Goldman Sachs Winway Technology (6515.TW): CPO Testing as the Next Critical Bottleneck and Opportunity; Reiterate Buy
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Goldman Sachs reiterates a Buy rating on Winway Technology (6515.TW), identifying co-packaged optics (CPO) testing as the next critical bottleneck and a major commercial opportunity. Insights from Winway's recent CPO Technology Forum indicate that as CPO transitions from R&D to mass production, testing will become the primary constraint on capacity and yield. Winway's probe card and test solutions are uniquely positioned to address this challenge.
Goldman Sachs forecasts the CPO testing market to grow from approximately $100 million in 2025 to $1 billion by 2030, representing a compound annual growth rate exceeding 50%. The company has already secured multiple CPO testing orders, with some entering mass production.
The firm maintains its target price, noting that 2026 and 2027 will be the critical window for CPO testing revenue to contribute meaningfully to financial results. Winway holds a first-mover advantage with high technical barriers and limited direct competition. Furthermore, CPO testing solutions command higher gross margins than traditional testing products, which should drive overall profitability higher. Upside risks include CPO testing orders exceeding current expectations. Key risks to the thesis include uncertainties in the CPO technology roadmap, customer concentration, and potential shortfalls in capacity expansion timelines.