News
Kuo Ching Chemical expands high-end resin capacity for AI server CCL in partnership with JSR
Saturday, December 27, 2025 at 07:45 AM
Taiwanese chemical producer Kuo Ching Chemical is scaling production of high-end HC and PSMA resins used in M7-M9 grade CCL for AI servers. The company plans to expand to five production lines by Q3 2026, targeting a capacity of 1,400 tons for HC materials. Additionally, it has entered a strategic partnership with Japan's JSR to stabilize supply for PSMA resins, with production capacity expected to increase from 300 to 3,000 tons by 2026.
Context
Kuo Ching Chemical (Sunko Ink) is positioning itself as a vital "upstream of upstream" supplier for the AI server market through a strategic partnership with Japan’s JSR. As Nvidia and Google accelerate AI infrastructure deployment, the industry faces a critical bottleneck in specialized resins required for M7 to M9 grade CCL substrates. Kuo Ching is filling this gap by scaling production of HC materials and PSMA resins, which provide the low-loss, high-frequency performance essential for massive AI data traffic.
By the third quarter of 2026, the company expects to operate five production lines with a total capacity exceeding 1,400 tons for high-end resins, while PSMA capacity will jump from 300 to 3,000 tons. Analysts forecast this expansion will double Kuo Ching’s revenue to over 8 billion TWD by 2026, with gross margins rising from 15% to 24%. This capacity surge marks a fundamental shift into a high-growth electronic materials provider, timed to meet the explosive global demand for advanced AI server hardware.
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