校正紀錄
本檔為 AI 語音轉寫，落地前已校正下列轉寫誤植；未列出者為原文。Memo 與 Transcript 兩區塊同步改。 - 刪除站方募款宣傳行 - [數字存疑] 「半導體與光電測試解決方案 3Q26 營收 60 億元（QoQ +38%、YoY +189%）」與「占比 42%」互相矛盾：179 億 × 42% ≈ 75 億，60 億僅占 33.5%；另 1–3Q26 半導體 138 億（1H 隱含約 78 億）與 60 億可相容。同段「測試儀器與 ATS 占 52%」（約 93 億）加 42% 為 94%，低於測試設備占比 98%。四項口徑無法同時成立，原文未動、不自行裁定（Memo 與 Transcript 皆保留原述） - CTO testing → CPO testing；session three／four → insertion three／four；instance three → insertion three；「transceivers and CPUs」「putting CPU aside」→ CPO（其餘 CPU 為處理器本意，保留） - ATC handler「HP 及 CSP 客戶認證」→ HPC 及 CSP（Memo 與 Transcript 各 1 處）；burning → burn-in（5 處）；CST customers → CSP customers；versus payroll → versus pilot run - [待確認] SLT 2027 年新客戶口述「including mobile and Broadcom」，「mobile」疑為語音轉寫誤植，無從判斷，保留並標待確認；Memo 區塊「Mobile、Broadcom」同。對外 memo 僅記 Broadcom - [待確認] Transcript 中 Jennifer 答語「doubling compared to last year. Not handler system level testers sorry」：原意為 SLT 年增一倍（與前述 Memo 區塊「系統級測試收入年增一倍」一致），保留原文 - 數字驗算：營業利益 72 億 ÷ 營收 179 億 = 40.2%（口述 40%）；淨利 57.8 億 ÷ EPS 13.34 ≈ 4.33 億股；9M 營收 433 億 − 3Q 179 億 = 1H 254 億，3Q QoQ +33% → 2Q 約 134.6 億、1Q 約 119.4 億；9M 營業利益 172 億 ÷ 433 億 = 39.7%（口述 40%）；9M 淨利 146 億 ÷ 34.61 ≈ 4.22 億股，均相符
致茂_2026-10-29
警語：此 Memo 和逐字稿為 AI 生成，可能因為音檔品質導致轉錄逐字稿有誤，或是 AI 曲解原意／幻覺導致 Memo 內容有誤，請以原始音檔為準。
Memo 亮點 • 第三季營收達 179 億元，季增 33%，年增 180%，主要成長動能來自測試設備業務。 [CFO - 00:01:18] • 第三季營業利益 72 億元，年增 288%，營業利益率 40%。本季稅後淨利 57.8 億元，季增 11%，EPS 為 13.34 元。 [CFO - 00:02:22] [CFO - 00:02:50] • 前三季營收 433 億元，年增 120%；營業利益 172 億元，年增 177%，營業利益率 40%；稅後淨利 146 億元，EPS 為 34.61 元。 [CFO - 00:03:20] • ROE 達 54%，ROA 達 34%，雙雙創下歷史新高。前三季營業現金流 62 億元，自由現金流 68 億元。 [CFO - 00:04:47] • 測試設備為核心業務，第三季及前三季均佔合併營收 98%。半導體與光電測試解決方案第三季營收 60 億元，季增 38%，年增 189%。 [IR - 00:05:43] • 光電收入年增四倍，系統級測試收入年增一倍，反映公司在光通訊（含光收發器、CPO）及系統級測試器具的強勢地位。 [IR - 00:07:07] 產業循環週期 • 公司表示 2026 年下半年業績動能明顯強於上半年，並預期 2027 年 AI 推論市場（inference market）相關需求將持續帶動成長。 [IR - 00:18:32] 產業供需 • 半導體與光電測試解決方案需求強勁，第三季營收 60 億元，季增 38%，年增 189%。 [IR - 00:06:10] • CPO 測試設備客戶需求明顯提升，預計 2027 年將有更多客戶導入，且量產規模將是試產的 4-5 倍。 [IR - 00:26:08] 產業狀況 • 光通訊、CPO、系統級測試等領域需求持續成長，且公司在光收發器、CPO、系統級測試器具等領域具領先地位。 [IR - 00:07:07] 獲利 • 第三季毛利率 58%，較上季略降，主因產品組合變化（中國電池專案貢獻較多）；營業利益率 40%。 [CFO - 00:01:54] • 前三季毛利率 60%，營業利益率 40%。 [CFO - 00:03:20] • ROE 54%，ROA 34%，均創歷史新高。 [CFO - 00:04:47] 公司展望、未來成長動能 • 公司對 2027 年 AI 推論市場（inference market）需求持續成長具高度信心，現有訂單能見度已至 2027 年下半年。 [IR - 00:18:32] [Analyst - 00:31:28] • CPO 測試設備明年將進入量產，預計規模為試產的 4-5 倍，且有兩大客戶（NVIDIA、Marvell）已下單。 [IR - 00:26:08] • 公司 GDR（全球存託憑證）發行主要用於擴產及未來需求。 [CFO - 00:20:25] 市場競爭策略 • CPO 測試插入三（insertion 3）市場目前僅有兩家同業，插入四（insertion 4）則為致茂獨家，且技術 100% 自研。 [IR - 00:09:22] 營收 • 第三季營收 179 億元，季增 33%，年增 180%。前三季營收 433 億元，年增 120%。 [CFO - 00:01:18] [CFO - 00:03:20] 訂單 • 公司目前訂單能見度已至 2027 年下半年，部分 AI 相關設備訂單已排至明年。 [IR - 00:31:28] • CPO 插入三明年量產，已收到第一季量產 PO，兩大客戶（NVIDIA、Marvell）已下單。 [IR - 00:26:08] 產品組合 • 測試設備為核心業務，第三季及前三季均佔合併營收 98%。第三季測試儀器與 ATS 佔 52%，半導體與光電測試解決方案佔 42%。 [IR - 00:05:43] • 半導體收入前三季達 138 億元，已超越 2025 全年，年增 101%。光電收入年增四倍，系統級測試收入年增一倍。 [IR - 00:06:39] 下游客戶 • CPO 插入四為致茂獨家，已被 NVIDIA、Marvell 等大客戶採用，Marvell 預計明年進入試產。 [IR - 00:09:49] • 系統級測試（SLT）2027 年新客戶包括 Mobile、Broadcom，預期成為重要成長動能。 [Analyst - 00:24:04] 同業 • CPO 插入三市場僅有兩家同業，插入四為致茂獨家，且無第二來源。 [IR - 00:09:22] 出貨週期與交期 • 半導體設備交期需配合客戶時程，訂單能見度已至 2027 年下半年，部分訂單交期已延至明年第一季。 [IR - 00:31:28] 新產品／新技術 • ATC handler 已獲 HPC 及 CSP 客戶認證，部分客戶已下單。Burn-in 測試明年將有更多 HPC 客戶導入，預期未來將由 wafer burn-in 轉向 die burn-in 以因應晶片尺寸變化。 [IR - 00:12:40] 產品價格 • 公司已與客戶討論價格調整，未來價格調整將同時反映原物料成本上升及訂單需求緊張。 [Analyst - 00:32:56] 出貨量 • CPO 插入三明年量產規模預計為試產的 4-5 倍，且有兩大客戶（NVIDIA、Marvell）已下單。 [IR - 00:26:08] 成本毛利 • 第三季毛利率 58%，較上季略降，主因中國電池專案貢獻較多，產品組合變化所致。非中國電池業務毛利率與公司平均相當。 [CFO - 00:01:54] [IR - 00:33:57] • 原物料成本上升對毛利率影響有限，主要仍以產品組合為主。 [IR - 00:30:03] 原物料／關鍵零組件 • 原物料成本上升，公司已與客戶討論價格調整，未來價格調整將同時反映原物料成本與訂單需求。 [Analyst - 00:32:56] 銷售／管理／研發費用 • 本季 G&A 費用增加，主因發放全員激勵獎金以表彰今年強勁表現。 [CFO - 00:01:54] 擴廠規劃 • GDR 發行主要用於擴產及未來需求。 [CFO - 00:20:25] 營業利益 • 第三季營業利益 72 億元，年增 288%，營業利益率 40%。前三季營業利益 172 億元，年增 177%，營業利益率 40%。 [CFO - 00:02:22] [CFO - 00:03:20] 業外損益 • 若排除資本利得，第三季淨利季增約 21%；前三季淨利年增約 138%，顯示本業成長動能強勁。 [CFO - 00:02:50] [CFO - 00:03:50] 股本、增資、可轉換債券、庫藏股 • GDR 發行計畫，資金規模約為現有現金部位兩倍，主要用於擴產及未來需求。 [CFO - 00:20:25] 現金、現金流 • 前三季營業現金流 62 億元，自由現金流 68 億元，維持淨現金部位。 [CFO - 00:04:47] Transcript Presentation Speaker01 - Operator
(00:00:00)Welcome everyone to Chroma's 2026 third quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask a question. For your information, a webcast replay will be available within an hour after the conference is finished. Please visit www.chroma.com.tw.
