New Peaks with Quarterly Growth; Heavy Electric Business Benefits from AI Applications
Heavy electric major CHEM expects its 2026 operations to reach new heights, with quarterly growth driven by AI data centers and grid infrastructure modernization.
📋 Article Processing Timeline
- 📰 Published: April 23, 2026 at 16:47
- 🔍 Collected: April 23, 2026 at 17:02 (14 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 17:51 (49 min after Collected)
Chung-Hsin Electric and Machinery (CHEM) CEO Guo Hui-juan estimated today that the company's operations have a chance to reach new peaks in 2026, with performance expected to grow quarter by quarter. The first quarter will serve as the base for the year, and the heavy electric business and Gas Insulated Switchgear (GIS) products continue to benefit from AI data centers and IDC applications, with promising growth ahead.
CHEM was invited to attend an investor conference held by a securities firm this afternoon. Regarding the outlook for the heavy electric business this year, Guo stated that the momentum for the power business, beyond Taipower's grid strengthening plan, includes power source development projects, replacement plans, and offshore wind power projects. Additionally, the continuous expansion of semiconductor fabs domestically and abroad, as well as the construction of large AI data centers and Internet Data Centers (IDC) by international tech giants, continues to drive sales growth for GIS products.
Observing the scale of orders, Guo pointed out that as of March this year, the heavy electric business had secured NT$6.3 billion in orders, with a total order backlog of approximately NT$43.1 billion.
In terms of GIS business expansion, Guo stated that CHEM has become a qualified supplier for a specific semiconductor manufacturer, with the first project contract expected to be signed in September and delivery in early 2027. Additionally, CHEM's GIS business has a market share of about 80% within Taipower's system and about 65% outside of it. The company will increase its sales workforce this year to further boost market share.
In the export market, Guo stated that CHEM continues to layout for the Japanese market and is preparing for the US market. CHEM has already entered the India and Vietnam markets, collaborating with local transformer manufacturers in India and supplying via distributors in Vietnam, utilizing production capacity in mainland China to meet demand.
Regarding the parking management business, Guo noted that the company is actively entering the smart parking equipment markets in Thailand and Japan this year, with profits expected to rise in the third quarter.
In the air conditioning and generator segment, Guo pointed out that thanks to telecom operators and international giants setting up IDCs and AI R&D centers in Taiwan, revenue is expected to grow by 15% this year.
Regarding new business opportunities, Guo stated that CHEM possesses the ability to integrate power generation systems and air conditioning. The company is in talks regarding modular data center collaborations, continuing to evaluate the feasibility of such opportunities. Analysts pointed out that these modular server rooms might be applied in the AI server assembly field.
In the hydrogen energy business, Guo noted that the company has secured hydrogen bus orders, although operations are expected to become clearer in the second half of this year due to supply chain changes and geopolitical factors like the Middle East conflict. CHEM also continues to layout for containerized hydrogen systems and fuel cell storage systems.
Regarding capital expenditure, CHEM evaluates a scale of NT$1.5 billion to NT$2 billion, mainly for expanding new business and private markets, utilizing equity exchange to expand business opportunities and seeking biomass equipment agency opportunities.
In adopting AI, Guo noted that CHEM continues to build AI system equipment, with production capacity estimated to increase by 15% to 20%.
CHEM was invited to attend an investor conference held by a securities firm this afternoon. Regarding the outlook for the heavy electric business this year, Guo stated that the momentum for the power business, beyond Taipower's grid strengthening plan, includes power source development projects, replacement plans, and offshore wind power projects. Additionally, the continuous expansion of semiconductor fabs domestically and abroad, as well as the construction of large AI data centers and Internet Data Centers (IDC) by international tech giants, continues to drive sales growth for GIS products.
Observing the scale of orders, Guo pointed out that as of March this year, the heavy electric business had secured NT$6.3 billion in orders, with a total order backlog of approximately NT$43.1 billion.
In terms of GIS business expansion, Guo stated that CHEM has become a qualified supplier for a specific semiconductor manufacturer, with the first project contract expected to be signed in September and delivery in early 2027. Additionally, CHEM's GIS business has a market share of about 80% within Taipower's system and about 65% outside of it. The company will increase its sales workforce this year to further boost market share.
In the export market, Guo stated that CHEM continues to layout for the Japanese market and is preparing for the US market. CHEM has already entered the India and Vietnam markets, collaborating with local transformer manufacturers in India and supplying via distributors in Vietnam, utilizing production capacity in mainland China to meet demand.
Regarding the parking management business, Guo noted that the company is actively entering the smart parking equipment markets in Thailand and Japan this year, with profits expected to rise in the third quarter.
In the air conditioning and generator segment, Guo pointed out that thanks to telecom operators and international giants setting up IDCs and AI R&D centers in Taiwan, revenue is expected to grow by 15% this year.
Regarding new business opportunities, Guo stated that CHEM possesses the ability to integrate power generation systems and air conditioning. The company is in talks regarding modular data center collaborations, continuing to evaluate the feasibility of such opportunities. Analysts pointed out that these modular server rooms might be applied in the AI server assembly field.
In the hydrogen energy business, Guo noted that the company has secured hydrogen bus orders, although operations are expected to become clearer in the second half of this year due to supply chain changes and geopolitical factors like the Middle East conflict. CHEM also continues to layout for containerized hydrogen systems and fuel cell storage systems.
Regarding capital expenditure, CHEM evaluates a scale of NT$1.5 billion to NT$2 billion, mainly for expanding new business and private markets, utilizing equity exchange to expand business opportunities and seeking biomass equipment agency opportunities.
In adopting AI, Guo noted that CHEM continues to build AI system equipment, with production capacity estimated to increase by 15% to 20%.