The Zhitong Finance App learned that Everbright Securities released a research report saying that the PCB industry is in a triple resonance phase of “AI computing power demand expansion+technology iterative upgrade+price increase transmission and implementation”. High-end production capacity continues to be scarce and squeezes middle- and low-end production capacity. The bank expects price increases and favorable prices in the industrial chain to continue until the second half of next year. It is recommended to focus on: 1) high multilayer boards/HDI; 2) IC packaging substrates; 3) consumer electronics and computing power dual wheels; 4) upstream copper-clad plates and material-related targets.
The main views of Everbright Securities are as follows:
Incident: Recently, the PCB sector has been heavily catalyzed, and market attention is high
On the upstream materials side, the leading copper-clad board company Jiantao Laminated Board issued its eighth price increase notice during the year, increasing the sales price of thin-cloth sheets and semi-cured sheets by 15%. Panasonic also announced a 200% increase in some CCLs starting in 2027. Whether the industrial chain is successful is a key influencing factor on whether the PCB sector's performance can be achieved. Judging from Shennan Circuit, Shengyi Electronics, Xing Sen Technology, Jingwang Electronics, Jinlu Electronics, and Zhongfu Circuit, which have already announced three quarterly reports or performance forecasts, they have all achieved sharp increases in performance. The bank believes that the PCB sector is still a booming direction with the potential for industrial growth, supply constraints, performance delivery, and valuation switching. It is a “sharp rise in volume and price+profit expansion” combination driven by AI computing power platform iterations, switch/optical module upgrades, shortage of upstream materials, and dislocated high-end production capacity.
PCB: the “mother of electronic products”, the value of which has increased significantly in the AI era
1) Definition: A PCB (printed circuit board) is a structural component that forms a printed circuit and component assembly position according to a predetermined design on an insulating substrate, and performs the dual functions of component support and electrical interconnection. 2) Classification: According to the structure, PCBs can be divided into single/double panels, multi-layer boards, HDI boards, flexible boards, IC packaging substrates and flexible boards. The core variables that determine the amount of unit value are the number of layers and material grade. 3) Applications: Downstream covers consumer electronics, PCs, communications, servers, automotive electronics, etc. AI computing power is the core driving force in this round of demand. At the same time, strong demand for high-end AI products is squeezing low-end production capacity, leading to widespread price increases in non-AI applications.
China dominates global supply, and high-end racetracks are structurally upgraded
1) Regional distribution: China has been the world's largest PCB production base since 2006, with an output value of US$49 billion and a global share of 58% in 2025, ranking first for 20 consecutive years. 2) Manufacturer pattern: The top five global PCB manufacturers in 2025 are Zhending Technology, Xinxing Electronics, Dongshan Precision, Shennan Circuit, and TTM Technology, accounting for a total share of about 23%. In addition, Shanghai Electric Power Co., Ltd., Shenghong Technology, Jingwang Electronics, Shengyi Electronics, Chongda Technology, and Xingsen Technology are also core manufacturers. 3) Market space: Global PCB output in 2025 was US$85.15 billion, +15.8% YoY, and is expected to reach US$123.35 billion in 2030 (CAGR about 7.7%). Among them, the output value of server and data storage PCBs reached US$15.68 billion in 2025, +43.6% year-on-year. It is the fastest growing market segment, and the CAGR is expected to reach 17.2% in 2025-2030.
AI computing power construction drives the rapid expansion of high-end PCB demand, and the logic of rising volume and price continues to be realized
1) Iterative AI server architecture pushes the bar: Under the cable-free architecture of the Nvidia Rubin platform and the high-level HDI design of ASIC servers in the cloud, high-speed transmission between the GPU and Switch is directly handled by a multi-layer PCB board, and the PCB value of a single server is more than two times higher than the previous generation. 2) Upstream supply has become a bottleneck, and a new production expansion cycle has begun: Nitto Textile will increase its mid-term capital expenditure for the 2024-2027 fiscal year from 80 billion yen to 120 billion yen, and will add a glass fiber cloth production line in Fukushima, Japan, and glass furnace equipment in Taiwan. Mitsui's 2030 carrier copper foil production expansion target was raised from 5.6 million m2/month to 8 million m2/month. 3) Price increase transmission and profit realization: Costs are transmitted step by step along the industrial chain, and the favorable price logic continues to be implemented: the gross margins of Shennan Circuit 26Q1 to Q3 were 29.2%, 32.4%, and 34.9%, respectively; Xing Sen Technology's gross margins of 26Q1 to Q2 were 19.2% and 22.4% respectively. Judging from the disclosed performance forecasts, Q3 gross margin is expected to increase further. Companies such as Jingwang Electronics and Jinlu Electronics all meet this characteristic.
Risk analysis: AI computing power capital expenditure falls short of expectations, increased industry competition, cost fluctuations and poor transmission, etc.