Taiwan Electronic Components & Equipment: Investor Feedback and Key Questions Post BBU Sector Report and Dynapack Initiation

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Taiwan Electronic Components & Equipment: Investor Feedback and Key Questions Post BBU Sector Report and Dynapack Initiation

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12 Jul 2026 17:12:41 ET │ 11 pages

Taiwan Electronic Components & Equipment

Investor Feedback and Key Questions Post BBU Sector Report and

Dynapack Initiation

CITI'S TAKE

Following our Dynapack (3211.TWO) initiation and BBU sector report,

investor feedback has generally been constructive. Most investors appear

interested in the BBU theme particularly given rising AI rack power density, Angela HsuAC

increasing adoption of rack-level backup power, and the potential for the +886-2-8726-9083

higher BBU content value. Dynapack is viewed as an interesting stock idea angela.hc.hsu@citi.com

to gain exposure to the BBU growth cycle, given its improving sales mix,

margin expansion potential and direct exposure to AI power architecture

evolution. We highlight several key questions below.

1. Would a delay in HVDC rack commercialization or next generation GPU

platforms impact the investment thesis? We think a delay in HVDC

commercialization could postpone the upside from higher-power BBU products but

should not derail the investment thesis. Near-term BBU demand is primarily driven

by rising AI rack power density under existing rack scale architecture and the

continued ramp of 3kW/5kW products, followed by 8kW/12kW BBU in 4Q26E.

HVDC should be viewed as an incremental long-term content value driver, rather

than a necessary condition for BBU adoption.

2. What is the timeline for Dynapack’s HVDC BBU products? Dynapack is working

on higher-power BBU products including 25kW modules. We expect product

verification to take place around 1H27E, with limited initial shipment potentially

starting in 2H27E.