TXC (3042) Investor update summary

Strategic positioning and market outlook

• Focus on building sustainable revenue portfolios with leadership in timing solutions for AI, 5G, automotive, and edge computing markets.

• Expansion into advanced infrastructure, smart IoT, and AI-powered ecosystems, maintaining a leading position in the timing market through 2030.

• Growth driven by increasing timing value in automotive, 6G RAN, and AI infrastructure, with emphasis on higher frequency, stability, and integration across domains.

• Automotive and AI segments are emerging as key platforms, with value per vehicle and edge AI opportunities prioritized.

• Market segment focus shifting towards automotive, AI, and connectivity, with sustainable growth potential identified.

Technology and innovation drivers

• Integrated architecture supports distributed, intelligent ecosystems with precise, resilient timing across cloud, edge, and devices.

• Timing solutions tailored for mission-critical, hybrid, and wireless-first systems, balancing power, stability, and reliability.

• Innovations in reference frequencies, phase jitter, and synchronization address growing clock-domain complexity in AI and networking.

• Advanced timing products support 6G, automotive, and edge AI, with new solutions for holdover, remote management, and higher-grade stability.

• Product roadmap includes ultra-high frequency, miniature, and ruggedized timing devices for emerging AI and 5G/TSN applications.

Financial performance and capital allocation

• Q2'26 net revenue reached NT$3,699M, up 10.77% QoQ and 9.87% YoY; H1'26 net income grew 19.43% YoY to NT$1,006M.

• Gross margin for H1'26 was 32.74%, with operating margin at 16.00% and net income margin at 14.29%.

• Total assets as of June 2026 were NT$23,293M, with a debt ratio of 31.9% and ROE at 12.7%.

• 2026 CAPEX planned at NT$1,078M, focusing on technology upgrades, smart manufacturing, ESG, and geographic diversification.

• High dividend payout maintained, with an average ratio above 80% and consistent EPS growth supporting sustainable returns.