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GUC Secures Major Cloud Service Provider Order, Stock Surges

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • ASIC designer GUC has secured a major order from a cloud service provider, reserving 60,000 wafers of TSMC's CoWoS capacity for 2027.
  • Foreign investment firms anticipate this new project will generate $500 million to $600 million in revenue in late 2027 and $1.5 billion to $1.6 billion in 2028.
  • GUC is also developing CPO optical communications and expects to deepen collaboration with TSMC on its COUPE optical interconnect technology, boosting its stock price.

ASIC designer GUC (3443) is experiencing a surge in orders, with reports circulating in the financial sector about a significant new contract from a cloud service provider. The company has reportedly booked 60,000 wafers of TSMC's advanced CoWoS capacity for 2027.

ASIC shipments are expected to grow faster than GPUs as AI applications expand from model training to inference.

— GUCGUC's outlook on AI application growth and its impact on ASIC shipments.

Analysts are optimistic about the financial impact of this new project. A U.S.-based foreign investment firm projects that the deal will bring in approximately $500 million to $600 million in revenue in the latter half of 2027. The revenue contribution is expected to significantly increase to $1.5 billion to $1.6 billion in 2028.

Cloud services, optical communications, and automotive projects will contribute revenue sequentially.

— GUCGUC's expectations for future revenue streams.

Beyond this major order, GUC is actively expanding its presence in CPO optical communications. The company anticipates a more in-depth collaboration with TSMC on its COUPE optical interconnect technology, a development that could further bolster its market position. This positive news has already impacted GUC's stock, which saw an initial dip before rebounding and trading up 4.26% to NT$5,260 by 9:46 AM, with a trading volume exceeding 1,200 shares.

With the continuous increase in 3nm and 5nm ASIC design cases, the proportion of Turnkey business will increase.

— GUCGUC's assessment of its business mix and growth drivers.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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