The ongoing support for AI offtake and capex narratives, as well as Rich’s recent insights, have raised important questions for DSY. In particular, the continued development of silicon photonics and co-packaged optics (CPO) is entering a critical pre-mass production phase, with industry sources highlighting the need to identify optical defects and control yields at the wafer stage while ensuring test data continuity through to the optical engine and module testing phases.

To address these challenges, equipment suppliers are shifting from competing with standalone units to forming partnerships, with one company typically assuming the role of a “turnkey” provider, integrating equipment from various vendors to serve as the primary system-level solution. This trend is expected to continue, with names exposed to CW lasers and NPO appearing better placed for earlier revenue contribution and clearer growth next year.

Meanwhile, probe-card/probing services now represent around 30-40% of revenue, supported by AI/HPC testing demand and capacity expansion. Hermes Testing Solutions (7856), in particular, has been the most visited booth at SEMICON, with plans to IPO on the Taipei Exchange on September 22nd, 2026, at a tentative price of NT$2,250 – the highest-ever IPO price for a Taipei Exchange listing.

Today marks the final day of SEMICON, and we will continue to gather feedback and share fuller takeaways next week. Stay tuned for more insights on the latest developments in the semiconductor industry!