AI PCB Drill Bits & Equipment Research Update【DingTai/ZhongTu/Wisdom CNC/Laser】Shenwan Machinery
The development of AIDC has led to thicker and harder PCB materials, increasing processing difficulty. The limit for single drill holes has decreased from 2000-3000 holes to about 100-200 holes, requiring multiple drill bits for segmented processing. The industry faces challenges such as drill breakage (ranked first) and hole limits (ranked second).
Drill Bit Technology Solutions:
1) Existing PVD coatings (good self-lubrication, solving chip removal and heat dissipation issues, effectively controlling drill breakage rates);
2) CVD diamond-coated drill bits (higher efficiency compared to PCD, controllable costs);
3) PCD diamond drill bits (higher hole limits, but lower production efficiency and higher unit costs).
# A comprehensive consideration of production costs, efficiency, and market demand is needed to choose a scalable solution. In terms of mass production feasibility, we believe that PVD wear-resistant coatings or CVD diamond coatings are more likely, while PCD drill bits still need advancements in production efficiency.
As Rubin’s introduction and transition continue, next year the shortage of drill bits has become a common expectation in the market, benefiting leading drill bit manufacturers like DingTai High-Tech and JinZhou Precision.
DingTai High-Tech:
Production Capacity: Currently producing 110 million bits per month, with self-produced equipment ensuring capacity expansion. The company is currently expanding at an average rate of 5 million bits per month, with peak production capacity reaching an average of 7 million bits per month. As the supply-demand tension for drill bits continues, the company will benefit maximally from the demand explosion brought by technological iteration.
Recently, high aspect ratio products have been shipped in bulk, raising the monthly average price, and we are optimistic about the continuous increase in the proportion of the company’s high-end products. In addition, under the backdrop of shortages, new high-end products will have stronger pricing power and higher profits.
Furthermore, the company has laid out technologies in PVD coatings, CVD coatings, and PCD.
ZhongTu High-Tech – JinZhou Precision:
In terms of the “Three Treasures of JinZhou” (coating, extended length, ultra-small diameter), the company has a clear technological advantage, and also possesses leading technologies in PVD coatings, CVD coatings, and PCD. The company is the only one globally to mass-produce and deliver products with specifications of 40 times and above, with a market share of about 70%-80% for products of 30 times and above, demonstrating significant capabilities in high-end products. Major AI PCB companies are basically collaborating with the company, with some expressing a willingness to deepen cooperation next year.
Monthly Production Capacity: Increased from 6,000 bits at the beginning of the year to 7,000 bits in the third quarter, and expected to reach 8,000 bits by the end of October, with plans to accelerate project advancement.
Capacity Expansion Assurance: The Shenzhen Technology Building is under construction (a 14-story industrial building demonstration project), and the Kunshan and Nanchang production bases have laid the foundation for capacity expansion, ensuring that market development will not be missed due to capacity issues.
New Technology Changes: AI-related technology routes iterate quickly, making it difficult to conclude on technology routes within six months to a year; industry changes need to be monitored. For PCD diamond drill bits, it is recommended to track the progress of companies like DingTai, JinZhou, and World.
In equipment investment, the drilling segment accounts for the highest value proportion. 【Wisdom CNC】 is bound to core major customers, with the proportion of AI equipment orders rapidly increasing. The ultra-fast laser drilling technology is expected to achieve a leap in M9/1.6T optical modules, successfully achieving small batch orders in Q4 and mass orders in 2026.