Fuh Kiang Launches Second Growth Curve, Entering AI Key Component MLPC with Trial Mass Production by Year-End

Fuh Kiang (6603-TW) is actively showcasing its ambition for operational transformation by extending its technological capabilities accumulated in packaging equipment, precision manufacturing, and automation fields into the AI server and GPU power supply chain. The company announced it will combine its professional packaging technology team to establish a subsidiary, officially entering the high-end electronic components sector. It will develop 'MLPC stacked solid capacitors' with advantages of low stress, high capacitance, and thin profile, building the group's second growth curve to capture the vast business opportunities in global import substitution and AI infrastructure construction. Trial mass production is scheduled to begin by the end of 2026.

Fuh Kiang pointed out that the explosive demand for AI computing has driven continuous upgrades in power architectures for GPUs, CPUs, and AI servers, significantly increasing performance requirements for high-end passive components. Currently, the global MLPC market has an annual demand of approximately 6 to 8 billion units, with about 90% of the segment targeting high-speed voltage regulation and high-frequency coupling for GPUs dominated by Japanese manufacturers. Downstream customers are actively seeking a second supply chain.

Compared to the 'lead-frame stacking' technology adopted by Japanese manufacturers, which is prone to wire bonding deformation, Fuh Kiang's stacked aluminum capacitor technology can achieve equivalent capacitance and thinner dimensions with fewer layers, offers higher voltage resistance, and supports three-dimensional embedded packaging on carrier substrates. The product has already been certified and adopted by multiple major manufacturers in AI chips, servers, laptops, and industrial control. Trial mass production is expected to start in 2026 at three production lines to be set up at the company's main plant in Guanmiao, Tainan. The company plans to reach an annual production capacity of 250 million units by the end of 2028 and initiate an IPO process, with a target of over 600 million units annually by 2030.

Fuh Kiang's board approved the Q2 and first-half 2026 financial reports. Consolidated revenue for the quarter reached NT$1.205 billion, a 14.72% increase quarter-on-quarter. Benefiting from a higher proportion of multi-color machine orders and strict cost controls, gross margin reached 25.32%, up 0.47 percentage points year-on-year. Operating profit was NT$41.04 million, and net profit attributable to owners of the parent was NT$18.85 million, with earnings per share (EPS) at NT$0.11.

For the first half of the year, cumulative consolidated revenue reached NT$2.255 billion, operating profit was NT$46.54 million, and net profit attributable to owners of the parent was NT$23.84 million, with EPS at NT$0.14, demonstrating resilient operations with year-on-year growth.

Fuh Kiang stated that demand for high-end equipment and smart manufacturing has driven optimization of its overall profitability structure. Additionally, to protect shareholder rights and incentivize employees, the board resolved to implement a treasury stock program, planning to repurchase 5,000 shares of company stock for transfer to employees, highlighting management's strong confidence in the medium- to long-term business outlook.

According to research firm TrendForce, global demand for high-end MLCCs and MLPCs remains strong, with reports even indicating Japanese major manufacturers considering price hikes, signaling continued undersupply in the high-end capacitor market—providing an excellent external environment for Fuh Kiang to enter its new venture.

Looking ahead, Fuh Kiang will advance with a dual-track strategy of 'core business upgrade + new business growth.' The core business will continue deepening the application of high-end injection molding equipment in automotive, AI/ICT, and semiconductor fields. For the new venture, the company will leverage the group's manufacturing strengths and professional teams to establish scalable production capacity, positioning itself as a key player in the high-end supply chain based on Taiwan's semiconductor and AI industry clusters.