TTM Technologies spends over $1 billion on AI and defense expansion

Santa Ana, Calif., printed circuit board maker TTM Technologies has committed more than $1 billion to new investments this month. The spending targets rising demand from artificial intelligence data centers and defense contractors. The company, which trades on the Nasdaq under the ticker TTMI, detailed the moves in two separate announcements this fall.

TTM said on Oct. 19 that it will purchase MKS Inc.'s Ophir Optics unit for approximately $650 million in cash. The acquisition will add high-precision infrared thermal imaging and laser optics to TTM's existing printed circuit board operations. These components serve defense and industrial applications, including surveillance and building inspection. The deal excludes MKS's separate Ophir instruments business and brand name. TTM expects the transaction to close in the second quarter of 2027.

A week earlier, on Oct. 12, TTM announced a $400 million investment to expand manufacturing capacity. The funds will go toward four existing facilities in China and the company's current plant in Penang, Malaysia. TTM stated it is expanding capacity at current locations rather than building new sites. This strategy aims to meet urgent needs from data center infrastructure providers and networking customers. The $400 million outlay is part of a broader plan for $1.2 billion in investments between 2025 and 2029.

Aerospace and defense sectors accounted for 44% of TTM's net sales in 2025. Data center computing represented the next largest segment at 24%. The company's disclosed defense customers include Lockheed Martin, Northrop Grumman, L3Harris, BAE Systems, and Honeywell. TTM President and CEO Edwin Roks noted that the AI boom has placed heavy demands on the hardware chain. He said the company will work closely with customers to define further expansions as required.

TTM shares rose 77% over the past 12 months. The stock traded at $100.54 on Oct. 21, giving the company a market capitalization of $10.6 billion. The following day, TTM reported third-quarter revenue and profit that exceeded analyst estimates. Despite the strong results, the shares dropped as much as 29% due to investor concerns about debt and acquisition costs. TTM Chief Operating Officer Jim Walsh said using existing sites in China and Penang shortens the time between investment and revenue.

The Ophir Optics deal follows TTM's acquisition of Epiq Design Solutions in September for $1.1 billion. That earlier purchase strengthened the company's position in missile defense, space, and reconnaissance. Printed circuit boards still account for more than 80% of TTM's business as of October 2025. The company plans to move its headquarters from Santa Ana to Irvine Towers in the first quarter of 2027. TTM will keep its 18,000-square-foot production plant in Santa Ana.

Blue Tech Wave, an internet intelligence website, offered a note of caution regarding the expansion in Malaysia and China. The group noted that TTM has not named specific customers or reported binding volume commitments for the new capacity. An expected increase in demand is useful evidence, the site said, but it is not equivalent to a confirmed order.