King Yuan Electronics Co Ltd: Longer burn-in and strong CPU demand drive revenue upside

Research evidence excerpt

King Yuan Electronics Co Ltd: Longer burn-in and strong CPU demand drive revenue upside

Idea

June 22, 2026 03:45 PM GMT

Morgan Stanley Taiwan Limited+MKing Yuan Electronics Co Ltd | Asia Pacific Charlie Chan

Equity Analyst

Longer burn-in and strong CPU Charlie.Chan@morganstanley.comDaniel Yen, CFA +886 2 2730-1725

Daniel.Yen@morganstanley.com +886 2 2730-2863

demand drive revenue upside Morgan Stanley Asia Limited+

Daisy Dai, CFA

What’s Changed Equity Analyst

King Yuan Electronics Co Ltd (2449.TW) From To Daisy.Dai@morganstanley.com +852 2848-7310

Price Target NT$338.00 NT$388.00

Morgan Stanley Taiwan Limited+

Tiffany Yeh

Equity AnalystCPU demand from the largest customer should grow robustly in

Tiffany.Yeh@morganstanley.com +886 2 7712-3032

2027. Next-gen XPU burn-in is also running longer than we

Lucas Wang

Research Associateexpected. Raise our price target to NT$388 and reiterate OW.

Lucas.Wang@morganstanley.com +886 2 2730-2875

Next-generation XPU burn-in time is longer than we expected, suggesting 3-5%

revenue upside in 2026: Over the past two months, KYEC’s share price has been

relatively subdued (up 12%) vs. ASE's (>40%), mostly as the largest customer’s R-

series XPU slipped slightly. (The TAIEX is up 22%.) However, as we noted in Asia AI

Summit 2026 Feedback , R-series XPU should start contributing in late 2Q26 and

King Yuan Electronics Co Ltd (2449.TW, 2449 TT)

ramp quickly in 3Q26. Moreover, our recent industry checks suggest that R-series

Greater China Technology Semiconductors | Taiwan

XPU burn-in time could double from our initial forecast, to 5-6 hours, owing to

Stock Rating Overweight

thermal design challenges, driving 3-5% 2026e revenue upside. Industry View Attractive

Price target NT$388.00