Tongtai Advances AI and Aerospace Strategy
Tongtai Machine & Tool Co., Ltd. (4526) held its 2026 Annual Shareholders' Meeting today, June 17, during which shareholders approved the 2025 financial statements and all proposed resolutions. The meeting also approved a cash dividend of NT$1.00 per share and completed the election of the 20th Board of Directors.
Despite external challenges including global inflation, weak end-market demand, and geopolitical conflicts, Tongtai's consolidated revenue for 2025 declined by 7% year-on-year. However, benefiting from an optimized product mix, consolidated gross profit for the year increased significantly by 68% compared with the previous year. Together with contributions from non-operating income, net income attributable to the parent company reached NT$459 million, with earnings per share of NT$1.81.
In response to the trend toward advanced manufacturing upgrades, Tongtai has expanded its presence across AI servers, semiconductors, and aerospace. The newly elected Board also includes professionals with extensive aerospace industry experience, underscoring Tongtai's efforts to deepen its presence in high value-added markets.
Focusing on its long-term operating goals in the aerospace and advanced manufacturing markets, Tongtai completed the election of its 20th Board of Directors at this shareholders' meeting, with a total of 11 directors elected. The newly elected directors include Tongtai Chairman Yen Jui-Hsiung, San Shing Chairman Yen Hua-Chou and General Manager Yen Cheng, Yen Lu, CEO of Contrel Technology Co., Ltd. and Deputy General Manager of Tongtai, Kang Rui Marketing Chairman Kuo Chun-Liang, Logic Electronic General Manager Chuang Yu-Chieh, and Wei Ling Investment representative Huang Wei-Tsung.
The independent directors include Liu Chen-Chi, former Chairman of Evergreen Aviation Precision Corporation, who brings extensive aerospace expertise; Tsai Hsin-Yuan, former Executive Director of ITRI Southern Region Campus; Chen Cheng-Hsing, Chairman of Gallant Precision Machining Co., Ltd.; and CPA Chen Mei-Chin. Through the diverse professional backgrounds of the Board members, Tongtai aims to integrate cross-disciplinary expertise in aerospace technology, financial management, and corporate governance, further strengthening the foundation for sustainable operations.
Tongtai continues to see stronger order momentum in the AI and high-end PCB sectors. In the first quarter, 70% of orders for its electronic equipment business came from the AI server-related supply chain. For high-precision back drilling applications on AI server boards, Tongtai has introduced multi-axis independent CCD equipment to support fully automated production.
In the semiconductor sector, the company has launched the TWG series wafer substrate grinder to address the machining needs of hard and brittle materials such as silicon carbide. Tongtai has also developed planarization equipment to meet the flattening requirements of multi-layer stacking in advanced packaging. Meanwhile, the company is advancing its AI capabilities toward agentic AI by introducing NVIDIA Omniverse-based digital twin environments. Through simulation and testing in a virtual environment, Tongtai aims to minimize errors in real-world machining and significantly enhance its software-hardware integration capabilities.
Looking ahead, the shareholders' meeting also approved a private placement proposal, through which Tongtai plans to introduce strategic investors with industrial resources for technical cooperation or strategic alliances. In terms of business development, Tongtai will continue to pursue a dual-engine strategy, balancing its traditional machine tool business with electronic industry equipment.
Tongtai reported revenue of NT$628 million in May, representing a year-on-year increase of 49.95%. The Group currently has approximately NT$3.2 billion in order backlog. Going forward, Tongtai will continue to deepen its presence in high-margin markets, leverage the advantages of localized manufacturing at its Suzhou operations in China, and promote high value-added models in Europe and the United States. These efforts are expected to strengthen product competitiveness and order momentum, while balancing stable operations, shareholder interests, and the company's long-term development.
