Wus Printed Circuit Spends Over $3B on AI, Satellite Transformation

Wah Tong Group recently announced that, to capitalize on the dual growth opportunities in the artificial intelligence (AI) data center and low Earth orbit (LEO) satellite markets, it will maintain annual capital expenditures of over 20 billion New Taiwan dollars for three consecutive years from 2026 to 2028, while expanding production capacity both domestically and abroad. The company projects that its mSAP series and satellite-related business revenues will challenge the 25 billion New Taiwan dollar mark next year, with AI and satellite-related businesses accounting for more than half of its total revenue. This move marks Wah Tong’s diversified transformation from a traditional high-density interconnect (HDI) manufacturer into the AI and aerospace sectors.

A leading player in Taiwan’s HDI manufacturing since the 1990s, Wah Tong serves major clients including global chip foundries and server manufacturers. In recent years, as chip packaging technologies have upgraded and packaging demands have diversified, the company’s revenue structure has gradually shifted toward high-value products. However, the rise of AI accelerators and 5G infrastructure has caused a sharp surge in demand for high-performance data transmission and low-latency interconnects, revealing limited growth potential in the traditional HDI market. Consequently, the company’s board of directors has decided to shift resource focus toward high-density interconnect solutions for AI data centers and LEO satellites.

AI data centers impose extremely high requirements on high-bandwidth, low-power interconnect technologies. Wah Tong’s mSAP (multi-layer high-speed interconnect) products, which combine advanced silicon-based packaging with high-frequency circuit design, have already been applied in large-scale AI accelerator modules. Market research indicates that global production capacity demand for AI data centers is expected to grow at an annual rate of approximately 30%. By increasing R&D investment and expanding production capacity, Wah Tong aims to become a key supplier of AI accelerator packaging solutions within the next three years.

The LEO satellite market is also experiencing rapidly expanding demand for high-performance interconnects and miniaturized packaging, driven by global satellite network initiatives from companies such as SpaceX and OneWeb. Wah Tong has established partnerships with multiple satellite manufacturers to provide high-density interconnect boards specifically designed for LEO satellites. It is projected that the number of deployed LEO satellites will surpass 1,000 by 2028, with demand for high-density interconnects growing at an annual rate of approximately 25%. Wah Tong’s satellite business revenue is expected to become a significant component of the company’s overall revenue structure.

To achieve these goals, Wah Tong will construct one new high-density interconnect production line each in northern and southern Taiwan in 2026, and establish overseas manufacturing bases in the United States and Germany. The annual capital expenditure of over 20 billion New Taiwan dollars will primarily be allocated to advanced process equipment, factory automation, and talent development. Although this will result in significant short-term investment pressure, the company expects that, in the long term, enhanced production capacity and technological leadership will enable it to reduce unit costs, improve gross margins, and secure a solid market position in the AI and satellite sectors.

Wah Tong’s transformation will have profound implications not only for the company itself but also for the upgrading of Taiwan’s high-tech industry chain. High-density interconnect technology serves as the foundation for AI and satellite hardware, and Wah Tong’s technological breakthroughs will drive overall progress in chip manufacturing, system integration, and end-user applications. If the company successfully completes its production capacity expansion and technological innovations, it will become an indispensable key supplier for Taiwan in the global AI and aerospace fields, further consolidating Taiwan’s core position in the global semiconductor and aerospace supply chains. (Factual source: Central News Agency)