PCB, known as the "mother" of electronic products, is a crucial component in consumer electronic products such as computers and smartphones. Institutions point out that servers, switches, and other hardware that serve as carriers and transmission devices for computing power will greatly increase the demand for PCBs and connectors. At the same time, with the emergence of digital economy, 6G, artificial intelligence, and other industries this year, the PCB industry is expected to experience high demand and prosperity.

PCB is an important component of the electronics industry, enabling electrical connections between various components in circuits. It has a wide range of downstream applications, with communication, computer, and automotive electronics accounting for over 70% of total PCB consumption.

Industry insiders state that PCB is indispensable in all aspects of information generation, processing, transmission, and application. The visibility of orders for PCB and IC substrate production equipment has been extended until 2024. China Securities believes that the continuous growth in capital expenditure for global data centers will drive the increase in PCB demand. Traditional server PCBs are continuously upgraded with the iteration of new platforms. The shipment volume of AI servers is growing rapidly, and the value of individual PCBs in AI servers is much higher than that of traditional servers. With large-scale deployment of computing power, the high demand for AI servers will bring significant additional volume to the server PCB market. It is estimated that the market size of server PCBs will reach 16 billion US dollars by 2026. According to a research report by Dong-E Fund Securities, the demand for the communication sector in the PCB market is expected to stabilize in the long term, and demand in the data center and automotive fields remains high. The annual compound growth rate of the PCB market from 2023 to 2026 is estimated to be 4.8%, and the global PCB market output value is expected to reach 101.5 billion US dollars by 2026.

According to the Caixin Securities theme database, among the relevant listed companies:

Pengding Holdings mainly focuses on the research and development, production, and sales of server PCB boards in the field of AI servers. In addition, the company's PCB products are also used in AI terminal consumer electronic products, represented by AI smartphones.
 

Chongda Technology's main customers include ZTE, H3C (New H3C), Yunjian, and BaoDe, and its products are mainly used in supercomputers, server motherboards, storage devices, GPUs (Graphics Processing Units), and other products.

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Source: Caixin Securities

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