TTM data center boards up 115% as orders run 2.5x sales

TTM Technologies' sales of circuit boards to data centre and networking customers rose 115% to $493.6 million in the third quarter while its commercial orders ran at 2.5 times sales, and the board materials behind them now take 12 to 24 weeks to arrive, which tells us the printed circuit board under every AI server and switch is a step where factory space and laminate, not demand, set the pace into 2028.

What happened?

• The results: On 22 October 2026 TTM Technologies, a US maker of printed circuit boards, substrates and defence electronics, reported third-quarter net sales of $1.204 billion, up 60% from $752.7 million a year earlier and a company record. Gross margin rose to 24.2% from 20.8%.
• Data centre and networking: Sales to this end market were $493.6 million, up 115% and 41% of total sales, against 30% a year earlier. TTM said it expects the end market to reach about 49% of net sales in the fourth quarter and to more than double for the full year.
• Orders: Total book-to-bill was 2.13. On the call, chief executive Edwin Roks put the commercial segment, which holds data centre and networking, at 2.5 and aerospace and defence at 1.6. The 90-day backlog, which TTM notes can be cancelled, was $1.3 billion against $610 million a year earlier.
• Outlook: TTM guided fourth-quarter net sales of $1.42 billion to $1.44 billion and gave a first 2027 forecast of $6.5 billion to $6.75 billion, against $4.47 billion to $4.49 billion expected for 2026. The 2027 figure includes acquisitions already closed and excludes the pending ones.

Why does it matter?

The direct signal. Every AI server, accelerator tray and network switch sits on a printed circuit board, and boards for AI systems typically carry more layers and faster materials than an ordinary server board. TTM calls its newest boards for these customers "N+M asymmetrical" printed circuit boards; it does not set out the build in its release. Roks said these boards are about 30% of data centre and networking sales today and should be about 50% of that group in 2027. Our arithmetic: 30% of $493.6 million is roughly $150 million of these boards in the quarter.

The second-order signal: orders are running well ahead of what the factories ship. A commercial book-to-bill of 2.5 means that for every dollar of commercial boards TTM shipped in the quarter, customers placed about 2.5 dollars of new orders. Our arithmetic: on $787.9 million of commercial segment sales, that is roughly $2 billion of commercial orders in one quarter. That backlog turns into sales only as fast as TTM can laminate, drill and plate boards, and only as fast as its own suppliers deliver the copper-clad laminate and glass cloth that boards are made from.

The materials line. Asked about copper-clad laminate and T-glass, a low-expansion glass cloth used inside high-end boards and substrates, Roks said lead times are "in the order of" 12 weeks, sometimes 24 weeks and sometimes longer depending on the material, and that "lead times are going up". He added that TTM is handling it so far and that bigger programmes give it more visibility. Longer material lead times mean a board maker has to commit to stock months before it builds, which ties up cash and makes surprise demand harder to meet.

The pattern. This is the same squeeze that showed up one layer down two days earlier, when Nvidia said it had booked 2.5 times more substrate capacity and over 300% more interposer capacity (our Catalyst on that). Substrates and interposers carry the chip; the circuit board carries the whole tray. Both are made from layered laminate and glass, and both now report orders well ahead of capacity. For what an interposer is, see What Is an Interposer?.

What does it change?

Near term (to the end of 2027)

• A big fourth quarter is already planned. Our arithmetic: if data centre and networking is about 49% of the $1.43 billion guidance midpoint, that end market would be roughly $700 million in the fourth quarter, about 42% more than the third quarter. That is a large step for one quarter and depends on the board ramps staying on schedule.
• One programme is late, and TTM says it is not its fault. Roks said TTM has three major N+M programmes, two "doing really well" and one "a bit moving to the right", which he tied to the customer's programme schedule, not a technical or TTM issue. When AI boards are designed for one customer platform, a slip at the customer moves the board revenue with it.
• Cash goes into machines first. Net capital spending was $79.9 million in the quarter and $237.1 million over nine months. Free cash flow was $74.8 million in the quarter. On 12 October TTM announced a further $400 million to expand capacity at four plants in China and its plant in Penang, Malaysia, on top of $1.2 billion it had already committed for 2025 to 2029.

