Wah Lee Industrial (3010), a supplier of high-tech materials and equipment, announced its financial results for the third quarter of 2026. With continued growth in demand related to artificial intelligence (AI), high-performance computing (HPC), and semiconductors, profitability remained strong in the third quarter. Quarterly gross profit reached a record NT$2.06 billion, up 28.7% year over year, while operating profit rose 34% year over year to NT$1.06 billion, the second-highest level on record. Earnings per share (EPS) were NT$3.46, also near historical highs. EPS for the first nine months reached NT$9.4, setting a record for the period.
Third-quarter consolidated revenue reached a record NT$25.54 billion, up 32.1% year over year and 7.1% quarter over quarter. Gross profit increased 3.3% quarter over quarter to NT$2.06 billion, while operating profit rose 4.5% quarter over quarter to NT$1.06 billion. As its operating scale expanded, Wah Lee maintained strong profitability in its core business, reflecting contributions from high-end applications such as AI and semiconductors.
For the first nine months, Wah Lee reported consolidated revenue of NT$71.22 billion, up 22.5% year over year; gross profit of NT$5.82 billion, up 27.7%; and operating profit of NT$2.9 billion, up 42.6%. All three metrics set records for the period. Operating profit growth significantly outpaced both revenue and gross profit growth, demonstrating improved profitability in the core business. Nine-month EPS reached NT$9.4, also setting a record for the period.
In the semiconductor sector, strong demand for AI and high-performance computing (HPC), together with the accelerating development of agentic AI applications, is driving increased demand for AI accelerators, CPUs, and data center networking chips. Demand for advanced process and advanced packaging capacity remains high. Wah Lee observes that major customers remain highly confident in market demand over the coming years and are increasing capital expenditure and accelerating the build-out of advanced capacity to capture the long-term growth opportunities presented by AI and HPC.
Benefiting from customers’ production ramp-ups and capacity expansions in advanced processes, Wah Lee’s semiconductor materials business maintained strong growth momentum. Key products, including photoresists, polishing slurries, advanced packaging materials, electronic-grade specialty gases, and bulk chemicals, all recorded high double-digit growth. In particular, the company has further strengthened its materials supply position at next-generation advanced process nodes. As customers expand advanced capacity, demand for related materials is expected to increase in tandem, further supporting growth in the semiconductor materials business.
In AI server smart manufacturing, the accelerating expansion of AI infrastructure is creating opportunities for Wah Lee’s integrated solutions covering AI server assembly and test automation. Related projects have gradually increased in scale, driving multiple-fold revenue growth in the smart applications business year to date. Looking ahead to 2027, customers have begun preliminary planning for next-generation AI server platforms and new factory projects in southern Taiwan, and demand for automation equipment is expected to remain solid. Meanwhile, as computing performance and power consumption rise in next-generation AI servers, demand for high-end thermal management materials is also increasing rapidly. Wah Lee’s thermal adhesive materials for high-wattage motherboard applications, which have already entered mass production, are expected to see further volume growth, providing an additional growth driver for the smart applications business next year.
The PCB materials market is benefiting from strong demand for AI servers, high-speed switches, and application-specific integrated circuits (ASICs), fueling a buoyant market for high-end copper-clad laminates (CCLs). Wah Lee’s related business has also recorded multiple-fold growth year to date. The market is now undergoing a transition between product generations. Looking ahead to 2027, as U.S. cloud service providers (CSPs) advance their next-generation ASIC platforms, specifications for low-loss, high-frequency, high-speed materials are becoming more demanding. Wah Lee is working with customers to qualify next-generation high-end materials, which are expected to become key products next year. In addition, the company has actively expanded its PCB customer base in recent years and broadened its high-end materials supply coverage, positioning it to capture order opportunities across different end customers and platforms.
In high-resolution dry films, the rapid development of high-end applications such as AI GPUs, ASICs, HPC, and HBM is driving strong demand for ABF substrates, with the supply-demand gap expected to persist through 2028. Wah Lee is working with its principal suppliers to deepen its presence among major substrate customers and pursue opportunities associated with new manufacturing sites and next-generation products. In addition to AI server boards and optical communications boards, its high-sensitivity dry films have successfully entered low-Earth-orbit satellite applications, joining the supply chain for ground reception equipment used by a leading international satellite operator. As customers bring additional Southeast Asian capacity online, the Thailand market is expected to achieve double-digit growth next year, further expanding the company’s reach in AI, high-end substrates, and emerging applications.
