At a recent joint investor conference, Taiwanese PCB leader HannStar Board Corp. (HSB, 5469.TW) and electronics manufacturing specialist Global Brands Manufacture Ltd.  (GBM, 6191.TW) unveiled major capacity expansion plans to seize fast-growing demand from AI servers and advanced network switches.

Rising CapEx and AI Momentum

According to HSB President Tao Cheng-kuo, the group's consolidated capital expenditure reached nearly NT$6 billion (about US$193 million or RMB 1.37 billion) in the first three quarters of 2025—up sharply from NT$4 billion last year. CapEx now represents roughly 16% of total revenue, compared with 10% a year earlier, and will continue to rise to support capacity growth between 2025 and 2027.

Tao noted that AI-related demand peaked in Q3 2025, while consumer electronics softened slightly. Fourth-quarter shipments may dip marginally, but AI-driven orders have lengthened booking periods significantly. AI-related products now contribute over 20% of HSB's total revenue, with visibility extending through the first half of 2027. Some customers have already begun equipment planning and procurement for 2027 production this year or early next year.

Global Capacity Expansion

HSB and GBM are scaling up production across multiple regions to reinforce AI and high-density interconnect (HDI) capabilities. After debottlenecking, the Singapore plant will raise capacity by around 50%, supported by the Malaysia facility. The Guanyin and Taoyuan Science Park plants in Taiwan will each boost output by 40–50%, while the Jiangyin plant in China will enhance HDI and AI server board production.

In addition, the Chongqing and Huangjiang plants in China are installing new HDI and VGA equipment, and the Japan probe card facility is expected to expand capacity by about 20%. The group now offers end-to-end PCB manufacturing from 2 to 100 layers, supporting diverse applications in AI, networking, and data centers.

Profitability Pressures from Materials and Depreciation

HSB noted that rising raw material costs, including copper-clad laminates (CCL) and precious metals, have squeezed margins. The start of mass production in Malaysia has increased depreciation expenses, while exchange rate fluctuations have added uncertainty. The company is negotiating price adjustments with key customers, but the timing and extent of pass-through remain undecided. Consumer product pricing remains constrained, whereas high-end products offer better margins and are more sensitive to capacity availability than price.

Focus on High-End Products

HSB continues to expand production of high-layer-count (HLC) PCBs, AI accelerator cards, 400G/800G network switches, and server motherboards. Some lines have been retooled exclusively for AI server boards to meet soaring demand. With utilization rates climbing, depreciation in 2026 is expected to increase by about 30% year-on-year.

Tao emphasized that HSB's expansion strategy aims to strengthen its foothold in the AI and high-performance computing (HPC) ecosystem, ensuring sustainable growth and competitiveness through 2027.