Delta Electronics Raises 2026 Capex to NT$70 Billion, AI Revenue Share to Exceed 25%
Claire Weston
Delta Electronics is lifting 2026 capital spending to roughly NT$70 billion, up over 50% from 2025's NT$46.1 billion, with AI-related revenue set to exceed 25% of sales — the power-systems giant is locking in capacity now for a five-to-ten-year AI and energy buildout.
NT$70 billion in capex — where is the money going?
2026 capex rises to roughly NT$70 billion, up more than 50% from NT$46.1 billion in 2025. This means → Delta is betting not on near-term orders but on five-to-ten-year capacity needs.
Expansion is running in parallel across Taiwan, China, Thailand, and the U.S. The new Thailand plant will be significantly larger than the existing site; another overseas location is also being planned.
Chairman Mark Cheng said major customers are already placing orders tied to 2027 demand, asking Delta to plan capacity two years ahead. In plain terms = customers are not waiting for formal purchase orders — they want the factories built now.
How does AI revenue jump from 18% to above 25%?
Delta expects AI-related products to account for over 25% of 2026 revenue, up from 18% in 2025. This means → AI is shifting from a growth highlight to a core revenue pillar.
Liquid-cooling products already make up more than 12% of total sales — the fastest-scaling category in Delta's AI lineup.
High-voltage direct current (HVDC) products — systems that convert AC power to high-voltage DC for data-center use — are set to begin production in Q3 2026, with limited shipments in Q4 and meaningful volume only in 2027. This reflects the long ramp from development to scale; 2027 is the critical window for validating the growth thesis.
Will AI investment cool off?
Cheng addressed market concerns: the latest capex plans from major cloud providers show spending rising through 2026 and likely expanding further in 2027.
He sees AI data-center construction as unlikely to pause in the near term, noting that once companies adopt AI, they do not easily turn back.
Delta's expansion timeline aligns closely with peers such as UMC and Equinix, both of which announced capacity additions in the same period. This reflects a broad, front-loaded buildout across the AI infrastructure chain — Delta is not betting alone.
Beyond AI — what is the next growth engine?
Cheng identified energy infrastructure as a potential next-stage driver — power shortages, grid upgrades, and the spread of distributed and renewable generation are all pushing demand higher.
Individual energy projects are smaller than large AI data centers, but single contracts can still reach hundreds of millions of dollars and drive demand for large systems and prefabricated modules. In plain terms = the projects are smaller individually, but the dollar amounts are still large, and volume is high.
EV business is expected to remain weak in 2026; the strategy is to contain losses while continuing R&D and maintaining customer relationships. Industrial automation was constrained by component-supply issues in H1; performance is expected to improve in H2 as alternative sources come online.
Content is for reference only, not financial advice.