The crystal circle foundry Longtou Tel: verified and gradually faded out of the nitride (GaN) market. One of the customers, Navitas, a large manufacturer of American nitride, turned to power supply, became an NVIDIA (NVIDIA) supply chain partner, and used AI power merchants. With positive news assisted, today's NT$17.65 per share was up and down until the closing, exceeding the first quarter's high.
Taiwan Electric has actually faded out of the nitride industry, and its Crystal Fifth Factory will also be transformed into an advanced packaging factory after July 1, 2027. This is a strategic adjustment for Telco that focuses on high growth markets, and factories and dust-free rooms can be directly applied, helping to shorten the time to expand advanced packaging capacity.
In recent years, Taiwan Power has established strong advantages and advantages in the AI chip market through advanced processing and advanced packaging, and almost no one can win the AI chip foundry market. AI applications are from cloud to terminal equipment, and new packaging demands such as WMCM have increased significantly, and Taiwan's CoWoS production capacity is insufficient, so it is frequently purchased for manufacturers to expand.
In order to meet customer order optimization resource configuration, NTU has continuously reduced its investment in mature process in the near future. In addition to the previous announcement of selling some machine equipment to the world's leading company, the 8-inch and 6-inch crystal round plants will also be integrated. The closed crystal round five is part of the related integration plan.
The monthly production capacity of Taiwan's electro-nitride electrodes is about 3,000 to 4,000 6-inch crystal circles. The main customers include companies such as Navitas, an international power semiconductor manufacturer. Navitas' monthly production capacity accounts for half of Taiwan's electro-nitride electrodes. Therefore, after Telco faded out of the nitride market, Navitas turned to cooperate with LIN, making LIN, the biggest beneficiary of Telco's exit from the market.
And for related information, Taiwan Electric also proves this situation. Taiwan Power has strengthened its long-term business strategy based on the market and Taiwan Company. The company is working closely with customers to ensure smooth connections during the transition period, and is committed to continuously meeting customer needs during this period, while still focusing on continuing to create value for partners and markets. In addition, the decision will not affect previously announced financial goals.