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Zhen Ding Technology Holding Limited, a global PCB manufacturer, announced its consolidated financial results for the second quarter and first half of 2026.
Driven by strong demand for high-end AI applications, first-half revenue reached NT$89.16 billion, up 13.9% year over year (YoY) and a record high for the period. Net income was NT$5.77 billion, while net income attributable to owners of the parent reached NT$3.82 billion, with earnings per share (EPS) of NT$3.55.
The continued ramp-up of high-end AI products strengthened Zhen Ding's revenue mix. During the first half, combined revenue from servers, optical modules and IC substrates increased 113% YoY and accounted for 21.6% of total revenue. As high-value-added products contributed a larger share of sales, 1H26 gross margin and operating margin rose to 22.4% and 7.0%, respectively.
AI Applications Drive Growth
Zhen Ding expects continued investment in AI computing infrastructure to usher the high-end PCB industry into a long-term growth cycle. As customers' next-generation AI platforms enter mass production, the company's servers and optical modules business is expected to strengthen sequentially from Q2 2026 through the remainder of the year. Zhen Ding maintains its target of more than doubling full-year revenue from these businesses.
Over the medium to long term, AI demand is expected to expand beyond servers and optical modules into applications such as edge AI and humanoid robots, increasing PCB content, technical complexity and product value. The company remains confident in its growth prospects for 2026-2030.
Optical modules have emerged as one of Zhen Ding's strongest growth engines. With 1.6T and next-generation products requiring mSAP technology, demand for high-end optical module PCBs continues to outstrip global supply. Zhen Ding expects optical module revenue to more than double in 2026, with customers already reserving capacity for 2027. The company is targeting a position as the world's largest supplier of high-end optical module PCBs by 2027.
In AI servers, Intelligent HDI (iHDI) and high-layer-count (HLC) products for GPU and ASIC customers are progressively entering mass production, supporting continued market share gains.
Major Capacity Expansion
To capture long-term growth opportunities from high-end AI applications, Zhen Ding is undertaking one of the industry's largest PCB capacity expansion programs. The company emphasized that high-end PCB capacity buildout and customer qualification require long lead times, making investment ahead of demand essential to supporting next-generation products.
Zhen Ding plans capital expenditures of NT$80 billion in 2026 and expects to continue strategic investments in 2027-2028, focusing on high-growth, high-value-added areas including HDI/mSAP, HLC, IC substrates and advanced FPCs.
The company currently has 13 new plants under construction and another 16 plants in the planning stage. New capacity will come online in phases from 2026 to 2030, aligned with customer qualification and mass-production schedules.
Zhen Ding also held its Global Supplier Conference in Shenzhen on July 24, 2026, bringing together 247 suppliers and more than 400 representatives. The company is working with partners across equipment, materials and other areas of the supply chain to advance technology development, resource sharing and smart manufacturing.
As AI infrastructure investment continues, demand for high-end PCBs is expanding beyond servers and optical modules into a broader range of edge AI devices. With its comprehensive PCB technology portfolio, global manufacturing footprint and established customer relationships, Zhen Ding expects to capture structural growth opportunities created by AI and further strengthen its position in the global AI supply chain.
