AI data centers drive Asia’s passive components, PCB/CCL, substrate, and testing equipment chain

Overview

This report is JPMorgan’s research on the Asia technology hardware chain, covering the passive components, PCB/CCL, substrate, and testing equipment names followed by Jerry Tsai. The core theme is that AI data centers and HPC servers are driving demand upward for high-end laminates, MLCCs, substrates, and power testing equipment, while the report also incorporates extended demand scenarios such as regular servers, LEO, DC converter testing, and BBU testing.

Core views

The report’s core view is positive: AI is driving growth in HPC CCL/PCB TAM, with related supply potentially falling short of demand; YAGEO’s low-end MLCC pricing benefits from the AI server tailwind; substrates will undergo large-scale size migration; and Chroma is positioned as the leader in AI data center power testing, with a relatively complete product portfolio for data center power equipment testing.

Analysis framework

The report combines industry-chain thematic analysis with a company coverage basket approach: it first assesses PCB/CCL and substrate upgrades from the demand side, including AI data centers, HPC, regular servers, and LEO, then uses peer valuation and coverage-universe comparison to present relative company positioning, and maps Chroma’s ATS business, DC converter testing, and BBU testing to the data center power architecture.

Methodology notes

• Supply-demand analysisHPC CCL/PCB supply-demand gap

  Compare expanding demand from AI/HPC, regular servers, and LEO against CCL/PCB supply capacity.

  The report uses cues such as “supply could undershoot demand” and “TAM growth” to conclude that demand may outpace supply expansion.

• Peer valuationPCB/CCL peer valuation

  Compare PCB/CCL-related companies under the same valuation framework.

  The excerpts show that the report includes PCB/CCL peer valuation and marks stock price benchmark dates for different companies in the testing equipment comparison.

• Product-chain mappingData center power testing product coverage

  Map data center power architecture, DC converter testing, and BBU testing to Chroma’s ATS business.

  The report states that Chroma has a comprehensive product portfolio in data center power equipment testing and explicitly calls it the leader in AI data center power testing.

• Technology migrationSubstrate size migration

  Observe AI/HPC packaging and server platform upgrades through substrate size migration.

  The report uses “Massive size migration ahead” to summarize the technology upgrade direction in the substrate segment.

Asset mapping & comparison

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

• YAGEO (2327.TW)

  Beneficiary in passive components and MLCC

  Strengths

  The chart title shows that low-end MLCC pricing benefits from the AI server tailwind, and the report says its AI story is “different but equally good.”

  Weaknesses

  The excerpts do not provide YAGEO’s detailed financial forecasts, rating, or target price.

  Comparison

  It is a representative passive component name in Jerry Tsai’s coverage universe, forming part of the AI hardware-chain comparison alongside PCB/CCL, substrate, and testing equipment names.

  Risks

  Changes in AI server demand, the MLCC pricing cycle, and insufficient persistence in low-end MLCC supply-demand improvement.

• Chroma ATE (2360.TW)

  Beneficiary in testing equipment and data center power testing

  Strengths

  The report explicitly states that Chroma is the leader in AI data center power testing and has a comprehensive product portfolio covering data center power equipment testing.

  Weaknesses

  The excerpts do not disclose details on ATS business mix, order visibility, or earnings elasticity.

  Comparison

  The testing equipment peer comparison mentions companies including Chroma ATE, Hon Precision, Advantest, Teradyne, Keysight, and Beijing Huafen-A.

  Risks

  Volatility in data center capex, testing equipment procurement cycles, peer competition, and product qualification timing.

• Elite Material Co (2383.TW), Unimicron (3037.TW), Tripod Technology Corp (3044.TW)

  Covered names related to PCB/CCL and HPC CCL/PCB

  Strengths

  The report emphasizes that AI is driving growth in HPC CCL/PCB TAM and suggests that supply may fall short of demand.

  Weaknesses

  The excerpts do not break down capacity, customer mix, or earnings forecasts company by company.

  Comparison

  The report includes PCB/CCL peer valuation, indicating that this group is suitable for comparison within a peer valuation framework.

