Taiwan's Tatung held an earnings call on August 18, during which company president Sung-pin Chang stated that the group's self-built artificial intelligence (AI) data center proof of concept (PoC) has entered the manufacturing stage, with units being sent to project sites for testing starting this month. The overall build is expected to be completed in September 2026, with further results related to its AIDC revealed at a later time. The group also announced it has successfully secured an order from an edge AI customer.
Chang emphasized that Tatung Group possesses the three key assets of power, computing, and land, making it one of the few companies in Taiwan capable of comprehensively covering AI infrastructure needs.
Chang said Tatung's power business group is responsible for manufacturing power equipment, while Tatung System Technologies (TSTI) develops computing applications and Elitegroup Computer Systems (ECS) has capabilities in the design and manufacturing of AI-related products. Combined with the land resources controlled by Tatung Asset Development, the four give the group a competitive edge in the AI era.
Power business targets broader market reach
Regarding the development of its power business, Chang said Tatung's Dayuan plant covers power-grade and distribution-grade transformers, system engineering, and gas-insulated switchgear (GIS) production lines. Its cable product lines include 15-kilovolt (kV) products, 600-volt (V) power cables, communications fiber-optic cables, and a 35kV power cable line that is currently under construction.
Tatung's smart meters are supplied to Japan under Japanese Industrial Standards (JIS), Southeast Asia under International Electrotechnical Commission (IEC) standards, and Taiwan Power (Taipower) through bulk procurement, with the business also expanding into the behind-the-meter (BTM) energy management system (EMS) meter market.
Tatung's Sanxia motor plant focuses on induction motors, while also producing IP66 motors, hydro synchronous generators, and motors for electric buses.
The Guanyin plant, newly commissioned in 2026, will take over production capacity for distribution transformers and switchboards, freeing up space at the Dayuan plant for a new power transformer line. The related capacity adjustments are expected to be completed within the year.
Looking ahead to the second half of the year, the power business will focus on expanding private-sector engineering projects, developing overseas markets, and re-entering the public works supply chain. In response to demand for high-voltage direct current (HVDC) transmission and solid-state transformers (SST), the company has established project teams and begun talks with potential partners.
Chang said Tatung will finalize its overall development blueprint for its power business by the end of the year. From 2027, it will begin configuring new production lines at suitable locations, with its operations and sales teams carrying out sales and investment plans. Through the continued integration of power, computing, and land assets, the company aims to drive the group's transformation.
North America and overseas expansion
In the North American market, Tatung has already secured orders for 35kV large power transformers in Texas and California, and will use these orders as a foundation to pursue more projects. For its GIS product line, in response to the trend in the European Union (EU) and Taiwan toward replacing sulfur hexafluoride (SF6) with environmentally friendly gases, the company has begun sample production in coordination with Taipower's plan to replace 23kV cubicle gas-insulated switchgear (CGIS) equipment. It will also actively seek to expand its share in the 69kV and 161kV SF6 replacement market.
Chang said Taiwan's transformer market is dominated by 161kV and 345kV shipments. In North America, in addition to 345kV products, Tatung will focus on higher-margin 500kV products. The company currently has 500kV design and manufacturing capabilities. Previously, its joint-venture plant in the Middle East had reached the 400kV level.
In 2026, Tatung will undertake capacity planning based on factors including port access, transport routes, and plant height. The cable product line will focus on 35kV product certification, while the motor business will target niche applications such as drones and joint modules. Further details will be announced once results become clear.
For smart meters, Tatung said it is now a qualified supplier to 10 power companies in Taiwan and Japan and has secured orders, while it continues to expand in the Southeast Asian IEC meter market. For commercial air-conditioning products, the company will combine them with Tatung Smart to tap the BTM energy storage market promoted by the government.
Tatung established its Global Operations Headquarters (TTG) in April 2026. The company said TTG's strategy will prioritize the North American market, where it will transition from an equipment seller to a provider of power grid and AI data center solutions.
Prioritizing Australia and Japan
Tatung will also strengthen its localization efforts by recruiting local talent and investing in mergers and acquisitions to build an international brand. Priority will be given to Australia and Japan, where energy policy incentives are stronger and power markets are more open. The company will work with local and international partners to invest in energy development projects, deploy Tatung equipment, and drive overseas energy-saving and green energy businesses for Tatung Smart and TSTI.
Outside North America, Japan is a key growth market. Tatung has operated locally for 51 years and is the only supplier in Taiwan to have obtained smart meter certifications from 10 Japanese power companies. The company plans to deepen its penetration in the motor, transformer, and meter markets, and work with local developers to invest in energy storage projects.
In Australia, Tatung's board recently approved the creation of Tatung Australia, with the first office to be set up in Sydney. In addition to supporting motor and transformer sales and after-sales maintenance, its main business focus will be participating in the development of large-scale solar-plus-storage projects.
In the Middle East, Tatung will strengthen cooperation with its transformer joint venture in Oman, promoting the supply of water pumps, large motors, and transformers needed for local desalination plants and infrastructure projects, while also participating in equipment exports for local AI data center projects. The company is also planning its presence in Southeast Asia, India, and Europe and is still in discussions with potential partners.
Tatung reported net income of NT$2.02 billion (approx. US$63.30 million) for the second quarter of 2026, with earnings per share (EPS) of NT$0.96. First-half 2026 net income totaled NT$1.92 billion, with EPS of NT$0.91.
Article translated by Eifeh Strom and edited by Jack Wu
