Hardcore Opportunities in the AI Wave: High Growth in Performance of PCB and SMT Equipment Material Companies
With the rapid iteration of AI technology, the demand for computing power is growing exponentially, directly driving the accelerated upgrade of hardware facilities such as AI servers and data centers. As the “skeleton” of electronic devices, PCBs (Printed Circuit Boards) and the SMT (Surface Mount Technology) process responsible for connecting chips to PCBs have become key links in the AI hardware industry chain. Against this backdrop, companies like DingTai High-Tech, ZhongTung High-Tech, and Dazhu CNC, focusing on AI-PCB materials, equipment, and SMT equipment, are deeply benefiting from their technological barriers and customer advantages, entering a period of rapid performance growth.
AI-PCB Materials: Dual Leaders in the Drill Bit Sector Lead the Way
AI server PCBs need to support higher density chips and circuits, with processing precision requirements far exceeding those of traditional PCBs. Drill bits are the core consumables in the PCB drilling process, directly determining product yield and performance.
– DingTai High-Tech is the absolute leader in global PCB drill bits, with a market share exceeding 35%. It is the largest supplier to leading PCB manufacturers such as Shenghong Technology, Shengyi Electronics, Shenzhen South Circuit, Jingwang Electronics, and TTM. Its drill bit products can achieve precision of 0.01mm, meeting the high-density drilling requirements of AI server PCBs. Since 2024, with the increase in downstream AI orders, revenue has grown by over 60% year-on-year, and profitability continues to improve.
– ZhongTung High-Tech also ranks among the global leaders in PCB drill bits, benefiting not only from the AI-driven increase in drill bit demand but also from the dual advantage of rising tungsten prices. The company leverages its tungsten resource industry chain advantages, with outstanding product cost control capabilities. Its high-end drill bits have entered the supply chain for NVIDIA AI server PCBs, with net profit growth exceeding 45% year-on-year in the first half of 2024, showing significant performance elasticity.
AI-PCB Equipment: Specialized Equipment Leaders Build Barriers
The complex processes of AI-PCB impose higher requirements on the precision and efficiency of production equipment, making companies with core technologies the “shovel sellers” of the industry chain.
– Dazhu CNC is the global leader in PCB specialized equipment, leading in mechanical drilling machines, laser drilling machines, and other fields. Its mechanical drilling equipment is the largest supplier to Shenghong Technology (the main manufacturer of AI server PCBs). The company’s equipment can achieve high-precision drilling and forming of multilayer PCBs, adapting to the high layer count and fine line requirements of AI server PCBs. In 2024, the proportion of AI-related equipment orders increased to 30%, driving revenue growth of over 50% year-on-year.
– ChipBase Micro-Assembly is the domestic leader in PCB exposure equipment, breaking the monopoly of overseas companies. Its exposure equipment can achieve precision of 2μm, meeting the fine line production requirements of AI-PCBs. At the same time, the company is actively laying out advanced packaging tracks, and the packaging exposure equipment it has developed is in the verification stage, expected to benefit from the ramp-up of advanced packaging for AI chips, opening a second growth curve.
SMT Equipment: Kaige Precision Machinery Seizes Core Links
The SMT process is a key step in connecting AI chips to PCBs, and solder paste printing equipment is the core device of the SMT production line, directly affecting chip soldering yield. Kaige Precision Machinery, as the global leader in solder paste printing equipment, has a market share exceeding 25%. Its products can achieve nano-level precision printing, adapting to the miniaturization welding needs of AI chips, and have entered the AI hardware supply chains of companies like Huawei and ZTE. Additionally, the company is simultaneously laying out advanced packaging fields, with its developed flip-chip soldering equipment and dispensing equipment already used in the AI chip packaging process. Since 2024, order volume has increased by over 70% year-on-year, with strong certainty of high performance growth.
Driven by the continuous demand for AI computing power, PCBs and SMT, as core links of hardware infrastructure, will see the market space continuously expand. The aforementioned companies, with their technological leadership and deeply bound downstream customer resources, have already begun to enjoy industry dividends. As the demand for AI servers, data centers, and others is further released, the trend of high performance growth is expected to continue, making them quality targets in the AI industry chain with both certainty and growth potential.