Jennifer Chien - Chroma, Investor Relation
(00:00:29)Investors can find the webcast under the Investor Relations section. Now, I would like to hand it over to Chroma's management. Please go ahead. Good afternoon everyone. Welcome to Chroma's third quarter 2026 earnings conference. This is Jennifer, and I will be your host for today's session. This quarter, we will only go through financial updates and product mix.We will begin with the third quarter financial results by our CFO, Lawrence Wu. After the financial update, I will provide an overview of t
Lawrence Wu - Chroma, CFO
(00:01:18)his quarter's product mix, followed by the Q&A section. All presentation materials are available for download from the company website. I will now hand over to our CFO, Lawrence Wu. Hi, good afternoon everyone, this is Lawrence. Let me briefly walk you through the third quarter and year-to-date financial results. Let's turn to page five. Third quarter revenue was 17.9 billion, up 33% quarter over quarter and 180% year over year. Growth was mainly driven by continued strength in our testing equipment business.
Lawrence Wu - Chroma, CFO
(00:01:54)Gross margin was 58%, slightly lower than last quarter, mainly due to a different product mix. Part of the mix change came from revenue from our China battery cell project this quarter. G&A expenses were also higher, mainly due to an additional incentive bonus for all employees.This was in recognition of their contribution to our strong performance this year. Even with the lower gross margin and higher G&A expenses, operating profitability remains strong. Operating income was 7.2 billion, up 288% year over year, with an operating margin of 40%. Net income was
Lawrence Wu - Chroma, CFO
(00:02:50)5.78 billion, up 11% from the previous quarter with EPS of 13.34. If we exclude capital gains, our net income grew by about 21% quarter over quarter, reflecting strong underlying earnings growth of ours.Let's see page six. For the first nine months, revenue was 43.3 billion, up 120% year-over-year. Gross margin was 60%, operating income was 17.2 billion, up 177% year-over-year witha margin of 40%. Net income was 14.6 billion with an EPS of 34.61. Again, if we exclude capital gains, our net income grew by about 138% year over year, which shows the strength of our core business. Let's turn to f a c i a l
Lawrence Wu - Chroma, CFO
(00:04:20)for the balance sheet. When turning to the balance sheet, we remain in a strong financial position. Shareholders' equity was 39.4 billion, and we maintained a net cash position at the end of September. Our strong earnings also droveROE to 54% and ROA to 34%, setting record highs for both. On cash flow, we generated 6.2 billion in operating cash flow and 6.8 billion in free cash flow for the first nine months.
Lawrence Wu - Chroma, CFO
(00:05:13)Overall, we delivered another solid quarter with strong growth, profitability, and cash flow. I believe going forward we will continue to focus on profitable growth, operating efficiency, and disciplined working capital management. Then I will turn it over to Jennifer to take you through our product mix and sales breakdown.
Jennifer Chien - Chroma, Investor Relation
(00:05:43)Thank you, CFO. Please refer to slide nine for details on our product mix from the third quarter. Third quarter and first nine months of sales showed strong growth, driven by the testing equipment business. Testing equipment remains the core business, accounting for 98% of consolidated sales in both third quarter and first nine months.Two product lines dominate the third quarter sales： testing instruments and ATS account for 52%, while semiconductor and photonics testing solutions contribute 42%. As we guided in the second quarter, semiconductor and photonics testing delivered particularly strong growth, with the third quarter reaching six billion NT dollars, up 38% quarter-on-quarter.
