Taiwan-based PCB giant Zhen Ding Technology (ZDT, 4958.TW) Chairman Shen Qingfang said today (October 22, 2025) that the company will ramp up production capacity to meet surging demand from Edge AI applications, with three new flexible PCB plants planned at its Huai’an campus in eastern Jiangsu Province.

Chairman Charles Shen said the expansion is part of the company's long-term strategy to support the rapid growth of AI-related products such as smart glasses, humanoid robots, and automotive electronics. The first of the three factories, covering 40,000 square meters, began construction this year and is scheduled for completion in May 2026.

Shen noted that Zhen Ding's business outlook for next year remains strong, with 2026 growth expected to exceed previous years. "Driven by AI demand, our operations will accelerate next year,” he said, adding that high capital investments will continue. Zhen Ding's capital expenditure this year exceeds NT$30 billion (US$920 million), and spending in 2026 is expected to surpass that figure as new facilities in Huai'an, Thailand, and Kaohsiung's AI Park come online.

The Kaohsiung AI Park has already started pilot production of flexible boards and will begin mass sample production in Q1 2026, targeting customers developing AI-related hardware. According to Shen, clients have described the park as "the most advanced” among Zhen Ding's global facilities.

Chief Operating Officer David Lee, who also serves as Chairman and General Manager of Liding Semiconductor, said the global PCB industry will remain strong through 2030, fueled by both infrastructure AI and Edge AI growth. He explained that AI servers are driving exponential increases in PCB layer counts and surface area — "at least tenfold compared to conventional systems.”

Lee emphasized that the key challenges for the industry will be keeping pace with technological advancements, production efficiency, and management complexity. "We're not worried about market demand,” he said. "The question is whether we can keep up. In this era, scale and capability determine success.”

Zhen Ding is also expanding rapidly in Southeast Asia to diversify its global footprint. The company’s Phase II facility in Thailand, which began small-scale shipments in May 2025, focuses on high-layer boards, multi-module PCBs, and flexible circuits for AI applications. A third plant is already under construction, while two additional factories — including one with automated drilling and smart warehousing systems — are planned to break ground next year.

By 2030, Zhen Ding expects its capacity distribution to reach roughly 80% in China and 20% in other regions, reflecting its dual strategy of reinforcing domestic production and expanding globally.

Lee added that demand for substrates such as ABF and BT laminates will continue to grow in 2026 and beyond, though material supply remains a short-term challenge. He noted that ABF substrate inventories are stabilizing, while BT substrates — closely tied to Edge AI applications — are seeing price increases due to rising upstream material costs.

Zhen Ding executives reiterated that profitability is not the company's immediate focus. Instead, the priority is to lay a solid foundation for long-term AI-driven demand through sustained investment, digital transformation, and global capacity expansion.