Zhen Ding-KY: AI Drives Once-in-a-Lifetime Growth for PCB Industry

Central News Agency (Taipei, 29th) Zhen Ding-KY held its shareholders' meeting today. Chairman Shen Ching-fang stated that AI applications are comprehensively driving a structural upgrade in the PCB industry, creating a once-in-a-lifetime growth opportunity. A new cycle of high-speed growth has begun, with the goal of accelerating growth over the next five years. By 2026, revenue from server and optical module businesses is expected to double, and IC substrate revenue is targeted to grow by more than 70%.

Shen pointed out that the rapid development of AI is bringing structural changes to the electronics industry and creating unprecedented growth opportunities for the PCB sector. Benefiting from the continued expansion of AI-related demand, Zhen Ding's consolidated revenue in 2025 hit a new record high. Through long-term cultivation in high-end products, key processes, and global production capacity layout, Zhen Ding aims for revenue growth to exceed the industry average over the next five years, while simultaneously improving profitability.

Shen stated that AI development is pushing the role of PCBs from traditional signal connection to becoming a critical carrier for high-performance computing and system integration. In response to this trend, Zhen Ding has established product and process capabilities spanning "Cloud, Network, and Edge," and will see high-speed growth in the "Cloud" and "Network" application fields in 2026.

In the AI server sector, Intelligent HDI (iHDI) and HLC products for GPU and ASIC customers will enter mass production. In the optical module sector, the upgrade of customer next-generation products to 1.6T will further boost demand for high-end PCBs using MSAP technology. In the IC substrate sector, the rapid expansion of AI computing power demand will drive continued growth momentum for high-end ABF substrates.

Zhen Ding expects revenue from server and optical module businesses to double by 2026, with IC substrate revenue targeted to grow by over 70%. The operational structure is accelerating its upgrade toward high-end AI applications, which will become a key engine for expanding revenue scale and improving profitability in the coming years.

Facing the new era of the AI wave and global supply chain restructuring, Shen emphasized that Zhen Ding is actively expanding its global high-end production capacity and technological leadership, currently in the largest capacity expansion phase since its founding.

The Huai'an Science and Technology City HD Park broke ground this April to build new HDI, MSAP, and HLC plants. Upon completion, the total number of plants in the four parks of Huai'an Science and Technology City will reach 23, aiming to build the world's largest and most advanced PCB production base. The Thailand plant will become a key base for serving global customers and strengthening supply chain resilience; the first plant is ramping up production smoothly, the second plant is planned to enter mass production in 2027, and the third, fifth plants, and a mechanical drilling center are under construction.

The Kaohsiung AI Park focuses on high-end ABF substrate and high-end PCB capacity, positioned as an important base for advanced processes and high-end products. With high-end capacity in Huai'an, Thailand, and Kaohsiung coming online, the company is well-positioned.

Shen further stated that in 2025, Zhen Ding's number of granted patents exceeded 2,000. As demand for high-end flexible boards and substrate-like boards for AI servers, optical modules, IC substrates, and edge AI devices such as foldable phones and smart glasses continues to grow, Zhen Ding will deepen collaboration with key international customers to drive the product portfolio toward high-value-added applications.