Shipment Growth Sparks Stock Rallies in Two Taiwanese Companies - Elite Material and IEI
Source: 出貨量增 台光電、威強電權證燙
Original News Issued Date: 16 April 2025
What to learn from this article:
- “Taiwanese copper-clad laminate (CCL) provider Elite Material is capitalizing on rising demand for servers, switches, and 5G telecom products, fueled by the accelerating adoption of AI technologies."
- "Elite Material is proactively scaling its operations, targeting a 20% increase in production capacity by the end of 2025 to support continued growth and global demand."
- "IEI is seeing strong momentum in networking, edge AI, and medical markets. Growth is driven by new ODM projects, AI-related networking demand, and expanded medical opportunities following a key customer’s acquisition by a global industry leader."
The first of these companies, Elite Material, a leading Taiwanese manufacturer of halogen-free copper-clad laminate (CCL) materials, continues to maintain a strong market share, driven by growing customer demand and new application areas. The rising adoption of high-performance computing is fueling demand for products such as servers, switches, and 5G telecom equipment—key growth drivers for the company. As shipments of related materials increase, Elite Material is seeing both price improvements and enhanced profitability.
Looking ahead through 2025, Elite Material plans to expand its production capacity by approximately 20% higher than 2024. The company currently holds a leading 20% global market share in high-frequency, high-speed materials. With ongoing capacity expansion efforts in Malaysia, Taiwan, and China, monthly production is expected to increase from 4.3 million sheets at the end of 2024 to 5.5 million sheets by the end of 2025.
In the AI sector, Elite Material plays a key role as one of the main material suppliers for NVIDIA’s GB200 NVLink Switch System. The company holds a 20% share of GB200 Compute Tray orders as the second supplier. Profitability is expected to see further growth in the second half of the year, supported by the rollout of Amazon’s Trainium2 ASIC servers.
The second company, industrial computer manufacturer IEI, is poised for strong growth in 2025, particularly in the networking, edge AI, and medical sectors. With positive momentum across its entire product line, first-half revenue is already tracking ahead of the same period last year, and full-year performance is projected to show solid year-over-year growth. IEI has also strengthened its global footprint through a manufacturing partnership in the Philippines, which now accounts for approximately 20% of its production capacity. In addition, the company is investing in the development of hardware infrastructure and service capabilities in the U.S., opening up new opportunities for expansion.
Market sentiment remains positive toward IEI, particularly as its networking product line moves into the mid- to high-end segment—an encouraging sign for improved gross margins. Several new mid- and large-scale ODM projects secured in 2024 have already entered mass production and shipment phases in the first half of this year. Meanwhile, a number of high-end models and server projects are currently in the proposal and bidding stages. The continued strength of the AI market is expected to be a major growth catalyst for IEI’s networking business.
In the medical segment, IEI is expected to see continued revenue growth in physiological signal gateway devices. This momentum is largely driven by a major customer’s acquisition by a leading global company, which is accelerating market expansion beyond the U.S. and into international territories.
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Acqutek specializes in supporting our customers with industrial-grade computers from Taiwanese manufacturers.
If you need assistance, please feel free to send us your request!