AI demand will push production capacity to full capacity in the next two quarters! Hongjin Precision is expected to be listed at the end of November

Hongjin Precision will hold a pre-IPO results conference tomorrow and is expected to be listed for trading at the end of November. Senior deputy general manager Weng Dekui said that thanks to the strong growth of artificial intelligence (AI) special application chips (ASICs), the production capacity will remain at full capacity in the next two quarters. The market visibility will be high in the first half of 2026. The current single-quarter shipments are about 580 units, and the single-quarter shipments are expected to reach 680 units by the end of next year.

Weng Dekui said that Hongjin Precision has successfully entered high-power application fields such as AI, high-performance computing (HPC) and automotive chips with its self-developed ATC active temperature control system, sorting machine and high parallel measurement solutions. It has established market differentiation advantages with temperature control accuracy, fast switching, stability and high parallel measurement performance, and has also actively expanded production capacity to respond to the growing demand of North American AI customers.

Weng Dekui pointed out that Hongjin's core products include FT, SLT and three-temperature test sorting machines, and take the self-developed ATC active temperature control system as the core technology, integrating instant cooling, instant heating, zone temperature control and heat dissipation temperature equalization to accurately reproduce the operating status of the chip in extreme environments and create a high-stability test environment.

Regarding high-power AI and HPC chips, Weng Dekui pointed out that Hongjin has introduced multi-zone temperature control and Micro Channel liquid cooling architecture to achieve a thermal suppression capability of up to 4,000W, supporting the testing of advanced computing chips such as GPU, CPU, FPGA, etc. The latest generation ATC5.5 liquid cooling system has exceeded the 4,000W power threshold and has multi-zone independent temperature control functions to meet the extreme temperature requirements of AI servers.

Facing the trend of automotive electronics, Weng Dekui pointed out that Hongjin has developed a test solution with a wide temperature range control capability of -70°C to 175°C for automotive chips, supports Junction Temperature Control technology, and can realize Multi-Site ATC testing from 8 to 32 stations, which greatly improves the testing efficiency and reliability of automotive chips in high and low temperature cycle environments.

In terms of market layout, Weng Dekui pointed out that Hongjin's customers include major IC design, packaging and testing and IDM manufacturers around the world, and its terminal applications cover AI computing, servers, automotive electronics, smartphones and 3C products. In the first half of this year, the United States accounted for 52%, China 24%, Taiwan 15%, and the rest are Southeast Asian and European markets.

Ong Dekui shared that Hongjin currently has more than 25,000 installed units worldwide, with Taiwan headquarters, US and Suzhou subsidiaries, and is expected to establish a German subsidiary in the third quarter of 2025. Its service base and agent network covers Singapore, Japan, South Korea and many Southeast Asian countries. The sales and service system is complete and can quickly respond to the repair and modification needs of international customers.

Hongjin currently has three factories and multiple warehousing spaces, with a total area of about 59,300 square meters, a single-quarter shipment of 550 units, and an average monthly output value of more than 1.6 billion yuan. It is also launching a fourth factory expansion plan with an area of about 18,000 square meters. It is expected to start construction in the fourth quarter of this year and open in 2028. By then, the total production capacity will increase by about 40%, and single-quarter shipments will reach 750 Taiwan to meet the expansion needs of the AI and HPC markets.

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