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The demand for AI and new energy vehicles is strong, leading to a positive outlook for the PCB industry.

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Kevin, Received and tested the boards - thanks very much. These are perfect, exactly what we needed. rgds Rich

—— Rich Rickett

Ruth, I got the PCB today, and they are just perfect. Please stay a little patience, my next order is coming soon. Kind regards from Hamburg Olaf

—— Olaf Kühnhold

Hi Natalie. It was perfect, I attach some pictures for your reference. And I send you next 2 projects to budget. Thanks a lot again

—— Sebastian Toplisek

Kevin, Thanks, they were perfectly made, and work well. As promised, here are the links for my latest project, using the PCBs you manufactured for me: Regards, Daniel

—— Daniel Ford

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The demand for AI and new energy vehicles is strong, leading to a positive outlook for the PCB industry.
Latest company news about The demand for AI and new energy vehicles is strong, leading to a positive outlook for the PCB industry.

Recently, the PCB (Printed Circuit Board) sector has remained active, with significant increases in the stock prices of companies such as Concorde Electronics and Kexiang Corporation. According to research conducted by Shanghai Securities News, several industry companies have reported that the current PCB manufacturers are experiencing high demand, driven by factors such as rising prices of upstream raw materials (including copper wires, laminates, metals, etc.) and strong demand for AI and new energy vehicles. Many companies have already raised the prices of their related products.


Industry insiders believe that with the moderate recovery of consumer electronics and the sustained demand for new energy vehicles, the demand for related PCBs such as AI servers and AI optical modules will continue to be strong. The market demand is expected to remain robust in the second half of the year, with high utilization rates of PCB manufacturers' production capacity, making it an investment opportunity worth paying attention to.


AI and new energy vehicles are driving the recovery of the PCB industry.


"We have already raised the prices of our products, and most companies in the industry have a high volume of orders and full production capacity," said an insider in the PCB industry, adding that some factories can now pick and choose orders.


Printed circuit boards are known as the "mother" of the electronics industry and are essential components for supporting and electrically connecting electronic components, making them a fundamental necessity for almost all electronic devices.


Regarding the reasons for the increase in PCB prices, several listed companies have stated, "We had to raise the prices of PCBs due to the increase in raw material costs."


Data shows that direct raw material costs account for more than half of the PCB's total cost, with copper-clad laminates accounting for over 30%, copper foil accounting for approximately 9%, solder balls accounting for about 6%, and ink and ink materials accounting for approximately 3%.


An industry insider explained that due to the continuous rise in copper prices and the recovery of electronic fiberglass, among other factors, the price of copper foil substrates (CCL) has been steadily increasing since March, with each substrate experiencing price increases ranging from 5 to 10 yuan. Currently, PCB manufacturers are passing these price increases downstream.


Furthermore, the downstream demand for PCBs is recovering, and new growth momentum is forming. "Consumer electronics are experiencing a moderate recovery, and the demand for new energy vehicles remains strong. More importantly, AI is becoming a new growth driver for the industry, with sustained demand for PCBs related to AI servers and AI optical modules," said an industry insider. Currently, the supply and demand for AI-related PCB products, such as high-layer boards and HDI (High-Density Interconnect) boards, are both strong, and demand is expected to remain robust in the second half of the year.


Feedback from downstream manufacturers indicates that the supply of some PCB varieties is becoming tight. For example, Lierda stated that due to the issue of rising prices of major raw materials, upstream PCB manufacturers are experiencing a general shortage of supply, which could lead to longer delivery cycles if the situation continues.


In fact, the first-quarter performance of listed companies has already reflected signs of recovery in the PCB industry, showing a "non-sluggish" trend in the off-season. China Securities believes that the reason for the "non-sluggish" first quarter in the PCB sector in 2024 lies in the recovery of demand and the continuous improvement of product structure by major manufacturers.


Industry insiders believe that due to significant advantages in transmission speed, heat dissipation, and other aspects, the demand for AI is expected to drive significant growth in the high-layer board and HDI board markets, with growth rates significantly higher than the industry average.


According to Prismark's forecast, the global PCB industry output is expected to continue to grow at a compound annual growth rate of 5.4% from 2024 to 2028, surpassing $90 billion by 2028. Among them, the HDI board market is expected to reach $14.58 billion in 2027, with a compound annual growth rate of 6.2% from 2023 to 2028, surpassing the industry's average growth rate.


Multiple listed companies respond to the latest developments:


As the industry accelerates its recovery pace, investors are increasingly focused on the latest operational dynamics and order situations of relevant listed companies.


During institutional research, Concorde Electronics stated that the company's order volume in the server industry is growing rapidly. In terms of production capacity, their second phase in Zhuhai (including Zhuhai Plant 2 and Plant 3) primarily focuses on high-end board products such as high-layer boards, HDI boards, and rigid-flex boards. Zhuhai Plant 2 has commenced trial production in June, adding a capacity of 60,000 square meters per month for high-layer PCBs, primarily used in communication and server fields.


Superb Electronics indicated that recent orders for their main business, including printed circuit boards, have increased compared to previous periods. The production and operation of their PCB Plant 3 are normal. Shennan Circuit stated that the capacity utilization rate of their PCB factories has increased compared to the first quarter of 2024, while the substrate factory's capacity utilization rate has remained relatively stable.


Shanghai Electric Group expressed that as the main supplier cooperating with overseas major AI clients for an extended period, they have expedited the HDI technological transformation project with an expected production value of 550 million yuan. Sheng Hong Technology disclosed that they have achieved certification and industrialization of their 5-layer, 20-layer HDI products.

In the May revenue report, Pengding Holdings revealed that their consolidated operating income for May was 2.122 billion yuan, showing a 23.61% increase compared to the same period last year.


In response to the market recovery and new AI demand, some listed companies have expressed their intention to increase research and development investment. Mankun Technology stated that they will continue to enhance their PCB technology research and development for server products based on their existing reserves. Guanghe Technology will initiate research and development projects, focusing on new products, technologies, materials, and processes related to PCBs, with the aim of continuously optimizing their product structure. Sheng Hong Technology has already laid out the research and development of PCB products for the aforementioned fields, which are currently in the sampling phase.


Furthermore, the recovery of the PCB industry has also led to a warming trend in the upstream raw material industry chain. Eisen Electronics stated that their plating solutions and supporting reagents cover plating processes in advanced packaging, PCB, wafer manufacturing, and photovoltaics. SUDIK reported stable production of photosensitive dry films used in PCB manufacturing.



Source: Shanghai Securities News

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Pub Time : 2024-06-20 15:20:04 >> News list
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