CHIEF TELECOM Business Summary

Chief Telecom Inc. (6561.TWO) operates as Taiwan’s premier carrier-neutral data center and cloud service provider, generating high-margin recurring revenue through a mix of colocation fees, network connectivity subscriptions, and cloud-integrated service charges. The company’s operations are categorized into four primary segments: Internet Data Center (IDC) services, Data Communications (including the Taiwan Internet Exchange, TPIX), Cloud Value-Added Services (via its Chief Cloud eXchange platform), and Voice Communications. As the operator of the largest internet exchange in Taiwan, Chief Telecom serves as a critical regional gateway for global hyperscalers and submarine cable systems, bolstered by its high-specification LY2 AI data center which became operational in mid-2024 to meet surging demand for high-density computing. It competes directly with global giants like Equinix and Digital Realty, as well as domestic integrated telcos Far EasTone and Taiwan Mobile, distinguishing itself through its carrier-neutral status and the massive network gravity of its TPIX ecosystem. The company is led by Chairman and Chief Strategy Officer Wu Yen-Pin and President Johnny Liu (Liu Yi-Cheng), both of whom bring extensive experience from the telecommunications and infrastructure sectors, particularly through their long-standing ties with the parent company, Chunghwa Telecom. Johnny Liu has been instrumental in pivoting the company from a traditional IDC provider to a multi-cloud connectivity hub, leveraging strategic partnerships with AWS, Google, and Microsoft to capture AI and hyperscale demand. The leadership team is supported by a board heavily influenced by its majority shareholder, Chunghwa Telecom (CHT), which holds a controlling stake of approximately 56%, providing Chief Telecom with significant financial stability and strategic alignment with Taiwan’s national digital infrastructure goals. Notable institutional backing includes major Taiwanese insurance funds and international investors attracted by the company's consistent dividend yield and dominant position in the regional data transit market.