AI Inference Chips Open Up Market Headroom, PCB Industry Chain Price Hikes Likely to Continue
2026-03-04
March 3 (Caixin) – Driven by robust AI demand, the price hike cycle in the PCB (Printed Circuit Board) industry chain continues. The latest industry news is that Japanese semiconductor materials giant Resonac has increased prices for CCL (Copper Clad Laminate) and adhesive films by 30% effective March 1. Industry insiders anticipate Resonac's price increase will propagate to high-end manufacturing sectors such as MLCC (Multi-layer Ceramic Capacitors - Note: likely refers to copper clad laminate for MLCCs or related materials, though MLCC itself is a different component; context suggests CCL/laminate materials), HDI (High-Density Interconnect) boards, IC substrates, and high-frequency high-speed PCBs.
Furthermore, the PCB sector is about to receive a super catalyst—NVIDIA's LPU (Language Processing Unit) inference chip. Market analysts believe that with the implementation of AI applications and rapid growth in scale, the market for dedicated AI inference chips will expand quickly. This will have profound impacts on the PCB industry, driving simultaneous increases in volume and price, process upgrades, material innovation, and increased industry concentration. Consequently, this will enhance the value and importance of PCBs within AI chips, opening up entirely new market scale headroom for the PCB industry.
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Source: Shanghai Securities News
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How Significant Is the Outsize Impact of the Middle East Conflict on Orders for Leading PCB Companies?
2026-03-04
The intensity of the Middle East conflict continues to exceed market expectations. Following large-scale joint military strikes by the United States and Israel on Iran on February 28 local time, Iran has launched multiple rounds of retaliation. Risks to navigation through the Strait of Hormuz are escalating, further exacerbating global supply chain disruptions. The PCB industry is experiencing structural divergence, with the advantages of leading companies becoming increasingly prominent.
According to data from the Tonghuashun financial database as of February 27, the total market capitalization of leading domestic PCB companies all exceeded 100 billion yuan. Among them, Wus Printed Circuit (Kunshan) Co., Ltd. achieved a total market value of 160.877 billion yuan, ranking fourth in the PCB concept sector, highlighting the market recognition of these top-tier companies.
As a leader in the domestic PCB industry, Wus PCB's recent operating data has been impressive, with a notably clear trend of orders concentrating among top players. It is reported that driven by global supply chain restructuring spurred by the US-Iran conflict and the surge in AI computing power demand, the company's order book for high-end PCB products is full. Notably, procurement of PCBs related to liquid cooling servers surged by 310% year-on-year, becoming a core growth engine. According to data from China Insights Consultancy, as of June 30, 2025, Wus PCB held a global market share of 10.3% in the data center PCB segment and a substantial 25.3% global market share for high-end PCBs with 22 layers or more, ranking first worldwide, demonstrating significant technological and market advantages.
Industry analysts point out that the US-Iran conflict is driving up costs for upstream PCB raw materials such as crude oil and fiberglass. Copper-clad laminates, a core raw material for PCBs, account for 30% of production costs. A 10% increase in copper-clad laminate prices directly raises PCB costs by 5-7%, further squeezing the profit margins of smaller and medium-sized manufacturers. Concurrently, the conflict intensifies uncertainties in overseas supply chains. Due to insufficient production capacity, technology, and supply chain resilience, orders for small and medium-sized PCB manufacturers are accelerating their shift towards leading companies capable of stable supply. Wus PCB, deeply entrenched in the high-end communication board and server board sectors, is deeply integrated with leading downstream server manufacturers. It was also the first to achieve mass production of 1.6T switch PCBs, with product yields at an industry-leading level. Its liquid cooling server PCB products align with the green computing power development trend and cater to the heat dissipation needs of high-power-density computing clusters. With the domestic liquid cooling market projected to surge to 105 billion yuan in 2026, this provides the company with vast room for growth.
