WT Microelectronics and WPG Holdings post record-breaking Q1 results!

01  WT Microelectronics and WPG Holdings Both Set New Quarterly Performance Records

WT Microelectronics reported consolidated self-reported revenue of approximately NT$194.1 billion for March 2026, an increase of about 119% compared to the same period last year and a rise of about 86% compared to the previous month, marking the second-highest level in its history. Cumulative consolidated revenue for the first quarter reached approximately NT$494.3 billion, an increase of about 100% year-on-year, setting a new quarterly record and exceeding the upper end of the NT$460–490 billion forecast provided in the previous earnings call.

WT Microelectronics did not provide a separate explanation for the March revenue increase in its monthly announcement. However, some Taiwanese media outlets indicated that the March performance was mainly driven by growing demand in data centers and communications.

During its March earnings call, WT Microelectronics not only provided its first-quarter revenue forecast but also set targets for first-quarter profitability. The company estimated a gross margin of approximately 3.2% to 3.3%, an operating margin of 1.75% to 1.85%, and after-tax net profit of NT$5.674 billion to NT$6.486 billion. Based on the midpoint, this represents a 45% sequential increase and a 125% year-over-year increase.

On the WPG Holdings side, consolidated revenue for March reached NT$141.65 billion, representing a 77.8% month-over-month increase and a 28.6% year-over-year increase, setting a new record. This drove first-quarter consolidated revenue to NT$316.5 billion, up 23.9% sequentially and 27.2% year-over-year. Not only did this exceed the original forecast range of NT$255 billion to NT$275 billion, but it also marked the first time the company's quarterly revenue surpassed the NT$300 billion mark.

WPG Holdings noted that the continued expansion of demand for AI applications, high-performance computing, and data centers, along with strong pull-in momentum for AI and traditional servers, memory, power supplies, networking, and related electronic components, boosted overall operating performance.

During its March earnings call, WPG Holdings also mentioned that the proliferation of generative AI is driving global data center construction, with demand for high-performance computing, AI servers, and next-generation memory expanding simultaneously. This is also driving upgrades in power management, network communication equipment, and high-speed connectivity components, creating structural demand in the semiconductor supply chain.

WPG Holdings further stated that the revenue momentum in the first quarter of 2026 came mainly from: AI servers and high-performance computing driving pull-in momentum for related electronic components; industrial and automotive markets in Europe and the US returning to healthy inventory levels, with end-market demand recovering; and the continued growth of its Laas (Logistics as a Service) business, which positively contributed to the overall gross margin.

In addition to revenue, for the first quarter of 2026, based on an assumed exchange rate of NT$31.5 to US$1, WPG Holdings expects an operating profit margin of 2.36% to 2.52% and after-tax net profit of NT$3.616 billion to NT$4.201 billion.

02  Performance Since the Beginning of the Year

Based on their first-quarter performance this year, both WT Microelectronics and WPG Holdings delivered results that exceeded expectations. WT Microelectronics' first-quarter revenue nearly doubled year-on-year, approaching NT$500 billion, while WPG Holdings broke through the NT$300 billion mark for a single quarter for the first time. Both companies surpassed their high-end financial forecasts.

Looking first at WT Microelectronics. The company's monthly revenues for this year were NT$195.7 billion, NT$104.4 billion, and NT$194.1 billion, respectively, with month-over-month changes of +98.49%, -46.65%, and +85.88%, and year-over-year changes of +151.67%, +28.98%, and +118.87%. January and March of this year recorded the highest and second-highest monthly revenues in the company's history, respectively, driving first-quarter revenue to NT$494.273 billion, a year-over-year increase of 99.77%.

Market analysts point out that given WT Microelectronics' first-quarter revenue has already exceeded forecasts, it is expected that the company's first-quarter profit will reach the upper end of its guidance, or even surpass it further.

                                              Wenye Monthly Revenue Summary; Source: Yahoo! Finance

WT Microelectronics' consolidated revenue for the full year last year surpassed the NT$1 trillion mark for the first time, and its first-quarter performance this year has already approached NT$500 billion. The market expects that if exchange rate fluctuations and geopolitical factors do not have a significant impact, WT Microelectronics should achieve steady growth in its operations this year. It is estimated that its performance in the second half of the year will be no worse than in the first half, and its overall annual profitability also has a chance to reach new heights.

Cheng Wen-tsung, Chairman of WT Microelectronics, previously stated during an earnings call that he expects the company's performance this year to see quite considerable growth.

Chairman Cheng noted that current observations indicate strong AI demand, mainly reflected in momentum from data centers and communications. On the non-AI side, industrial inventories have returned to healthy levels, and a continued recovery is expected this year. Regarding automotive electronics, the company is still monitoring inventory adjustments in the Asian market, while inventory levels in European and American markets have returned to healthy levels. Against the backdrop of increasing semiconductor content in automobiles, the company maintains a positive mid-to-long-term outlook. As for consumer electronics, mobile phones, and PCs, much will depend on end-market demand.

Lin Kuan-nan, Chief Financial Officer of WT Microelectronics, stated during the earnings call that the company's business growth in 2026 is driven by three main factors:

First, the continued strength of the AI data center sector. Revenue from AI data centers and communication products has already approached 60% of total revenue, with particularly strong demand for data center power components. Second, the completion of inventory adjustments in European and American markets and the resumption of end-market restocking, combined with the continued release of synergies from the Future Electronics acquisition. Future's business contributes approximately 10% of revenue and is biased toward higher gross margins, which is expected to significantly boost net profit. Third, a steady recovery in non-AI sectors such as automotive electronics in Asia, industrial, PC, and mobile phones, with end-market demand continuing to transmit upstream.

On the WPG Holdings side, its monthly revenues for this year were NT$95.2 billion, NT$79.7 billion, and NT$141.6 billion, respectively, with month-over-month changes of +1.96%, -16.27%, and +77.8%, and year-over-year changes of +44.57%, +9.40%, and +28.58%. The record-breaking performance in March was particularly outstanding, driving first-quarter consolidated revenue to NT$316.5 billion, surpassing the high-end forecast of NT$275 billion and setting a new all-time quarterly high.

                                                       WPG Monthly Revenue Summary; Source: Yahoo Kimo Stock

In addition to record-high revenue, WPG Holdings' profitability performance in recent quarters is also worth noting.

Beyond its distribution business, WPG Holdings has been actively expanding its Logistics as a Service (LaaS) footprint in recent years. As of the end of last year, the company's gross margin had climbed for five consecutive quarters, reaching 4.26% in the fourth quarter of last year. For the first quarter of this year, the gross margin is estimated to be in the range of 4.15% to 4.35%.

During its March earnings call, WPG Holdings pointed out that AI is driving rapid growth in computing power demand. The share of the company's computing-power-related applications has increased from 35% five years ago to 45%, becoming a key growth engine. In non-3C applications, the share of automotive and industrial markets has also risen from 21% to 27%.

From an end-market perspective, the company believes that tight memory supply may create a crowding-out effect on overall smartphone and notebook shipments. However, the penetration rate of AI phones and AI PCs continues to rise. At the same time, data center demand remains strong, with AI servers expected to grow approximately 17% this year.

WPG Holdings emphasized that in addition to GPUs and memory, the AI supply chain also includes many other components such as passive components, connectors, power management components, and networking switching equipment—all of which are key focus areas for distributors. In recent years, the company has been actively expanding its related product lines. In 2025, revenue from computing-related products grew approximately 25% year-over-year, while the automotive market growth rate also exceeded 26%.

                                                                                               Source: WPG Holdings Financial Report