Taiwanese integrated circuit (IC) distributor Weikeng projects robust revenue growth driven by rising demand for AI data center computing and power management solutions, with AI server-related products expected to increase by 50 to 60% in 2026. The company also identifies emerging sectors such as AI glasses and robotics as key long-term growth areas, despite uncertainties in broader memory market dynamics.
Weikeng reported consolidated net operating revenue of NT$99.1 billion (approx. US$3.18 billion) for January through November 2025, marking a 24% year-over-year increase. Third-quarter revenue stood at approximately NT$26.4 billion, rebounding from earlier margin pressures caused by the sharp appreciation of the New Taiwan dollar. Gross margin stabilized at 5.1% during the quarter, indicating a recovery in profitability.
The company's outlook closely aligns with industry trends, as ODMs such as Quanta Computer, Inventec, Foxconn (Hon Hai Precision Industry), and Wistron have expanded their AI server revenue contributions, supported by order visibility extending into 2026 and 2027.
Weikeng focuses on AI-related product lines spanning compute core platforms, GPU modules, boards, power systems, and memory components. Although AI server functional modules currently comprise only 9.1% of the company's revenue volume-wise, they deliver substantial sales value and drive significant growth expectations. General-purpose servers remain stable, particularly in enterprise, government, and edge computing markets, with the company pursuing growth in both general and AI server sectors.
Emerging sectors showing strong growth potential
While AI servers serve as the primary engine of growth this year, Weikeng is also exploring expansion opportunities in AI glasses, robotics, automotive, and industrial segments, especially within the Chinese market. Robotics, although a smaller segment at present, is forecasted to grow by over 100% in 2025. The company highlighted the competitive landscape in China, where more than 100 firms have system integration capabilities. Despite some client turnover due to intense local competition, Weikeng secured multiple new customers across emerging technology fields throughout 2025.
Weikeng's 2025 revenue growth is further supported by increased PC market share, aided by Windows legacy system upgrades and expanding edge AI applications. The company noted potential short-term cost pressure and supply challenges stemming from aggressive memory purchasing, but expects limited impact on its overall business given the relatively small consumer product segment. Major represented brands benefiting from the AI-driven sector include Advanced Micro Devices (AMD), Infineon Technologies AG, Molex, and Lattice Semiconductor.
Geographically, Weikeng's revenue base is concentrated in China—including Hong Kong—accounting for over 50%, followed by roughly 40% from Taiwan and 20% from Southeast Asia. Industry applications break down with computers and data processing representing 53%, industrial uses 21%, automotive 10%, consumer electronics 9%, and networking approximately 7%.
Article translated by Jingyue Hsiao and edited by Jack Wu
