E Ink Holdings chairman Johnson Lee said the company reached its full-year 2025 targets ahead of schedule in the third quarter, setting the stage for record annual profit. "We're basically celebrating Christmas early," he joked, noting he is not concerned about the expected seasonal softness in the fourth quarter.
Capacity expansion roadmap
Growing global demand for e-paper is driving E Ink's latest expansion phase. Lee said the H5 production line will start contributing in 2026, followed by the larger H6 line in 2027. The company is also building a major manufacturing hub in Guanyin to support next-generation e-paper production. With these ramps, E Ink expects revenue and profit to hit fresh records for three straight years through 2028.
In October 2025, consolidated revenue reached NT$2.149 billion (US$68.7 million), down 32.5% from the prior month and 34.2% from a year earlier. Lee said the team is not worried since E Ink already hit its full-year target in the third quarter and is now focused on 2026.
Lee expects a softer fourth quarter but forecasts that the first quarter of 2026 will exceed the same period in 2025, with full-year 2026 results also topping 2025.
Product demand outlook
E Ink sees strong momentum across its three core product lines. Digital signage is projected to post the fastest growth in 2026 from a low base. Electronic shelf labels (ESL) remain a key driver as Walmart's adoption is prompting wider uptake among US retailers. In the UK, the top three retailers plan to deploy ESL, while Europe is entering a replacement cycle.
Because ESL installations occur in phases rather than in a single rollout, E Ink remains positive on demand through 2026 and 2027. ESL adoption is also expected to spur growth in retail media signage.
Color e-readers and e-note devices continue to gain traction as the market shifts from monochrome to color displays, supporting shipment growth into 2026.
Global manufacturing plans
To meet rising demand, E Ink is expanding capacity across several sites. In addition to the H5 and H6 lines, it is investing NT$3.3 billion to acquire land and upgrade facilities in Guanyin to create a major production hub for future e-paper technologies.
The H5 line will boost revenue and profit in 2026, followed by the larger H6 line in 2027. The Guanyin site, which is larger than H6, is expected to contribute in 2028 or 2029. E Ink also plans to add nearly 2.85 million sq ft (65.3 acres) of new factory space across Taiwan and China, more than doubling its current production footprint.
E Ink has acquired a new R&D facility in San Jose, California, to strengthen its innovation base in the US and accelerate work on next-generation color e-paper and sustainable display technologies.
Financial results and scale-up
E Ink's third-quarter consolidated revenue reached NT$10.415 billion, up 13% quarter-over-quarter, with net profit at NT$4.238 billion. Revenue for the first three quarters of 2025 totaled NT$29.1 billion, a 29% increase year-over-year. Operating profit hit NT$9.99 billion and net profit NT$9.4 billion, already exceeding full-year 2024 levels..
The company's asset base has doubled in five years to more than NT$100 billion, with nearly 70% held in cash and financial assets, giving E Ink strong flexibility for future expansion and R&D.
As AI adoption accelerates and energy use rises, E Ink said the ultra-low-power characteristics of e-paper strengthen its appeal. With zero power consumption for static images and no backlighting requirement, e-paper can help reduce energy loads in large-scale AI and data-intensive environments.
Article edited by Jingyue Hsiao
