AI server business opportunities expand, PCB manufacturers are in demand

2025/04/15

Business Times
March 31, 2025
Author: Commercial Times Yang Luoxuan

As the demand for AI computing continues to grow, in addition to AI servers using NVIDIA GPUs maintaining their leading position, cloud service providers (CSPs) are also actively developing AI servers that use self-developed ASIC chips to enhance computing performance and reduce dependence on a single supplier.

Analysts are optimistic that as the AI server market expands in scale, the related supply chains of Taiwan-based printed circuit board (PCB) manufacturers such as Zhen Ding-KY (4958), Xinxing (3037), Golden Image Electronics (2368), Boshi (8155), and Tripod Technology (3044) will continue to benefit.

CSP manufacturers first adopted Nvidia GPUs for training AI learning applications and actively developed ASIC chips. The main reason is that Nvidia chips are more expensive. However, ASIC chips can be tailored for specific applications. Although the technical threshold is not inferior to the GPU field, it can avoid the concentration of AI chips on a single supplier. It is reported that the leading manufacturers in the ASIC field have entered the application stage and are gradually reducing their dependence on Nvidia.

The expansion of the server market by GPU and ASIC is beneficial to the supply chain. Among Taiwanese PCB manufacturers, Zhen Ding-KY and Xinxing are both key suppliers. Zhen Ding has mastered the key processes from general-purpose to AI servers and has stable orders. This year, the target for AI-related revenue share will reach 70%. Xinxing has entered the GPU substrate supply chain as the second supplier and is also striving for business opportunities in the ASIC chip substrates of CSP customers. The proportion of AI-related applications has reached 30%.

Both Kingdee and Bozhi have transformed from consumer electronics to niche applications such as servers, network communications, and industrial computers. In February this year, their revenues simultaneously set new monthly revenue records. Among them, Kingston is the world's largest server board manufacturer and the main supplier of UBB (universal substrate) multi-layer boards. Its related products have entered the four major CSPs, with AI products accounting for 20%; Bozhi has complete material solutions for various server platforms and close cooperation with major American manufacturers. Recently, orders for AI servers have been hot and the proportion of revenue has increased significantly.

Tripod, one of the major server manufacturers' supply chains, has also benefited from the continued popularity of high-end multi-layer PCB-related applications. It has currently secured orders from three of the four major CSPs. In addition to its AI server and network communications products, its products also include DRAM memory modules and automotive HDI (high-density interconnect) fields. This means that it is trying to grab AI market share through a diversified PCB product layout.

In addition, Hi-Tech (5439) produces niche multi-layer PCBs, and its product applications include information and communication components, industrial computers, AI server boards, 400G switch boards, etc. It also benefits from the trend of high-performance computing, strong demand for networking products, a large number of urgent orders, and upgrades to new-generation switch solutions, driving revenue to a new monthly high in February and continuing the momentum into the next quarter.

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