Tai-Saw Technology's differential oscillators are entering GPU module and AI server supply chains, potentially reshaping global networking hardware availability. With 400G shipments already underway and 800G mass production targeted for late 2026, the move carries implications for data center upgrade cycles, high-speed communications deployment, and component sourcing for manufacturers and partners worldwide.
Tai-Saw said it has positioned its differential oscillators in the GPU module and AI server switch supply chains to meet the high-frequency, high-speed transmission demands driven by artificial intelligence. The company is currently focused on shipping 400G products and expects mass production of 800G oscillators to begin by the end of 2026.
Customers include two server manufacturers and five to six optical communication module clients. Shipments tied to optical communication modules are projected to reach 5 million to 6 million units in 2026, with the company indicating potential for double-digit growth in that segment.
AI and automotive fuel component demand
Automotive electrification has increased demand for filters and quartz components, the company noted, with each vehicle requiring more than 100 of them. Despite intense competition in the Chinese market, Tai-Saw plans to raise component count per vehicle from 10 to 20 and to pursue opportunities in Europe and other non-China markets.
Three pillars of growth
Tai-Saw identified three core growth drivers for 2026: industrial and home applications, the WiFi 7 business, and low-earth-orbit satellites, including ground user terminals. The company expects these areas to grow annually, culminating in a breakout year in 2027. It also noted that AI data centers and the need for high-speed optical communication will prompt router upgrades across the home and IoT sectors, making 2026 pivotal for AI application expansion across the broader supply chain.
Geopolitical risks weigh on costs
Geopolitical tensions in the Middle East have disrupted global energy and raw material supplies, the company said. Tai-Saw is monitoring the availability of helium and certain halogen gases used in manufacturing. Rising precious metal prices, driven by those tensions, may affect the costs of gold and silver used in product packaging and antenna fabrication, potentially leading to price adjustments in the second and third quarters of 2026.
Defense orders surge
Defense market demand has surged, the company said, with urgent orders for drones and other defense products. Some customers are requesting expedited shipments of existing models while delaying next-generation replacements.
2025 financials and product mix
In 2025, quartz oscillators accounted for 40% of sales and filters for 60%. Tai-Saw posted NT$2.23 billion (US$69.8 million) in revenue for 2025, a 2.3% year-over-year increase, with a gross margin of 20.53%. By application, networking and communications accounted for 35% of revenue, automotive 27%, mobile phones and IoT approximately 22%, and defense, drones, aerospace, and others approximately 6%.
Philippines factory targets supply chain diversification
Aligning with supply chain trends that favor non-China and non-Taiwan production, Tai-Saw established a factory in the Philippines to produce filters and quartz components, targeting volume production and shipment from April 2026.
Article translated by Jingyue Hsiao and edited by Jerry Chen
