Ventec International Group is investing 47,11 million dollars to lease and convert an inactive factory in Kunshan, within the Jiangsu province of China, to meet growing demand related to AI for high-density interconnect materials, Electroniques reported. This capital expenditure program spans three phases, with additional outlays planned as future demand dictates.
Expanding Kunshan Production Lines
The leased facility in Kunshan spans 33,500 square meters and will house two automated production lines. Ventec aims for a total monthly capacity of 500,000 copper-clad laminate sheets and 2,400,000 meters of bonding sheets. These additions are designed to support a projected increase of over thirty percent in shipments of high-margin bonding sheets and high-speed materials by the third quarter of 2027.
Work on the site involves reinforcing the floor support structure and upgrading the metal roof framework. Four bonding machines will be installed first to boost bonding sheet output capacity by approximately seventy percent. This setup prioritizes the manufacture of high-end 400/800V materials for AI server power supplies, with commercial production scheduled to begin in the fourth quarter.
Driving Forces Behind the Material Shortage
Exponential growth in artificial intelligence applications and high-performance computing has accelerated hardware replacement cycles, straining supplies of advanced printed circuit boards and substrates. Major copper-clad laminate manufacturers have prioritized production lines for high-end AI servers and high-speed switches. This strategic reallocation has triggered severe material shortages and an industry-wide domino effect on standing orders.
Ventec selected a lease model to bypass lengthy construction phases and environmental impact assessments, cutting an estimated year off its schedule for mass production. According to the company, the project will optimize its product lineup, increase output capacity for high-margin specialty materials, and absorb excess orders.
Ventec Reports Strong Sales Growth and Scales Material Shipments
Ventec reported strong financial performance heading into the final quarter of 2026. Chief Executive Officer Chien-jen Chung cited substantial sales growth, noting approximately 25 million dollars in revenue for August alone, alongside a 53.6 percent increase in cumulative sales for the first eight months of the year compared to 2025 figures.
As shipments of M6-grade high-speed materials scale up, higher-tier products including M7, M8, and M9 variants are undergoing international certification processes for servers and optical modules. The Kunshan plant will function as a primary manufacturing hub for these advanced items. Chung stated that the company expects to supply markets across military-aerospace, AI personal computers, automotive systems, high-speed switches, and optical transceivers.
