22 September 2026
Copper-clad laminate (CCL) manufacturer Ventec International Group has approved an expansion budget of NT$1.5 billion (approx. US$47.11 million) to lease and convert an idle factory in Kunshan, Jiangsu Province, China, as it moves to capture spillover demand for artificial intelligence (AI) and high-density interconnect (HDI) materials. The expansion budget is to be invested in three phases. Depending on future growth demand, the company will proceed with further capacity expansion investments in the second and third phases.
Amid the explosive growth of AI and high-performance computing (HPC) applications, the iterative replacement of computing hardware is driving demand for high-end printed circuit boards (PCBs) and substrates. Major CCL manufacturers have prioritized capacity for high-end AI servers, switches, and other related hardware applications, resulting in severe material shortages in the market and a broadening spillover effect on orders.
Ventec said leasing an existing plant will save construction and environmental impact assessment time, allowing it to begin mass production one year earlier, significantly reducing opportunity costs. The expansion project will optimize the company's product portfolio, significantly increase capacity for high-margin specialty materials, and help absorb overflow orders in a timely manner, providing another strong growth engine for its operations.
Ventec CEO Chien-jen Chung stated that the company is experiencing explosive growth in 2026, with August revenue reaching a record NT$810 million and cumulative revenue for the first eight months increasing 53.6% year-over-year. The decision to lease will shorten the capacity expansion timeline, giving the company an advantage in achieving delivery times of just two to three weeks.
The leased site covers roughly 33,333 to 33,667 square meters and will be configured to house two automated production lines. Ventec's target is to reach total monthly capacity of 500,000 sheets of CCL and 2.4 million meters of bonding sheets, fully supporting the expected increase of more than 30% in shipments of high-margin bonding sheet and high-speed materials starting in the third quarter.
Additionally, the new factory is located near Ventec's existing operating facilities, facilitating resource integration, logistics coordination, and improved management efficiency, further strengthening operational resilience.
In terms of production layout and product upgrades, Ventec said that after structural modifications to the existing factory, including raising the height of the steel-structure roof and reinforcing the floor load-bearing capacity, four gluing machines will be installed as a priority. The company expects this to immediately increase existing bonding sheet capacity by approximately 70%, accelerating the start of production.
This capacity allocation will support Ventec's high-end 400V/800V materials for AI server power applications, which are scheduled to enter mass production in the fourth quarter. These include high-power thermal films, high-heat-resistance substrate hybrids, high-end high-heat-resistance multilayer boards with 26 or more layers, and hybrid laminated boards using substrate materials.
At the same time, as shipments of M6-grade high-speed materials ramp up, and higher-end materials such as M7, M8, and M9 continue to be submitted to international manufacturers for server and optical module certification, the new factory will become an important production base for high-end products.
Ventec said the leased factory has already obtained a permit for heavy pollutant emissions and only needs to apply for an increase in the annual total allowable emissions of organic pollutants. Compared with applying for a new environmental impact assessment, the process will be far less difficult and time-consuming. A professional assessment of industrial safety and fire regulations has also determined that the facility can comply with regulatory requirements without major modifications, significantly saving time and costs.
In terms of human resources integration, Kunshan is located in a major industrial area with convenient transportation, making recruitment and training easier. This will enable Ventec to integrate the new facility's production operations with its existing team, fully realizing the financial benefits brought by the time advantage.
Chung emphasized that the Kunshan expansion demonstrates Ventec's confidence in expanding from niche core markets such as defense and aerospace into high-end specialty materials markets including AI PCs, automotive applications, high-speed switches, and optical modules.
Through a flexible leasing strategy that balances speed, cost, and operational efficiency, coupled with the gradual capacity ramp of its new Thailand plant, the company will establish a dual-engine production capacity model, laying a solid foundation for revenue and profit growth in 2027 and beyond.
Digitimes 2026
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