Taiwan's Co-tech Development set to ride high-end copper foil market for AI hardware

台灣金居開發股份有限公司（Co-tech Development）可望以高端銅箔廠協助人工智慧硬體發展

TAIPEI (Taiwan News) — Taiwan's Co-tech Development Corp. is set to become one of the fastest-growing manufacturers in the artificial intelligence hardware sector over the next two years, CTEE reported.

Institutional investors say the company is poised to benefit from growing demand for high-end copper foil, a key material used in AI servers.

In November, Co-tech reported revenue of NT$716 million (US$23 million), its highest monthly total in nearly four years. Combined revenue for the first 11 months of 2025 reached NT$7.13 billion, already surpassing the company’s total for 2024.

Analysts attribute the growth to rising copper prices and strategic upgrades, including the expansion of Co-tech’s production capacity for advanced hyper very low profile (HVLP) copper foil. HVLP foil is designed to reduce signal loss and interference in high-speed electronic circuits, particularly in AI servers and advanced networking boards, according to TechNews.

Much of this growth is linked to the company’s expertise in HVLP4 copper foil, expected to be fully adopted in AI servers by 2026. HVLP4, or ultra-low profile copper foil, features a specially processed surface that improves signal integrity in high-frequency, high-speed electronics, according to Cmoney.

Few manufacturers currently have mature HVLP4 production capabilities, making Co-tech one of the limited players with mass production experience. Analyst Chiang Kuo-chung (江國中) noted that global HVLP4 capacity will remain far below demand, with a projected supply gap of 500,000–600,000 kilograms per month starting mid-2026.

Globally, only a few companies, primarily Japanese firms Mitsui Kinzoku and Furukawa Electric, along with some suppliers in Luxembourg, can reliably produce HVLP4. Japanese suppliers have already raised prices by 5–10% in the fourth quarter.

Market observers noted that revenue from October to November accounted for 65.6% of Co-tech’s estimated fourth-quarter revenue of NT$2.16 billion, exceeding expectations. This suggests that a higher proportion of high-end products has begun to strengthen the company’s profit structure.

Given the technical challenges of HVLP4 production, supply is expected to remain tight, potentially allowing processing fees to rise and boosting profits in 2026–2027. Co-tech is a leading Taiwanese HVLP copper foil supplier and the top domestic producer of high-end HVLP4, well positioned to gain market share as global demand outpaces supply.