Jennifer Chien - Chroma, Investor Relation
(00:06:39)and 189% year-on-year. Testing instruments and ATS also posted good growth of 147% year-on-year. Through the first three quarters, semiconductor revenue reached 13.8 billion NT dollars, exceeding full year 2025 sales. Growth reached 101%, accelerating from the previous quarter.Photonics and system-level tests lead this growth, with photonics revenue rising four times and system-level tests revenue doubling. This result reflects Chroma's strong market position in optical communications, including optical transceivers and CPO, as well as system-level testers. We expect to maintain this strength in CPO and inference markets
Q&A Speaker01 - Operator
(00:07:36)coming up in 2027. For the power business, we expect revenue momentum to remain intact. And now we can turn over to Q&A section. Yes. Ladies and gentlemen, we will now begin the question and answer session. If you have a question for any of today's speakers, please press star key and number one on your telephone keypad and you will enter the queue. After you are announced,please ask your question. If you find that your question h
Kevin Chen - Citi, Analyst
(00:08:25)as been answered before it's your turn to speak, please press star key and number two to cancel the question. Now, first question will be coming from Kevin Chen of Citi, go ahead please. Hi, management, thank you for taking my question. First, I would like to ask about our market share and CPO testing. I'm just wondering because right now seems like we are predominantly positioned in insertion three and partly in insertion four, so just wondering how do we expect if there's going to be any changes in market share and are there areas that we can potentially get into, perhaps either by ourselves or through cooperation with another company？
Kevin Chen - Citi, Analyst
(00:09:01)Sorry, I didn't quite clear about the second statement.You mean cooperate with someone？ Are there like, for example, insert to the segment insertion classes that we might potentially get into either by ourselves or through cooperation？
Jennifer Chien - Chroma, Investor Relation
(00:09:22)Oh, okay. I don't know how to define for market share at the moment, but I think insertion one, two, three mostly is dealing with manufacturing for optical engines. And optical engine for insertion three is processing of the single diode. And then I think so far it's two peers, which is confirmed by our customer. And then in insertion four we are sole player, because it's
Jennifer Chien - Chroma, Investor Relation
(00:09:49)insertion for all is 100% initiated by Chroma and being approved and adopted by our customers. We probably will get another customer start to pilot run next year. I guess first one people already know is NVIDIA and the second one is Marvell. So Marvell is already giving the notice that next year will be move on to pilot run.
Kevin Chen - Citi, Analyst
(00:10:17)And then we actually also interact with certain things and there is no other second source. And then so far our technology is 100% designed by ourselves. That is very clear. My second question would be what how do we think of the potential value shift in the CPO testing, perhaps let's say in the next generation, right？
Kevin Chen - Citi, Analyst
(00:10:43)I ask this because I believe there is some market discussion on financial home shipping, for example from insertion two, perhaps the next generation will do less insertion two and more insertion three like. How do we think of this trend and potentially what kind of impact could that result in our supply chain？ Could that be perhaps insertion two will just be skipped or just do a little bit less and
Kevin Chen - Citi, Analyst
(00:11:13)adding more value to insertion three？ We didn't cover insertion two but we do heard that insertion two may be skipped, so if that is the case then will be probably increase the demand for insertion three. So is it going to be like do we expect more opportunity for us if such things such case were to happen？ According to recent customer feedback, they very much pay attention on insertion three. They say it's a key factor for ramping up the success of a CPO.Lastly, I think I was just wondering if we can get an update on
Jennifer Chien - Chroma, Investor Relation
(00:12:12)our new product, for example the handler and burn-in. What kind of progress are we making towards the end of the year？ Thank you. You want to count handler first or system levels？ Sorry, burn-in first handler first then yeah okay I need to make things more in I need to clarify that our atc handleris actually qualified by HPC and CSP customers and because as you could see the chip complexities handle need to get approval by those users, not the old set and then we already have their qualified and then more couple of them already place older.
Jennifer Chien - Chroma, Investor Relation
(00:13:11)And burn-in actually we will have a first customer which is CSP customers and next year we will add on another couple HPC makers. We believe the burn-in process will be gradually changing from today's wafer burn-in to die burn-in. This is pretty much meet the future chip migration as the die size may gradually change.
Haas Liu - Bank of America, Analyst
(00:13:41)Thank you very much. Thank you. Thank you. Next one, Haas Liu, Bank of America, go ahead please. Yes, hi, thanks manager Tim and Jennifer, congrats on the great results and thank you for my questions. So I guess to start with is probably on your third quarter you mentioned that test instrument business as well as the semiconductor slash photonics business are both have actually been growing quite nicely.
