SCHMID Group Rides AI Wave with Advanced Packaging Orders, Fueling Data Center Growth

Freudenstadt, Germany – November 10, 2025 – SCHMID Group, a leading provider of advanced packaging solutions for the semiconductor industry, is experiencing a surge in demand as the global race for artificial intelligence (AI) and high-performance computing (HPC) intensifies. Recent significant orders from undisclosed leading technology companies – one in Southeast Asia and one in China – underscore the growing need for advanced packaging technologies that enable faster, more efficient data centers and cutting-edge electronic devices.

These orders, involving SCHMID’s horizontal InfinityLine H+ and vertical InfinityLine V+ machines, focus on expanding modified Semi-Additive Process (mSAP) capacity – a critical technology for producing high-end printed circuit boards (PCBs) and IC substrates used in AI servers and other demanding applications. While specific customer names remain confidential, industry analysts suggest these contracts position SCHMID as a key enabler for companies heavily invested in expanding their data center infrastructure and AI capabilities.

The AI-Driven Demand for Advanced Packaging

The explosion of AI and HPC applications is driving unprecedented demand for more powerful and energy-efficient semiconductors. Traditional chip scaling is becoming increasingly challenging, leading to a growing reliance on advanced packaging technologies to enhance performance and integration. Techniques like mSAP and Panel Level Packaging (PLP), which SCHMID specializes in, allow for denser interconnects, shorter signal paths, and improved thermal management – all crucial for optimizing AI and HPC systems.

“The industry is at an inflection point,” explains a source familiar with the advanced packaging market. “Moore’s Law is slowing down, and we’re seeing a shift towards ‘more than Moore’ approaches. This means focusing on innovative packaging techniques to achieve performance gains rather than solely relying on shrinking transistor sizes.”

Expanding Capacities in Key Regions

The contracts with the Southeast Asian and Chinese manufacturers highlight the strategic importance of these regions in the global semiconductor supply chain. Both countries are experiencing substantial investment in AI infrastructure and are actively seeking to strengthen their domestic semiconductor manufacturing capabilities.

China, in particular, is prioritizing self-sufficiency in semiconductor technology. The expansion of mSAP capacity by the Chinese manufacturer suggests a concerted effort to secure a reliable supply of advanced PCBs and IC substrates for its burgeoning AI industry. The Southeast Asian investment, meanwhile, reflects the growing demand for cloud services and AI applications in the region.

SCHMID’s Competitive Edge

SCHMID Group differentiates itself by specializing in PLP and mSAP technologies, offering tailored solutions for high-end PCBs and IC substrates. This focused approach allows the company to build deep expertise and provide innovative solutions that address the specific challenges of advanced packaging.

“SCHMID has carved out a niche for itself,” says an industry analyst. “They’re not trying to be everything to everyone. They’ve focused on these specialized technologies and have become a trusted partner for companies that need high-performance packaging solutions.”

The company’s machines are designed to enhance performance, increase efficiency, and improve reliability, addressing the critical needs of AI and HPC applications. This specialization has proven to be a winning strategy, attracting contracts from leading technology companies.

Beyond AI: Applications in Automotive and Beyond

While the current demand is largely driven by AI and HPC, SCHMID’s advanced packaging technologies have applications in a wide range of other industries, including automotive, telecommunications, and consumer electronics. The increasing complexity of electronic systems across all sectors is driving demand for advanced packaging solutions that can deliver higher performance, greater reliability, and smaller form factors.

The automotive industry, for example, is rapidly adopting advanced driver-assistance systems (ADAS) and electric vehicle (EV) technology, which require sophisticated electronic components and advanced packaging solutions. Similarly, the growing demand for 5G connectivity and high-speed data transmission is driving innovation in telecommunications infrastructure and advanced packaging technologies.

Navigating a Competitive Landscape

The advanced packaging equipment market is highly competitive, with major players like Lam Research, Applied Materials, and KLA Corporation vying for market share. However, SCHMID Group’s specialized focus and innovative solutions have allowed it to carve out a niche and compete effectively.

“SCHMID is not directly competing head-to-head with the giants,” explains an industry insider. “They’re targeting a specific segment of the market and have built a reputation for delivering high-quality solutions.”

The company’s commitment to research and development, coupled with its focus on customer satisfaction, has enabled it to maintain a competitive edge and attract long-term partnerships.

Looking Ahead

SCHMID Group is well-positioned to benefit from the continued growth of the AI and HPC markets. The company’s specialized expertise, innovative solutions, and strategic partnerships are expected to drive future growth and solidify its position as a leading provider of advanced packaging solutions. The recent contracts with leading technology companies are a testament to the company’s success and signal a promising future.

“The demand for advanced packaging is only going to increase,” predicts an industry analyst. “SCHMID Group is a key player in this space and is poised to capitalize on this growth.”

The company is continuing to invest in research and development to further enhance its technologies and expand its product portfolio, ensuring that it remains at the forefront of the advanced packaging industry.

About SCHMID Group

SCHMID Group is a leading global provider of equipment and solutions for the semiconductor industry, specializing in advanced packaging technologies like Panel Level Packaging (PLP) and modified Semi-Additive Process (mSAP). The company is committed to innovation, customer satisfaction, and delivering high-quality solutions that meet the evolving needs of the semiconductor market.