Server chassis manufacturer Chenbro Micom said demand from artificial intelligence applications continues to accelerate data center construction in the first half of 2026, supporting a recovery in the general-purpose server market and sustaining steady operational growth.
The company said its business momentum is expected to remain resilient following a stronger-than-usual first quarter of 2026, typically a seasonal slow period, with performance projected to improve sequentially through the year.
AI server projects drive record annual revenue
Chenbro Micom reported consolidated revenue of NT$6.74 billion (US$212 million) for the fourth quarter of 2025, up 74.4% from a year earlier. Gross profit reached NT$1.99 billion, with a gross margin of 29.6%.
Operating profit totaled NT$1.35 billion, representing an operating margin of 20%. Net profit attributable to the parent company reached NT$1.07 billion, with a net margin of 15.9%. Earnings per share for the quarter were NT$8.61.
Server chassis products accounted for about 99% of Chenbro Micom's fourth-quarter 2025 revenue. The company ships its products primarily through system integrators and distributors, with more than 60% of end customers consisting of large-scale data centers.
By region, the US accounted for 60% of Chenbro Micom's revenue in 2025, followed by China at 30%, Europe at 7%, and other markets at 3%.
Chenbro Micom said continued demand from AI server projects and ongoing technology upgrades drove strong performance in the fourth quarter of 2025 and throughout the full year. Annual revenue surpassed NT$20 billion for the first time, marking a record high.
The company said major North American cloud service providers (CSPs) have maintained strong investment momentum and announced plans to further expand capital expenditure in 2026.
Rack components emerge as a second growth engine
Chenbro Micom said strong end-market demand, combined with its rack component business entering mass production in 2025, served as dual growth engines supporting both quarterly and full-year performance. The company added that this expansion strengthens its foundation for long-term growth.
Despite strong market demand, Chenbro Micom said the external operating environment is changing rapidly. Escalating conflict in the Middle East has introduced significant geopolitical volatility and potential disruptions to global supply chains, underscoring the importance of strengthening operational resilience.
In response to geopolitical tensions, tariff policies, and other international uncertainties, Chenbro Micom said it is accelerating efforts to localize manufacturing and operations as part of a more flexible global production strategy. The company expects new production facilities in the US and Malaysia to begin operations in 2026. The planned launch of the US-based NCT facility and a mass-production plant in Malaysia, along with continued development of another US manufacturing site, are expected to further support operational growth.
Early 2026 revenue holds momentum
Chenbro Micom reported consolidated revenue of NT$1.95 billion for February 2026, up 49.6% from a year earlier. Revenue for the first two months of 2026 reached NT$4.6 billion, representing a 90% increase compared with the same period last year.
Article translated by Sherri Wang and edited by Jerry Chen