Furthermore, the acceleration of global AI computing power infrastructure and increased demand for military electronics are further driving growth in demand for high-end PCBs. The global data center liquid cooling market is expected to reach 116 billion yuan in 2026, a year-on-year increase of nearly 60%, directly stimulating procurement demand for high-end PCBs. Leveraging its technological advantages and production capacity layout, Wus PCB currently operates five production bases in Kunshan, Huangshi, Jintan, and Thailand. The Thailand base operated at 73.5% capacity utilization in the first half of 2025 and is gradually taking on overseas orders. The company is not only undertake domestic transfer orders but also expanding its global reach through its overseas base, positioning itself to continuously increase its global market share amidst the supply chain restructuring. As of early trading on March 2, Wus PCB's share price stood at 82.19 yuan, with a gain of over 150% in the past year. On February 27, its single-day trading volume reached 118 million shares, with a transaction value of 9.853 billion yuan and a turnover rate of 6.11%, indicating sustained active market trading and positive long-term growth expectations.
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Source: Today's Headlines
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Copper-Clad Laminate Industry Sees Wave of Production Expansion; Domestic Substitution of Core Materials Accelerates
2026-01-27
"Based on our recent understanding, the copper-clad laminate industry is entering a new cycle of prosperity. Some companies are not even shutting down for the Chinese New Year holiday," said a senior executive from a well-known domestic phenolic resin company to a Securities Times reporter on January 25th. "In the process of the rise of the domestic CCL industry, the domestic substitution of core materials is expected to accelerate."
Companies Ramp Up Production of High-Performance CCLs
Copper-Clad Laminate (CCL) is a major application field for phenolic resin. The downstream CCL clients of the aforementioned phenolic resin company include Taiwan Union Technology Corporation, ITEQ, Shengyi Technology (600183), Huazheng New Material (603186), Jin'an Guojie (002636), and Nan Ya New Material (688519), among others.
"With the rapid growth in demand from AI servers, automotive electronics (885545), and optical communication, CCL companies are experiencing a recovery. We recently returned from a visit to a CCL company; they are quite optimistic about the 2026 outlook. Due to urgent customer orders, they are not planning to shut down for the Spring Festival," the executive added.
It is understood that CCL is the upstream material for manufacturing PCBs (Printed Circuit Boards (884092)), with final application scenarios including communication equipment (881129), automotive electronics (885545), consumer electronics (881124), and semiconductors (881121), etc. In the next 3-5 years, the growth in the PCB industry will be primarily driven by the dual engines of "AI computing infrastructure + automotive electronics (885545) intelligence." Simultaneously, advanced packaging (886009), edge AI hardware, high-frequency communication, and other fields will provide structural growth opportunities. The trend of the industry upgrading towards higher-end, high-value-added products is clear.
Recently, due to a surge in AI server demand causing tight supply of high-end raw materials, global leader Resonac has announced a comprehensive price increase of over 30% for materials including Copper Foil Substrates (CCL), effective from March 2026. With the surge in demand from AI servers and new energy vehicles (850101), the global PCB market reached $88 billion in 2024. According to forecasts by consultancy Prismark, the global PCB market output value will grow by approximately 6.8% in 2025, and the PCB industry will continue to grow in the coming years, reaching around $94.661 billion by 2029, with a compound annual growth rate (CAGR) of about 5.2%.
In terms of global capacity distribution, China has become the absolute leader, accounting for about 50% of global PCB capacity. The Pearl River Delta (Guangdong accounts for 40% of national capacity), Yangtze River Delta, and Bohai Rim form the three core manufacturing belts. Driven by cost factors, Southeast Asia (513730) has undertaken the transfer of some mid-to-low-end PCB capacity.
Those closest to the water know the temperature first. The reporter noted that after a prolonged downturn of 2-3 years, upstream CCL companies are experiencing a strong recovery and have been reporting positive results in their annual performance forecasts. For example, Jin'an Guojie (002636) reported net losses after deducting non-recurring items of 110 million yuan and 82.36 million yuan in 2023 and 2024, respectively. However, by the second half of 2025, the company's performance accelerated, with full-year net profit expected to increase by 655.53%—871.4%. Huazheng New Material (603186) forecasts a net profit of 260-310 million yuan for 2025, compared to a net loss after deducting non-recurring items of 119 million yuan in the previous year. Nan Ya New Material (688519) reported a net profit of 158 million yuan for the first three quarters of 2025, exceeding the full-year profit of 50.32 million yuan from the previous year. Industry leader (883917) Shengyi Technology (600183) reported a net profit of 2.443 billion yuan for the first three quarters of 2025, already surpassing the full-year 2024 net profit of 1.739 billion yuan.