In high-performance engineering plastics, the expansion of AI data centers is increasing requirements for high-speed, low-latency data transmission. Optical communication is evolving from a supporting role in network transmission into a critical component of efficient AI computing, driving demand for high-density, miniaturized fiber-optic connection components. The high-performance engineering plastics distributed by Wah Lee are already widely used in optical communications products, including fiber-optic connectors (FOCs) and fiber-optic lens components (FOLs). With the expansion of AI data centers and upgrades to high-speed optical communications architectures, the company expects the related business to sustain double-digit growth in 2027.
Third-quarter consolidated revenue reached a record NT$25.54 billion, up 32.1% year over year and 7.1% quarter over quarter. Gross profit increased 3.3% quarter over quarter to NT$2.06 billion, while operating profit rose 4.5% quarter over quarter to NT$1.06 billion. As its operating scale expanded, Wah Lee maintained strong profitability in its core business, reflecting contributions from high-end applications such as AI and semiconductors.
For the first nine months, Wah Lee reported consolidated revenue of NT$71.22 billion, up 22.5% year over year; gross profit of NT$5.82 billion, up 27.7%; and operating profit of NT$2.9 billion, up 42.6%. All three metrics set records for the period. Operating profit growth significantly outpaced both revenue and gross profit growth, demonstrating improved profitability in the core business. Nine-month EPS reached NT$9.4, also setting a record for the period.
In the semiconductor sector, strong demand for AI and high-performance computing (HPC), together with the accelerating development of agentic AI applications, is driving increased demand for AI accelerators, CPUs, and data center networking chips. Demand for advanced process and advanced packaging capacity remains high. Wah Lee observes that major customers remain highly confident in market demand over the coming years and are increasing capital expenditure and accelerating the build-out of advanced capacity to capture the long-term growth opportunities presented by AI and HPC.
Benefiting from customers’ production ramp-ups and capacity expansions in advanced processes, Wah Lee’s semiconductor materials business maintained strong growth momentum. Key products, including photoresists, polishing slurries, advanced packaging materials, electronic-grade specialty gases, and bulk chemicals, all recorded high double-digit growth. In particular, the company has further strengthened its materials supply position at next-generation advanced process nodes. As customers expand advanced capacity, demand for related materials is expected to increase in tandem, further supporting growth in the semiconductor materials business.
In AI server smart manufacturing, the accelerating expansion of AI infrastructure is creating opportunities for Wah Lee’s integrated solutions covering AI server assembly and test automation. Related projects have gradually increased in scale, driving multiple-fold revenue growth in the smart applications business year to date. Looking ahead to 2027, customers have begun preliminary planning for next-generation AI server platforms and new factory projects in southern Taiwan, and demand for automation equipment is expected to remain solid. Meanwhile, as computing performance and power consumption rise in next-generation AI servers, demand for high-end thermal management materials is also increasing rapidly. Wah Lee’s thermal adhesive materials for high-wattage motherboard applications, which have already entered mass production, are expected to see further volume growth, providing an additional growth driver for the smart applications business next year.
The PCB materials market is benefiting from strong demand for AI servers, high-speed switches, and application-specific integrated circuits (ASICs), fueling a buoyant market for high-end copper-clad laminates (CCLs). Wah Lee’s related business has also recorded multiple-fold growth year to date. The market is now undergoing a transition between product generations. Looking ahead to 2027, as U.S. cloud service providers (CSPs) advance their next-generation ASIC platforms, specifications for low-loss, high-frequency, high-speed materials are becoming more demanding. Wah Lee is working with customers to qualify next-generation high-end materials, which are expected to become key products next year. In addition, the company has actively expanded its PCB customer base in recent years and broadened its high-end materials supply coverage, positioning it to capture order opportunities across different end customers and platforms.
In high-resolution dry films, the rapid development of high-end applications such as AI GPUs, ASICs, HPC, and HBM is driving strong demand for ABF substrates, with the supply-demand gap expected to persist through 2028. Wah Lee is working with its principal suppliers to deepen its presence among major substrate customers and pursue opportunities associated with new manufacturing sites and next-generation products. In addition to AI server boards and optical communications boards, its high-sensitivity dry films have successfully entered low-Earth-orbit satellite applications, joining the supply chain for ground reception equipment used by a leading international satellite operator. As customers bring additional Southeast Asian capacity online, the Thailand market is expected to achieve double-digit growth next year, further expanding the company’s reach in AI, high-end substrates, and emerging applications.
In high-performance engineering plastics, the expansion of AI data centers is increasing requirements for high-speed, low-latency data transmission. Optical communication is evolving from a supporting role in network transmission into a critical component of efficient AI computing, driving demand for high-density, miniaturized fiber-optic connection components. The high-performance engineering plastics distributed by Wah Lee are already widely used in optical communications products, including fiber-optic connectors (FOCs) and fiber-optic lens components (FOLs). With the expansion of AI data centers and upgrades to high-speed optical communications architectures, the company expects the related business to sustain double-digit growth in 2027.
