Taiwan's chip packaging and testing firms are riding a wave of AI demand, and both Powertech and King Yuan Electronics just posted record monthly sales for the second month running — good news for the AI supply chain.

• Powertech's August sales hit a record, up 24% from a year earlier, with sales for the year so far up 31%.
• King Yuan Electronics also set a record, up 32% from last year, with sales for the year so far up 36%.
• Demand for AI servers, high-performance computing chips and memory is driving the gains, along with higher prices and fuller factories.
• Powertech's chief executive expects a very strong year overall and another annual sales record.
• Testing of Nvidia's next-generation Rubin chips slipped because of a cooling redesign, pushing volume work at King Yuan into the fourth quarter.

Outlook: Third-quarter growth at King Yuan will come in softer than hoped, but analysts see sales jumping as much as 20% in the fourth quarter once Rubin testing ramps up.