Rising AI PCB difficulty drives demand for testing/measurement equipment, with Ta Liang capacity remaining tight

Overview

This report is based on Goldman Sachs' discussion with Ta Liang management during Taiwan Computex & Corporate Day on June 1, 2026. Ta Liang is described as a key supplier of high-end PCB production and testing equipment in Taiwan. The report focuses on rising production difficulty for next-generation AI PCBs, demand for 1.6T optical module mSAP equipment, capacity bottlenecks, and progress in the semiconductor inspection equipment business.

Core views

The core view is that rising PCB manufacturing complexity is increasing demand for testing, measurement, and drilling-related equipment. Management has seen the ratio of TM measurement machines to PCB back-drilling machines among some customers shift from the 1:8 estimated at the beginning of the year to 1:6. Goldman Sachs believes this indicates that AI PCB yield pressure is creating stronger investment demand for testing/measurement equipment. Meanwhile, demand for 1.6T optical module mSAP routing solutions is strong, and full capacity utilization plus potential bottlenecks in TM equipment may lead the industry to continue increasing capex on PCB equipment over the coming several quarters to several years.

Analysis framework

The report uses management meeting notes and supply-chain transmission analysis: it first records Ta Liang's statements on customer designs, orders, capacity, outsourcing, and the semiconductor inspection business, then maps 1.6T optical modules, mSAP penetration, and PCB yield pressure to the outlook for PCB suppliers and equipment demand.

Methodology notes

• Company meeting researchManagement meeting notes

  Assess future equipment demand and potential bottlenecks through company management's description of demand, capacity, and changes in customer design.

  The core evidence of this report comes from Goldman Sachs' meeting with Ta Liang during Taiwan Computex & Corporate Day, focusing on customer equipment mix, order visibility, outsourcing plans, and progress in semiconductor inspection equipment.

• Supply chain analysisSupply chain transmission analysis

  Infer upstream demand for PCB testing, measurement, back-drilling, and mSAP routing equipment from end-market AI PCB complexity and 1.6T optical module demand.

  The report links low PCB yields, 1.6T optical module PCB demand, and adoption of advanced mSAP technology, arguing that this will support capex on PCB equipment and could make TM measurement machines a potential bottleneck.

• Disclosure methodologyGS Factor Profile

  Goldman Sachs' factor framework for comparing stock growth, financial returns, valuation multiples, and composite attributes.

  This section is part of the disclosure appendix, explaining the calculation methodology of the GS Factor Profile, and is not the basis for a formal rating or target price for 3167.TW in this report.

• Disclosure methodologyM&A ranking framework

  Goldman Sachs' framework using a score of 1 to 3 to assess the probability that a covered company becomes an acquisition target.

  This section is standard disclosure content introducing the definition of M&A Rank; the report does not provide a specific M&A ranking for Ta Liang.

• Disclosure methodologyQuantum database

  Goldman Sachs' proprietary database for accessing historical financial statements, forecasts, and ratios.

  This section is standard disclosure content explaining that Quantum can be used for in-depth single-company analysis and cross-company comparison.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Ta Liang (3167.TW)

  Company discussed in the meeting; stock not covered by Goldman Sachs

  Strengths

  Occupies a key supplier position in Taiwan's high-end PCB production and testing equipment; PCB routing equipment share is well above 50%; orders are full for the next 9 months; benefits from AI PCB complexity and 1.6T optical module mSAP demand.

  Weaknesses

  Current effective monthly capacity is only about 200-300 units, indicating tight capacity; final design for 1.6T optical module PCB routing equipment has not yet been fully determined; the semiconductor inspection business is still at a relatively early stage.

  Comparison

  Management noted that the ratio of TM measurement machines to PCB back-drilling machines has shifted from 1:8 to 1:6, showing stronger demand intensity for testing/measurement equipment versus previous expectations.

  Risks

  If AI PCB yields improve faster than expected, 1.6T optical module designs are delayed, outsourcing execution falls short of expectations, or capacity expansion is constrained, order and delivery timing could be affected.

• PCB testing/measurement equipment

  Direct beneficiary of rising AI PCB production difficulty

  Strengths

  Low yields and complex processes increase measurement demand, and Goldman Sachs believes the industry may continue investing over the coming several quarters to several years.

  Weaknesses

  Demand may exceed supply and create bottlenecks, with deliveries constrained by equipment capacity and specialized labor.

  Comparison

  The change in the ratio of TM measurement machines to PCB back-drilling machines from 1:8 to 1:6 means more measurement equipment support is needed per unit of back-drilling equipment.

  Risks

  If customer capex slows or improvements in PCB production processes reduce measurement intensity, demand elasticity for equipment may weaken.

