1. Core Industry Logic
1. High-End Upgrade Drive
AI computing power demand: The value of the PCB in a single cabinet of the NVIDIA GB200 server reaches $171,000, with a surge in demand for multilayer boards with more than 24 layers, and processing fees at a premium of 30%. The value of high-end HDI boards has increased 35 times compared to traditional servers due to the accelerated penetration of AI server upgrades.
Technological iteration: CoWoP packaging promotes the widespread adoption of mSAP technology (fine line etching), replacing traditional organic substrates, with HDI/SLP-type substrates becoming a new battleground. The demand for high-end materials such as peelable copper and ABF substrates is exploding.
Material bottlenecks: The delivery cycle for low dielectric constant (Low DK) electronic fabrics and high-frequency copper-clad laminates has extended to 12-16 weeks, with prices rising 37.8% year-on-year, and the supply-demand gap continues to widen.
2. Acceleration of Domestic Substitution
In the high-end PCB sector, the market share of Taiwanese companies is loosening, with domestic companies such as Shenzhen South Circuit and Huadian Technology entering the NVIDIA supply chain, achieving a yield rate of over 98%. In the copper-clad laminate segment, Shengyi Technology’s M7+ grade materials are comparable to Rogers, with a market share exceeding 25% in 5G base stations.
Equipment localization is progressing simultaneously: Drilling, plating, and other processes are gradually replacing Japanese companies, with Dongwei Technology’s vertical plating equipment achieving a market share of 50%, and Chipbond’s high-precision exposure equipment breaking the monopoly.
3. Cost and Capacity Optimization
The stabilization of copper prices reduces raw material costs, and the premium for high-end products increases gross margins (e.g., Jinan Guoji’s Q1 net profit increased by 212%). Leading manufacturers are accelerating overseas expansion: Pegatron invests 5 billion to expand HDI production, and Shenzhen South Circuit’s Thailand base avoids tariff risks.
2. Core Materials and Related Stocks
(1) Copper-Clad Laminate (CCL)
Shengyi Technology: Among the top five globally, a core supplier of 800G optical module substrates, certified by NVIDIA, and the main supplier for Huawei’s 5G base stations.
Huazheng New Materials: Low DK materials certified by NVIDIA, automotive radar substrates bound to Huawei’s supply chain.
Jinan Guoji: A major player in the domestic substitution of high-frequency and high-speed copper-clad laminates, with rumored annual profits of 13.15 billion.
(2) Packaging and Process Materials
Hongchang Electronics: Integrated layout of epoxy resin and copper-clad laminates, GB200 introduced to NVIDIA through Taiwanese manufacturers, and hydrocarbon resins breaking the Japanese monopoly.
Fangbang Co.: Global market share of peelable copper at 60%, used for RDL layers, with a gross profit per ton increasing threefold, a key material for mSAP technology.
Kaihua Materials: 97% of epoxy molding compounds used for semiconductor packaging, involved in HBM packaging applications.
(3) Electronic Fabrics/Yarns
Honghe Technology: A core supplier of second-generation Low DK glass fabrics, with production capacity expected to be released in 2026.
International Composite Materials: Low DK electronic fabrics for AI servers are ramping up production, benefiting from the price increase cycle.
(4)High-End Substrates and Packaging
Shenzhen South Circuit: Breakthrough in ABF substrate technology, certified for NVIDIA GPU substrates, with production capacity in Thailand expected to increase by 30% by 2026.
Huadian Technology: Over 50% market share in NVIDIA AI server motherboards, with a 40% growth rate in automotive PCBs.
(5) High Multilayer Boards and HDI
Shenghong Technology: A major supplier of NVIDIA orthogonal backplanes (70% market share), with HDI production capacity expanding to 1.2 million square meters per month, and Q1 net profit increasing by 272% to 367%.
Pegatron: The global main supplier of Apple’s FPC, monopolizing high-end models of high-layer HDI boards, and laying out CoWoP packaging.
Jingwang Electronics: A leader in automotive electronics, a core supplier for Tesla’s domain controllers, with plans for 600,000 square meters of HDI capacity at the Zhuhai base.
Yihua New Materials: Mass production of ultra-thin copper foil for HDI, replacing imported products, with a flexible target for the growth of the startup board.
Zhonying Technology: Specializing in military-grade CCL, mass production of satellite communication materials.
(The above content is compiled from publicly available market data and is for reference only. Investment involves risks, and caution is advised when entering the market.)