AI Boosts Zhending-KY and Huatong to Record First-Half Revenues

TAIPEI, Taiwan (CNA) - Driven by the demand for high-end AI applications, PCB manufacturer Zhending-KY and HDI manufacturer Huatong have both achieved record-high revenues for the first half of the year. Zhending stated that its server and optical module businesses have increased exponentially, and it anticipates continued quarter-over-quarter growth throughout this year. Huatong indicated that its AI-related products have rapidly advanced since this year, expecting a significant transformation in the second half.

PCB manufacturer Zhending-KY reported consolidated revenue of NT$17.033 billion in June, an increase of 32.83% year-on-year and 5.14% month-on-month, setting a new record for the same period in history. Second-quarter revenue reached NT$48.431 billion, up 26.77% year-on-year. Accumulated first-half revenue was NT$89.159 billion, a 13.89% increase year-on-year, with both figures marking new historical highs for the first half.

Zhending stated that its June revenue reached its highest point this year, maintaining strong year-on-year growth. Demand for AI-related high-end applications, including servers, optical modules, and IC substrates, continues to translate into operational growth momentum. Among these, the server and optical module businesses have seen the most significant exponential increases, with the high-end product mix continuously optimizing and the contribution of AI-related businesses to overall operations further enhanced.

Looking ahead, Zhending anticipates that the third quarter will enter the peak season for new product stocking for traditional consumer electronics. Although the market this year has been affected by factors such as memory supply-demand dynamics and price fluctuations, current observations indicate that major clients' new product stocking rhythms remain normal, and related demand will help drive a gradual increase in operational momentum in the second half.

Furthermore, the server and optical module businesses will continue to benefit from clients' adoption of high-end AI products and the progress of mass production. It is expected that the company will maintain a quarter-over-quarter growth trend this year, leading to an increase in the proportion of high-value-added products.

High-density interconnect (HDI) board manufacturer Huatong's June revenue of NT$6.915 billion set a new record for the same period. Accumulated revenue for the first six months reached NT$39.54 billion, a 13.2% increase year-on-year, setting a new record for the first half of the year. Huatong stated that steady shipments of boards for low-orbit satellites and consumer electronics products, coupled with the scale of orders and price growth for its AI product lines, resulted in a "not-slow" second quarter despite it being a traditionally off-peak season.

To meet the urgent demands of clients for AI and satellite products, Huatong announced that it is progressively expanding land and factory facilities and acquiring production equipment to open up new production capacity in the short term. In addition to preparing for the traditional peak season in the second half, the company is also planning new factory areas to support the development and mass production of optical transmission and data center-related products in the next two years.

Huatong stated that there is currently a market shortage of mSAP (modified semi-additive process) PCB capacity. Huatong has secured priority purchasing rights for the most critical laser drilling machines. This gives it a head start in securing orders for the highly sought-after 800G and 1.6T optical modules. The company is also actively pursuing certification opportunities for new products related to future AI and high-speed optical communication, aiming to maximize its mSAP manufacturing advantages.

Industry observers note that Huatong, which has historically focused on consumer electronics and satellite industry products, has seen rapid advancements in its AI-related product offerings since this year. It is expected to adjust its product structure quarter by quarter, undergoing a significant transformation in the second half by capitalizing on the market demand for satellite upgrades and the booming AI-related optical module sector. (Editor: Chang Liang-chih) 1150707

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