LITE-ON Secures Orders from Two Major New CSP Clients in North America; AI Revenue Expected to Exceed 30%

Power supply manufacturer LITE-ON (2301-TW) held a corporate briefing on the 31st, where General Manager Chiu Sen-pin expressed an optimistic outlook for the second half of the year. He expects the core business to continue its dual growth momentum of year-on-year and quarter-on-quarter increases, with the second half of the year outperforming the first half. Significant breakthroughs have been made in the North American market, successfully entering the supply chains of two major cloud service providers and beginning shipments, which is expected to drive the revenue share of AI-related products to exceed 30% this year.

Regarding progress with North American clients, Chiu Sen-pin stated that LITE-ON has achieved small-scale delivery of power and rack-related products to two new large cloud service providers. In the future, the company will continue to deepen cooperation with next-generation platforms. The management team has set clear expansion targets, aiming to increase the annual revenue contribution from each key large cloud customer to a scale of 10 billion dollars, significantly enhancing order competitiveness.

To support new customer orders and the upgrade of AI data center power architecture, LITE-ON announced that it will increase its capital expenditure for 2026 from 13 billion to 18 billion. Chiu Sen-pin stated that the capital expenditure will mainly be used to purchase high-power R&D testing equipment, automated production lines, and expand global production sites. Among these, the new factory in Texas, USA, is scheduled to start construction in mid-August this year and begin mass production in the second quarter of next year, driving the non-China production ratio to reach 70% next year.

The power product line is blooming in multiple areas. Chiu Sen-pin mentioned that the next-generation 8.5kW power supply and high-efficiency backup battery system have entered mass production, and the 110kW rack-mounted power supply and 120kW water-cooled cooling distribution unit have also been successfully shipped. The 800V high-voltage DC rack, which is of market concern, is expected to complete verification in the second half of the year, begin sample testing in August, start small-scale production in November, and officially expand production in the first quarter of next year.

Regarding the BBU business, LITE-ON's production capacity this year has increased from 600K last year to 900K, currently accounting for nearly 20% of the cloud department's revenue. With the future high-voltage DC rack listing the backup battery system as standard equipment, the total shipment volume from the second half of this year to next year will further increase, continuously boosting the growth momentum of the cloud business group.

Regarding the consumer and information electronics business, the management team estimates that market demand in the second half of the year may be weaker, but by raising selling prices to reflect costs, revenue can be maintained stable. In response to the risks of material price increases and component shortages, the company has strategically stocked up six months in advance and obtained customer cost subsidies, ensuring smooth delivery and profit performance in the second half of the year.