1. Sector Overview
The PCB sector experienced a pullback on Friday, which is an emotional adjustment without any fundamental negative factors, and the core support logic remains intact:
The industry continues to show upward momentum: Demand from downstream sectors such as AI servers and computing clusters is still in an explosive growth phase, and innovative products like orthogonal backplanes will further open up incremental space;Core variables have exceeded expectations: The shipment pace of orthogonal backplanes has been accelerated, and the price increase of fiberglass products has been realized, both of which are key catalysts that solidify the long-term foundation of the sector.
2. Core Driver One: Orthogonal Backplane – The Core Increment of AI Computing Power
1. Industry Progress: Transitioning from Technical Validation to Mass Production Sprint
The pace has significantly exceeded expectations: The shipment timing for NVIDIA’s NVL144 cabinet orthogonal backplane has been advanced to 2026, with the current 78-layer solution officially starting delivery, and the 84-layer solution will be tested in November, 3-6 months ahead of the original schedule;Order certainty has strengthened: Leading PCB manufacturers have received notifications from NVIDIA regarding capacity reservations for 2026, with bulk orders gradually being released, completely eliminating market concerns about “technology route replacement”;Technical barriers highlight competitive advantages: The product adopts a design with more than 70 layers and M9 grade copper-clad laminate, requiring breakthroughs in core processes such as copper paste welding and micro-hole drilling, with yield control capabilities becoming a key barrier (Dongshan Precision’s yield exceeds 85%, significantly higher than the industry average of below 50%).
2. Market Space: The Value of Single Cabinets Soars, Significant Incremental Contribution
Taking the NVL576 cabinet as an example, the value of a single cabinet PCB reaches 800,000 to 1 million yuan, which is 5-8 times higher than traditional solutions;The potential market size for orthogonal backplanes in 2027-2028 is expected to be 8-20 billion yuan, contributing 12%-29% of the demand increment in the AI PCB market;If tech giants like Google and Amazon adopt this technology, the market size is expected to double further.
3. Analysis: Orthogonal Backplane
Shenghong Technology – Core beneficiary of orthogonal backplanes, binding with major clients + proactive capacity layout
Business Relevance: As a core supplier of NVIDIA PCBs, deeply involved in the R&D of NVL series cabinet orthogonal backplanes, collaborating throughout the entire process from early material selection and process design to later mass production delivery, it is one of the main mass production manufacturers for NVIDIA’s 78-layer and 84-layer orthogonal backplane solutions;Competitive Barriers: 1) Technical: Mastering core processes such as micro-hole drilling and copper paste welding for ultra-high-layer PCBs (over 70 layers), with a stable yield above 82%, close to Dongshan Precision’s level, far exceeding the industry average; 2) Capacity: By 2024, two dedicated production lines for orthogonal backplanes have been planned at the Huizhou base, with an investment of over 500 million yuan, and the current equipment debugging completion rate is 90%. After certification, it can achieve a monthly capacity of 12,000 square meters, with a capacity plan to increase to 30,000 square meters/month by 2026, meeting 25% of NVIDIA’s orthogonal backplane demand;Performance: In 2025, benefiting from the volume increase of AI PCBs, revenue is expected to reach 8.5 billion yuan (up 42% year-on-year), with a net profit attributable to the parent company of 1.85 billion yuan (up 58% year-on-year);Risk Warning: NVIDIA’s order volume may not meet expectations, and the improvement of production line yield may be slow.
Dongshan Precision – Monopoly on copper paste welding technology, highest technical barriers
Business Relevance: It is the exclusive testing manufacturer for NVIDIA’s 84-layer and above high-end orthogonal backplanes, currently providing samples for NVIDIA’s 84-layer solution, and if testing is successful, it will become a core supplier;Competitive Barriers: 1) Cost: Having overseas production bases in Egypt and the USA, with natural gas costs 40% lower than domestic; 2) Capacity: Global glass fiber production capacity accounts for 28%, with 50 million meters/year of electronic cloth capacity planned for 2025;Performance: In 2025, the company’s revenue is expected to reach 22 billion yuan (up 25% year-on-year), with a net profit attributable to the parent company of 5.5 billion yuan (up 32% year-on-year);Risk Warning: Global wind power installation may not meet expectations, and the release of overseas production capacity may be hindered.Disclaimer: The content of this article is for record and sharing purposes only and should not be used for commercial purposes. All content is sourced from the internet. If there are any textual, image, or data content infringements, please contact us for modification or deletion. The article content does not constitute any investment advice.