The PCB Industry is About to Rise Again

Recently, with the rapid development of the artificial intelligence industry at home and abroad and the outstanding performance of NVIDIA's performance, the PCB sector has also risen. According to the data, since February 6, the Wind circuit board index has risen by 45.68%, and many constituent stocks have doubled. From the perspective of the industry chain, as the "skeleton" and "nervous system" of electronic equipment, PCB plays an indispensable role in AI, high-speed computing, intelligent driving and other fields.

The volume and price of PCBs are both rising, and the growth momentum of AI is strong

With the continuous increase in downstream demand for artificial intelligence, high-speed networks, and automotive electronics, the PCB industry is expected to usher in a new round of volume and price rise cycle. On the one hand, increased investment in AI infrastructure by tech giants such as Nvidia will drive demand growth in segments such as high-density interconnect (HDI) PCBs, high-speed multilayer boards, and packaging substrates. For example, NVIDIA's newly released GB200NVL72 multi-node liquid-cooled rack-scale expansion system uses far more high-end PCBs than previous products. On the other hand, the price of upstream copper clad laminates will continue to rise, driven by higher copper prices and downstream PCB manufacturers' stocking, which will also boost the profitability of the industry. Fang Jing, chief analyst of the electronics industry of Minsheng Securities, said that at present, copper clad laminate suppliers have jointly issued a price increase letter, and it is expected to land in the second quarter.

The PCB leading enterprises are always strong, and the domestic substitution space is broad

In the context of the high prosperity of the industry, PCB leading enterprises are expected to further increase their market share by virtue of first-mover advantages and technical barriers. HDI PCB manufacturers, represented by Victory Giant Technology and Shanghai Electric Co., Ltd., have formed stable cooperative relations with customers such as NVIDIA, and the new wave of AI will significantly improve their product structure and bring considerable performance flexibility. Under the general trend of domestic substitution, domestic PCB companies continue to increase their investment in basic materials and high-end processes, and are expected to compete for more voice in the global market in the future. Zheng Zhenxiang, co-director of Founder Securities Research Institute and chief analyst of electronics, pointed out that PCB, as the foundation of the information technology industry chain, is one of the key areas for the transformation and upgrading ofChina's manufacturing industry, and relevant policy dividends will boost the industry's accelerated take-off.

To sum up, the rapid development of artificial intelligence is reshaping the pattern of the electronic information industry, and the PCB industry, as the "base" of downstream applications, is ushering in a new round of growth cycle. In the face of the broad market space and domestic substitution opportunities, PCB companies should strengthen R&D investment, optimize customer structure, improve the level of intelligent manufacturing, and help the transformation and upgrading ofChina's electronics industry chain with high-quality development.