Networking and server PCB giant GCE announced plans to expand its Thailand facility with a US$40 million investment to boost ASIC server production capacity by the second half of 2026. This move comes as ASIC server customer orders ramp up, pushing Taiwan and China plants to full capacity and driving strong revenue growth expected in the third quarter of 2025.
Despite the imminent launch of the Thailand plant phase 1, GCE noted that high-end capacity bottlenecks and product generation transitions among customers will keep order momentum relatively stable in the fourth quarter of 2025.
Meeting AI server demands
The new capital injection targets expanding local production capabilities to meet AI server customers' demands for out-of-China (OOC) and out-of-Taiwan (OOT) supply chains, enhancing competitiveness.
GCE's Thailand phase 1 plant reportedly completed customer certification in the second quarter of 2025 and entered trial production in the third quarter, with formal operations planned for the fourth quarter. It focuses on mid-tier networking and server PCBs, expected to contribute additional revenue streams.
The newly approved phase 2 expansion, endorsed by ASIC server customers, will concentrate on building advanced PCB lines tailored for their needs. Capacity is slated to come online by the second half of 2026, accelerating monthly output at the Thailand site significantly.
Strong outlook through 2027
With cloud providers increasingly developing proprietary ASIC chips, industry outlooks are optimistic: 2026 order visibility surpasses 2025, while 2027 promises even busier business.
Sources reveal GCE has penetrated the supply chains of the four major cloud service providers (CSPs), positioning it as a leading Taiwanese PCB beneficiary amid the next ASIC server wave.
Demand for OAM boards carrying AI GPUs and UBBs hosting multiple OAMs is rising, with GCE's orders predominantly driven by UBBs.
Additionally, switch board specifications for ASIC servers have upgraded from 400G to 800G, boosting GCE's average selling prices (ASP).
Record fundraising and domestic expansion
Earlier, GCE's board approved a NT$1.6 billion (US$52.4 million) purchase of an idle factory in Zhongli from optical disc maker CMC Magnetics, earmarked as a future base for domestic capacity expansion. Concurrently, GCE issued its third unsecured convertible bond domestically, targeting a record NT$9 billion issuance—the largest single fundraising round among Taiwanese PCB firms.
GCE reported August 2025 unaudited revenues of NT$5.886 billion, up 4.27% month-over-month and soaring 64.82% year-over-year to set a historic high. Year-to-date revenues through August 2025 reached NT$37.407 billion, growing 46.02% year-over-year, signaling steady quarterly growth ahead in 2025.
Article translated by Charlene Chen and edited by Jerry Chen
