In July and August, the computing power CPO sector saw a significant surge. After a recent adjustment, today Shenghong Technology is leading the rebound in computing power. Currently, the supply and demand relationship in the PCB sector is very tight, and PCBs are the cheapest assets in this sector, with foreign capital continuing to buy in. The PCB sector is the main focus for computing power in September.
According to the latest research from Shenghong Technology, the company has the capability for mass production of high-precision circuit boards with over 70 layers. It is one of the first companies globally to achieve large-scale production of 6-stage 24-layer AI computing power data center products, as well as 8-stage 28-layer HDI and 16-layer Any-layer HDI technology capabilities. Currently, the company is continuously advancing the R&D certification for 10-stage 30-layer HDI and possesses technology capabilities for high-layer PCBs exceeding 100 layers.
The current supply and demand relationship is very tight, and customers have not requested price reductions. The PCBs for the new cabinet products in 2026 will also be further upgraded. The gross margin outlook is optimistic, with expectations to maintain high gross margins in the long term, and as AI yield improves, the gross margin will further increase.
Regarding backplanes and CoWoP, the company has been developing these for about a year. All new products and technologies from major clients are under development, and CoWoP is expected to be implemented in 2027.
The PCB sector is the cheapest asset, and foreign capital has been continuously buying in. Currently, although many domestic listed companies hope to enter the NV chain, very few can actually capture a certain market share. Recently, Google’s additional orders for optical modules have naturally increased the demand for PCBs.
Industry-related:
Major manufacturers: Shenghong/Fangzheng/Dongshan/Pengding
Upstream: Honghe/Dongcai/Defu/Feilihua/Gebijia (new players)
Equipment: Dazhu/Xinqi/Weizhuang/Dingtai
