Scientech Corp. CEO Hsu Ming-Chi, a key supplier to Taiwan Semiconductor Manufacturing Co. (TSMC), downplayed investor worries regarding the pace and scale of AI spending, asserting that the demand for AI chips will fuel substantial growth in the semiconductor sector over the coming years. He noted that while the overall chip market has expanded by about 8% annually over the last two decades, AI semiconductors are projected to grow at a much higher rate. Hsu believes the "booming of the AI industry has just begun" and pointed out that equipment sales to "the most prominent company" have increased two to three times in a single year.
Hsu's comments came after Nvidia Corp. reported earnings that fell short of lofty investor expectations, leading to a 9.5% tumble in Nvidia's shares, wiping out $278.9 billion. Despite these market jitters, Hsu remains optimistic, anticipating sequential quarterly sales growth for Scientech in the second half of the year, following a 4.61% increase in second-quarter revenue to $71.4 million (NT$2.29 billion) from the prior quarter. He also expressed confidence in the future launch of numerous AI applications.
Scientech specializes in advanced packaging equipment, including those used in TSMC’s chip-on-wafer-on-substrate (CoWoS) technology crucial for AI chip production for companies like Nvidia. The company's net profit in the first half of the year surged by 45.5% year-on-year, and its share price has climbed 76.4% since the beginning of the year. Scientech has also booked $415 million (NT$13 billion) in contract liabilities, indicating robust customer demand and potential revenue growth for several years, with order visibility extending through 2028. To meet this demand, Scientech is expanding its manufacturing capacity with new factories in Hsinchu County and Tainan, with the Hukou Second Plant completing its topping-out ceremony on March 23, 2026, and operations expected to start by year-end to double its own-brand equipment capacity by 2028. The company anticipates that its own-brand equipment and reclaimed wafers revenue will exceed 50% of total revenue this year, up from 40% previously. Scientech also plans to establish a sales and services office in the U.S. by the first half of next year to support a major customer's advanced packaging fab in Arizona. The company estimates the global semiconductor industry could reach $1 trillion this year, earlier than most industry forecasts.
