IET-KY Director: National defense and optical communications are two major growth engines, and operations next year will be positive and optimistic

Semiconductor epitaxial crystal factory Intelligent Technology IET-KY (4971) held an online press conference today. IET-KY Chairman Gao Yongzhong is optimistic about next year's performance. Gao Yongzhong said that the US Federal Chip Act subsidy is expected to be signed by the end of the year. The second phase of the expansion of the new Texas plant is under implementation and is expected to be completed in the first quarter of next year. Although recently There are rumors that the construction of the AI data center may be delayed, but what we heard from the client is that it will continue to grow next year. IET-KY will expand the production of high-margin defense products, improve the supply of InP substrates, and mass-produce new products as its three major growth directions. Driven by the dual needs of national defense and AI high-speed optical communications, revenue and profits are expected to continue to grow.

Gao Yongzhong said that GaSb infrared detector epiwafers will benefit from defense customers' accelerated orders at the end of the year. It is expected that the scale of defense and commercial orders will continue to expand next year. The company plans to launch the fourth GaSb production machine next year to improve supply efficiency. GaAs products also received additional orders from major defense and commercial manufacturers in the fourth quarter, and the shipment momentum is expected to continue; indium phosphide (InP) remains Intelligent's largest core product line, benefiting from the growth in high-speed transmission demand in AI data centers, PIN Orders for PD epitaxial wafers continue to increase, but output is still limited by the shortage of InP substrate supply. The company is increasing sources of raw materials by assisting European suppliers to improve yields and grinding and recycling substrates by itself. Emerging APD and HBT epitaxial products are also preparing to be introduced into mass production next year.

Regarding new product research and development, we continue to develop quantum dot laser (QD Laser) and modified crystalline PIN (m-PIN) epiwafers. The initial R&D performance of QD Laser exceeded expectations, while m-PIN uses GaAs substrates with lower prices and relatively stable supply to grow InP. The PIN structure has the opportunity to enter part of the photoreceiver (PD) market when InP substrates are out of stock, reducing the dependence on traditional InP substrates and becoming an important technology layout for future AI high-speed optical communications. Gallium nitride (GaN) secondary growth has established an order-taking and local production model in Taiwan, and has regular customers placing orders regularly. The "rent-to-buy" contract for customized new material MBE machines is also nearing completion.