One server is worth seven! AI server upgrades boost PCB production, with Golden Image Electronics and Unimicron enjoying significant growth.

2025/07/30

Commercial Times
July 22, 2025
By Yang Luoxuan, Commercial Times

As AI applications continue to expand, the PCB industry is gradually benefiting from the growing demand for high-end packaging and advanced materials. Prices of upstream fiberglass (T-glass) and specialty copper foil are starting to rise. Taiwanese PCB supply chain manufacturers, including Gold Image Electronics, Unimicron, Hi-Tech, and Precision Technology, are expected to benefit from this upgrade cycle. The upgrade of AI servers is particularly critical. According to analysts' estimates, the PCB output value of each AI server is expected to increase 5-7 times compared to traditional servers.

In the development trend of high-end packaging, multi-chip packaging and HBM designs have become mainstream, widely used in high-speed computing and data center applications, driving a significant increase in demand for ABF substrates. Because high-end ABF substrates require large areas, multiple layers, and high-density wiring, the material specifications are also increasing, driving the continuous upgrading of the PCB industry value chain.

Industry insiders point out that each GPU within an AI server is equipped with an HDI PCB (or OAM accelerator module) supplied by Unimicron. A larger PCB, typically a universal baseboard (UBB) supplied by Hushi Electronics, Kingdee Electronics, or Tripod Technologies, is placed for two to eight OAM modules. As the number of AI servers increases, demand for HDI and UBB boards will also surge.

On the other hand, copper clad laminate (CCL) and high-end fiberglass cloth, both raw materials, are also experiencing a structural supply and demand squeeze.

Industry insiders indicate that due to recent production line adjustments by Japanese fiberglass cloth manufacturers, which are focusing on high-margin, low-Dk and low-CTE specialty materials used in 800G network switches, the market supply-demand gap is expected to widen to over 10%. Furthermore, industry insiders anticipate price increases of up to 20% for specialty high-end fiberglass cloth, a key material for IC substrates, starting in August, triggering a cycle of cost reflection and price increases.

It's reported that general fiberglass cloth is priced between $3 and $5 per kilogram, while high-end fiberglass cloth is priced between $40 and $50 per kilogram. Special high-end fiberglass cloth with low Dk/Df values is expected to reach $80 to $100 per kilogram, leading to an expected improvement in AI server PCB gross profit margins.

Looking at individual manufacturers, Jinxiang Electronics, with a 25% market share in network communication PCBs, has secured AI server orders from four major US CSPs since the beginning of this year. With the surge in demand for 400G and 800G switches, its revenue momentum has been growing quarter by quarter. High-Tech, benefiting from increased orders from US customers and the 800G mass production cycle, supplies high-end PCBs to major network communication manufacturers. With high order visibility in the second half of the year, revenue performance is expected to improve.

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Creating Nano Technologies, Inc.
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