Taipei, Feb 1, 2026, 10:45 (GMT+8) — Market closed
Global Unichip shares fell 2.78% to close at NT$2,620 on Friday.
The decline is significant as investors have heavily backed Taiwan’s custom-chip supply chain, yet their tolerance for shrinking profits is fading. Even if sales climb, slipping margins can still hurt.
The story this time is all about the mix. As more business moves into production-linked work, earnings swings become sharper and tougher to predict on a weekly basis.
The company reported fourth-quarter net sales soared 44% from the previous quarter, hitting NT$12.4 billion. Turnkey revenue surged 79% to NT$10.29 billion. Turnkey combines design, manufacturing, and delivery, while NRE (non-recurring engineering) covers mostly one-off design fees; NRE revenue dropped 26% quarter-over-quarter to NT$2.04 billion. Gross margin fell to 19% as turnkey represented 83% of sales. Projects using 3-nanometer and smaller processes made up 48% of total revenue, and the U.S. accounted for 72% of quarterly revenue, driven mainly by a CPU (central processing unit) project.
Investors are zeroing in on whether margin pressure stems from a one-time cost shift or signals a permanent change in the mix. Turnkey volumes can boost revenue fast, though pricing and production expenses may quickly squeeze returns.
The company’s audited results for 2025 showed net revenue hitting NT$34.14 billion, with net income at NT$3.77 billion, translating to earnings per share of NT$28.13. Goods sales made up NT$25.74 billion, while NRE services added NT$8.41 billion. Inventories climbed sharply to NT$10.15 billion by year-end, up from NT$2.79 billion the previous year. The firm noted that its top ten customers represented 75% of accounts receivable.
The downside is clear: if customers delay shipments or pricing squeezes, a bulkier turnkey backlog could hit profits, especially with inventories already elevated. Concentration risk works both ways when a single large project carries most of the load.
The broader Taiwan stock index fell 1.45% on Friday, weighing on Global Unichip amid a weaker market environment.
Trading picks up Monday, with investors focused on whether the stock can steady after slipping post-results. The next key figure to watch is January’s operating revenue, which listed firms need to report by the 10th of each month — meaning Global Unichip’s January data must be in by Feb. 10.