• 1.6T optical module PCB and advanced mSAP supply chain

  Downstream demand and technology upgrade driver

  Strengths

  The report says demand for 1.6T optical module mSAP routing solutions is strong and consistent with the outlook of optical module PCB suppliers.

  Weaknesses

  Final equipment design has not yet been fully finalized, and the commercialization pace still needs to be validated.

  Comparison

  Compared with traditional PCB processes, higher adoption of advanced mSAP may improve the outlook for key mSAP suppliers.

  Risks

  If demand for 1.6T optical modules is delayed, or mSAP penetration falls short of expectations, the pull on equipment and the PCB supply chain will weaken.

• Semiconductor inspection equipment business

  Ta Liang's expansion business line

  Strengths

  Multiple solutions have already been introduced into CoWoS and CoPoS, and the share of OSAT demand is expected to rise.

  Weaknesses

  The business is still at an early stage, and scaling up and customer expansion will still take time.

  Comparison

  Compared with the more mature PCB equipment business, semiconductor inspection equipment provides a new growth option but with lower certainty.

  Risks

  There is uncertainty around expansion to non-Taiwan foundry customers, OSAT demand, and the pace of investment in advanced packaging.

Key data

• Report date2026-06-02The report cover page shows Equity Research 2 June 2026.
• Company coverage statusNC / Not CoveredThe report title marks 3167.TW as NC, with no formal rating, target price, or earnings forecast provided.
• Ratio of TM measurement machines to PCB back-drilling machinesFrom 1:8 beginning to see 1:6 designsManagement said the estimate at the beginning of the year was 1:8, but some customers have started adopting 1:6 designs due to lower yields in next-generation AI PCBs.
• 1.6T optical module mSAP demandStrong demand outlookThe company believes demand for 1.6T optical module mSAP routing solutions is strong, implying solid PCB demand over the coming several quarters to several years.
• PCB routing equipment market shareWell above 50%The company said it has a dominant position in PCB routing equipment and is confident in its share of 1.6T optical module PCB equipment.
• Order visibilityOrders full for the next 9 monthsManagement said current order scheduling is full, reflecting tight near-term capacity.
• Current effective monthly capacityAbout 200-300 units/monthThe report compares this figure with the previous guidance of 800 high-end machines.
• Low-end equipment outsourcing planAbout 50 units/month, starting from the end of 2026The company plans to outsource more low-end products to partners so that internal resources can shift toward more high-end equipment.
• Internal efficiency improvement potentialAbout 10% capacity increaseThe company is working on efficiency improvements, but also does not rule out acquiring specialized labor through M&A to expand capacity.
• Progress in semiconductor inspection equipment7 solutions for CoWoS, 2 for CoPoSASP ranges from the low single-digit millions of NT dollars to more than NT$10 million.
• OSAT demand as a share of semiconductor business mixAbout 70% in 2026, about 50% in 2025Management said OSAT demand is rising and the company is also engaging with non-Taiwan foundry customers.

Impact & implications

The report has positive implications for Ta Liang and the PCB equipment chain: AI PCB production difficulty and yield pressure are increasing the intensity of testing/measurement equipment usage, while 1.6T optical modules are driving demand for advanced mSAP routing equipment. Full capacity utilization and potential bottlenecks in TM equipment may support future orders and capital spending. However, as the company is Not Covered, the report does not constitute a formal rating or target price revision.

Risks

• The final design of 1.6T optical module PCB routing equipment has not yet been fully determined, which may affect order timing and equipment specifications.
• Current capacity is fully utilized and effective monthly capacity is limited; if outsourcing or internal efficiency improvements do not progress smoothly, deliveries may be constrained.
• TM measurement machines may become a supply bottleneck due to excessively rapid demand growth driven by low PCB yields.
• If AI PCB yields improve or customer capex slows, demand intensity for testing/measurement equipment may come in below expectations.
• The semiconductor inspection equipment business is still at an early stage, and growth in demand for CoWoS, CoPoS, and OSAT still requires continued validation.
• The company is Not Covered; the report does not provide a formal rating, target price, or earnings forecast, and its investment conclusion cannot be treated as equivalent to covered research.

What to watch

• Whether the customer ratio of TM measurement machines to PCB back-drilling machines continues to evolve from 1:8 toward 1:6 or even higher testing intensity.
• The timing of finalization for 1.6T optical module mSAP PCB routing equipment designs and actual order conversion.
• New orders after the next 9 months of fully loaded orders, delivery lead times, and customer capacity expansion plans.
• Execution progress of outsourcing about 50 low-end units per month by the end of 2026, and whether this frees up more internal capacity for high-end equipment.
• Whether internal efficiency improvements can achieve about a 10% capacity increase, or whether specialized labor and capacity can be obtained through acquisitions.
• Progress in introducing semiconductor inspection equipment to CoWoS, CoPoS, OSAT, and non-Taiwan foundry customers.