TECO Targets Rapid Growth in 2027 and Revenue of NT$100 Billion Within Two to Three Years

Highlights

TECO (東元, 1504-TW) Chairman Li Ming-hsien (利明献) said the company expects to enter a period of rapid operating growth in 2027, driven mainly by AI-related business. At its 70th-anniversary forum on the 16th, he said TECO continues to discuss cooperation details with Foxconn (鴻海, 2317-TW) and sees potential AI-related opportunities in Japan and North America. Its modular data center (MDC) and related engineering businesses already work with multiple cloud service providers (CSPs), with demand strongest in Southeast Asia. TECO’s target of reaching NT$100 billion in revenue within two to three years remains unchanged.

Sentiment Analysis

• The article’s overall tone is cautiously positive. Management presents AI-related business as a major source of future growth and expects operations to accelerate in 2027.
• Its revenue objective is ambitious, but the article frames it as a continuing target rather than a guaranteed outcome. Cooperation with Foxconn remains under discussion, and the reported Japanese and North American opportunities are described as potential rather than finalized projects.
• Existing MDC and engineering work with multiple CSPs provides context for the growth outlook, while particularly strong demand in Southeast Asia adds a concrete regional element.
• Reported revenue figures show year-over-year growth in 2025 and in the first three quarters, although the article does not provide enough information to assess profitability or the costs of expansion.
• The expectation that overseas revenue could exceed half of the total in 2027 signals a significant strategic shift. Overall, optimism is balanced by the fact that targets and prospective partnerships still depend on execution.

Article Text

TECO (東元, 1504-TW) held a forum marking its 70th anniversary on the 16th. Chairman Li Ming-hsien (利明献) used the event to discuss the company’s outlook, including AI-related business, potential partnerships and its longer-term revenue goal. He expects TECO’s operations to enter a period of rapid growth in 2027, with AI-related activities serving as the principal driver.

Li said TECO is continuing discussions with Foxconn (鴻海, 2317-TW) on the details of cooperation. The two companies previously established a strategic alliance, and the current work is focused on reviewing the specific arrangements and advancing plans. The remarks indicate that discussions remain active, but do not describe a completed agreement or provide details about the scope, schedule or financial value of any joint projects.

TECO also sees possible AI-related cooperation opportunities in Japan and North America. These opportunities are part of the company’s broader outlook, though the forum remarks did not identify specific partners or projects in those markets. The company’s stated expectations therefore combine current discussions with prospective business possibilities.

Its modular data center (MDC) and related engineering businesses have already worked with multiple cloud service providers (CSPs), according to Li. Among the regions mentioned, demand is currently strongest in Southeast Asia. This existing activity provides context for TECO’s interest in AI infrastructure and related services, while the regional demand pattern points to Southeast Asia as an important market at present.

TECO reported revenue of NT$59.094 billion in 2025, an increase of 7% year over year. Revenue for the third quarter of this year was NT$16.85 billion, up 1.5% from the previous quarter and 15.9% from the same period a year earlier. Revenue for the first three quarters totaled NT$47.64 billion, an increase of 8.9% year over year. These figures describe revenue growth; the source does not provide corresponding profit or margin data.

Li reiterated that TECO’s goal of reaching NT$100 billion in revenue within two to three years remains unchanged. He identified AI-related business as the main expected growth engine behind that objective. The target is a forward-looking objective, while the article reports no guarantee that it will be achieved. The pace of growth will depend on business development, project execution and the progress of current and potential partnerships.

TECO’s overseas revenue has not yet exceeded domestic revenue. Li expects the overseas share to have an opportunity to surpass half of the company’s total revenue in 2027. That expectation would represent a notable change in the balance of its business by geography. Taken together, the company’s outlook rests on AI-related demand, MDC and engineering work, international opportunities and continued efforts to develop cooperation with Foxconn. The reported figures provide a recent revenue baseline, while the growth and overseas-share expectations remain management forecasts.

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