AI demand lifts Zhen Ding as server and chip substrate sales surge

Zhen Ding’s record Q1 revenue reflects more than AI server demand—it signals a tectonic shift in PCB technology driven by advanced packaging. Tight ABF substrate supply is accelerating adoption of SLP and mSAP processes within TSMC’s CoWoS ecosystem, where Zhen Ding’s deep integration with NVIDIA and AMD grants it first-mover advantage. However, looming U.S. export controls on advanced packaging could classify substrates as restricted items, drastically increasing compliance costs for overseas facilities. With Unimicron and Ibiden rapidly expanding HDI and FC-BGA capacity, Zhen Ding must certify a Mexico or Eastern Europe plant by end-2026 to retain North American customer access. Over the next 18 months, slower AI chip cadence will paradoxically extend high-end substrate lifecycles, creating a ‘high-performance + long-lead’ structural tailwind—yet geopolitical friction is turning technical leadership into supply chain vulnerability.