Longer term (2028 and after)

• The new capacity is for 2028, not 2027. Roks said the extra $400 million starts in the fourth quarter of 2026, runs into early 2028 and would "primarily support revenue production focused on the 2028 period". TTM builds next to its existing plants rather than on new sites, which is quicker, but it still means the 2027 forecast has to come mostly from lines already in place or already being fitted.
• Penang is the Southeast Asia lever. TTM said its Penang plant should approach breakeven in the fourth quarter of 2026 after execution fixes, and Penang is one of the five sites in the new plan. That ties into Malaysia's wider chip export run (see Malaysia's chip export record).
• What we cannot see yet: which customers placed the orders, how much of the backlog is AI boards versus other commercial work, which materials are shortest, and whether the late programme is a delay or a cut. The 90-day backlog figure can also be cancelled, so it is a guide, not a contract book.

What should we watch next?

• Amkor results on 26 October (US time). The closest read on whether the packaging step behind the board is seeing the same order gap.
• Ibiden results on 29 October. Ibiden is one of the substrate makers named in Nvidia's capacity plan. If its substrate orders also run far ahead of sales, the squeeze covers both the chip carrier and the board.
• TTM's fourth quarter. Whether data centre and networking really reaches about half of sales, and whether the late N+M programme is back on schedule.
• Material lead times. Any move in laminate or glass cloth lead times beyond 24 weeks would point to the raw materials, not the board lines, as the tighter limit.
• What would weaken the catalyst: a fall in the commercial book-to-bill toward 1, cancellations in the 90-day backlog, or a second N+M programme moving out.

FAQ

What did TTM Technologies report on 22 October 2026?
Third-quarter net sales of $1.204 billion, up 60%, with data centre and networking sales up 115% to $493.6 million. It guided fourth-quarter sales of $1.42 billion to $1.44 billion and forecast $6.5 billion to $6.75 billion for 2027.

What does TTM make for AI data centres?
Printed circuit boards, the layered boards that carry and connect the chips, memory and connectors in servers and network switches. Its newest AI boards are what it calls N+M asymmetrical boards.

What does a book-to-bill of 2.5 mean?
New orders divided by sales in the same period. At 2.5, TTM's commercial segment took about 2.5 dollars of orders for every dollar it shipped, so its backlog grew.

Why do board material lead times matter?
Boards are made from copper-clad laminate and glass cloth. When those take 12 to 24 weeks to arrive, a board maker must order months ahead, and a sudden jump in AI orders cannot be met from stock.

Takeaway: TTM's AI customers are ordering far more circuit boards than it can ship, its materials are getting slower to arrive, and its new lines are aimed at 2028, so the board under the AI server is now a step to watch, not a commodity.

References

1. TTM Technologies, "TTM Technologies, Inc. Reports Third Quarter 2026 Results", 22 Oct 2026. Net sales, margins, end market shares, book-to-bill, cash flow, capital spending, outlook and the Ophir deal.
2. The Motley Fool, "TTM Technologies (TTMI) Q3 2026 Earnings Call Transcript", 22 Oct 2026. Data centre and networking sales, segment book-to-bill, 90-day backlog, N+M share, fourth-quarter mix, lead times, the late programme and Penang.
3. TTM Technologies, Form 8-K with "TTM Technologies Announces $400 Million in Planned Strategic Investments", 13 Oct 2026 (release dated 12 Oct). The $400 million plan, sites and the earlier $1.2 billion commitment.
4. MaxLinear, "MaxLinear, Inc. Announces Third Quarter 2026 Financial Results", 22 Oct 2026. Revenue and infrastructure growth.
5. Ibiden, "IR Calendar", checked 23 Oct 2026. The 29 October results date.
6. Nvidia, "NVIDIA and Supply Chain Partners Expand Capacity to Accelerate AI Infrastructure Buildout", 21 Oct 2026. Substrate and interposer capacity plan, including Ibiden.
7. Amkor Technology, "Amkor Technology to Announce Third Quarter 2026 Financial Results", 5 Oct 2026. The results date.

Not investment advice. The N+M board estimate, commercial order estimate and fourth-quarter data centre estimate are our arithmetic from TTM's figures.