At a glance. A clean utilisation year — revenue +14%, gross margin 23% to 27%, EPS NT$5.88, cash dividend NT$5 at an 85% payout — and an 800V answer that does not pretend. Asked whether HVDC rack architecture changes power-device content, GEM said that is an end-application question: it builds to the customer's spec and cannot readily judge the BOM. The AI print that actually beat peers is server thermal packaging.
What changed this year
Margin followed utilisation. Revenue NT$5.326bn, gross profit NT$1.42bn at 27%, operating profit NT$1.045bn, net NT$759m. Management was explicit that the 4-point gross-margin lift was utilisation, not a richer product mix, and that utilisation remains the variable that matters.
Thermal packages reached production. From bottom-side cooling to top-side cooling and dual-side cooling; from aluminium wire and copper ribbon to copper clip. Clip development cost is shared with customers. Orders for thermal systems "increased obviously" as AI power rose.
Capex and a large payout were set together. 2026 capex US$24.4m, about 60% of the new capacity aimed at automotive, industrial and AI PC. After that spend the board still cleared a NT$5 cash dividend, 85% of earnings — accumulated retained earnings already exceed one share of capital, and cash is ample.
The numbers
| FY2025 | Value | Change |
|---|---|---|
| Revenue | NT$5.326bn (~US$169m) | +14% (from NT$4.67bn) |
| Gross profit | NT$1.42bn (~US$45m), margin 27% | from 23% in 2024 |
| Operating profit | NT$1.045bn (~US$33m) | — |
| Net income | NT$759m (~US$24.1m) | — |
| EPS | NT$5.88 (~US$0.19) | — |
| Cash dividend | NT$5.00 | 85% payout |
Cash and equivalents NT$1.868bn at year-end, plus time deposits over three months; cash on hand up more than NT$200m year on year. Debt ratio 31%. Book value NT$36.38.
Intra-year: Q1 the seasonal trough, Q3 the peak, Q3 utilisation close to Q2. Q4 gross margin eased as some high-ASP customers cut demand.
Early 2026: January revenue NT$462m, +19.8% YoY; February NT$401m, a slight increase on the year-earlier month.
NVIDIA 800V read-through
The question was asked in the right form: if server racks move to HVDC, does that change how much power-device content GEM packs?
The answer was that this sits with the end application. GEM is an OSAT. It follows the customer's drawing. It does not have a ready view of how device content per rack moves with architecture.
That is the honest 800V take. There is no mix figure, no named 800 V versus ±400 V rail, and no claim that clip or dual-side cooling is an 800V-specific process — even though those packages are exactly what a high-current conversion stage needs thermally.
What is in the 2025 numbers is the precursor: AI-server thermal systems, drones and industrial products, plus utilisation, are why GEM said it grew faster than peers. Top-side and dual-side cooling are in production so that customer silicon can run at higher power. SiC modules remain a co-development, not a disclosed revenue line.
Keep GEM as a packaging name whose HVDC BOM impact is unquantified, and whose near-term AI read is thermal.
Segments that moved
FY2025 revenue by application:
| Application | Share | Examples given |
|---|---|---|
| Consumer electronics | 40% | Air-con, lighting, appliances |
| PC | 19% | Desktop, notebook, AI PC |
| Industrial | 18% | Solar, drones, robots |
| Automotive | 13% | On-board chargers, inverters |
| Communications | 10% | Handsets, 5G, AI servers |
Plants: Shanghai Jiading and Hefei, combined capacity above 7 billion units a year. Hefei, built from 2020, now has infrastructure in place; the job is utilisation. A trading company sits in New Taipei.
Guidance
- Confidence framed around advanced thermal already in production, and around clip-packaged thermal systems continuing to expand as product power rises.
- Automotive slowed in 2025; a slow H2 2026 recovery is the base case.
- Gross margin still hinges on utilisation.
- 2026 capex US$24.4m, ~60% of new capacity to auto, industrial and AI PC.
Management Q&A
Q: View on the 2026 power-device cycle, and why did 2025 beat peers?
A: 2025 growth came mainly from AI-server thermal systems, drones and industrial products. Higher utilisation and a better mix were also important.
Q: Impact of the Nexperia control dispute?
A: Nexperia is one of GEM's customers. The dispute mainly affects the Dutch business, while GEM works mainly with Nexperia China, so the impact so far is limited. The company will keep watching.
Q: Will higher raw-material costs be passed through to customers?
A: GEM is still watching whether IDMs raise prices. For gold and other materials there is a mechanism to pass through or rebate in a timely way, and the impact is still within a controllable range.
Q: Expansion plans over the next two years, and where new capacity will go?
A: The 2026 capex budget is US$24.4m, mainly to add capacity. About 60% of the added capacity is earmarked for automotive, industrial and AI PC.
Q: More on AI-related thermal technology?
A: From conventional bottom-side cooling the company has developed top-side cooling and dual-side cooling. That gives customers a better thermal option so their products can run at higher power.
Q: Do the new thermal packages carry a higher gross margin?
A: For GEM, utilisation is the main driver of gross margin. The lift from 23% to 27% in 2025 was mainly utilisation, not a single product class.
Q: Why is this year's dividend payout as high as 85%?
A: The chairman said retained earnings already exceed one share of capital and cash is ample. After setting aside US$24.4m of capex there is still room to return cash, including an 85% payout and a NT$5 dividend, and the board is confident about new products moving into volume.
Q: How does a shift to HVDC rack power change power-device content?
A: That is more of an end-application question. GEM mainly foundries to customer specifications and cannot easily judge how device content will change at the rack.
Q: Which applications look good in 2026, and how is the auto market this year?
A: Clip-packaged thermal products are expected to keep growing. After a slower 2025, the auto market may recover gradually in the second half of 2026.
Disclaimer
English notes on GEM Services' investor conference of 10 March 2026, covering full-year 2025. Figures and statements are as presented by management, are unaudited, and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.