J.P.Morgan Asia Pacific Equity Research: Taiwan First to Market

Research evidence excerpt

Asia Pacific Equity Research

Taiwan First to Market

18 August 2026

Top Stories

Jentech Precision Industrial Co. (William Yang) (3653 TT, OW)

Stronger content growth; OW

We revise up our estimates on the company and keep OW. We believe the company will continue to deliver quality earnings

growth in the future with solid GM given better mix. For the longer-term outlook, we are more constructive on the company’s

2027 and 2028 growth potential, as the heat spreader content growth of Rubin Ultra GPU (with the potential design of stiffener

+ disposable lid + additional screws) could be 2-4x vs the current Rubin 1-piece lid design. We also believe the continued heat

spreader spec upgrade of both AMD GPU and each CSP ASIC will support structural growth for Jentech as well. OW.

Power industry (Albert Hung)

Read-through from Lite-On NDR meeting

Lite-On Technology (2301 TT, NC) held a Non-deal Roadshow (NDR) call on 14 Aug (Fri). Key takeaways included:

Continued revenue growth in 2H26 with margin expansion. Lite-On expects high-teens to ~20% QoQ revenue growth in

3Q26, with a further step-up in 4Q26. This is consistent with Delta’s view of above-seasonal revenue growth in 3Q26 and a

further uptick in 4Q (JPMe +16%/+14% QoQ in 3Q/4Q). On margins, the company attributed 2Q26 GM strength (27.2%,

+450bps QoQ) to a mix shift towards AI server products and scale benefits. Looking ahead, Lite-On guided for continued

margin expansion through 2H26, supported by new product ramps (2.5kW DC/DC brick, BBU, power rack) and cost passthrough to customers. This aligns with Delta’s view of a steady 3Q26 and improving 4Q26 GMs.

Alchip Technologies (Gokul Hariharan) (3661 TT, OW, PT NT$6,750.00)

Stronger Trn3 ramp, more confident on Trn4, and an optionality in Google TPU; Raise PT to NT

$6,750

We raise our FY27-28E EPS estimates by 3%/16% and our Jun-27 PT to NT$ 6,750 (25x 12m forward earnings), reflecting

upside to Trainium 3 shipments in 2027, stronger ramp with more involvement from Alchip for Trn4 in 2028, and the potential

optionality to gain some turnkey work in the upcoming Google TPUv10. In 2026 and 2027, we expect Alchip’s revenue potential

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