AI Packaging Demand Drives Substrate Shortage as Zhen Ding Raises Capex to NT$80 Billion
Zhen Ding Technology said AI servers and AI chip packaging require larger, more advanced ABF substrates, driving the PCB industry’s gradual transformation into a semiconductor-like sector. Chairman Shen Ching-fang said AI remains in the infrastructure buildout stage, investment in computing power has not yet become excessive, and supply-chain expansion is backed by genuine demand.
Shen said in 2026 that ABF substrate supplies would remain tight for the next two to three years, mainly because the substrate area required for each AI chip is rapidly increasing. Zhen Ding therefore raised its 2026 capital expenditure budget to NT$80 billion, focusing on capacity for high-end PCBs and advanced packaging to meet demand from AI customers.
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The history behind this eventZhen Ding Posts Record March Revenue, Raises 2026 Capex to NT$80 Billion on AI Demand
Zhen Ding Technology is a major global supplier of printed circuit boards (PCBs) and has expanded into products including high-end AI servers and IC substrates in recent years. As AI computing drives demand for high-speed transmission and high-density boards, Chairman Charles Shen said the company’s revenue performance over the past five years has exceeded the industry average. Its business structure and product mix are changing at an accelerating pace.
Zhen Ding Technology’s revenue reached NT$15.443 billion in March 2026, a record for the month, primarily on strong demand for high-end AI-related products. The company also raised its 2026 capital expenditure budget to more than NT$80 billion to expand capacity for AI server products and IC substrates and deepen long-term cooperation with key customers.
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