At a glance. A record quarter on notebooks and networking, but the AI server line actually fell sequentially on a customer platform change. The 800V angle is a single product: a claimed globally unique 800 V EC fan for data-center infrastructure, with first shipments guided for August.
What changed this quarter
AI server revenue fell sequentially even as the group set a record, on a customer product transition and component shortages. Within the AI mix, GPU platforms rose from 28% of 2025 to 37% in Q1, while ASIC platforms fell from 72% to 63%.
An 800 V EC fan was presented as a first. Management said it had developed the world's only 800 V EC fan, sized from 20 cm to over 90 cm, with unit prices reaching into the hundreds of US dollars, and that it had contact and expressions of interest from more than 20 of the 34 major global infrastructure vendors, with shipments starting in August.
The numbers
| Q1 2026 | Value | Change |
|---|---|---|
| Revenue | NT$5.02bn (~US$159m) | +2% QoQ, +20.6% YoY |
| Gross margin | 31.7% | above 2025 average |
| Operating margin | 15.7% | — |
| Net margin | 12.9% | — |
| EPS | NT$2.36 (~US$0.07) | — |
FY2025 EPS was NT$7.94, with a proposed cash dividend of NT$5.5.
NVIDIA 800V read-through
Take the claim and the caveat together.
The 800 V EC fan is a genuine architectural read. NVIDIA's Vera Rubin generation pairs 800 VDC with 45°C liquid cooling and a liquid-cooled busbar, but heat still has to leave the building, and the equipment doing that increasingly sits on the same high-voltage rail as everything else. A fan rated for the new bus is a real requirement, not a marketing exercise.
The caveat is that "only one in the world" is a company claim, and none of it is in the numbers yet. The August ship date is the thing to check. Until then, Sunonwealth's reported business is conventional AI-server thermal — and this quarter that business went sideways.
Management's stated long-term growth pair is water cooling plus data-center EC fans, not the legacy notebook and appliance fan business.
Segments that moved
| Application | Q1 2026 share | Change |
|---|---|---|
| Networking and servers | 60.6% | +4.2% QoQ, +24.5% YoY |
| IT and office equipment | 15.6% | flat QoQ, +31.9% YoY |
| Industrial and medical | 8.8% | −3.3% QoQ, +12.1% YoY |
| Automotive | 8.2% | −0.4% QoQ, +1.8% YoY |
| Distribution | 4% | −2% QoQ, +16.1% YoY |
| Home appliance | 2.3% | +10.1% QoQ, −11.9% YoY |
Total server revenue was NT$2.329bn, 47.3% of the group, of which AI servers were NT$1.11bn, or 22.6%.
Margin ranking by product: AI servers and distribution highest; industrial equipment next; IT notebooks and automotive in the middle; home appliances lowest.
Guidance
- Q2 2026 described as very optimistic, with significant revenue growth expected.
- Full year driven by servers and networking, with the second half better than the first.
- Long term, water cooling and data-center EC fans are the two named engines.
Management Q&A
Q: How is the ASIC versus GPU mix of AI-server revenue changing?
A: In Q1 2026, GPU was 37% of AI-server revenue and ASIC 63%. Versus full-year 2025, when GPU was 28% and ASIC 72%, the GPU-related mix is rising.
Q: Will next-generation AI-server platforms such as Vera Rubin go fully to water cooling and cut fan demand?
A: No. New platforms still include PCIe-architecture designs that remain mainly air-cooled, so fan demand continues. Sunon said it is present on those programmes.
Q: What is the shipment progress and timetable for cold plates?
A: A first batch shipped in Q1 2026. Production lines are due to finish in Q2, small-lot shipments to brand customers are expected in Q3, and volumes should build from Q4.
Q: What is the outlook for Q2 2026 and the full year?
A: Q2 is described as very optimistic. For the full year, the second half should be better than the first. The strongest growth engines are servers, networking and power supplies.
Q: When management mentioned a materials shortage, was that at Sunon or at customers?
A: It is a long/short-material problem at customers, especially in mainland China, which led them to pause pull-in. Some orders have been deferred to June, when momentum is expected to recover.
Q: What is the 2026 outlook for general servers?
A: The market is estimated at single-digit growth, but as a major supplier Sunon sees growth well beyond single digits.
Q: What will be the main growth driver in 2027?
A: EC fans will be the key: they go into data-center infrastructure, at high unit prices and with large market potential. Talks are under way with several international vendors; shipments are expected from August this year, with a significant contribution next year.
Q: What is the competitive set and unit price for EC fans?
A: The main competitors are two German specialists; Sunon says its products can match or even exceed them on performance. These are high-priced parts — a 20 cm fan is in the US$100 class, and larger sizes are disproportionately more expensive.
Q: What is driving growth in the telecom business?
A: The driver is data-center upgrades to 800G and 1.6T switches. Sunon is offering both air- and water-cooling; the air-cooled solution uses the same class of dual-rotor fans as AI servers.
Disclaimer
English notes on Sunonwealth Electric Machine Industry's investor conference of 8 May 2026, covering Q1 2026. Product claims including the "world's only" framing are as stated by management. 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.