According to Taiwan's news outlet Juheng.com, the high demand for AI server products has significantly increased the performance of PCB, HDI (High-Density Interconnect), and copper foil substrate manufacturers in Taiwan, China. The enhancement of server specifications by companies like NVIDIA has further driven the demand for PCB and HDI components, as new specifications require more advanced HDI products to accelerate computation and connectivity speeds.

The report states that the PCB and HDI industries in Taiwan, China have demonstrated a clear competitive advantage. Leading companies like Taiyo and their application of copper foil substrates have contributed to the development of Taiming and Kingboard Electronics. As one of the leading manufacturers of global cloud servers, Kingboard Electronics has experienced increased demand for high-end products such as 20-layer PCBs, leading to further gross margin improvement.

Although not an industry leader, Unimicron, the world's third-largest HDI board supplier, can enter the future AI server product market. The release of Intel's "Eagle Stream" fourth-generation scalable processors has driven the growth of high-end server gross margins. In terms of revenue composition, Unimicron's main products consist of 21.1% servers/network communications, 29.6% automotive, and 18.5% DRAM/SSD. Despite revenue pressure in the first half of the year, the company is expected to rebound as destocking progresses and new product development takes place. Unimicron, considered a participant in the AI server market, possesses capacity advantages and is also at the forefront of technology. Currently, customers are conducting product verification, and the new products are expected to contribute to revenue starting in the fourth quarter.

Taiyo is actively seizing the opportunity presented by the server specification upgrade. In the current CCL (Copper-Clad Laminate) market, both Taiyo and Taiming are significant players. Currently, most major PCB manufacturers have targeted Southeast Asia, with Taiwanese companies such as Taiding, Jingpeng, and Jingguo already establishing production bases in Thailand. Additionally, upstream PCB material manufacturers have also begun to expand into the region, with companies like Unimicron and Taiyo investing in factories in Thailand. As for Taiming, they are still evaluating Southeast Asian countries such as Malaysia, Thailand, and Vietnam, with plans to actively expand overseas production lines.

The soaring demand for high-end copper foil substrates for AI servers has resulted in a 2.85% increase in Taiyo's consolidated revenue in the second quarter. With the gradual increase in production of high-end products, further revenue growth is expected next year. The expansion project of Taiyo's factory in mainland China has also come to a close, and its future performance is highly anticipated.

The following picture shows the material partners of bicheng.

------------------------------------------------------

Source: Juheng.com

Disclaimer: We respect originality and value information sharing. The copyrights of the text and images belong to the original author. The purpose of the reprint is to share more information and does not represent the views of the company. If it infringes on your rights, please contact us immediately, and we will delete it as soon as possible. Thank you.