Lite-On’s AI power business fuels record earnings and new investment
Lite-On is turning rising demand for AI infrastructure into stronger earnings and a broader business. The Taiwan electronics manufacturer is increasing production of advanced server power supplies while investing in cooling and optical communications to supply more of the equipment needed to operate increasingly powerful data centers.
Third-quarter 2026 revenue reached NT$57.4 billion (approximately US$1.75 billion), up 28% from a year earlier and 9% from the previous quarter. Net profit rose 60% to NT$7.4 billion (US$226 million), with earnings per share reaching a record NT$3.27. Gross margin was 25.9%, while the operating margin increased to 15.1%, reflecting a greater contribution from higher-value products and improved manufacturing efficiency.
The shift toward AI is becoming more visible. Cloud computing-related revenue grew 80% in the first nine months, and AI-related products accounted for more than 30% of total sales. President Anson Chiu expects that share could reach 40–50% in 2027 as new power products enter production.
The opportunity extends beyond selling individual power supplies. As more processors are packed into each server rack, operators need systems that distribute electricity efficiently, provide backup power, and remove heat. Lite-On is developing these functions together, allowing it to supply larger portions of a data center’s power and cooling infrastructure.
The company’s fourth-quarter production plans include 8.5-kilowatt power supplies for custom ASIC systems, battery backup units, and power shelves for Nvidia’s Vera Rubin and AMD’s Helios platforms. It is also preparing 800-volt direct-current power racks, with shipments expected to begin in early 2027 following customer qualification. Higher voltage distribution helps deliver more power while reducing electrical losses.
Liquid cooling is another priority. Lite-On announced a US$176 million investment for an approximately 25% stake in Poland’s DCX, whose products include coolant distribution units, cold plates, and immersion-cooling systems. At October’s Open Compute Project summit, Lite-On presented DCX equipment capable of transferring up to 2.6 megawatts of heat, alongside its power-management products.
Optical communications provides a further growth avenue. Its investment in Singapore-based DenseLight adds expertise in laser sources and optical components used for high-speed data connections. The partnership complements Lite-On’s capabilities in optical packaging, testing, and manufacturing as AI systems require faster communication between processors and servers.
Manufacturing investment is increasing alongside the product portfolio. Lite-On raised its 2026 capital expenditure budget to NT$19.7 billion (about US$602 million), supporting increased capacity and automation in Taiwan, Vietnam, and the United States. Its US$919 million McKinney, Texas, project will establish a North American manufacturing and engineering base, with operations targeted for the second quarter of 2027.
These investments position Lite-On to earn more from each generation of AI infrastructure. Its next stage of growth will depend on bringing its new systems through customer qualification and turning its broader technical capabilities into increased production orders.