Eliza Wong
The printed circuit board industry is experiencing unprecedented growth as recent financial reports reveal staggering profit increases exceeding 300% for multiple manufacturers. Driven by artificial intelligence computing demands and automotive electronics, PCB companies are simultaneously upgrading their product portfolios toward high-end applications while strategically expanding into Southeast Asian markets. This dual approach of technological advancement and geographical diversification represents a significant shift in the global electronics supply chain landscape.
Exceptional Financial Performance Across the Industry
Recent mid-year financial reports from PCB manufacturers reveal an industry in rapid expansion. Among the publicly listed companies that have disclosed results, nearly 70% have reported increased net profits attributable to shareholders. The standout performers include:
– Shengyi Electronics with 452% year-on-year growth
– Victory Giant Technology with 367% growth
– Junya Technology with 333% growth
– Huazheng New Material with 328% growth
This remarkable performance stems from surging demand across multiple high-growth sectors. The artificial intelligence revolution has created unprecedented need for computing infrastructure, while automotive electronics continue to expand with the electrification of vehicles. Additionally, data center construction continues at a rapid pace globally, all requiring advanced printed circuit boards.
The financial outperformance isn’t limited to a few exceptional cases. The entire sector is benefiting from these macro trends, with most companies reporting significant revenue and profit improvements compared to the same period last year.
Product Upgrading Toward High-End Applications
Chinese PCB manufacturers are making significant strides toward higher-value products, particularly in emerging fields like AI, new energy vehicle electronics, and data centers. This shift toward more sophisticated products is driving both revenue growth and improved profit margins.
AI Server and Computing Applications
The artificial intelligence boom has created specialized demands for PCBs that can handle extreme computing requirements. AI servers require circuits with significantly higher signal transmission speeds and bandwidth capabilities compared to conventional servers. According to industry insiders, AI server PCBs and related switching equipment can command profit margins substantially higher than standard server products.
Shengyi Technology reported increased sales of copper-clad laminates (CCL) during the first half, with optimized product structure. Their high-frequency and high-speed CCL products performed exceptionally well due to surging demand from AI servers, computing power, and chip-related emerging fields.
Similarly, Huazheng New Material, which focuses on developing and producing epoxy resin copper-clad laminates, has targeted AI servers, switches, and optical modules as key application markets. Their strategic focus on these high-growth segments contributed to their triple-digit net profit growth.
Technical Advancements Driving Value
Victory Giant Technology executives explained that continuous bandwidth upgrades for signal transmission are driving material quality improvements. High multilayer boards and advanced high-density interconnect (HDI) boards are increasing in layer count and complexity while becoming thicker with finer circuit densities. These technical advancements significantly raise manufacturing requirements, leading to supply constraints for high-end HDI products.
Avary Holdings has introduced advanced HDI products widely used in AI servers and automotive PCBs. In the first half of the year, the company’s AI server and automotive electronics segment revenue reached 805 million yuan, representing 87.42% year-on-year growth.
Wus Circuit Board Company has benefited from strong demand for artificial intelligence and high-speed network infrastructure. Their high-speed network switches and配套 routing-related PCB products became the company’s fastest-growing segment, increasing approximately 161.46% year-on-year. Company executives noted that while AI and network infrastructure development requires more complex, higher-performance PCB products, market capacity for related high-end products remains insufficient.
According to Prismark data, the PCB market is projected to grow from $73.565 billion in 2024 to $94.661 billion in 2029, representing a five-year compound annual growth rate of 5.2%. Driven by AI servers and high-speed network infrastructure construction, multilayer boards with 18+ layers and HDI boards are expected to achieve compound growth rates of 15.7% and 6.4% respectively between 2024-2029, representing the main drivers of PCB market expansion.
Industry experts point out that from the perspective of AI computing market development, the current growth momentum in the PCB industry will expand from Nvidia’s customer base to non-Nvidia overseas computing customers. The rise of domestic computing manufacturers is also expected to provide new opportunities.
Navigating Rising Cost Pressures
As a key upstream raw material for the PCB industry, copper prices have risen overall this year, with COMEX copper prices once leading gains among global commodities. Recent months have seen concentrated price increase announcements from the copper-clad laminate industry: companies including Kingboard Laminates, Meizhou City Weilibang, and Jiangxi Province Hongruixing have circulated price increase notices.
Nanya New Material has also pointed out that due to rising raw material prices and strong downstream AI-related demand, copper-clad laminate prices have been adjusted upward. Multiple PCB industry professionals have indicated that copper prices have been oscillating at high levels this year, pushing up costs. Meanwhile, as PCB industry inventory reduction concludes and downstream demand from artificial intelligence and automotive sectors remains strong, the copper-clad laminate industry has motivation to promptly pass price increases downstream.
Cost Management Strategies
Raw material price increases have led to generally higher operating costs for PCB manufacturers in the first half, with operating cost growth rates exceeding revenue growth for more than half of companies. Regarding the impact of upstream price increases, executives from Suntae Technology noted during institutional research that since June 2024, prices for core materials including copper-clad laminates, copper, and gold salt, as well as supporting auxiliary materials, have accelerated significantly and are currently in a high oscillation phase.
The company is implementing a series of refined cost control measures to digest and transfer pressure from rising upstream raw material costs. Shennan Circuits recently stated that they would continue to monitor international market commodity price changes and upstream raw material price transmission, maintaining active communication with suppliers and customers.
