Lite-On Technology invests NT$33.7 billion in US and Vietnam, Q1 is the bottom for the year
Lite-On Technology is investing US$919 million in the US and US$149 million in Vietnam to expand its AI business, reinforcing its production capacity to meet the growing demand for AI server power units. The company plans to accelerate the mass production and shipment of its 800VDC Power Rack to the fourth quarter of 2024, ahead of schedule.
📋 Article Processing Timeline
- 📰 Published: April 29, 2026 at 17:51
- 🔍 Collected: April 29, 2026 at 18:01 (10 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 07:09 (13h 8m after Collected)
ASEAN Finance Special Report (Total 300 articles)
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(Central News Agency reporter Tseng Jen-kai, Taipei, April 29) Lite-On Technology is going all out for AI. Today, the board of directors passed two investment plans, including a US investment case and an capital increase case for its Vietnam subsidiary, with a total amount of US$1.068 billion (approximately NT$33.7 billion).
Lite-On Technology General Manager Chiu Sen-bin stated at the investor conference today that Lite-On Technology's product portfolio is changing. As the power wattage of AI server rooms continues to increase, the existing production equipment no longer meets future demands, and equipment and production lines must be updated. Lite-On Technology expects to invest approximately NT$13 billion in capital expenditures this year, almost double the NT$7 billion last year, and this does not include the new US investment case.
Lite-On Technology's board of directors resolved that the new US investment case amount is US$919 million, which will be used for long-term investment in land, plants, and asset equipment to expand AI infrastructure energy products and production capacity. Another capital increase case of US$149 million for its Vietnam subsidiary was passed to support operational growth and capital expenditures for expansion.
Lite-On Technology announced its first-quarter revenue of NT$43.407 billion, an annual increase of 19.2%, but a slight decrease of 2.1% compared to the fourth quarter of last year; net profit after tax was NT$3.775 billion, an annual increase of 9.2%, and a quarterly decrease of 2.2%. Chiu Sen-bin explained that the quarterly decrease in first-quarter revenue and profit was mainly due to some orders from consumer customers such as gaming consoles being delayed until the second quarter due to memory shortages and other factors.
Lite-On Technology's first-quarter gross profit margin was 21.7%, flat compared to the fourth quarter of last year, and a decrease of 0.9 percentage points compared to the same period last year; the first-quarter operating profit margin was 9.4%, a decrease of 0.7 and 1.1 percentage points compared to the first quarter and fourth quarter of last year, respectively.
Lite-On Technology CFO Lin Chien-chung explained that the decline in Lite-On Technology's first-quarter gross profit margin and operating profit margin was mainly due to a one-time provision for inventory obsolescence losses for low-turnover inventory in the first quarter, based on conservative accounting principles, which affected revenue by about 1%. If the impact of inventory obsolescence reserves is excluded, Lite-On Technology's first-quarter gross profit margin was 22.8%, and operating profit margin was 10.5%.
Looking ahead to the second quarter, Chiu Sen-bin is optimistic that the first quarter is the bottom of Lite-On Technology's operations this year. In addition to the exclusion of one-time inventory losses, the shipment ratio of Lite-On Technology's AI products will gradually increase quarter by quarter. He is optimistic that the core business in the second quarter, including revenue and profit, is expected to show strong year-on-year and quarter-on-quarter growth.
Regarding new AI products, Lite-On Technology specifically mentioned that the 800VDC Power Rack is ahead of schedule. Verification is expected to be completed in the third quarter, and mass production and shipment will be moved up from the original first quarter of next year to the fourth quarter of this year, which is expected to provide an boost to the company's operations this year. (Editor: Yang Lan-hsuan) 1150429
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Central Message
Grasp the New Southbound, look forward to the economic pulse of ASEAN. The Central News Agency's "Southeast Asia Financial Information Network" selects multiple financial headlines from Thailand, Vietnam, Indonesia, Malaysia, the Philippines, and other countries for you daily. Whether it's new government policies, industry trends, or investment opportunities, it allows you to grasp key information in real-time, gain insight into the market, and seize business opportunities.
(Central News Agency reporter Tseng Jen-kai, Taipei, April 29) Lite-On Technology is going all out for AI. Today, the board of directors passed two investment plans, including a US investment case and an capital increase case for its Vietnam subsidiary, with a total amount of US$1.068 billion (approximately NT$33.7 billion).
Lite-On Technology General Manager Chiu Sen-bin stated at the investor conference today that Lite-On Technology's product portfolio is changing. As the power wattage of AI server rooms continues to increase, the existing production equipment no longer meets future demands, and equipment and production lines must be updated. Lite-On Technology expects to invest approximately NT$13 billion in capital expenditures this year, almost double the NT$7 billion last year, and this does not include the new US investment case.
Lite-On Technology's board of directors resolved that the new US investment case amount is US$919 million, which will be used for long-term investment in land, plants, and asset equipment to expand AI infrastructure energy products and production capacity. Another capital increase case of US$149 million for its Vietnam subsidiary was passed to support operational growth and capital expenditures for expansion.
Lite-On Technology announced its first-quarter revenue of NT$43.407 billion, an annual increase of 19.2%, but a slight decrease of 2.1% compared to the fourth quarter of last year; net profit after tax was NT$3.775 billion, an annual increase of 9.2%, and a quarterly decrease of 2.2%. Chiu Sen-bin explained that the quarterly decrease in first-quarter revenue and profit was mainly due to some orders from consumer customers such as gaming consoles being delayed until the second quarter due to memory shortages and other factors.
Lite-On Technology's first-quarter gross profit margin was 21.7%, flat compared to the fourth quarter of last year, and a decrease of 0.9 percentage points compared to the same period last year; the first-quarter operating profit margin was 9.4%, a decrease of 0.7 and 1.1 percentage points compared to the first quarter and fourth quarter of last year, respectively.
Lite-On Technology CFO Lin Chien-chung explained that the decline in Lite-On Technology's first-quarter gross profit margin and operating profit margin was mainly due to a one-time provision for inventory obsolescence losses for low-turnover inventory in the first quarter, based on conservative accounting principles, which affected revenue by about 1%. If the impact of inventory obsolescence reserves is excluded, Lite-On Technology's first-quarter gross profit margin was 22.8%, and operating profit margin was 10.5%.
Looking ahead to the second quarter, Chiu Sen-bin is optimistic that the first quarter is the bottom of Lite-On Technology's operations this year. In addition to the exclusion of one-time inventory losses, the shipment ratio of Lite-On Technology's AI products will gradually increase quarter by quarter. He is optimistic that the core business in the second quarter, including revenue and profit, is expected to show strong year-on-year and quarter-on-quarter growth.
Regarding new AI products, Lite-On Technology specifically mentioned that the 800VDC Power Rack is ahead of schedule. Verification is expected to be completed in the third quarter, and mass production and shipment will be moved up from the original first quarter of next year to the fourth quarter of this year, which is expected to provide an boost to the company's operations this year. (Editor: Yang Lan-hsuan) 1150429
Choose to stand with facts. Every sponsorship of yours is a force to protect press freedom.
Download the Central News Agency's "Firsthand News" APP to get the latest news in real time.
The text, pictures, and videos on this website may not be reproduced, broadcast, transmitted, or used without authorization.