High-tech materials and equipment supplier Wah Lee Industrial Corp. (TWSE: 3010) today (August 11) announced its financial results for the second quarter of 2026. As artificial intelligence (AI) adoption accelerates, demand for high-performance computing (HPC), advanced semiconductor processes, and advanced packaging continues to rise, sustaining robust momentum across the semiconductor and electronic materials markets and driving another record-breaking quarter for the company.
In the second quarter of 2026, consolidated revenue reached NT$23.84 billion, up 17.9% YoY, setting a new historical high. Gross profit increased to NT$1.99 billion, up 26.7% YoY, also a record level. Operating income rose 44.3% YoY to NT$1.01 billion, while pre-tax profit surged 86.9% YoY to NT$1.29 billion, marking another all-time high. Earnings per share (EPS) reached NT$3.46, significantly higher than NT$1.65 in the same period last year.
Compared with the first quarter of 2026, second-quarter revenue, gross profit, operating income, and pre-tax profit grew by 9.1%, 12.0%, 21.6%, and 34.1%, respectively. Profit growth significantly outpaced revenue growth, while gross margin, operating margin, and pre-tax margin all improved, demonstrating continued enhancement in operating quality and profitability.
For the first half of 2026, consolidated revenue totaled NT$45.68 billion, up 17.7% YoY and representing the highest first-half revenue in the company's history. Gross profit reached NT$3.77 billion, up 27.2% YoY; operating income increased 48.0% YoY to NT$1.85 billion; pre-tax profit grew 59.2% YoY to NT$2.26 billion; and EPS rose to NT$5.93, compared with NT$3.59 in the same period last year.
Wah Lee noted that AI-related demand remains strong, with semiconductor customers and cloud service providers (CSPs) maintaining confidence in market prospects. This has driven significant growth in sales of photoresists, advanced packaging materials, specialty gases, and commodity chemicals, providing key support for earnings growth during the first half of the year.
Supported by simultaneous growth in both its Semiconductor and PCB business segments, July consolidated revenue reached NT$8.54 billion, setting a new monthly record. With customer orders remaining robust, production capacity continuing to expand, and prices for certain raw materials increasing, the market expects Wah Lee's major product lines to maintain strong growth momentum and achieve further expansion in operating scale.
Wah Lee highlighted the outstanding performance of its semiconductor-grade specialty gas business in the first half of the year. In particular, demand for tungsten hexafluoride (WF₆) benefited from rising raw material prices. Leveraging its stable supply capability, the company successfully implemented price adjustments and expanded its customer base by securing new wafer fabrication accounts. Overseas, Wah Lee successfully entered the supply chain of memory manufacturers in Korea and increased shipment volumes. Looking ahead, the company will actively pursue supply opportunities at overseas facilities of leading U.S.-based foundries. At the same time, Wah Lee continues to expand its gas equipment business, enhancing customer value through integrated one-stop materials and equipment solutions while strengthening its competitive advantages.
As global AI infrastructure investment continues to accelerate, the AI server industry is experiencing rapid growth. Leveraging its expertise in automation equipment and smart manufacturing integration, Wah Lee has been providing customers with comprehensive AI server assembly and testing automation solutions. These production lines are being adopted for NVIDIA's GB200, GB300, and next-generation Vera Rubin platforms, with expansion into additional AI server customers underway. As project scale steadily increases, this business unit has maintained multiple-fold revenue growth in recent years.
In addition, next-generation AI servers are broadly adopting liquid-cooling architectures, significantly increasing demand for advanced thermal management materials. Wah Lee has successfully entered the supply chain for high-wattage thermal interface materials used in server motherboards, which is expected to contribute meaningfully to future growth.
In the PCB sector, demand from AI servers, high-speed switches, and ASIC chips continues to support strong momentum in the high-end copper-clad laminate (CCL) market. Supply shortages of key materials, including low-loss fiberglass cloth and premium copper foil, are expected to persist through 2027. Supported by strong relationships with upstream suppliers, Wah Lee has secured stable sourcing and benefited from sustained demand growth for high-end products, resulting in simultaneous gains in both volume and pricing. Driven by customer inventory buildup, visibility for orders extends from the second half of this year into early next year, with related first-half revenue doubling year-over-year.
Meanwhile, the company is collaborating with customers to enter the supply chain for next-generation AI server motherboards used by major U.S.-based cloud service providers (CSPs). Following mass production, these projects are expected to begin contributing revenue gradually starting next year.
Beyond materials demand, the PCB equipment market has also entered a new growth cycle. Wah Lee's high-end exposure systems continue to gain strong customer acceptance, with current orders extending through 2030, highlighting the long-term growth potential of advanced PCB and IC substrate capacity expansion. The company has also established comprehensive capabilities in drilling machines, inspection equipment, and integrated dry- and wet-process manufacturing solutions. As customers continue to increase capital expenditures, all major equipment product lines have maintained significant growth.
Expanding AI computing demand is also driving upgrades in high-speed data center interconnect architectures. Demand for 800G optical modules is growing rapidly, while 1.6T optical modules are entering their first year of commercial deployment. As optical module penetration increases, demand for high-density connectors is also rising. In particular, next-generation SN-MT connectors, designed for miniaturization and higher density, are creating new demand for high-performance engineering plastics.
