Due to Delayed Defense Project Shipments, Quanta Reports H1 2026 Net Profit of NT$56.66 Million, Down 47.35% Year-on-Year

Quanta Semiconductor (5222-TW), a professional manufacturer of gallium arsenide (GaAs) and power amplifier (PA) devices, announced today (5) its financial results for the first half of 2026, with revenues of NT$406 million and post-tax net profit of NT$56.66 million—down 15.18% and 47.35% respectively compared to the same period last year (2025). Earnings per share stood at NT$0.63. The decline was mainly attributed to delayed shipment schedules for defense-related tenders. Quanta stated that based on current order fulfillment progress, business operations are expected to gradually recover in the second half of 2026.

Today, Quanta disclosed its first-half 2026 earnings. Company executives noted that due to delays in defense project deliveries, first-half revenue reached NT$406 million, down 15.18% year-on-year, while post-tax net income was NT$56.66 million, down 47.35%. However, gross margins remained above 50% thanks to an increased proportion of high-end solid-state power amplifiers (SSPAs). The company emphasized that sustained high gross margins reflect its robust profitability in military, space-grade, and high-frequency RF technology domains. Based on current order backlogs and shipment timelines, operational momentum is expected to strengthen progressively in the second half of 2026.

Quanta has long focused on GaN (gallium nitride) and GaAs (gallium arsenide) high-frequency RF technologies, establishing vertical integration capabilities spanning wafer fabrication, RF design, and packaging/testing. It has accumulated multiple successful cases in domestic and international military markets. This year, radar defense systems remain the primary shipment item for its military product line. With the advancement of national defense self-reliance policies and increasing domestic defense investments, the company’s technological advantages in high-end RF modules will continue to support growth in its military product business.

Beyond the military sector, Quanta’s space-qualified low Earth orbit (LEO) satellite SSPAs have passed multiple space-grade tests and are expanding into commercial markets such as enterprise satellite communication equipment and ground station transmission modules. Analysts estimate that with rapid global growth in LEO satellite communication demand, the commercial market holds significant expansion potential. Microwave and wireless communication product lines are expected to become one of the company’s key mid-to-long-term growth drivers.

Quanta indicated that with defense tenders entering peak shipment season, stable overseas customer demand, and continued expansion of space-grade products into commercial markets, second-half operational momentum will strengthen compared to the first half. Full-year performance is expected to show gradual improvement. Currently, defense projects, overseas military contracts, and commercial satellite communication products form Quanta’s three-pronged development strategy. As Indian tenders and European and American orders scale up, and satellite communication PA modules expand into commercial applications, the company maintains a positive outlook for future operations.

Additionally, Quanta announced today that its board of directors has approved a stock dividend distribution. The ex-dividend date will be August 20, with a stock dividend of NT$0.99966641 per share to be distributed.