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Tongtai Machine & Tool Sees Semiconductor Business Reach 40% of Revenue, Expects Strong H2

Electronic Technology · Semiconductors · cnyes · 2026-09-02

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Tongtai Machine & Tool reports that its semiconductor and electronics business now accounts for 40% of revenue, driven by AI server demand and localization trends.

What Happened

Business Transformation and Outlook: Tongtai Machine & Tool showcased its integrated precision manufacturing platform at SEMICON Taiwan 2026, with Chairman Yen Jui-hsiung highlighting a strong H2 outlook. Driven by semiconductor localization and robust AI server demand, the company's semiconductor and electronics-related business has climbed to 40% of total revenue.

Technological Edge and Market Penetration: The company has successfully challenged the dominance of Japanese manufacturers in the grinding equipment market by offering high-precision, customizable solutions. By providing localized support and flexible interface modifications, Tongtai has effectively shortened development cycles for its clients.

AI Server Demand Drivers: While traditional smartphone PCB demand has softened, the surge in high-end thick board requirements for AI data centers has significantly boosted PCB equipment orders. Furthermore, existing automotive component clients are pivoting toward AI server cabinet production, leading to larger, multi-unit equipment procurement orders.

Future Strategic Roadmap: Tongtai plans to integrate ultrasonic vibration technology into its grinding equipment by 2027 to enhance efficiency and reduce tool wear. The group remains committed to advancing its wafer grinding and laser processing capabilities to support the long-term needs of the advanced packaging supply chain.

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