Wah Lee's high-performance engineering plastics have successfully entered the optical communications component supply chain and are being used in products such as fiber optic connectors (FOC) and fiber optic lens components (FOL). Benefiting from continued growth in the high-speed optical communications market, related first-half revenue achieved high double-digit growth, with second-half performance expected to surpass first-half results.
In the second quarter of 2026, consolidated revenue reached NT$23.84 billion, up 17.9% YoY, setting a new historical high. Gross profit increased to NT$1.99 billion, up 26.7% YoY, also a record level. Operating income rose 44.3% YoY to NT$1.01 billion, while pre-tax profit surged 86.9% YoY to NT$1.29 billion, marking another all-time high. Earnings per share (EPS) reached NT$3.46, significantly higher than NT$1.65 in the same period last year.
Compared with the first quarter of 2026, second-quarter revenue, gross profit, operating income, and pre-tax profit grew by 9.1%, 12.0%, 21.6%, and 34.1%, respectively. Profit growth significantly outpaced revenue growth, while gross margin, operating margin, and pre-tax margin all improved, demonstrating continued enhancement in operating quality and profitability.
For the first half of 2026, consolidated revenue totaled NT$45.68 billion, up 17.7% YoY and representing the highest first-half revenue in the company's history. Gross profit reached NT$3.77 billion, up 27.2% YoY; operating income increased 48.0% YoY to NT$1.85 billion; pre-tax profit grew 59.2% YoY to NT$2.26 billion; and EPS rose to NT$5.93, compared with NT$3.59 in the same period last year.
Wah Lee noted that AI-related demand remains strong, with semiconductor customers and cloud service providers (CSPs) maintaining confidence in market prospects. This has driven significant growth in sales of photoresists, advanced packaging materials, specialty gases, and commodity chemicals, providing key support for earnings growth during the first half of the year.
Supported by simultaneous growth in both its Semiconductor and PCB business segments, July consolidated revenue reached NT$8.54 billion, setting a new monthly record. With customer orders remaining robust, production capacity continuing to expand, and prices for certain raw materials increasing, the market expects Wah Lee's major product lines to maintain strong growth momentum and achieve further expansion in operating scale.
Wah Lee highlighted the outstanding performance of its semiconductor-grade specialty gas business in the first half of the year. In particular, demand for tungsten hexafluoride (WF₆) benefited from rising raw material prices. Leveraging its stable supply capability, the company successfully implemented price adjustments and expanded its customer base by securing new wafer fabrication accounts. Overseas, Wah Lee successfully entered the supply chain of memory manufacturers in Korea and increased shipment volumes. Looking ahead, the company will actively pursue supply opportunities at overseas facilities of leading U.S.-based foundries. At the same time, Wah Lee continues to expand its gas equipment business, enhancing customer value through integrated one-stop materials and equipment solutions while strengthening its competitive advantages.
As global AI infrastructure investment continues to accelerate, the AI server industry is experiencing rapid growth. Leveraging its expertise in automation equipment and smart manufacturing integration, Wah Lee has been providing customers with comprehensive AI server assembly and testing automation solutions. These production lines are being adopted for NVIDIA's GB200, GB300, and next-generation Vera Rubin platforms, with expansion into additional AI server customers underway. As project scale steadily increases, this business unit has maintained multiple-fold revenue growth in recent years.
In addition, next-generation AI servers are broadly adopting liquid-cooling architectures, significantly increasing demand for advanced thermal management materials. Wah Lee has successfully entered the supply chain for high-wattage thermal interface materials used in server motherboards, which is expected to contribute meaningfully to future growth.
In the PCB sector, demand from AI servers, high-speed switches, and ASIC chips continues to support strong momentum in the high-end copper-clad laminate (CCL) market. Supply shortages of key materials, including low-loss fiberglass cloth and premium copper foil, are expected to persist through 2027. Supported by strong relationships with upstream suppliers, Wah Lee has secured stable sourcing and benefited from sustained demand growth for high-end products, resulting in simultaneous gains in both volume and pricing. Driven by customer inventory buildup, visibility for orders extends from the second half of this year into early next year, with related first-half revenue doubling year-over-year.
Meanwhile, the company is collaborating with customers to enter the supply chain for next-generation AI server motherboards used by major U.S.-based cloud service providers (CSPs). Following mass production, these projects are expected to begin contributing revenue gradually starting next year.
Beyond materials demand, the PCB equipment market has also entered a new growth cycle. Wah Lee's high-end exposure systems continue to gain strong customer acceptance, with current orders extending through 2030, highlighting the long-term growth potential of advanced PCB and IC substrate capacity expansion. The company has also established comprehensive capabilities in drilling machines, inspection equipment, and integrated dry- and wet-process manufacturing solutions. As customers continue to increase capital expenditures, all major equipment product lines have maintained significant growth.
Expanding AI computing demand is also driving upgrades in high-speed data center interconnect architectures. Demand for 800G optical modules is growing rapidly, while 1.6T optical modules are entering their first year of commercial deployment. As optical module penetration increases, demand for high-density connectors is also rising. In particular, next-generation SN-MT connectors, designed for miniaturization and higher density, are creating new demand for high-performance engineering plastics.
Wah Lee's high-performance engineering plastics have successfully entered the optical communications component supply chain and are being used in products such as fiber optic connectors (FOC) and fiber optic lens components (FOL). Benefiting from continued growth in the high-speed optical communications market, related first-half revenue achieved high double-digit growth, with second-half performance expected to surpass first-half results.
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