It is noteworthy that while collectively reporting positive annual results, CCL companies have also successively announced new rounds of production expansion. On January 4th, Shengyi Technology (600183) disclosed that it has signed a 4.5 billion yuan investment intent agreement for a high-performance CCL project with the Dongguan Songshan Lake High-Tech Industrial Development Zone Management Committee. In December 2025, Nan Ya New Material (688519) disclosed a private placement plan, intending to raise approximately 900 million yuan to expand production of high-end CCLs. In November 2025, Jin'an Guojie (002636) disclosed a private placement plan, intending to raise 1.3 billion yuan for projects including high-grade CCLs.
Core Materials Accelerating Domestic Substitution
In the new round of expansion within the CCL industry, upstream core material suppliers are expected to accelerate domestic substitution. "In recent years, many domestic high-end resins and their core materials have made significant progress in product performance enhancement and are now able to substitute for foreign counterparts on an equal footing," the aforementioned resin company executive stated. "Perhaps sensing the crisis of domestic substitution, Daihachi Chemical Industry (850102) recently approached our company, hoping we would become their agent for phosphorus-based flame retardants, but we declined."
The executive cited an example: "Currently, while producing resins, we are also the agent for two special phosphorus-based flame retardants from Wansheng Co., Ltd. (603010). Leveraging our company's existing channel advantages and the cost-effectiveness of Wansheng's own products, we have introduced their products to several CCL companies. Previously, the use of these special flame retardants by these companies was largely monopolized by foreign firms."
Regarding these statements, the reporter reviewed the company's public information and found that it has already deployed two core products in the high-end PCB upstream material field at its Weifang base: flame retardants for CCLs and photosensitive resins for PCB photoresists (885864). A representative from Wansheng Co., Ltd. (603010) told the reporter that the company has formed diversified supply capabilities for multiple types of flame retardants and photosensitive resins for CCLs, continuously solidifying its competitive advantage.
Benefiting from the continuous expansion of the downstream printed circuit board (PCB) manufacturing industry and increasing requirements for fire performance in electronic products, the global market demand for flame retardants used in epoxy CCLs is expected to show a rapid growth trend. Halogen-free phosphorus-based flame retardants, which can avoid harmful gases produced by halogen combustion and the potential carcinogenic risks associated with antimony-based flame retardants, and possess good thermal stability and flame retardant efficiency, are seeing a significantly increased application proportion in high-end CCLs.
It is understood that resin types involved include electronic-grade epoxy resins, electronic-grade phenolic resins, etc. Among them, electronic-grade resins act like "property adjusters" for CCLs—different resins can enhance different characteristics of CCLs, and the upgrading of CCL characteristics in turn makes PCB performance better. For example, the polar group structure and curing method of the resin affect the copper foil peel strength and interlayer bonding force of the CCL, making PCB processing more reliable. The more bromine-based or phosphorus-based flame-retardant elements in the resin, the higher the flame retardant rating of the CCL. Special structures can also achieve low dielectric properties and intrinsic flame retardancy, meeting the needs for high-frequency signal transmission and high-speed information processing, widely used in next-generation servers, automotive electronics (885545), communication networks, and other fields.
Taking high-frequency CCLs as an example, such products are "special receivers" for ultra-high-frequency signals, operating at frequencies over 5GHz, suitable for ultra-high-frequency scenarios. They require ultra-low dielectric constant (Dk) and as low as possible dielectric loss (Df). They are core materials for 5G base stations, autonomous driving (885736) millimeter-wave radars (886035), and high-precision satellite navigation (885574). To lower Dk, it mainly relies on modifying the insulating resin, glass fiber, and overall structure.
