Largan Precision rose to its daily limit shortly after trading opened, with the stock reaching NT$6,290 and setting a record high. On Aug. 25, the optical lens maker disclosed a major transaction, saying it would spend NT$3.08 billion to acquire land and factory buildings in Taichung’s Nantun District, marking the company’s largest single real estate deal this year by both value and area.
Market analysis cited in the source said the move is aimed at meeting customer demand and accelerating capacity buildout for co-packaged optics, or CPO. As Largan expands into Taiwan Semiconductor Manufacturing Co.’s advanced process supply chain, related pilot lines are expected to be installed by the end of the third quarter of 2026, with mass production potentially starting as early as mid-2027 and beginning to contribute revenue.
NT$3.08 billion Nantun acquisition marks Largan’s biggest property investment this year
According to the company’s filing, Largan is acquiring real estate in the Precision Machinery Technology Innovation Park in Taichung’s Nantun District from Kehong Industrial for a total of NT$3.08 billion.
The purchase includes about 6,292 ping of land and about 7,054 ping of building area. Largan said the investment is meant to support future operations and business expansion through additional physical space. With demand for optical components rising in advanced semiconductor packaging processes, securing a production base in advance could help with later plant planning and equipment installation.
Expansion centers on CPO, FA and MLA integration
The expansion is focused on silicon photonics and co-packaged optics. Largan is currently concentrating on integrating Fiber Array, or FA, and Micro Lens Array, or MLA, into Fiber Array Unit, or FAU, modules.
Industry information cited in the report said Largan has entered TSMC’s Compact Universal Photonic Engine, or COUPE, process ecosystem as an FAU component supplier. To meet customer requirements on mass-production timing, dedicated capacity has become a key step in moving the business forward.
Pilot line targeted for end of Q3 2026
On production timing, Largan Chairman Lin En-ping previously said pilot lines for the new products are expected to be completed by the end of the third quarter of 2026. After process optimization and customer verification are completed, the company could formally move into mass production as early as mid-2027 and begin converting that effort into revenue.
Equipment tuning and capacity ramp-up usually take time. Having existing factory buildings in hand first could shorten early construction work and speed up deployment of later production lines.
Fourth land purchase in Taichung this year
This is Largan’s fourth factory-site purchase in the Taichung area this year. Before the NT$3.08 billion deal, the company had already spent more than NT$2.5 billion from late June to July on real estate in Taichung’s Nantun District and Taichung Industrial Park.
The string of capital expenditures shows Largan continuing to support its smartphone optics business while extending resources into optical semiconductor applications with longer-term growth potential.