OPTICAL TRANSCEIVER PCBs: MS highlighting ZDT $4958 TT as beneficiary of team's recent upward revision of optical transceiver TAM. Will gain share due to technical ability & capacity to make the denser, more complex mSAP PCBs needed for 800G/1.6T transceivers, which command 2-4x the ASP of 400G. Worried about CPO pushout? Pluggable demand will remain strong.

Notable takeaways from Kinsus’ August commentary: - High-end ABF production remains constrained by T-Glass shortages, preventing the company from capturing approximately 10–15% of its potential monthly revenue. - Kinsus plans to expand high-end ABF capacity by approximately 25% in 2027. The expansion will involve installing new equipment at its Taiwan facilities rather than converting existing BT lines, and the required material allocation has already been secured. - BT and memory: Memory products currently account for roughly half of BT substrate revenue. U.S. customers have raised their DRAM and NOR demand forecasts for several consecutive quarters. - Optical communications: The transition from 800G to 1.6T and 3.2T requires finer circuitry and better signal integrity, driving demand for mSAP. Optical-communications substrates have higher layer counts, ASPs, and margins, with the project expected to generate a gross margin of approximately 20%. - BT utilization: Currently around 75% and expected to reach 85% by year-end. Existing capacity still has sufficient headroom, so there is no immediate need for expansion. Kinsus plans to begin discussing 2027–2029 capacity requirements with customers in Q4 and will make investment decisions based on actual orders. If optical-communications demand ramps meaningfully, the company could consider further expansion as early as mid-2027.

Simmtech (222800 KQ) is spending KRW274.2 billion to expand the SOCAMM boards and package substrates used in $NVDA’s Vera CPU systems. SOCAMM pairs LPDDR5X memory with Vera in Rubin systems, separate from the HBM attached to the GPUs. Each module uses four LPDDR5X packages, a module PCB and MCP substrates. About KRW150 billion will go toward a dedicated SOCAMM module PCB plant. Annual capacity is set to rise from KRW300 billion to KRW500 billion on a sales basis, with production starting in stages in 2028. Another KRW120 billion will expand LPDDR5X MCP substrates and high-layer mSAP boards. Simmtech expects KRW230 billion in SOCAMM-related revenue this year: KRW150 billion from module PCBs and KRW80 billion from MCP substrates.

Abstract of PCB Sector & Initiation & Updates 🔥 Initiating & Transferring PCB Coverage: •Initiating CO-TECH. (8358 TT / Buy / TP: NT$480): Share px -54% since June, Margin ramp-up in 4Q26, expansion of HVLP3/4, and px hikes. •Raise TP: EMC (2383 TT / Buy / TP: NT$6,538): Google share gains, product mix upgrading toward M7+/M8+. •Raise TP: Kingboard Laminates (1888 HK / Buy / TP: HK$60.8): E-glass and FR-4 price hike cycle, expansion of high-end copper foil capacity. •Raise TP: Zhen Ding Technology (4958 TT / Buy / TP: NT$729): Market share gains in VR200, leveraging MSAP, ABF supercycle. ☀️ AI Server PCBs: •Nvidia Vera Rubin: PCB content per GPU $750 (vs. $400 for GB200). •Google TPU v8t/v8i: PCB content $800–$1,000 (vs. ~$700 for v7). •TAM Expansion: AI server PCB TAM projected at $13B in 2026 and $29B in 2027. •Zhen Ding benefits from Nvidia platform gains + mSAP dominance in optical modules/CPO. •mSAP Shortage: 2027 capacity constraints due to 800G optical switch and yield limits ☀️ CCL Dynamics: FR-4 Prices doubled to ~RMB 300 since mid-2025; upcycle extends through end-2027/2028. ☀️ Upstream Supply Shortage: •E-Glass Gap: ~15% shortage; requires 3,000 new machines, but Toyota's annual output is only 2,000 units (fully booked till 2028). •HVLP4 Foil: Year-end 2026 capacity at ~1,200 tons/month with a 400+ ton shortage. #PCB# #ZDT# #NVDA# #msap# #ABF# #EMC#