AI Deployment Accelerates Momentum; DFI Expects Strong Q1 Performance
New System Production Lines in 2026 to Strengthen Manufacturing Resilience and Delivery Capability
Taipei, Taiwan – DFI (TWSE: 2397), a leading provider of embedded motherboards and industrial computers, held its investor conference today (23rd). Benefiting from the continued growth in edge AI applications, market momentum in Europe and Asia has turned increasingly positive, with order visibility remaining strong.
DFI President Claire Tian stated: "AI is transitioning from the phase of compute investment to real-world deployment. Demand for edge AI continues to emerge across defense, industrial automation, and communications, driving stronger order momentum for DFI. We expect a solid start to the first quarter."
DFI reported a book-to-bill ratio of 1.38 in the fourth quarter of last year, an improvement from the previous quarter, indicating sustained growth in order momentum. Full-year revenue for 2025 reached NT$10.876 billion, representing a 15% year-over-year increase.
While short-term profitability was affected by operational adjustments and resource optimization within subsidiaries, the gradual release of high-end application orders in defense, communications, and industrial AI in Q1 2026 is expected to support growth. To capture this momentum, the Company has accelerated new market expansion and production line upgrades, strengthening delivery capabilities through the build-out of critical capacity. With ongoing product mix optimization and improved capacity utilization, overall business momentum is expected to steadily increase.
DFI continues to advance its three core business pillars: Embedded Systems, Intelligent Automation, and Cybersecurity, with tailored strategies for different industry applications:
Embedded Systems: Increasing the proportion of high-value products, with a strategic focus on “Rugged × AI × Long Lifecycle.” The business targets high-margin markets and collaborates with ecosystem partners to support high-reliability applications such as defense, in-vehicle systems, and Physical AI.
Intelligent Automation: Fourth-quarter revenue declined 1% year-over-year, primarily due to changes in subsidiary operating performance, resulting in slower growth momentum. The Company will continue optimizing internal resource allocation to enhance operational efficiency.
Cybersecurity: Driven by steady demand in networking and server markets, revenue grew 9.25% year-over-year in 2025. Going forward, DFI will deepen engagement with existing customers while accelerating the development of next-generation AI servers.
As the AI industry transitions from “compute expansion” to “value realization,” market focus has shifted toward achieving tangible returns on AI investments (ROI). The ability to translate technology into real-world applications and drive value through edge AI has become central to industry development.
In response to market uncertainties in 2026, DFI is proactively strengthening operational resilience. In addition to optimizing key component sourcing strategies and deepening supply chain collaboration, the Company is comprehensively upgrading its product portfolio. By reinforcing its edge AI computing systems, rugged platforms, and system integration capabilities, DFI continues to increase the proportion of high value-added products.
With an optimized product mix and improved operational efficiency, DFI expects to deliver steady growth in overall operating profit.