Global Unichip Corp. Benefits from AI-Driven Optical Communication Demand; U.S. Ban on Chinese Transceivers Could Boost Outlook

Global Unichip Corp. - KY (4991-TW) held its earnings call today (5th), highlighting robust demand for its optoelectronic wafer foundry services and proprietary optical components (AOC), fueled by AI data center expansion. The company's order visibility extends through the end of 2026, with an optimistic full-year shipment outlook.

Regarding reports that former U.S. President Trump may ban the import of new Chinese-made optical transceivers, Global Unichip's CEO and President, Po-Shin An, stated that such a ban would positively impact the company's future operations, given its U.S.-based manufacturing footprint.

The company also released its Q2 financial results. Q2 revenue reached NT$770 million, up 7.8% quarter-on-quarter and 57.2% year-on-year. Gross margin was 43.3%, down 11.2 percentage points sequentially and 5.5 percentage points annually. Net profit after tax was NT$110 million, down 43.8% QoQ but up 672% YoY, with EPS at NT$0.92 per share.

An expressed optimism for Q3, expecting continued revenue growth and a gross margin target of 44%–48%. Operating expenses are currently between USD 7.5 million and USD 8.5 million. Backlog extends through year-end, though indium phosphide (InP) substrate shortages have constrained capacity. However, the company has secured sufficient inventory through 2026, and plans to engage alternative suppliers in other countries for 2027 and beyond.

When asked about the Q2 margin decline, An attributed it to shifts in product mix and lower AOC production volume. Q2 product mix was approximately 23% RF wafer foundry, 10% optoelectronic wafer foundry, 61% AOC, and 6% others. First-half net profit reached NT$300 million, turning profitable from a loss last year, with H1 EPS at NT$2.58.

On the reported U.S. move to restrict Chinese-made data center optical transceiver modules—potentially affecting Chinese firms like Accelink—An noted that Global Unichip’s U.S. production base positions it as a favorable alternative sourcing option for U.S. customers, presenting a significant opportunity for future growth.