Haas Liu - Bank of America, Analyst
(00:14:09)I was just wondering if you could provide further breakdown within different each of the buckets, for example for the testing for the ATS business, how much of that is coming from AI contribution and how much of that is coming from an AI, for example like battery and for the semiconductor business would you be able to provide more detailed breakdown on SLT versus metrology versus photonics？ Thank you.
Jennifer Chien - Chroma, Investor Relation
(00:14:42)Hi Harsh, you have been asked about semiconductor breakdown every time you have this call. But in order to protect our customers, since we have signed NDAs, we are not allowed to disclose the breakdowns. However, testing instrument ATS, I think this year we have about 60 to 70 percent that related to AI powers. And we believe this dollar is our contribution for whatever we have for this year.
Jennifer Chien - Chroma, Investor Relation
(00:15:11)But by dollars will be continued next year based on our current forecast. This is when we do have a confidence level. For semiconductor factors, we already highlighted two largest drivers, which is photonic factors and handlers, and as photonic factors we do through the transceivers and CPOs. It has beengrew by four times compared to last year and
Haas Liu - Bank of America, Analyst
(00:15:59)then we have a score to come in the fourth quarter and the second is actually come from the handler which is doubling compared to last year. Not handler system level testers sorry okay sure that's very clear and I think just a quick follow up because last week NVIDIA at Berlin on its GTC they mentioned that they expects some of its offset partners' CPO capacity is going to grow by more than fifteen times next year. How would that translate to your opportunity which expects for your for the CPO related contribution to your business. Oh that's great, looking forward. I think we already confirmed the insertion person only too. Yeah. Okay, okay, yeah. And I think also very quickly
Haas Liu - Bank of America, Analyst
(00:16:39)There seems to be some of the mixed change in third quarter specifically as compared to the previous few quarters because you mentioned that one of the factors impacting negatively on your gross margins in the near term would probably be the China battery customer business. Should we continue to see that kind of negative upset？ I think from the margin perspective the negative upset to continue into fourth quarter.
Haas Liu - Bank of America, Analyst
(00:17:03)Or how should we think about the overall business momentum for your different business segment into Fort Worth this year？ I think regarding to battery cell shipment according to our current schedules I think third quarter is the highest and next quarter is lower than third quarter but because some of the order has been pushed out to first quarter next year. Okay being pushed out to first quarter next year got it OK, please continue, thanks Jennifer. Yeah, I say the factory is delayed, so maybe I think yeah, quite about one third, thirty percent is pushed out to first quarter next year. OK, and then on the previous earnings call you mentioned that the business momentum will be much stronger for second half this year across the board versus first half this year.
Haas Liu - Bank of America, Analyst
(00:18:02)How should we think about the overall growth trend of a high-base year-to-date into fourth quarter this year？ Should we expect some normalization or seasonality or you do expect that the CPO related testing equipment pulling from your foundry and also off-site customers will be able to continue that business strength even toward the end of this year？ We are not allowed to give financial guidance but we do have very high level of confidence.
Jennifer Chien - Chroma, Investor Relation
(00:18:32)for next year based on our current order on hand. OK and just a very quick follow up before jumping back to the queries on your system level testing business is doubling this year leading into 2027. How should we think about the growth momentum because the applications are being diversified into for example the chipsets like networking switch CPUs？ How should we think about the momentum therein 2027？ I would say from fourth quarter to first half next year most of the capacity built for our customers are related to inference markets that include everything you could talk about like CPU PUC PU ASIC.
Jennifer Chien - Chroma, Investor Relation
(00:19:31)And then not only for Google, but also N
Haas Liu - Bank of America, Analyst
(00:19:49)VIDIA, which is we already have order on hand. Got it, got it. So we will see this kind of driver coming out really soon. And if the diversifying application base the main reason why you need to just consider GDR issuance. Or is there any other factors that we should be aware of regarding your GDR plan？ You mean our plan for GDR？ Yeah, just the purpose of GDR because
Lawrence Wu - Chroma, CFO
(00:20:25)the proceeds you can get from the GDR is probably twice as big of your current cash position. So I was just wondering if it is related to capacity expansion or anything we should be aware of. We can't just comment that it's for our expansion and the future needs and we're not allowed to talk too much about the GDR.
