Despite facing global end-market inventory adjustments and rising geopolitical uncertainties, Taiwan's printed circuit board (PCB) supply chain is shifting its capital expenditure atmosphere to accelerate positioning in emerging markets such as AI servers and high-performance computing (HPC). Led by global PCB leader Zhen Ding Tech and IC substrate giant Unimicron, these companies have announced expanded investment plans, betting on advanced AI applications and capacity layout in Southeast Asia.
However, industry insiders analyze that due to the ongoing recovery period from previous large-scale investments and the global economy being restrained by US President Donald Trump's tariff policies, Taiwanese PCB manufacturers' capex in 2025 will generally remain conservative. The overall scale is expected to decline to NT$81 billion (approx. US$2.6 billion), but the industry's output value and added value are still expected to grow steadily.
Zhen Ding Tech expands AI-driven investments
Zhen Ding Tech chairman Charles Shen recently revealed that to provide comprehensive solutions covering AI servers, optical communications, humanoid robots, smart vehicles, and edge AI devices for the rapidly growing AI application market, the group plans to further expand its capex plan for 2025-2026, increasing total annual spending to over NT$30 billion.
Soon after, Zhen Ding Tech's China subsidiary Avary Holding announced that its board approved an investment plan for Huai'an Park, committing CNY8 billion (approx. US$1.1 billion) from the second half of 2025 through 2028 to build two new factories. These facilities will expand mSAP, HDI, and HLC advanced production capacities to meet mid- to long-term demand from AI customers for multi-layer, high-precision routing PCBs.
Zhen Ding Tech observes strengthening order momentum from AI servers based on GPU and ASIC platforms, as well as optical communications, expecting revenue contributions from these sectors to gradually increase.
Therefore, besides expanding capacity at Huai'an Park, the group will simultaneously advance construction at Thailand's Rayong Park and Kaohsiung AI Park, actively laying out key capacities needed for growth in the AI computing power market.
Unimicron adjusts capex strategy
Previously, Unimicron also announced it would expand its 2025 capex scale, raising the amount from NT$18.6 billion to NT$20.6 billion, mainly allocated to the PCB business unit. Investments will continue toward capacity expansion at its Thailand plant and production line adjustments in Taiwan. For 2026, the capex plan is estimated to fall back to around NT$19.4 billion, with IC substrates and PCB divisions accounting for 65% and 35%, respectively.
Benefiting from rising demand for AI servers and HPC applications, Unimicron's ABF substrates and HDI boards operations have steadily improved. Recently, the company passed a board resolution approving three major capex decisions to support overseas capacity expansion while strengthening financial structure and cash flow management capabilities.
According to Unimicron's disclosed information, the company will invest THB2.4 billion (US$74.3 million) to increase investment in its Thailand subsidiary, continuing to expand its Southeast Asia capacity footprint. After this capital injection, the actual invested amount will reach THB9.419 billion.
On another front, to repay debt and supplement working capital, Unimicron also announced a cash capital increase of NT$500 million by issuing 50 million new common shares. Additionally, it resolved to issue domestic unsecured convertible bonds with a maximum face value of NT$4 billion. This dual approach aims to raise substantial funds in Taiwan, providing more flexibility to respond to future market fluctuations.
PCB industry transformation and outlook
The Taiwan Printed Circuit Association (TPCA) previously pointed out that Taiwan's PCB industry had endured inventory adjustment pressures amid weak end-market demand, leading to a contraction trend in capex for three consecutive years. However, driven by a recovering global electronics market and strong AI application demand, output value and operational performance have risen against the trend, indicating that high investment has translated into high added value, and the PCB industry structure is undergoing stable transformation.
Looking ahead to future investment priorities within the PCB supply chain, the industry expects a framework of "Taiwan for high-end manufacturing, China for mass production, and Southeast Asia for expansion" to take shape. Manufacturers will prioritize expanding advanced production lines for AI servers, high-speed computing platforms, and satellite communications, and initiate the next phase of new capacity layouts in Southeast Asia. This reflects vendors' cautious stance toward economic fluctuations and increasingly precise resource allocation.
Article translated by Charlene Chen and edited by Jack Wu
