Sysgration Ltd.

Benefiting from gradually strengthening AI demand, together with continued shipment growth in industrial PC (IPC) and drone system products, Sysgration Ltd. (TPEX: 5309) reported consolidated revenue of NT$328 million for August, up 2.68% MoM and 27.55% YoY. Revenue reached a new monthly record high for the second consecutive month, supporting continued expansion in the company’s overall operating scale. Cumulative revenue for the first eight months of the year reached NT$2,417 million, up 9.37% YoY.

As government initiatives supporting local drone manufacturing move into the budget allocation and procurement stages, 2026 is expected to mark the beginning of large-scale drone procurement in Taiwan. Beyond its in-house flight control system development capabilities, Sysgration’s core strengths include 100% local manufacturing and logistical support at its Nangang plant in Nantou, Taiwan. The Act for Strengthening National Defense Autonomy and Developing the Unmanned Vehicle Industry authorizes total procurement of NT$240 billion over six consecutive years for coastal surveillance drones, coastal attack drones, and unmanned surface vessels. In addition, Taiwan’s Ministry of National Defense recently announced plans to procure 2,032 U.S.-made ALTIUS long-range drones from Anduril Industries for NT$26.9 billion. These developments indicate that long-range attack drones have progressed beyond policy direction into a stage supported by medium- to long-term budgets and large-scale procurement.

Amid geopolitical uncertainty and accelerating global demand for drones, a fully non-China supply chain, local manufacturing, and logistical support have become critical requirements for securing orders from Europe and the United States. Sysgration has established an extensive design and manufacturing footprint in both Taiwan and the United States. In addition to its Nangang plant in Nantou, Taiwan, the company’s Plano, Texas facility provides 100,000 square feet of production space and offers flexible manufacturing capabilities for drones, IPCs, BBUs, TPMS products, and SMT assembly. This enables Sysgration to shorten lead times for North American customers while improving the efficiency of customization, repair, and technical support services.

Under the U.S.-Taiwan Reciprocal Trade Agreement, Taiwan-origin goods exported to the United States are generally subject to the higher of the most-favored-nation (MFN) tariff rate or 15%. By establishing local manufacturing in the United States through its Plano facility, Sysgration can mitigate the impact of the 15% baseline tariff while reducing cross-border logistics and supply-chain policy risks. This provides a key advantage in pursuing procurement opportunities from U.S. government agencies and major enterprises.

Market analysts noted that, following two consecutive months of record-high monthly revenue, Sysgration’s IPC and drone products have gradually transitioned from a second growth curve into key operational pillars. As procurement-policy budgets are implemented, demand for non-China supply chains continues to rise, drone product shipments gain momentum, and ground control systems (GCS) enter the ramp-up preparation stage, Sysgration is evolving from a drone hardware supplier into a core control-system provider with capabilities in flight control, ground control, and edge AI computing. Leveraging its U.S. local-manufacturing advantage, the company is also expanding its presence in North American drone supply-chain opportunities. In addition, gradually strengthening demand for BBU shipments is expected to support gradual revenue growth in the fourth quarter.

Sysgration’s Consolidated Revenue Summary for August 2026:  Unit: NT$ million; ％