Jerry Hsu - UBS, Analyst
(00:20:55)At this moment. OK, thank you so much, I'll be back in the queue first. OK, thank you. Next one, Jerry Hsu, UBS, go ahead please. Hi Jennifer and just one follow up question on the previously mentioned on the third quarter slide regarding the gross margin just wonderingIs it possible to quantify the impact coming from the revenue mix and also the contribution from the China battery business. Sorry can you you you meant the size we deliver in third quarter
Jerry Hsu - UBS, Analyst
(00:21:47)I meant for the gross margin compared with the previous quarter was down slightly couple percentage point quarter over quarter. I'm just wondering the CFO mentioned that this was partly because of the China battery business. Is there any way that you can quantify the impact of this couple point margin decline？
Jennifer Chien - Chroma, Investor Relation
(00:22:15)I think you could consider as in referring to what we had. I think right now the dilute blended gross margin is big since we have other factors is stronger than is much stronger than before so actually our dilution is much lower compared to what we had back to twenty-two and twenty-three. So when you try to overrule you know we alwaystry to do our best to maintain our growth
Jerry Hsu - UBS, Analyst
(00:22:56)margin around 60 percent. I think we will somehow having that kind of structures for the whole year. Okay got it. So as you mentioned that the the ship the delivery of the battery for Chinese customers probably in fourth quarter will be down versus third quarter so is it fair to think that the gross margin probably will gradually recover to the your targeted level？ I will definitely not using recover this word. I think still depends on the product mix but I already guide that yes based on the schedule shipping schedule fourth quarter is lower than
Jerry Hsu - UBS, Analyst
(00:23:32)The quarter. Okay okay got it then on the system level test I think you previously just mentioned besides not just Google also you know video is there any significant customers that you know we should be aware that should drive your revenue growth for SLT in 2027. I would say CSP and ASIC customers recently we hashed outTo have a new customer adopt, including mobile [待確認] and Broadcom. Okay, so these two customers in 2027 should become significant compared with your existing Google and also NVIDIA. During growth rate, of course, staff role plays several times a year.
Jerry Hsu - UBS, Analyst
(00:24:36)Okay, but how about in absolute, you know, mixed or dollar terms？ Too early to say. Okay, got it.Then lastly on the ATC handler, is there any way you can help us imagine what's the size or the revenue contribution for 2027？
Jennifer Chien - Chroma, Investor Relation
(00:25:11)I think we definitely will have a contribution. I’m
Speaker01 - Operator
(00:25:34)pretty much sure about that because customers already place orders. Okay, fair. Alright, thank you. This is not something like early adoption. Thank you. As a reminder, please press star key and number one on your telephone keypad.
Alex Wang - Bernstein, Analyst
(00:25:40)If you would like to ask a question, thank you. Next one, Alex from Bernstein, go ahead please. Hi Lawrence and Jennifer, this is Alex from Bernstein and my first question is about CPO. Since you are very much involved in insertion three and four, do you see challenges for customers to move from pilot production to mass production next year？What's the bottleneck of the expansion？
Jennifer Chien - Chroma, Investor Relation
(00:26:13)Customers are actually expecting to wrap up the pilot round by end of this year. So, we already received the first quarter PO for the mass production, and the customers already gave us the projection for next year. I have to specifically highlight that the first stage is still a scale-out, which is Spectrum 3.
Jennifer Chien - Chroma, Investor Relation
(00:26:39)2 dice. Right, say for example if your revenue for pilot production is one hundred, how much bigger is the revenue coming from mass production next year？ Rough number two, let me tell you this： if I have to compare the units, the testing equipment unit by quantity for CPO insertion three mass production versus pilot run, I would say at least four or five times. But I'm not allowed to tell you exactly what quantity. But once the market is able to move onto quantum, according to current projection, yes, that's even multiple times compared to Spectrum. I see.
Alex Wang - Bernstein, Analyst
(00:27:37)And this four to five times
Jennifer Chien - Chroma, Investor Relation
(00:27:49)you mean within one year, right？ It's one. Of course, as I said, it's excellent. I see. But of course, if you say next year our total shipout is definitely more, remember we have two customers. We have NVIDIA and Marvell. And Marvell already find the customers so they will stop. According to their schedule, it is the first three quarters pattern runs and fourth quarter move onto mass production.
Alex Wang - Bernstein, Analyst
(00:28:07)I see, and maybe putting CPO aside, I think the industry is also talking about tester opportunities for CPC next year called packaged copper. Not sure if copper has any involvement in that. Yes, we do, but the CPC is a system-level tester, OK？ And if anything that will happen in second half next year, I assume second half next year. Yeah, for revenue contribution. We can't provide any kind of financial guidance； however, we could talk about that later once we finish wrap our budget. Sure. Networking communication actually comes with four specs： CPO, CPC, transceiver, and what's the other, NPO. I see.
