Printed circuit board (PCB) and copper-clad laminate (CCL) manufacturers are positioning themselves to capitalize on the growing AI server demand to drive growth momentum in 2025.
Finesse Technology, a subsidiary of Highlight Technology Corp, specializes in semiconductor ozone supply systems, remote plasma sources (RPS), RF power systems, and technical maintenance services. These solutions are integral to critical semiconductor manufacturing processes, including chemical vapor deposition (CVD) and atomic layer deposition (ALD).
Niche multi-layer ceramic capacitor firm Holy Stone Enterprise points to uncertain demand in the industrial control market for 2025, in contrast with the automotive sector, which will see clear demand next year, even though inventory checks have continued into the fourth quarter of 2024. In addition, power supply-related demand for AI servers is expected to grow as well.
Despite making progress in DDR5 power management IC (PMIC) development over the past two years, Taiwanese suppliers have seen limited revenue growth in this sector. This limitation stems from persistent market dominance by non-Taiwanese players and memory manufacturers' increasing focus on high-bandwidth memory (HBM) products.
AI was the name of the game for the semiconductor supply chain in 2024, according to IC distributor WPG Holdings, yet shifting supply-demand balance may lead to slightly slower growth in the semiconductor market next year. In the automotive market, as carmakers gradually end inventory adjustments, WPG is seeing initial results from its investments into integrated automotive solutions, as it targets Japanese Tier 1 suppliers.
Eternal Materials, a leading supplier of PCB upstream materials including dry film photoresists, acknowledges China's ongoing economic slowdown. Despite these challenges, spokesperson B.C. Liu confirmed the company's steady operational footing in the region. While maintaining a cautious stance on future growth, Eternal Materials anticipates moderate expansion opportunities ahead.
Mitsui Mining & Smelting (Mitsui) recently announced an increase in copper foil prices, raising concern within the South Korean industry. Given that copper foil is a core material for semiconductor packaging substrates and Mitsui holds a significant market share, this price hike could disrupt related supply chains in South Korea.
Nan Pao Resins Chemical Group, a Taiwan-based hot melt adhesives manufacturer, has been targeting record-high revenues in 2024 and is aiming for high single-digit revenue growth in 2025. Growth is being driven by promising prospects for its three main product lines, as well as benefits from acquisitions and new plant operations.
Peripheral IC distributor Weikeng Industrial has seen robust growth in 2024 driven by strong AI demand, which is expected to continue into 2025 as prospects for AI servers and PCs remain promising.
Passive component distributor Nichidenbo held its earnings call on November 18, during which company president and spokesman Yao-kuo Yu forecasted steady growth in the PC and consumer product markets for 2025. However, the EV market is harder to predict, due to uncertainties stemming from US election results, as well as inventories currently remaining at a higher level.
Silicon carbide (SiC) substrate prices are witnessing unprecedented declines in 2024, marking a dramatic shift in the power semiconductor materials sector. Following a period of sustained high demand and tight supply, the market now grapples with oversupply as Chinese manufacturers significantly expand production capacity. Industry leaders Tianyu and San'an have ramped up output this year, triggering a price war that has pushed prices below production costs and disrupted the global supply chain.
Topco Scientific, a Taiwan-based semiconductor materials supplier, remains confident in achieving its 2024 revenue targets, bolstered by increasing demand from China's foundry sector.
Panjit International, a Taiwanese MOSFET and silicon carbide (SiC) diode supplier, is working to expand its footprint in Europe with its offerings for automotive, electric vehicle (EV) charging stations, solar energy/green energy, industrial control, and power supply.
On November 13, the US government announced a non-binding preliminary agreement with Akash Systems. Through the CHIPS and Science Act, the Department of Commerce intends to allocate up to US$18.2 million in funding to support Akash's development of next-generation semiconductor technologies, according to Reuters.
Zhen Ding Technology (ZDT), a leading PCB manufacturer, reported record third-quarter revenue across key sectors, forecasts continued growth in the fourth quarter, and targets significant gains by 2025.
Sixxon Tech, a specialized supplier of precision metal parts, anticipates robust growth in thermal management, semiconductor, and optical communication sectors in 2025. The company aims to reduce its reliance on automotive components as it focuses on new markets.
Taiwan-based chip resistor maker Ta-I Technology currently maintains a capacity utilization rate of 70-80%, with prices remaining stable thanks to a more balanced supply and demand.
Chinese microcontroller unit (MCU) firms have observed a resurgence in demand and expressed optimism about their full-year 2024 sales results. Several Chinese MCU firms have reported growth in their third quarter of 2024 sales, driven by government subsidies stimulating replacement demand in consumer markets. Leading Chinese MCU vendor GigaDevice has indicated strong potential for achieving record shipments in 2024.
Machvision's board has approved a NT$274 million (US$8.6 million) strategic investment to acquire 13% of Hye Technology's common shares. The investment will represent 11.5% of Hye's outstanding shares post-placement and secure Machvision two board seats, strengthening the collaboration between both companies in operational strategies and product development.
Audix Group chairman and president Yuan-kai Chung anticipates significant tariff changes in the US-China trade war once US President-Elect Trump assumes office. Additionally, overcapacity in China is expected to drive more aggressive price competition.
Global Mixed-mode Technology (GMT), a supplier of power management IC (PMIC), has expanded into non-consumer electronics to avoid competition in mass-market applications.
Touch panel manufacturer GIS has faced significant operational challenges in 2024. Despite a rebound in consolidated revenue during the third quarter, the company's product mix resulted in a reduced gross profit margin. As GIS's market share in fingerprint recognition continues to expand, the company expects overall performance in 2025 to surpass that of 2024, with fingerprint recognition revenue projected to exceed 10% for the first time.
As artificial intelligence (AI) demand grows and recent financial issues at Supermicro trigger order redistribution, passive component manufacturer Podak sees new opportunities. Chairperson Chia-Yu Chen reports that clients are experiencing increased orders from AI-related applications, helping to offset declining PC market demand. For 2025, Podak expects AI-related revenue to grow by up to 15%, though the company maintains a cautious outlook and anticipates stable operations throughout the year.
Gudeng Precision, a key player in the semiconductor foundry supply chain, reported an October 2024 consolidated revenue of NT$389 million (approx. US$12.16 million). Cumulative revenue for the first ten months reached NT$5.458 billion, marking a 28% year-over-year growth and exceeding 2023's full-year total.
Wah Lee Industrial Corporation has successfully integrated its CoWoS packaging materials into the supply chain of leading semiconductor manufacturers. Shipments are expected to increase in 2025. Additionally, samples of Fan-Out Panel Level Packaging (FOPLP) key materials have been delivered to semiconductor, display panel, and testing companies.