China is the world’s largest PCB manufacturing base, with the share of high-end products increasing from 15% to 30% in recent years. In the future, the development driven by 5G, computing power, smartphones, and humanoid robots will lead to a compound growth trend in the PCB industry. Firstly, High-Density Interconnect (HDI): AI servers and smartphones are driving the upgrade of HDI technology, with line width/spacing precision reaching below 0.1mm. Secondly, high-frequency and high-speed materials: The infrastructure for 5G and AI computing power is driving the application of ultra-low loss materials (such as Megtron 6), resulting in a surge in demand for multilayer boards with more than 16 layers. Thirdly, Flexible PCBs (FPC): The penetration rate continues to increase in foldable smartphones, wearable devices, and medical electronics, with the market size expected to exceed $20 billion by 2030. Fourthly, green manufacturing: Halogen-free, recyclable, and bio-based materials are gradually replacing traditional substrates, and environmental compliance will become part of corporate competitiveness. Fifthly, 3D printing: Breaking through traditional manufacturing bottlenecks to achieve high precision, high thickness, and miniaturized PCBs, suitable for high-end scenarios such as aerospace and 5G. The core logic of investing in the PCB industry lies in the future technological developments and the continuously growing market demand. Investment is about discovering sources of growth and investment logic amidst technological iterations and market dynamics. For example, NVIDIA’s Rubin is currently in the prototyping stage, with an area larger than GB300 and an increase to 24 layers in 6 stages. If the CCL material remains unchanged, the unit price will increase by about 30%. Among them, Rubin’s switchboard has a class of carrier board solution that requires direct packaging onto the PCB (cowop). Currently, NV requires Shenghong to establish an mSAP process for the development of such products, necessitating the company to have R&D and mass production capabilities. The msap line width may use plating processes, similar to carrier board processes. The cowop production line is currently under construction and installation, with one production line costing about 2 billion. There is also a high-end M9 solution. Therefore, the above solutions will significantly increase the demand for equipment and high-end Q fabric in the future. Once M9 is confirmed, the demand for high-end Q fabric will surely increase, and the only domestic company, Feilihua, is expected to have a promising future. As the number of PCB layers increases, the requirements for equipment also rise, leading to greater demand. Therefore, companies like Dingtai Gaoke, which produces drill bits, and Dazhu CNC, which manufactures laser drilling equipment, have recently shown notable market performance. In summary, technology and trends are driven by market demand; those with superior technology and channels will establish themselves in the market and trends. Investment must closely follow the latest market demands and trends, identifying the most core investment targets. Focus on Shenghong, Shengyi, Hudian, and Shennan, as well as electronic fabric companies like Zhongcai Technology, China Jushi, and Feilihua, and equipment providers like Dingtai Gaoke, Dazhu CNC, and Zhongtung Gaoxin.