Liyou Plans NT$10 Million in Q4 Capital Spending, With Equipment Purchases Tied to Customer Commitments

Highlights

Liyou Technology (立衛科技, 5344-TW) expects capital expenditure of approximately NT$10 million in the fourth quarter of 2026, its highest quarterly level of the year, for facility expansion and additional testing equipment. Third-quarter capacity utilization was approximately 90%, and order visibility extended into the first quarter of 2027. Equipment is configured for customers’ testing platforms, and the company says it obtains customer commitments before placing orders; some projects may also require long-term contracts. More than 10% to 20% of customers purchase machines themselves and install them at Liyou’s facilities to secure capacity. The company’s spending plans remain closely linked to confirmed customer demand and agreements.

Sentiment Analysis

• Overall sentiment: cautiously positive. The reported utilization rate of approximately 90% and order visibility through the first quarter of 2027 suggest ongoing demand for the company’s testing services. These indicators support investment in capacity, although the article does not quantify future revenue or earnings.
• Demand and investment outlook: Fourth-quarter 2026 capital spending is expected to reach approximately NT$10 million, mainly for equipment and facility expansion. The increase is presented as a response to customer needs, but the spending is conditional on obtaining customer commitments and, in some cases, completing long-term contracts.
• Risk and uncertainty: The company had not finalized its 2027 capital expenditure plan at the time of the report. Its estimate that spending may be comparable with 2026 is preliminary, and customer-funded equipment as well as potential supply constraints affect how capacity is secured.
• Sentiment reading: The tone is positive about demand and customer cooperation, but measured rather than unequivocally bullish because investment depends on agreements and the next-year budget remains unsettled.

Article Text

Liyou Technology (立衛科技, 5344-TW) plans to spend approximately NT$10 million on capital expenditure in the fourth quarter of 2026. The company said this amount would be higher than its spending in any of the first three quarters of the year. The planned outlay is intended for factory facility expansion and additional testing equipment, with most of the spending allocated to machinery. Liyou attributed the increase to continuing customer demand.

Capacity utilization was approximately 90% in the third quarter of 2026, while order visibility extended to the first quarter of 2027. According to the UAnalyze industry database, capital expenditure in each of the first three quarters of 2026 was around NT$8 million. The company’s spending in the fourth quarter of 2025 was NT$2.29 million. The figures indicate a higher planned investment in the final quarter of 2026 compared with the earlier quarterly levels described in the report.

The equipment Liyou uses depends on the testing platforms required by its customers. Its testing machines include equipment from Advantest, Chroma, Mita, and MPI. For wafer probing, the company uses machines made by Tokyo Seimitsu (東京精密, TSK) of Japan. Its equipment supports 6-inch, 8-inch, and 12-inch wafers. When a customer changes platforms or begins a new project, Liyou prepares the corresponding machinery and production capacity.

The company says equipment purchases for long-term needs are made only after it has obtained a customer commitment. For projects that require greater caution, the parties may sign a separate long-term agreement. Customers also need to confirm the conditions of cooperation, and Liyou places an order only after both sides have agreed on the terms. As a result, the scale and timing of investment are tied to customer commitments and contracts rather than to equipment demand alone.

Liyou expects its 2027 capital expenditure could be comparable with its 2026 spending, but the amount had not been finalized when the report was published. The company was preparing its year-end forecast and business plan for 2027. Its current direction is to add testing equipment and expand factory facilities, subject to the planning process and customer requirements.

Some machinery is purchased directly by customers. More than 10% to 20% of Liyou’s customers buy equipment themselves and install it at the company’s facilities, helping ensure that they receive a desired share of capacity. Liyou purchases equipment for the remaining customers. The company described this arrangement as making cooperation closer and safer. Customers may choose to fund machinery themselves to secure capacity when supply is tight.

Liyou’s customers are design companies serving the consumer IC market. In 2026, AI and HPC demand was described as crowding out capacity at wafer fabrication and packaging facilities, leaving some customers with insufficient capacity there. The article says testing capacity could instead be scheduled in advance. This helps explain why customers may seek to reserve testing resources through equipment purchases or agreements with Liyou.

The report characterizes Liyou’s capital spending as relatively modest and project-driven. The planned NT$10 million for the fourth quarter of 2026 is not presented as an unconditional purchase commitment: the company says customer commitments and contracts must be in place before the expenditure is made. The article reports that the 2027 plan remains under review and provides no finalized amount or confirmed spending schedule for that year.

Source: UAnalyze industry database and the company information cited in the original report. The report notes that information about individual stocks, funds, and futures is for reference only and is not investment advice; investors should make independent judgments and carefully assess risks.

Key Insights Table