Korean PCB Equipment Maker Taesung Lands $4.75M China Contract as AI Server Board Demand Surges

Taesung Secures Major PCB Equipment Order in China

South Korean PCB automation equipment maker Taesung Co., Ltd. (KOSDAQ: 323280) announced on May 19, 2026, a PCB equipment supply contract worth KRW 7.1 billion (approximately $4.75 million USD) with an undisclosed Chinese customer, signed through its Zhuhai subsidiary TAESUNG (Zhuhai) Technology.

The contract represents approximately 18.86% of the company’s 2025 annual revenue, highlighting its significance to Taesung’s growth trajectory.

Contract Details

The agreement covers wet-process PCB equipment — specifically etching and cleaning systems — with delivery and support structured for multi-year engagement:

Payment terms are structured as:

• 30% upon contract signing
• 30% before equipment acceptance
• 30% after equipment acceptance
• 10% one year after final acceptance (warranty holdback)

Why Wet-Process Equipment Demand Is Rising

The surge in demand for advanced etching and cleaning equipment is directly linked to PCB complexity growth:

AI Server PCBs Require Precision Etching

AI server boards (20-30+ layers) with fine features need:

• Line width/space accuracy: ±10 µm for 50/50 µm L/S patterns
• Etch uniformity: <5% variation across 600 mm panels
• Surface cleanliness: <100 ng/cm² ionic contamination for reliable plating

FC-BGA Substrate Demand

Flip-chip BGA substrates for AI chips require even finer processing:

• Feature size: 15-25 µm line/space (MSAP or SAP process)
• Layer count: 12-20 substrate layers
• Panel handling: Ultra-thin cores (50-100 µm) require gentle transport

The China Localization Factor

Taesung’s use of a Chinese subsidiary for local support reflects the broader trend of international equipment companies establishing on-the-ground presence in China’s PCB manufacturing belt. Chinese PCB manufacturers are investing heavily in capacity for:

• AI server boards (responding to hyperscaler demand)
• Advanced packaging substrates
• High-layer-count 5G infrastructure boards

Market Context

The PCB equipment market is experiencing a cyclical upswing:

• Global PCB production equipment spending exceeded $8 billion in 2025
• China accounts for approximately 55% of global PCB manufacturing capacity
• Wet process equipment represents 15-20% of a typical factory’s capital expenditure
• Korean equipment makers (Taesung, SFA, PSK) compete with Japanese (Tokyo Ohka, Screen) and European (Schmid, Atotech) suppliers

CEO Kim Jong-hak stated Taesung will continue expanding orders in its core PCB business while accelerating growth in new areas including glass substrates and composite copper foil materials — both essential for next-generation AI packaging.

Implications for the Supply Chain

This contract signals several industry trends:

1. Chinese PCB factories are upgrading — The equipment purchase indicates new line installations or technology upgrades for finer-feature capabilities
2. Korean equipment gaining share — Taesung’s 2023-established Zhuhai subsidiary is already generating significant contracts
3. AI demand is real capex — Equipment orders with 3-year horizons confirm long-term conviction in AI PCB demand
4. Localization accelerating — The subsidiary model (Korean manufacturing + Chinese service) balances cost, IP protection, and customer proximity

What This Means for Engineers Sourcing PCBs

Equipment upgrades at Chinese manufacturers translate to:

• Better fine-line capability (50/50 µm becoming mainstream)
• Improved yield on high-layer-count boards
• Faster delivery as production capacity expands
• More competitive pricing as efficiency improves

AtlasPCB works with factories that continuously invest in state-of-the-art wet-process equipment, ensuring consistent quality for HDI boards, high-layer-count designs, and advanced substrate requirements.

Source

• IC&PCB Union / Taesung KOSDAQ filing, May 19, 2026

Image: Remy Gieling via Unsplash

Need advanced PCB manufacturing with fine-line etching capability? AtlasPCB partners with factories equipped with latest-generation wet-process systems for 50/50 µm line/space and beyond. Request a quote for your high-density design.