Precision Micro sees semiconductor revenue surge as AI drives manufacturing demand

Chemical etching specialist, Precision Micro has seen semiconductor-related revenue rise by 43 per cent over the past year, with semiconductor applications now accounting for around half of the company’s total revenue. As investment in artificial intelligence (AI), high-performance computing and advanced semiconductor manufacturing accelerates, demand for precision-etched metal components is placing increasing pressure on specialist manufacturing capacity.

A long-standing supplier to the semiconductor industry, Precision Micro has secured multiple six-figure orders this year to manufacture ultra-precise metal components used throughout semiconductor production and advanced thermal management systems.

Its chemically etched components are used within mass flow control systems that regulate specialist process gases during wafer fabrication, alongside precision cooling plates that manage heat within advanced semiconductor equipment. The company is also producing larger-format etched heat exchanger plates for AI infrastructure, where efficient thermal management is becoming increasingly critical as computing power continues to grow.

Manufactured from sheet metals ranging from 25 microns to 1.5mm, these components require exceptional dimensional accuracy and repeatability. As semiconductor manufacturers expand production to meet sustained global demand, they are increasingly relying on specialist suppliers capable of delivering high-volume precision manufacturing without compromising quality.

“We’re seeing semiconductor demand shift from cyclical growth to sustained structural expansion, driven by continued investment in AI, advanced computing and semiconductor manufacturing,” said Ben Kitson, Head of Business Development at Precision Micro. “That creates pressure not only on production capacity, but on every specialist component needed to keep these systems operating reliably at scale.

“For the first time, we’re seeing customers provide demand forecasts extending through to the end of 2027, giving us unprecedented visibility of future requirements. We’ve continued investing in our manufacturing capabilities over recent years, putting us in a strong position to support customers as demand for precision chemical etching continues to grow.”

Alongside increasing production volumes, Precision Micro is also seeing a shift in customer expectations. Semiconductor equipment manufacturers are looking for greater manufacturing flexibility, closer supply chain collaboration and additional value-added processes as they scale production while maintaining demanding standards for precision, quality and delivery.

With customer forecasts now extending years ahead rather than months, Precision Micro believes the semiconductor industry is entering a new phase in which access to specialist manufacturing capacity will become increasingly important to supporting continued growth across AI and advanced computing.

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