Alex Wang - Bernstein, Analyst
(00:29:12)And then moving to the power tester side, what's the revenue or order momentum for testers for HVDC power rack？ Based on current customer's place orders, I would say able to sustain until next year. It will sustain till next year？That's what you mean？ Yes. Okay.Let's see, my last question about gross margin.I know normally you don't comment for gross margin, but just as a follow-up or previous investor's question. So this quarter's gross margin is somehow impacted by the ESS mix.
Jennifer Chien - Chroma, Investor Relation
(00:30:03)Does it also impacted by the cost inflation of raw materials that you could maybe pass through in the fourth quarter？ Not really, just the product mix.
Alex Wang - Bernstein, Analyst
(00:30:07)OK, I
Speaker01 - Operator
(00:30:13)see. Alright, thank you. Thank you. We are now in que
Josie Yu - JP Morgan, Analyst
(00:30:27)stion and answer session. If you would like to ask a question, please press star key and number one on your keypad. Thank you. Next one, Josie Yu, JP Morgan, go ahead please. Hi Jennifer and Lawrence, can you hear me？ Yes. Yeah, thank you for taking my question. So my first question is about the senseWe're not allowed to give like financial forecast but maybe can we talk about the growth momentum ranking between ATS a
Josie Yu - JP Morgan, Analyst
(00:31:01)nd semian and photonics like going forward into 2027. This is my first question. You mean go through by every sector？ I think highlight the biggest growth.
Josie Yu - JP Morgan, Analyst
(00:31:05)Can we rank
Jennifer Chien - Chroma, Investor Relation
(00:31:16)them since we're not allowed to give numbers？ I would say for 20 seconds is really promisi
Josie Yu - JP Morgan, Analyst
(00:31:28)ng and then system level tester if you would just like to highlight the growth rate. I see. I'm wondering like since clients are placing a lot of big orders and we are also waiting like new clients, what's the pattern of lead time of your equipment especially for AI power testing and CPU is the lead time lengthening or like other comments that we would like to highlight？ I don't think under such current market situation you're able to give really exact lead time； however, semiconductor need to match with meet the customer's delivery schedules so that's very hard to, you know, just give you very standardized lead time. But from the order visibility we're looking at it's at least towards like second half twenty-seven is that the right way to interpret it？ Sum of factor can look up to whole year. I see yeah and my last question is about like potential price hike or price adjustment have we like start to take these price adjustment into fact like in third quarter or what's our plan looking forward yeah of course yeah we were talking to the customer before
Josie Yu - JP Morgan, Analyst
(00:32:56)the price adjustment but yeah still working on it. Sorry I have a quick follow-up regarding this price adjustment is it more towards to reflect the raw material cost inflation or is more like maybe some super hot round fee or to reflect our like order pipeline is really really tight at the moment I would say both.
Jennifer Chien - Chroma, Investor Relation
(00:33:29)Yeah, thank you. OK, I probably will take couple of, so Joan, have you complete your questions？ Yes, yes, thank you very much. Alright, I will take couple questions from the website.The first question is asking about for non-China battery segment, what are the gross margin trends？ Pretty in line with the corporate average, depends on what type of products. And then second question, would those gross margins be higher quote unquote, excluding battery sales？ I would say
Jennifer Chien - Chroma, Investor Relation
(00:34:26)Would third quarter growth margin be higher quarter-on-quarter, excluding China battery cell business impact？ No, similar, not very much change. And next one is what are the reasons for third quarter margin below the first half？ I would say the first three quarters we still maintain only two percent difference compared to last year, but operating margin is much higher than last year first three quarters.And then last question. How does the company current view on the developing in field of AI and what is impact for company core business.
Jennifer Chien - Chroma, Investor Relation
(00:35:27)Sorry the last question is not very c
Speaker01 - Operator
(00:35:48)lear so probably we can talk about that later okay and I see there's no more questions I think operator can we just close out this meeting Yes thank you Jennifer and ladies and gentlemen we thank you for your participation in Chroma's conference there will be a webcast replay within an hour Please visit www.chroma.com.tw slash investors slash index under the investor relations section You may now disconnect Thank you again, goodbye.