At a glance. The call that first quantified Chang Wah's 800V exposure — 6–8% of revenue at a 30–50% ASP premium — and confirmed the important technical point: these are not standard parts sold into a new application, they need a process upgrade and special surface treatment.
What changed this quarter
Power management pulled the mix up. IC leadframes and discrete SOT both grew double digits in absolute terms on data-center power-management demand, lifting the industrial application share.
April set a record. Management said April revenue would "easily" set a new high and guided Q2 to double-digit growth.
Inventory built deliberately. Stock rose to NT$3.558bn, up NT$630m sequentially, on both order preparation and rising copper, silver and gold prices.
The numbers
| Q1 2026 | Value | Change |
|---|---|---|
| Revenue | NT$3.672bn (~US$117m) | +5% QoQ, +15% YoY |
| Gross profit | NT$797m, margin 21.7% | — |
| Operating profit | NT$508m, margin 13.8% | — |
| Net income to parent | NT$469m (~US$15m) | — |
| EPS | NT$0.51 (~US$0.016) | — |
Gross margin was suppressed by precious metal inflation — gold, silver and palladium have run since 2025Q4, with silver the most severe. Chang Wah passes this through, and IDM contracts float with market metal averages.
NVIDIA 800V read-through
The first hard mix disclosure, later confirmed on the Q2 call:
- 800V HVDC packages for IDM customers are 6–8% of total sales.
- They require special surface treatment.
- ASP is 30–50% above standard products.
- Asked directly whether leadframes need a technology upgrade for 800V HVDC, management said yes — this is not a catalogue part sold into a new socket.
That distinction matters for durability of the position. A commodity part at a temporary premium gets competed away; a qualified process at an IDM does not, at least not quickly.
Segments that moved
Process mix. Etching rose to 56% with stamping at 44%, and management expected etch to keep gaining slowly.
Product mix. IC leadframes 32% — up double digits both sequentially and annually on power management. QFN 30%, steady, with strength in Wi-Fi 7 networking. Discrete SOT 18%. QFP 11%, the weakest line. EMC LED 9%, healthy.
Application mix. Consumer electronics 47%. Industrial rose notably to 26% on data-center power management. Automotive 24%, with no clear recovery yet.
Growth came from two sources: IDM customers bringing new Southeast Asian capacity online, and OSAT customers' strong demand for networking parts such as Wi-Fi 7 aQFN.
Guidance
- Q2 2026 orders positive, with April a record and double-digit growth expected for the quarter.
- Capacity expansion underway in Malaysia and China to support longer-term growth.
Management Q&A
Q: How did the product lines grow in Q1 2026, and what does demand look like in Q2?
A: IC and QFN products grew the most in Q1, and LED also hit a recent high. For Q2, power-management ICs used in high-load data centers and servers are expected to be the stronger growth driver, while high-end QFN (including Wi-Fi 7 and power-related frames) stays firm and industrial demand looks relatively strong.
Q: Why expand in Weihai, Shandong, and what is the China-market case?
A: Suzhou and Chengdu are already near full utilisation and are hard to expand, so Weihai was chosen for a complete chemical supply chain, available talent, and ready buildings — about 100 mu of existing plant — that can be brought up faster than a greenfield site such as Malaysia. China demand is described as very strong, and this is a new plant, not a relocation, meant to supply Chinese customers.
Q: For 800V HVDC architectures, do leadframes need a technology upgrade?
A: These applications need special surface treatment and somewhat different materials versus standard parts, though mold dimensions are largely unchanged. Average selling prices run 30–50% above ordinary products, and this slice is about 6–8% of revenue and still rising. Management cannot split whether each part sits in 800V HVDC versus general data-center power, and it is not yet in Smart Power Stage packages because of patents.
Q: Has the low-cost raw-material inventory been used up, and when will price increases fully hit costs?
A: The company does not deliberately stockpile cheap metal. The mismatch is that order lead times run about 21 weeks, while precious-metal inventory in China — and in Malaysia, by regulation — can only be held about one month. With supply far below demand, cost can be passed through 100%, and price talks are not expected to be painful.
Q: Are customers pulling in orders because they expect further price increases?
A: No. Plants are already full, so there is no spare capacity for pull-in. April bookings were far stronger than March, and May and June also look solid, which management reads as real demand.
Q: When will the Malaysia and China plants contribute revenue, and what is the dividend policy?
A: Weihai uses existing buildings, so it should contribute from late 2026 into early 2027; Malaysia is aimed at Q3 2027. Capex is heavy — about US$100m in Malaysia and RMB 1bn in China, or roughly NT$7–8bn — but cash flow is stable, the latest quarterly dividend is NT$0.45 (about a 90% payout on NT$0.51 EPS), and a higher payout is not ruled out once Q2 and Q3 profits are seen.
Q: Are the factories already on full shifts, and will consumer capacity be moved to server-related work?
A: Plants are on a three-shift, three-crew roster and are also overtime on holidays, so they are full. Capacity will not be deliberately reallocated, because leadframe processes are common across uses; the high-ASP special surface treatment is an extra step and does not collide with existing capacity.
Q: How large is the new capacity, and what is the IDM versus OSAT mix?
A: Taking current China capacity as 1, Weihai adds 2, taking China to 3; Malaysia adds 1, taking that site to 2. IDM customers are about 50–55% of revenue and OSAT about 40–45%.
Q: Are further price adjustments still planned?
A: Yes. For IDM accounts the metal-sliding formula is being renegotiated upward; for OSAT accounts, Q3 prices are due to be reviewed around mid-May. Because lead times are about 21 weeks, a price change shows up in shipments about one quarter later, and both sides already have a working arrangement for that lag.
Disclaimer
English notes on Chang Wah Technology's investor conference of 29 April 2026, covering Q1 2026. 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.