Bearing manufacturer Jarllytec said February 2026 will be a short-term operational trough as it ships new Chinese foldable smartphone hinges, with gradual recovery expected as shipments of Chinese smartphones and US-brand notebooks pick up.
The company reported February revenue of NT$455 million (approx. US$14.29 million), down 24% month-over-month and 45% year-over-year. Jarllytec attributed the decline to fewer working days during the Lunar New Year holiday and to the tail end of a product transition period in its 3C product line.
Since 2025, Jarllytec has expanded investment in its optical communication components business as part of a stated effort to pursue value transformation and optimize its product mix. The company is collaborating with long-term clients to develop ultra-precision mechanical parts for optical communications, targeting opportunities in AI server transmission. Optical communication products accounted for 7% of Jarllytec's revenue in 2025 and grew by over triple digits annually, with further increases expected, the company said.
In its core bearing hub business, Jarllytec said it has actively invested in research and development to develop a range of products to meet the technical demands of customers' high-end new products. These include pivots for virtual, augmented, and extended reality headsets; electric extendable screen hinges; dual hard-screen pivots; point-of-sale machine brackets; and rollable screen pivots.
Jarllytec also stated that it is strengthening its R&D capabilities in automotive display mechatronics. The company positioned this work as preparation for future smart-vehicle multi-screen trends and market potential.
Article translated by Jingyue Hsiao and edited by Jack Wu
