News

Zhen Ding targets major AI revenue growth and capacity expansion for ABF substrates and optical modules

Monday, March 16, 2026 at 05:13 AM

Zhen Ding reports stronger-than-expected 4Q25 results and signals an aggressive expansion in AI server PCBs and ABF substrates. Management anticipates a 6-7x revenue surge in AI server and optical module segments, with ABF substrate operations turning profitable in 2026. To meet demand from customers including NVIDIA, AWS, and Google, the company is expanding its Huai’an plant and accelerating Fab 1 and Fab 2 capacity, targeting an annual output value of RMB 7 billion.

Context

On March 12, 2026, Zhen Ding Technology reported 4Q25 earnings that exceeded market expectations, driven by an aggressive pivot toward AI infrastructure. The company’s ABF substrate business is entering a “supercycle,” with AI-related demand expected to comprise 50% of total ABF demand by 2026. During the earnings call, management targeted a massive 6–7x revenue growth for its optical modules and AI server PCB segments, supported by the upcoming completion of Fab 1 and Fab 2 expansions which are projected to yield an annual output value of RMB 7 billion. The strategic shift is underscored by a transition in PCB technology from simple signal connection to becoming a critical “system carrier” for high-performance computing. Zhen Ding is currently scaling production for NVIDIA compute trays and ASIC components for Amazon (AWS) and Google. Chairman Charles Shen emphasized the company’s unique position in the supply chain, stating that “2026 will be a pivotal growth year for Zhen Ding,” as the company integrates its OAM/UBB technology solutions to meet the rapid evolution of high-end AI server requirements.