FinmoConf

Taiwan Semiconductor Earnings

GW Instek (2423.TW) · call date 2026-07-29

GW Instek (2423.TW) H1 2026 Earnings Call: HVDC and SST instruments in evaluation, 2027 growth if they land

H1 revenue +24% YoY; Q1 EPS NT$1.3. Shipping today is AI-server and liquid-cooling test gear. HVDC, SST and high-power PSU modules are in customer evaluation; 2027 double-digit growth if those land.

At a glance. A strong first half on test demand from AI servers, new energy and EVs — H1 revenue +24%, Q1 EPS NT$1.3. What is shipping is validation kit for today's AI-server power and liquid cooling. What is not shipping is the 800V-adjacent kit: HVDC-related instruments, solid-state transformers, and higher-power PSU modules are in customer evaluation. Management's own condition is that 2027 can stay double-digit if those land.

What changed this half

Orders and mix both improved. H1 revenue was up about 24% year on year; H1 bookings were up 10–15% on 2025, which is the base management is using for the second half. Power supplies, already half of sales, grew 31%; environmental test grew about 30–35%.

Three new products were launched into the high-end catalogue: the ATS-12000 automated test system for AC/DC and server PSUs, the SPS-A switching DC source, and the GDS-2000HD digital storage oscilloscope.

The 2027 growth kicker was named, and conditional. Higher-power PSU modules, solid-state transformers, and HVDC-related test equipment are in evaluation or development with customers. If those programmes are designed in, 2027 operations "have a chance" of double-digit growth. That is a pipeline, not a print.

The numbers

The complete P&L print on this call was Q1; H1 was given as growth rates, not an absolute revenue figure.

Q1 2026ValueChange
RevenueNT$820m (~US$26.0m)+28% YoY
Gross margin56%+3pp YoY (from 53%)
Net income+90%+ YoY
EPSNT$1.3 (~US$0.04)
Book value / shareNT$19.37Q1-end

H1 2026: revenue +24% year on year. Regional growth: China +39% (about 20–25% of sales), Japan and Europe/US nearly +20%, Taiwan about +50%. An FX gain of NT$7–8m (~US$0.2m) versus a NT$40m+ loss in H1 2025 helped the comparison.

Gross margin by line in H1: power supplies about 55%; measurement instruments 55–57%; environmental test 40–45%, diluted because some hosts are bought in from a Japanese partner. Solution packages are described as slightly richer than box-instrument sales, with longer cycles.

NVIDIA 800V read-through

GW Instek is a test name, not a rack or PSU shipper. The honest split on this call is between what is already leaving the dock and what is still in a customer's lab.

Shipping today. AI servers, motherboard test, in-vehicle IVI, plus air- and liquid-cooling validation. The instruments named were ASR-6000, PHU, PEL-5000C electronic loads, and DAQ. That is the current high-power / liquid-cooled AI-server generation. Management would not give an AI revenue share — sales go through distributors, and it does not have a clean end-application split.

In evaluation. Higher-power PSU modules, solid-state transformers, and HVDC-related test equipment. Those are the items that actually sit next to NVIDIA's diagram: SST / MV conversion on the way to 800 VDC, and the instruments that have to qualify it. There is no customer, no SOP date, and no revenue. The 2027 double-digit line is conditional on those programmes landing.

Do not upgrade "HVDC test gear in evaluation" into an 800 V product. The company is not on NVIDIA's list, and this half's growth is conventional AI-server and cooling validation, plus China/Taiwan restocking of power products.

Segments that moved

H1 2026 product share as disclosed (does not sum to 100%; the residual was not given):

LineH1 2026 shareNotes
Power products50%+31% YoY; ~55% GM
Measurement products19%~55–57% GM
Environmental testing18%+30–35% YoY; ~40–45% GM

Measurement instruments remain 80–90% of the group over a full cycle; environmental test and video security are the rest. The strategic pitch is a shift from selling boxes to selling integrated application solutions, using Prodigit's high-power electronic-load technology and the ASR-6000 / PHU families. AI data centers, new energy and EVs are the three named demand pools. India and Southeast Asia are the named new geographies.

Guidance

  • No numbered financial forecast — company policy.
  • H1 bookings +10–15% versus 2025; management is optimistic on the second half and will try to keep it no worse than the first half.
  • 2027: double-digit growth is possible if the high-power PSU-module, SST and HVDC test programmes are designed in. That is a condition, not a target.
  • AI-server customers have long qualification cycles and high reliability bars; management's answer is to keep spending on those accounts rather than to time a SOP.

Management Q&A

Q: H1 2026 production, qualification and shipments for AI and new-energy auto products, and the contribution in 2027?

A: Applications already shipping include AI servers, motherboard test and automotive IVI, which have driven large purchases of the ASR-6000, PHU series, PEL-5000C electronic loads and DAQ units, with wins in air- and liquid-cooling validation as well. Higher-power PSU modules, solid-state transformers and HVDC-related test gear are in customer evaluation or development; if those land, 2027 has a chance of remaining double-digit.

Q: Which regions and product lines drove H1 2026 growth?

A: China had the strongest growth at 39% and is about 20–25% of revenue; Europe/US and Japan also grew at a double-digit rate, with Japan about 10–15% of sales; Taiwan was up nearly 50%. On product lines, power supplies — the largest mix — kept growing, and environmental-test equipment grew 30–35%.

Q: Outlook for the second half of 2026?

A: The company does not give an external financial forecast. First-half orders were up 10–15% versus the same period of 2025, so the second half is still described as optimistic, and the aim is for the second half not to lag the first.

Q: Gross margin by product line in the first half?

A: Power supplies are about 55%. Measurement instruments are about 55–57%. Environmental-test equipment is about 40–45% because some hosts are purchased from a Japanese partner.

Q: Impact of sharp first-half FX moves on gains and losses?

A: Self-checked H1 2026 shows an FX gain of about NT$7–8m. In the same period of 2025, when the New Taiwan dollar rose, there was an FX loss of more than NT$40m.

Q: Progress of the lawsuit with Chroma?

A: The case is in Taiwan's Intellectual Property Court, at the evidence-and-pleadings stage, with outside counsel. Further results will be announced when there are any.

Q: How much does gross margin rise when moving from box sales into solutions?

A: On past experience, solutions carry a slightly higher gross margin than stand-alone instruments. The sales cycle is longer because of custom work, but pricing is better for that reason; the increment depends on the individual deal.

Q: Roughly what share of revenue is AI servers and new energy?

A: Most sales go through distributors, so collecting end-customer application data is difficult. Management said it has no clear revenue-mix figure to give.

Disclaimer

English notes on Good Will Instrument's (GW Instek) investor conference of 29 July 2026, covering the first half of 2026. HVDC, SST and high-power PSU-module work is as described by management — in customer evaluation, not a shipping 800 V line. 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.

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