Recently, leading semiconductor distributors Walsin and Arrowscore successively announced their March 2026 and first-quarter revenue data. Overall, both companies showed significantly stronger performance in March, with first-quarter results setting new records. Among them, Walsin's March revenue reached approximately NT$1,941 billion, a year-on-year increase of 119% and a month-on-month increase of 86%; Arrowscore's March revenue reached approximately NT$1,416 billion, a year-on-year increase of 28.6% and a month-on-month increase of 77.8%.
This article will analyze the latest performance of Walsin and Arrowscore, as well as the overall situation in the first quarter of this year.
01
Walsin and Arrowscore
Both Set New Quarterly Revenue Records
Walsin announced its March 2026 consolidated revenue of approximately NT$1,941 billion (same currency hereafter), an increase of about 119% compared to the same period last year and about 86% growth from the previous month, becoming the second-highest in history. The first quarter's cumulative consolidated revenue reached approximately NT$4,943 billion, an increase of about 100% compared to the same period last year, setting a new quarterly high and exceeding the upper limit of NT$4,600-4,900 billion financial forecast provided in the previous earnings call.
Walsin did not specifically state the main reasons for the March growth in its monthly revenue announcement. However, some Taiwanese media reported that March was mainly benefited by the growth in demand for data centers and related communications.
At the March earnings call, besides providing the first-quarter revenue forecast, Walsin also set profit targets for the quarter, estimating that the gross profit margin would be around 3.2% to 3.3%, the operating profit margin would range from 1.75% to 1.85%, and after-tax net profit would reach NT$5.674 billion to NT$6.486 billion, with a median quarterly increase of 45% and a year-on-year increase of 125%.
On the Arrowscore side, March consolidated revenue reached NT$1,416.5 billion (same currency hereafter), a quarterly increase of 77.8% and a year-on-year increase of 28.6%, setting a new record. This drove the first quarter's consolidated revenue to NT$3,165 billion, a quarterly increase of 23.9% and a year-on-year increase of 27.2%. It not only surpassed the original financial forecast range of NT$255 billion to NT$275 billion but also broke the NT$300 billion barrier for the first time in a single quarter.
Arrowscore pointed out that with the continuous expansion of AI applications, high-performance computing, and data center demand, coupled with strong momentum for AI servers, traditional servers, memory, power supplies, networking, and related electronic components, overall operational performance has been boosted.
At the March earnings call, Arrowscore also mentioned that the popularization of generative AI is driving global data center construction, while demand for high-performance computing, AI servers, and next-generation memory is expanding simultaneously. This has led to upgrades in power management, network communication equipment, and high-speed connection components, creating structural demand in the semiconductor supply chain.
Arrowscore also stated that the revenue momentum in the first quarter of 2026 mainly came from: AI servers and high-performance computing driving related electronic component demand; inventory in European and American industrial and automotive markets returning to healthy levels with recovering terminal demand; and the continued growth of the co-creation intelligence (LaaS) service business, which positively contributes to the overall gross profit margin.
In addition to revenue, for the first quarter of 2026, assuming an exchange rate of NT$31.5 to US$1, Arrowscore expects an operating profit margin of 2.36% to 2.52% and after-tax net profit of NT$3.616 billion to NT$4.201 billion.
02
Performance So Far This Year
Looking at the performance in the first quarter of this year, both Walsin and Arrowscore delivered results that exceeded expectations. Walsin's first-quarter revenue nearly doubled to nearly NT$500 billion, while Arrowscore broke the NT$300 billion mark for the first time in a single quarter, both surpassing their high-end financial forecasts.
First, let's look at Walsin. Walsin's monthly revenues this year were NT$195.7 billion, NT$104.4 billion, and NT$194.1 billion, with month-on-month changes of +98.49%, -46.65%, and +85.88%, and year-on-year changes of +151.67%, +28.98%, and +118.87%. This January and March respectively achieved historical highs and second-highest, driving the first quarter's revenue to a peak of NT$494.273 billion, a year-on-year increase of 99.77%.
Market analysts pointed out that given Walsin's first-quarter revenue has already exceeded forecasts, it was expected that the quarter's profits would reach the upper limit of the financial forecast or even exceed it.
Walsin's monthly revenue summary; Source: Yahoo Finance
Walsin's annual consolidated revenue last year exceeded the NT$1 trillion mark for the first time. This year's first-quarter performance has already approached NT$500 billion. The market expects that if the New Taiwan Dollar exchange rate and geopolitical factors do not have significant impacts, Walsin's operations should grow steadily this year. It is estimated that the performance in the second half of the year will not be worse than the first half, and the overall profit performance for the whole year has the potential to reach new heights.
Walsin Chairman Zheng Wenzong previously stated at an earnings call that he expects the company's performance this year to show considerable growth.
Zheng Wenzong mentioned that currently observed strong AI demand is mainly reflected in data center and related communications momentum. In non-AI areas, industrial inventory has returned to healthy levels and is expected to continue recovery this year; automotive electronics is still observing inventory adjustments in the Asian market, while inventory in European and American markets has returned to healthy levels. Against the background of increasing semiconductor content in automobiles, there is a positive medium- to long-term view; for consumer electronics, mobile phones, and PCs, terminal demand needs to be monitored.
Walsin's CFO Lin Guan'an stated at the earnings call that the growth of the company's business in 2026 will mainly come from three driving forces:
First, the continued prosperity of AI data centers, where AI data centers and communication products account for nearly 60% of revenue, with particularly strong demand for data center power components; Second, completion of inventory adjustments in European and American markets and resumption of terminal stocking, combined with the continuous release of integration benefits from acquiring Future, which contributes about 10% of revenue and is biased toward high gross margins, significantly improving net profit; Third, steady recovery in non-AI fields such as automotive, industrial, PC, and mobile in Asia, with terminal demand continuously upstream.
On the Arrowscore side, monthly revenues this year were NT$95.2 billion, NT$79.7 billion, and NT$141.6 billion, with month-on-month changes of +1.96%, -16.27%, and +77.8%, and year-on-year changes of +44.57%, +9.40%, and +28.58%. The record-breaking performance in March drove the first quarter's consolidated revenue to NT$316.5 billion, surpassing the high-end forecast of NT$275 billion and setting a new historical high for a single quarter.
Arrowscore's monthly revenue summary; Source: Yahoo Finance
In addition to record-breaking revenue, Arrowscore's profitability performance in recent quarters also deserves attention.
In addition to distribution, Arrowscore has actively expanded its Logistics as a Service (LaaS) business in recent years. As of the end of last year, Arrowscore's gross profit margin had increased for five consecutive quarters, reaching 4.26% in the fourth quarter of last year. The gross profit margin for the first quarter of this year is estimated to be between 4.15% and 4.35%.
At the March earnings call, Arrowscore pointed out that AI is driving rapid growth in computing demand, with the company's computing-related applications increasing from 35% five years ago to 45%, becoming an important growth engine. In non-3C applications, the proportion of automotive and industrial markets has also increased from 21% to 27%.
From a terminal market perspective, the company believes that tight memory supply may squeeze overall shipments of smartphones and laptops, but the penetration rate of AI phones and AI PCs continues to increase. At the same time, data center demand is strong, with AI servers expected to grow by about 17% this year.
Arrowscore emphasized that besides GPUs and memory, the AI supply chain also includes many other components such as passive components, connectors, power management, and network switching equipment, all of which are important areas for distributors to focus on. The company has also actively expanded related product lines in recent years, with computing-related revenue increasing by about 25% in 2025, and the automotive market growth rate also exceeding 26%.
Source: Arrowscore Financial Reports
