Sysgration Ltd.

Sysgration Ltd. (TPEX: 5309) reported consolidated revenue of NT$367 million for September 2026, up 12.04% MoM, setting a new monthly record for the third consecutive month. Third-quarter consolidated revenue reached approximately NT$1.014 billion, up 24.35% YoY and 11.74% QoQ, also marking a record high. September’s growth was driven by contributions across all product lines. With shipments of BBU to cloud service provider (CSP) customers beginning in October, the company’s revenue is maintaining its upward monthly and quarterly momentum this year.

Power architectures in AI data centers are evolving from traditional centralized uninterruptible power supply (UPS) systems toward configurations incorporating server rack-mounted BBU and Mini UPS systems. The next stage will feature sidecar or power rack BBU paired with next-generation 800V high-voltage direct current (HVDC) architectures. BBU provide 30 to 90 seconds of backup power with seamless switchover within microseconds, serving as a critical short-duration power buffer as AI rack power consumption rises. Sysgration’s Nantou plant has historically focused on battery products for centralized UPS systems. Deliveries to CSP customers beginning in October will support server rack-mounted BBU/Mini UPS architectures, marking the completion of product validation and the start of revenue contributions from BBU. Shipment volumes are expected to ramp up next year, potentially driving a substantial increase in profitability. The company will also advance its next-generation 800V HVDC products, further strengthening its growth momentum.

Sysgration noted that BBU demand extends beyond high-end AI racks. Data centers will not shift all computing capacity to GPU- or ASIC-based AI servers at once, and general-purpose servers will continue to account for the bulk of shipments. Demand for AI inference is also driving the replacement, expansion, and upgrading of general-purpose server infrastructure. These racks likewise require power system upgrades incorporating rack-mounted BBUs, broadening demand across the server upgrade cycle. According to a September 2026 research report by Goldman Sachs, the global BBU market is projected to expand from US$2.2 billion in 2025 to US$50.2 billion in 2030, representing a compound annual growth rate of 87%. The more stringent safety certification requirements for 800V HVDC systems will make certification capabilities a key competitive differentiator for suppliers seeking to enter CSP supply chains.

 To expand capacity, Sysgration has completed the installation of two fully automated BBU production lines in Taiwan and plans to install two additional lines at its Plano, Texas facility next year, doubling planned capacity to meet rapidly growing BBU demand. While most peers continue to rely primarily on semi-automated processes, Sysgration has taken the lead in adopting fully automated production lines. An interlock verification mechanism helps eliminate risks associated with manual rework, improve yields, and strengthen high-volume delivery capabilities. Located near Texas’s AI server supply chain cluster, the Plano facility can shorten delivery lead times from five to six weeks to two to three weeks. It also enables flexible production allocation to meet North American customers’ needs for U.S. manufacturing and rapid delivery.

Industry analysts noted that, as BBU shipments to CSP customers begin, long-tail industrial PC (IPC) projects continue to materialize, and drone products progressively enter commercialization from the fourth quarter, Sysgration is evolving from a business primarily reliant on tire pressure monitoring systems (TPMS) into one supported by three major pillars: BBU and energy systems, IPC and drones, and TPMS. With the installation of fully automated U.S. BBU production lines scheduled for completion next year and product design validation advancing toward next-generation 800V HVDC solutions, BBUs are expected to become a key driver of business expansion and an improved earnings mix.

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