At a glance. The year Lite-On's AI power business became material — AI passed 20% of revenue — and the first call to put the 800V DC cabinet on a factory calendar: prototype testing through 2026Q3, small volume in 2026Q4, ramp in 2027Q1. It also revealed an internal solid-state transformer programme, which reaches above the rack into the layer NVIDIA reserves for medium-voltage conversion.
What changed this quarter
800V got its first dates. Prototypes were in test, with small-batch production guided to 2026Q4 and volume to 2027Q1. What was actually entering production in 2026Q1 was the prior generation: a 50V (±400V) DC power rack for a lead customer. Management was explicit that the market was rotating from that rail toward 800V HVDC.
A solid-state transformer effort was disclosed. Lite-On said it had established an internal R&D centre for SST and was seeking external development partners. NVIDIA's architecture assigns SSTs the job of converting medium-voltage AC directly to 800 VDC at up to 7.5 MVA.
An 800V BBU was announced for 2026, using different cells and a different design from the current generation, developed with new industry-leading suppliers alongside existing ones.
Lite-On acquired Uz Networks to combine 5G, AI-RAN, and fixed wireless access capability.
The numbers
| FY2025 | Value | Change |
|---|---|---|
| Revenue | NT$166.1bn (~US$5.3bn) | +21% |
| Gross margin | 22.9% | +1.3pp |
| Operating margin | 10.1% | +0.7pp |
| Net income | NT$15.1bn (~US$480m) | +27% |
| EPS | NT$6.64 (~US$0.21) | Multi-year high |
Q4 2025: revenue NT$44.4bn (+16% YoY, −1% QoQ), gross margin 21.7%, operating profit NT$4.7bn (+33%) at a 10.5% margin, net income NT$3.86bn (+27%), EPS NT$1.70.
The sequential revenue dip came from DRAM shortages slowing non-cloud pull-ins. On margin, management clarified that Q3's 25% was inflated by tariff accounting and normalised to roughly 23%, close to Q4's 21.7%.
R&D reached 5.3% of revenue, up nearly 20%. Capex was about NT$7bn in 2025, guided to NT$11bn in 2026. The full-year dividend was NT$5 per share, roughly a 75% payout.
NVIDIA 800V read-through
Three things here matter more than the headline numbers.
The sequencing is now explicit. 50V/±400V racks in 2026Q1, 110kW Power Shelf in 2026Q2, 800V DC cabinet samples in 2026Q4, volume 2027Q1. Anyone modelling 800V revenue before 2027 is early, and Lite-On said so.
Storage is being redesigned for the new voltage. BBU demand was already tight enough that expanded capacity only just met it, and the 2026 product is a purpose-built 800V BBU. This tracks NVIDIA's treatment of energy storage as part of the architecture rather than an accessory.
SST takes Lite-On above the rack. Combined with the liquid-cooling line — CDU and RDHS pushed a month to March 2026 production for quality reasons, shipping from Q2 — the company is assembling the full 800 VDC block rather than a component.
Lite-On said it would show a next-generation 800V DC megawatt-class power cabinet integrated with liquid cooling at GTC.
Segments that moved
Cloud and IoT reached 45% of 2025 revenue and grew over 70%, driven by 33kW Power Shelf and BBU. Q4 cloud revenue alone was up close to 70% year on year.
IT and consumer electronics was 38% of the year, repositioned toward high-end industrial and LEO satellite power, where Lite-On holds over 50% share.
Optoelectronics held 17%, with growth in high-end invisible-light products for sensing, industrial, AI power, and storage.
High-value businesses — cloud plus optoelectronics — rose from 51% of revenue in 2021 to 62% in 2025.
Guidance
- Q1 2026 expected to grow both sequentially and year on year in core businesses.
- Full-year 2026 described as very positive: AI growth should more than offset consumer weakness, with gross and operating margins better than 2025.
- AI revenue share targeted above 30% in 2026, up from over 20% in 2025, with a long-term ambition above 50%.
- DRAM shortage impact already modelled: IT products down 6–8%, phones down 4–5%.
Management Q&A
Q: Why did inventory days rise at the end of 2025, and what is the 2026 capex plan?
A: Inventory days rose for two reasons: strategic stocking of precious-metal and other inputs against price swings, and a DRAM shortage that delayed some finished-goods shipments. Capex was about NT$7bn in 2025 and is expected to rise to NT$11bn in 2026, mainly to expand Kaohsiung phase two and Vietnam phase two, plus R&D equipment and labs for high-power new products.
Q: What is the progress on the 400V power rack, thermal programmes, and SST?
A: The rack in production is a 50V (±400V) DC power rack, which began volume shipments to a lead customer in 2026Q1; the market trend is moving toward 800V HVDC. CDU and RDHS shipments were delayed about one month for reliability, entering production in March and shipping from Q2. An internal SST R&D centre is already running, and external partners are being sought for joint development.
Q: Why was the 2026 AI revenue share raised to 30%, and which products drive it?
A: 2025 AI revenue share came in above 20%, meeting the target. 2026 is more optimistic, with a share above 30%, driven by higher-priced 110kW Power Shelf units and a new Power Rack line, plus more AI use in optoelectronics and networking products.
Q: How should full-year 2026 be read, and how much does the DRAM shortage hit consumer products?
A: IT products are already modelled down 6–8% and phones down 4–5%. Strong AI growth, plus industrial-control and standard-power work outside PCs, is expected to more than offset that, so management is very optimistic on full-year revenue and profit, with gross and operating margins likely better than 2025 on mix.
Q: What is the impact of PMIC and other component price increases and shortages?
A: Supply-chain price swings are familiar and already covered by standard processes. Cost pressure is shared with upstream and downstream partners, and the operational impact is not expected to be large.
Q: How tight is BBU demand this year, and what is the capacity plan?
A: BBU demand remains tight, and last year's added capacity only just covers customer needs, so capacity will keep rising. A new 800V BBU with different cells and design is also due in 2026.
Q: What is the partner strategy for the 800V BBU?
A: Existing suppliers stay in the programme, and Lite-On will add new, industry-leading suppliers to co-develop high-voltage cells and other critical parts.
Q: Why did Q4 2025 gross margin fall sequentially, and when does the 800V DC power cabinet enter production?
A: Q3's 25% gross margin was inflated by the tariff accounting treatment; restated it was about 23%, close to Q4's 21.7%. Q4 mix was also hurt because DRAM shortages delayed high-power shipments. For the 800V VDC cabinet, prototype testing is expected to finish in 2026Q3, small-batch production is possible in Q4, and real volume is in 2027Q1.
Disclaimer
English notes on Lite-On's investor conference of 25 February 2026, covering Q4 and full-year 2025. Figures and statements 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.