TTM Technologies adds $400 million more for China and Malaysia plants
The spending adds to a $1.2 billion commitment already running through 2029 and lands days after TTM closed a debt-funded acquisition
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TTM Technologies will spend $400 million to expand manufacturing capacity at four plants in China and its facility in Penang, Malaysia, to meet demand for artificial intelligence infrastructure. The amount adds to a previously disclosed $1.2 billion investment commitment that runs through 2029.
CEO Edwin Roks said "the rapid growth in demand requires us to make rapid capacity increases across several of our facilities."
The announcement comes days after TTM closed its purchase of Epiq Solutions, a maker of software-defined radios and RF products for defense and signals intelligence work, for about $1.1 billion in cash, according to a TTM Technologies filing with the Securities and Exchange Commission. TTM funded that deal with a $300 million term loan, an $800 million term loan and proceeds from senior notes, Investing.com reported, citing TTM's press release. At the time the deal was announced, TTM said it expected net leverage of about 2.3 times at closing, with a plan to bring that down to between 1.5 and 1.7 times within 12 to 18 months, Yahoo Finance reported.
The new $400 million commitment is organic capacity spending, not debt-funded acquisition, a contrast with the leveraged Epiq purchase that added roughly $1.9 billion in debt to the balance sheet. Funding growth from both directions at once, acquired defense RF capacity and expanded circuit board manufacturing for AI infrastructure customers, raises the stakes on execution. Management's framing points to demand outrunning current capacity, which could support revenue growth into 2029 if utilization follows, but it also means the free cash flow available for paying down debt gets split further in the near term.