Taiwanese electronic materials maker Chin-Kai is running its factories beyond full capacity as AI server demand for passive components booms — good news for the company and its investors, and another sign the AI build-out is still hot.

• August revenue hit a record, up 13% from July and 92% from a year earlier, the eleventh straight month of double-digit growth.
• The driver is MLCC ceramic capacitors used in AI servers; shipments of the copper paste that goes into them jumped 30% in a month.
• Factories are running at 120% of capacity on daily overtime, and orders still cannot be filled, so new machines are being bought to expand.
• New materials for high-speed AI server circuit boards and next-generation chip packaging are already being picked up by customers.

Outlook: September order visibility is strong and profit margins should improve as capacity grows, with new semiconductor materials expected to bring in a tenth of revenue next year.