At a glance. A seasonally slow quarter that was not slow: revenue NT$2.526bn, +25% year on year, EPS NT$0.73. Semiconductor is now about 40% of sales, and management cited about NT$1bn of IDC-related orders. None of that is an 800 VDC rack. The call did not mention 800 V, HVDC, SST, or a DC distribution board. Allis is selling MV switchgear, transformers, GIS and UPS into fabs, Taipower and computer rooms.
What changed this quarter
Semiconductor overtook the old mix. The line that used to be about 25% of sales is now close to 40%, a shade above Taipower, and is why January–April revenue was up nearly 29%. Management is following domestic fabs across Taiwan plus overseas sites in the US, Japan and Singapore, and is constructive for three to five years.
Capacity was rented, not waited for. A 4,500-ping land plot next to Yangmei is still in rezoning. To clear a full book, Allis last month expanded nearby leased space to nearly 4,000 ping, moving semi-finished processing and test off the main floor, which it says adds 15–20% of output.
Prices went up 10–15% on some products in Q1 to cover materials. Rush orders at the better prices were about NT$200m, close to 10% of the quarter.
The numbers
| Q1 2026 | Value | Change |
|---|---|---|
| Revenue | NT$2.526bn (~US$80.2m) | +25.25% YoY |
| Gross profit | NT$444m (~US$14.1m) | +17.54% YoY |
| Gross margin | 17.57% | −1.16pp (from 18.73%) |
| Net income | NT$200m (~US$6.3m) | +21.51% YoY |
| EPS | NT$0.73 (~US$0.02) | — |
The margin dip is mix, not a price collapse: engineering rose from 13.22% of sales a year ago to 18.77%, and engineering is the lower-margin bucket. January–April revenue was up nearly 29%, still semiconductor-led.
Taipower was about 35% of Q1 sales. The conservative full-year Taipower stance is a base effect: last year a NT$2bn STATCOM job recognised about 60% (~NT$1.2bn); this year only about 25% (~NT$400–500m) is left, a gap of about NT$600m that has to be filled with smaller accelerated Taipower buys. Holding Taipower revenue flat on last year is the internal "good" outcome.
NVIDIA 800V read-through
Allis is facility-side electrical. Do not put it on the 800 VDC rack, and do not promote it to NVIDIA's MV rectifier / 5000 A DC board / 1500 A busway layer — the call never went there.
What it actually sells into AI halls is the same plant it sells into fabs and telecom IDCs: switchgear, transformers, GIS, STATCOM, SMR, UPS, and IDC substations. Management's AI hook is that high-power halls need that infrastructure, that Allis already built multiple IDC substations for Chunghwa Telecom, and that it now has about NT$1bn (~US$32m) of orders from telecom and electronics names. The Xizhi UPS line has also seen more orders tied to AI data-center cooling rooms.
NVIDIA's diagram still starts with 13.8–35 kV AC. Someone has to build that AC plant. That is Allis's slot. The conversion to 800 VDC — rectifier or SST, DC board, DC busway, rack — was not discussed and is not a disclosed product. Treat IDC demand here as room and substation electrical, not Kyber-rail content.
Segments that moved
| Product | Q1 2026 share |
|---|---|
| Power electronics / telecom power | 33.71% |
| Electrical engineering | 18.77% |
| Switchgear | 15.57% |
| Transformers | 14.76% |
| T&D equipment | 10.58% |
| Other agency | 6.60% |
Semiconductor is the growth mix (~40% of group, from ~25%). Taipower is the stable but, this year, conservative mix (~35% in Q1). IDC is an order-book story (~NT$1bn cited) rather than a disclosed revenue share. Rail remains a long franchise; Allis said it can supply about 30% of the content on TRA's third-generation CTC job, a NT$4.6bn tender.
Other products named, still not 800V: standardised 20- and 40-foot container storage with an electronics-industry partner; 0.5–5 MW commercial microgrids combining Allis EMS, GIS and amorphous transformers with partners' batteries.
Guidance
- No numbered forecast — regulator policy. Full-year revenue described as optimistic and above last year, on a full book, with Q1 the usual slow season.
- Semiconductor capex, domestic and overseas, is the multi-year engine, including advanced packaging and a named international memory customer's Taiwan spend plus a US$24bn / 10-year Singapore plan.
- Taipower: conservative; flat with last year would be a good result after the STATCOM recognition drop.
- IDC: further growth from the ~NT$1bn already booked, still framed as power equipment for computer rooms.
- Materials: further price increases if war or energy inflate costs; a full book is the reason management thinks it can pass them on.
- Capacity: leased 4,000 ping for +15–20% output while the 4,500-ping owned plot remains in rezoning.
Management Q&A
Q: How is the company handling raw-material inflation?
A: Some products were raised 10–15% in Q1 2026 to cover higher input costs. Further cost inflation from war or energy will be passed through to customers. Plants are full and order visibility is high, which is the pricing leverage.
Q: What share of Q1 revenue came from higher-priced rush orders?
A: Rush orders at the better price were about NT$200m, close to 10% of the quarter.
Q: What share of Q1 revenue came from Taipower?
A: About 35%.
Q: With the book already full, how can capacity be raised to grow revenue?
A: A 4,500-ping plot next to the Yangmei plant was bought about two years ago, but government rezoning is still incomplete. Nearby space was leased instead and was expanded last month to nearly 4,000 ping; moving some semi-finished processing and testing there is expected to add 15–20% of output and ease the bottleneck.
Q: After this year's semiconductor orders are filled, what does next year look like?
A: Management is constructive on next year and the year after. January–April revenue was up about 29% year on year, mostly from semiconductors, whose mix has risen from about 25% to nearly 40% and is now a little ahead of Taipower. A major domestic foundry still has more than ten sites going up across Taiwan, plus advanced-packaging orders, and an international memory customer is still spending in Taiwan and has a US$24bn, about NT$700bn-plus, 10-year Singapore plan, so semiconductor-related demand is expected to stay strong for three to five years.
Q: Why is the Taipower outlook only "flat with last year would be good"?
A: Last year included a NT$2bn STATCOM job that recognised about 60%, or NT$1.2bn, at the peak. This year only about 25%, or NT$400–500m, is left — a NT$500–600m hole that has to be filled with other, smaller Taipower acceleration buys. Filling that hole and holding Taipower revenue level with last year is the conservative success case.
Q: Can a more specific full-year figure be given?
A: Regulator rules do not allow a numbered forecast. The qualitative line is optimistic, with full-year revenue expected to grow versus last year.
Disclaimer
English notes on Allis Electric's investor conference of 28 May 2026, covering Q1 2026. The call did not discuss 800 VDC, HVDC or SST; IDC exposure is switchgear, transformers, substations and UPS. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.