Testing time still on the uptrend; Buy: 2027 revenue growth scale might surpass 2026 on next-gen AI XPU, key ASICs, and CPU ramps

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Testing time still on the uptrend; Buy: 2027 revenue growth scale might surpass 2026 on next-gen AI XPU, key ASICs, and CPU ramps

Global Markets Research

King Yuan Electronics Corp 2449.TW 2449 TT 30 June 2026

EQUITY: OSAT

RatingTesting time still on the uptrend; Buy Remains Buy

Target price2027 revenue growth scale might surpass 2026 on next- Increased from TWD 390.00gen AI XPU, key ASICs, and CPU ramps TWD 360.00

Reiterate Buy with higher TP of TWD390, implying 27% upside Closing26 June price2026 TWD 308.00

In 2024, the reason behind our contrarian Neutral rating at that time was due to the

potential reducing testing time and share price outperformance (report). Testing time Implied upside +26.6%

continues to be a widely-discussed topic across testing supply chain, and we maintain our

view that once the testing processes for certain chips mature and move up the learning Market Cap (USD mn) 11,809.9

curve, the testing insertions could be streamlined. Simply put, some testing programs ADT (USD mn) 363.9

could be passed given high pass rates, to increase units per hour (UPH) and reduce costs

(for fabless), especially amid space/equipment constrained environment. Although we Relative performance chart

once thought its largest AI XPU customer would try its best to reduce the testing time into

next gen XPU (even before volume ramp), our recent survey suggests that testing time

still needs to double from Blackwell (before being trimmed down after mass production

stabilizes) – which is a positive read for the testing supply chain overall, in our view. We

believe testing time would only be clear once the manufacturing process has commenced, and

thus it is normal, in our view, to see pre-production trials come with a lot of variables. The new