JCET: 8-inch Silicon Epitaxy Demand Exceeds Expectations, Q2 Revenue to Increase Over 20%

JCET's General Manager Wen Jin-xiang announced at an online investor conference that the company expects revenue to grow by more than 20% in the second quarter due to strong demand. Both silicon epitaxy and compound epitaxy businesses are projected to grow. Demand for 8-inch silicon epitaxy is particularly robust, driven by AI applications, prompting JCET to accelerate capacity expansion to meet demand between 2026 and 2028. Demand for Gallium Nitride (GaN) epitaxy is also recovering as clients enter the AI server and aerospace supply chains. Silicon Carbide (SiC) epitaxy is seeing increased orders as Japanese IDM clients enter mass production in Q2. JCET has completed verification with a US client for silicon photonics and has begun small-scale production, with plans to rapidly build capacity due to high demand. Chairman Hsu Chien-hua noted that order visibility has extended to two quarters, with some orders reaching three quarters, leading to an optimistic outlook for the year. Capital expenditure will be tripled to accommodate the rapid progress in silicon epitaxy and silicon photonics. Regarding the impact of Middle East tensions, Hsu stated that while costs will rise, production will not be affected, and price adjustments will be made based on costs and customer demand, not a blanket increase.