Industry insiders believe that as the global electronics industry upgrades towards "halogen-free, high-performance, high-reliability," the performance requirements for PCB upstream materials (especially flame retardants and CCLs) continue to increase, providing new market opportunities for material companies with technological advantages. These companies will gain first-mover advantages in the domestic substitution within the mid-to-high-end markets. In particular, Wansheng Co., Ltd. (603010), having laid out in advance the two core product lines of flame retardants for CCLs and photosensitive resins for PCB photoresists, will fully enjoy the benefits of industry growth and domestic substitution.
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Source: Securities Times e Company
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What is MSL? A Guide to Moisture-Proof Storage in PCB SMT Workshops
2026-01-27
In the SMT (Surface Mount Technology) production process, moisture sensitivity issues with PCBs and components directly affect soldering yield and product reliability. The Moisture Sensitivity Level (MSL) is the core indicator for defining protection standards. Coupled with standardized workshop storage conditions, it can effectively prevent production failures caused by moisture absorption. Why are PCBs afraid of moisture? What is the MSL rating?
PCB substrates (such as FR-4) easily absorb moisture from the air. During the high temperatures of SMT reflow soldering (>220°C), internal moisture rapidly vaporizes and expands, which may lead to board delamination or micro-cracks in solder pads (known as the "popcorn" effect), resulting in electrical failure. The industry uses the Moisture Sensitivity Level (MSL) standard to quantify this risk, divided into levels 1–6. The higher the number, the more sensitive the component, and the shorter the allowable workshop exposure time:
MSL Level 3: Must be soldered within 168 hours (7 days) after opening.
MSL Level 6: Must be soldered within 24 hours and often requires baking for moisture removal before use.
Storage and management specifications in SMT workshops are based on MSL requirements. Modern SMT workshops must establish a strict moisture-sensitive material control system:
Incoming Storage: Clearly label materials with their MSL level and store them separately. Standard materials are stored in a controlled environment (typically temperature
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Choosing PCB Materials: Metal Clad Laminate vs. FR-4?
2025-12-18
Metal clad laminates and FR-4 are two commonly used substrate materials for printed circuit boards (PCBs) in the electronics industry. They differ in material composition, performance characteristics, and application areas.
Analysis of Metal Clad Laminate and FR-4
Metal Clad Laminate: This is a PCB material with a metal base, typically aluminum or copper. Its main feature is excellent thermal conductivity and heat dissipation capability, making it highly popular in applications requiring high thermal conductivity, such as LED lighting and power converters. The metal base effectively transfers heat from hotspots on the PCB to the entire board, reducing heat accumulation and improving the overall performance of the device.
FR-4: FR-4 is a laminate material that uses glass fiber cloth as the reinforcement and epoxy resin as the binder. It is the most widely used PCB substrate, favored for its good mechanical strength, electrical insulation properties, and flame-retardant characteristics, making it suitable for various electronic products. FR-4 has a flame-retardant rating of UL94 V-0, meaning it burns for a very short time when exposed to flames, making it suitable for electronic devices with high safety requirements.
Main Differences Between Metal Clad Laminate and FR-4
1. Base Material: Metal clad laminate uses metal (such as aluminum or copper) as the base, while FR-4 uses glass fiber cloth and epoxy resin.
2. Thermal Conductivity: Metal clad laminate has significantly higher thermal conductivity than FR-4, making it suitable for applications requiring effective heat dissipation.
3. Weight and Thickness: Metal clad laminate is generally heavier than FR-4 and may be thinner.
4. Processability: FR-4 is easy to process and suitable for complex multilayer PCB designs, while metal clad laminate is more challenging to process but ideal for single-layer or simple multilayer designs.
5. Cost: Metal clad laminate is typically more expensive than FR-4 due to the higher cost of metal.
6. Application Areas: Metal clad laminate is mainly used in electronic devices requiring good heat dissipation, such as power electronics and LED lighting. FR-4 is more versatile and suitable for most standard electronic devices and multilayer PCB designs.
In summary, the choice between metal clad laminate and FR-4 depends primarily on the product's thermal management requirements, design complexity, cost budget, and safety considerations. JDB PCB advises selecting materials based on the product's specific needs, as the most advanced material is not necessarily the most suitable.
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