Demand for 400G network switches is trending upward and may fast take off in the next two years along with ever-expanding 5G infrastructure and terminal applications, which will significantly benefit PCB and CCL makers in Taiwan, according to industry sources.

As the penetration for 100G switches has reached a significant level, 400G models are very likely to see the largest growth momentum in the switch market in 2021-2022, driven by high-speed transmission requirement for terminal applications and the rapidly growing penetration 5G base stations, the sources said.

Taiwan's three major CCL suppliers Elite Material, Iteq and Taiwan Union Technology, and PCB makers including Gold Circuit Electronics have all had their products validated by switch makers over the past 2-3 years, and are ready to ramp up shipments to clients, noted the sources.

As higher transmission speed requires lower signal loss, ULL (ultra-low loss) CCL can best meet the requirement and will become the top-choice PCB material for 400G switches, the sources said, adding that the CCL suppliers will see their product mix and profitability improve notably on surging demand for 400G switches.

As 100G switches now usually adopt 26-layer rigid PCBs, 400G devices will see the layer count advance further to 32-36 involving highly sophisticated manufacturing technology beyond general PCB makers, the sources said.

HDI PCB, boasting high density and laser hole-drilling traits, is likely to gain momentum as a new option for high-end networking applications, the sources added.