J.P. Morgan Asia Technology Tracker 23 Jun 26 Chipbond Technology; Innostar Service and More

Research evidence excerpt

J.P. Morgan Asia Technology Tracker 23 Jun 26 Chipbond Technology; Innostar Service and More

Asia Pacific Equity Research

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Asia Technology Tracker 23 June 2026

Asia Reports/Notes

Chipbond Technology (Neutral), Taiwan

Silicon Photonics to drive revenue growth and GM uptick, raise PT to NT$ 225; Neutral (Gokul

Hariharan)

Chipbond's stock has surged 4x+ YTD (vs. TWSE +65%), primarily driven by its penetration into the Silicon

Photonics supply chain (highlighted by a key customer win in networking switches), strong RF bumping

demand from iPhone, and a long awaited GM recovery following the 2Q26 price hike. The company's foray

into SiPh—providing gold bumping services for EIC/PIC chipsets—has secured several customer wins, and

we expect SiPh to contribute 5%+ of revenue in 2026 with continued growth thereafter. However, the DDIC

segment, which still accounts for 65%+ of revenue, is likely to see sluggish growth over the next few

quarters amid lukewarm CE and smartphone demand in 2H26 following 1H pull in. Incorporating the SiPh

contribution and strong adoption across multiple customers for gold bumping, we are raising 2026 EPS ests

by 8% and introduce 2027/28 EPS of NT$7.89/NT$10.01 with a Jun-27 PT of NT$ 225 (25x 12m forward

earnings, much higher than historical range due to the new SiPh driver). Chipbond is now trading at over

35x 2027E EPS, which appears somewhat demanding, given SiPh is still likely to be only 20% of revenue in

2028.