Shengyi Electronics executives also noted during institutional research that bulk material prices have increased slightly, and the company will continue to monitor price trends while dynamically adjusting supply strategies. Avary Holdings executives explained that the company primarily imports high-end copper-clad laminate materials, where market price fluctuations are relatively smaller.
Copper Market Outlook
Xiao Chuankang, copper analyst at Shanghai Metals Market, told reporters that reasons for this year’s copper price increases include mismatches between new smelting capacity and ore supply, as well as changes in the global trade environment and geopolitical situations. In the short term, copper prices may continue to oscillate within the current range, with trend-based movements expected around September. Additionally, subsequent domestic copper smelting maintenance periods and seasonal peaks may create greater copper price upward pressure in the second half compared to the first half, increasing competition and cost control pressure for downstream PCB enterprises.
Southeast Asian Expansion Strategy
Regarding high-end multilayer computing PCB products, listed companies have recently密集 disclosed capacity expansion plans. Kinwong Electronic disclosed on August 22 a 5 billion yuan expansion investment plan for their Zhuhai Jinwan base, aimed at technological transformation of existing capacity and building new high-end HDI factories to increase the proportion and market share of high-end PCBs for AI computing and high-speed network communications.
Additionally, PCB manufacturers including Avary Holding, Shengyi Electronics, and Suntak Circuit have announced expansion plans focused on multilayer computing PCB projects. Wus Circuit Board executives caution that as more competitors direct resources toward this field, future competition will inevitably intensify. The company will develop higher-density interconnection technologies and higher-speed transmission performance to improve product competitiveness. Typically, the PCB industry undergoes adjustments in 3-5 year cycles.
Thailand and Vietnam Investments
In recent years, Southeast Asian regions including Thailand and Vietnam have become key areas for domestic PCB manufacturers to layout computing PCB products. According to Prismark predictions, from 2024 to 2029, Southeast Asia-represented Asia (excluding China and Japan) will become the region with the highest compound annual growth rate, reaching 7.8%.
According to logistics service provider representatives, Vietnam has undertaken转移 of China’s computer, notebook, and mobile phone industries in recent years, while Thailand has primarily undertaken PCB industry转移. However, some industry insiders point out that considering impacts from concentrated construction, U.S.转运 tariff imposition, and personnel training, production costs in Southeast Asian regions like Thailand may currently be higher than domestic costs.
Wus Circuit Board executives explain that multi-regional risk dispersion operational capabilities may gradually become key to future industry growth. The company’s Thailand production base has begun small-scale mass production and will strive to improve production efficiency and stabilize production yields.
Victory Giant Technology continues to expand capacity for high-end products including advanced HDI and high multilayer boards. The company has planned a private placement to raise 1.9 billion yuan for investment in their Vietnam Victory Giant Artificial Intelligence HDI project. Their Thailand high multilayer printed circuit board project is under construction, and they recently announced plans for a Hong Kong listing to raise funds supporting high-end capacity expansion, intelligent upgrades, AI computing, and other cutting-edge PCB technology research and development, enhancing the company’s overseas delivery capabilities and service depth for international customers.
Comprehensive Manufacturing Footprint
Shengyi Technology began investing in Thailand in 2023, spending 1.4 billion yuan to establish a new copper-clad laminate and prepreg production base, with the project entering construction phase by the end of 2024. In June this year, the company used自有 funds to increase capital in Thailand Shengyi, raising registered capital from 32.66 billion Thai baht to 61.51 billion Thai baht after the capital increase. Shengyi Electronics is promoting phase one civil engineering construction for the Thailand Shengyi project.
Shennan Circuits disclosed that their total investment in the Thailand factory amounts to 1.274 billion yuan, with basic engineering construction currently progressing on schedule. The Thailand factory will possess PCB process technological capabilities including high multilayer and HDI, improving product supply capabilities in global markets.
Future Outlook and Strategic Implications
The PCB industry stands at a critical juncture where technological advancement, market expansion, and cost pressures are converging to create both challenges and opportunities. Companies that successfully navigate these complex dynamics will likely emerge as industry leaders in the coming years.
The shift toward high-value products represents a significant maturation of the Chinese PCB industry, which has traditionally competed on cost rather than technology. This transition toward advanced manufacturing capabilities signals the industry’s growing sophistication and ability to compete in global high-tech markets.
Simultaneously, the expansion into Southeast Asia reflects strategic positioning for both market access and risk diversification. With trade tensions continuing between major economies, having manufacturing footprints across multiple regions provides flexibility and resilience against geopolitical disruptions.
The industry’s current growth trajectory appears sustainable based on underlying demand drivers. Artificial intelligence continues to expand into new applications, automotive electronics content per vehicle increases annually, and global digital infrastructure requires continuous upgrading. These macro trends support continued strong demand for advanced PCBs.
However, companies must remain vigilant about cost management, particularly regarding copper price volatility. Developing sophisticated hedging strategies and supplier relationships will be crucial for maintaining profitability amid raw material fluctuations.
The PCB industry’s remarkable growth story continues to unfold, with Chinese manufacturers playing an increasingly central role in the global electronics supply chain. Their simultaneous pursuit of technological advancement and geographical expansion positions them well for continued success in the evolving global market.
For investors and industry observers, monitoring the execution of these expansion plans and the ability to maintain technological leadership while managing costs will be key indicators of future performance. The companies that balance these competing priorities most effectively will likely deliver superior returns in the coming years.
