Zhen Ding 2H26 outlook brightens on server and optical demand

Zhen Ding’s revenue surge signals structural demand for high-end HDI and substrate-like PCBs driven by AI servers and optical modules, pressuring upstream material suppliers to accelerate low-loss, high-thermal-conductivity substrates and nudging downstream OSATs toward Chiplet integration. Geopolitical compliance costs are rising—U.S. export controls on advanced packaging equipment have already disrupted Taiwan, China-based supply chains, forcing capacity diversification to Southeast Asia and lifting capex by 5–8%. As Unimicron and Ibiden ramp ABF substrate capacity, Zhen Ding’s pivot to optical PCBs may ignite a new round of tech-driven competition among Taiwan, China’s PCB makers. Over the next 18 months, vendors with electro-optical co-routing capabilities will capture premium margins as CPO (co-packaged optics) transitions from lab to volume production, while traditional multilayer-board players risk marginalization.