  Risks

  Expansion of high-end CCL/PCB supply, customer qualification timing, realization of AI/HPC demand, and valuation pullback.

• Substrate industry chain

  Benefiting from higher AI/HPC packaging specifications and size migration

  Strengths

  The report uses “Massive size migration ahead” to summarize the trend in the substrate segment, indicating that technology upgrades may bring higher value content.

  Weaknesses

  The excerpts do not provide specific substrate companies, capacity, or pricing data.

  Comparison

  Like CCL/PCB and MLCC, substrates are upstream materials and component segments within the AI hardware upgrade cycle.

  Risks

  Migration pace coming in below expectations, delayed customer platform transitions, and pressure from yield rates and capital expenditure.

Key data

• Report date2026-06-15The filename date is 20260615, and the cover information shows Asia Pacific Equity Research June 2026.
• Research institutionJPMorgan / J.P. Morgan Securities (Taiwan) LimitedThe cover lists JPMorgan, and the author’s legal entity is J.P. Morgan Securities (Taiwan) Limited.
• AuthorJerry Tsai ACThe cover lists the author and email jerry.tsai@jpmorgan.com.
• Coverage universeChicony Power Technology (6412.TW), Chroma ATE (2360.TW), Chunghwa Precision Test Tech (6510.TWO), E Ink (8069.TWO), Elite Material Co (2383.TW), Flexium Interconnect Inc (6269.TW), Radiant Opto-Electronics Corp. (6176.TW), Sunonwealth (2421.TW), Taiwan Surface Mount Tech (6278.TW), Tripod Technology Corp (3044.TW), Unimicron (3037.TW), WIN Semiconductors Corp (3105.TWO), YAGEO (2327.TW)The disclosure page lists Jerry Tsai’s coverage universe.
• HPC CCL/PCBSupply could undershoot demandThe main text title is “HPC CCL/PCB: Supply could undershoot demand”.
• Demand expansionStrong growth in regular servers and LEOThe main text title is “HPC CCL/PCB: regular server and LEO under strong growth”.
• YAGEO themeLow-end MLCC pricing benefits from AI server tailwindThe chart title directly points to AI servers driving MLCC pricing.
• Chroma themeLeader in AI data center power testingThe main text explicitly states that “Chroma is the leader in AI data center power testing”.

Impact & implications

The investment implication is that the AI data center opportunity is not concentrated only in GPUs or complete servers, but also spills over to passive components, HPC CCL/PCB, substrates, testing equipment, and power testing. If demand from AI/HPC, regular servers, and LEO continues to grow while CCL/PCB supply expansion remains insufficient, the pricing, capacity utilization, and valuation elasticity of related supply-chain companies may be supported; at the same time, it is necessary to distinguish between thematic beneficiaries and single-company ratings.

Risks

• The excerpts do not provide single-company ratings, target prices, earnings forecasts, or a complete valuation table, so the conclusions should be viewed as a thematic and coverage framework rather than explicit buy/sell recommendations.
• If the supply-demand gap in HPC CCL/PCB is quickly filled by new capacity, pricing and margin elasticity may be lower than expected.
• If demand from AI data centers, regular servers, and LEO slows, orders for PCB/CCL, MLCC, substrates, and testing equipment will be affected.
• Chroma’s data center power testing demand depends on customer capex, product qualification, and equipment procurement cycles.
• The report discloses that J.P. Morgan may have business relationships with covered companies, and investors should treat this report as one input to decisions rather than the sole basis.

What to watch

• Whether AI/HPC server shipments and data center capex continue to drive growth in CCL/PCB TAM.
• Whether HPC CCL/PCB supply continues to fall short of demand, and the expansion and qualification progress of related companies.
• Whether the improvement in YAGEO’s low-end MLCC pricing is sustainable and can translate into margin expansion.
• The pace of substrate size migration, yield rates, and customer platform adoption.
• Chroma’s order and product coverage progress in DC converter testing, BBU testing, and data center power testing.
• Relative changes in PCB/CCL and testing equipment peer valuations after benchmark stock-price dates are updated.