TaiChiaShuo Boosts Capital Expenditure to Meet Exploding Demand in AI and LEO Applications

Frequency component manufacturer TaiChiaShuo (3221-TW) held its earnings briefing today (6th). The company anticipates increasing market demand in optical communications, low Earth orbit (LEO) satellites, military drones, and industrial control systems. As such, it has already allocated NT$160 million in capital expenditures during the first half of 2026, with full-year 2026 capex projected to reach a high level of NT$180–200 million.

Moreover, TaiChiaShuo views 2027 as a pivotal year for the LEO satellite industry. Both satellite launches and ground-based communication base station deployments are expected to significantly accelerate in the second half of 2026 and explode in demand by 2027. Consequently, the company forecasts stronger operational performance in Q3 2026 compared to Q2, with double-digit year-on-year growth anticipated in 2027.

For 2027 growth drivers, TaiChiaShuo highlights the expansion of AI and LEO satellite applications. It aims for AI-related applications to account for 5–10% of total revenue in 2027, while LEO satellite-related revenue is targeted to rise from below 10% currently to 10–15%. Combined, these two sectors are expected to shoulder approximately 20% of the company’s total revenue in 2027.

Additionally, regarding low-jitter quartz oscillators for optical transmission, the 1.6T version is already undergoing customer certification and integration at the IC level. Successor generations also have corresponding solutions ready.

TaiChiaShuo reported H1 2026 revenue of NT$1.205 billion, post-tax net profit of NT$85.58 million, and earnings per share of NT$0.82.