Taiwan semiconductor test equipment makers outlined strong second-half momentum, with Hon Precision planning a 50% capacity increase next year as AI, HPC and CPO demand broadens.
Hon Precision (7769) and Chroma ATE (2360.TW) reported strong second-quarter results as demand tied to AI GPUs, ASICs and broader high-performance computing testing continued to lift Taiwan’s semiconductor equipment sector. Hon Precision, a semiconductor testing equipment maker, posted second-quarter net profit after tax of NT$5.48 billion, up 18.42% from the previous quarter and more than double a year earlier, with earnings per share of NT$30.44. First-half consolidated revenue reached NT$24.52 billion, up 91.6% year over year, while first-half net profit after tax rose to NT$10.1 billion and EPS to NT$56.14. Second-quarter revenue at Hon Precision was NT$13.79 billion, rising 28.6% from the prior quarter and 100.4% from a year earlier. Gross margin was 56.1%, below 58.7% a year earlier, while operating margin came in at 48.5%, down about 4.4 percentage points year over year, as product mix and early expansion costs diluted margins even as absolute profit kept climbing. The company said order visibility extends through the end of the year and expects total production capacity to expand by 50% next year. That plan includes the new Desheng plant starting production in the first quarter, adding about 15% capacity, a local China production base coming online in the same period to contribute roughly 20%, and debottlenecking at its headquarters to add another 15%. Analysts said growth has been driven by rising demand for testing AI chips, particularly high-end active thermal control devices used as power consumption and testing complexity increase, as well as progress in advanced packaging, testing integration and co-packaged optics-related equipment. Hon Precision also traded ex-dividend on the 30th, distributing a cash dividend of NT$64.99 per share. Its ex-dividend reference price was NT$5,110.01, and the stock opened at NT$5,235 and immediately filled the dividend gap. Chroma ATE also posted robust results, with second-quarter revenue of NT$13.5 billion, up 14% quarter over quarter and 110% year over year. Net profit attributable to the parent was NT$5.12 billion and EPS was NT$12.15. First-half revenue reached NT$25.4 billion, while first-half net profit attributable to the parent rose 120% year over year to NT$8.99 billion, with EPS of NT$21.27. Chroma said growth was driven by simultaneous gains in its measurement instruments, automated testing equipment and semiconductor businesses, and it expects momentum to continue in the second half on demand for AI, HPC and CPO testing equipment. The results point to AI- and HPC-related testing demand expanding beyond conventional chip testing into system-level testing, advanced packaging and optical communications, with equipment upgrades and capacity expansion emerging as key competitive factors.