TAIPEI (Taiwan News) — Strong demand for AI chips continued to support Taiwan's semiconductor equipment industry in the second quarter, with growth varying across different types of equipment.
As demand grew for cooling solutions used in high-power AI chips, thermal control equipment suppliers Hon. Precision and Horng Terng Automation posted the strongest gains. Manufacturers focused on wet process equipment, including Grand Process Technology, Gallant Micro Machining, and Scientech, reported slower revenue growth, according to Sinotrade.
Hon, which provides semiconductor testing automation equipment, including chip handlers and active thermal control systems, reported record monthly, quarterly, and first-half revenue. June consolidated revenue exceeded NT$5 billion (US$155.7 million) for the first time, reaching NT$5.3 billion, according to Stockfeel.
Second-quarter revenue was up 100.36% from a year earlier to NT$13.79 billion. First-half revenue rose 91.6% year-on-year to NT$24.52 billion.
Hon's equipment automates key stages of semiconductor testing by transporting, temperature-controlling, and sorting chips during the testing process before they are shipped to customers. Market analysts said continued demand has driven orders, while a larger share of higher-margin products has also supported the company's rapid growth.
Horng Terng also reported strong results. Second-quarter revenue increased 63.37% from a year earlier to NT$731 million.
First-half revenue rose 67.72% year-on-year to NT$1.35 billion. Demand for AI server cooling and thermal management equipment continued to support the company's growth, allowing it to outperform many of its industry peers.
Automated optical inspection and die handling equipment supplier All Ring Tech also reported strong performance. Its second-quarter revenue reached NT$2.36 billion, up 54.54% from the same period last year, according to Pocket Securities.
Companies specializing in wet process equipment reported more moderate growth. Grand Process posted second-quarter revenue of NT$1.73 billion, up 5.9% from a year earlier, according to Sinotrade.
Gallant Micro Machining reported revenue of NT$823 million, an increase of 11.67% year-on-year. Scientech's second-quarter revenue rose 2.81% from last year to NT$3 billion, according to MoneyDJ.
Wet process equipment uses chemical solutions to clean and etch semiconductor materials during chip manufacturing. Although all three companies recorded year-on-year growth in the first half of the year, their second-quarter revenue growth slowed from the previous quarter due to equipment delivery schedules, product mix changes, and customer purchasing timing, according to Uanalyze.
Looking ahead, market analysts expect Taiwan's semiconductor equipment industry to continue benefiting from AI-related investment in the second half of the year, though growth will vary depending on each company's products and delivery schedules. Suppliers with greater exposure to AI testing and thermal management equipment, including Hon and Horng Terng, are expected to remain among the sector's strongest performers.
