The AI wave is driving leading PCB (Printed Circuit Board) companies to expand high-end production capacity.
On the evening of November 17, Shengyi Electronics (SH688183, stock price: RMB 93.40, market cap: RMB 77.692 billion) announced plans to raise up to RMB 2.6 billion through a private placement. The funds will be allocated to projects including an AI computing HDI (High-Density Interconnect) production base and an intelligent manufacturing high-layer computing circuit board facility.
Shengyi Electronics, a PCB manufacturer listed in February 2021, is conducting its first equity refinancing since going public. The company’s stock has surged approximately 140% year-to-date as of November 17.
PCBs, often called the "mother of electronic products," are composed of materials like copper-clad laminates (CCL), copper foil, fiberglass, and resin. With the explosive growth in AI computing demand, the PCB industry is riding the AI boom, leading to significant improvements in both financial performance and stock prices for related companies.
Shengyi’s expansion plan reflects a broader industry trend, as major players ramp up production capacity. According to Wanlian Securities, companies such as Victory Giant Technology (SZ300476), Shennan Circuits, and Suzhou Dongshan Precision Manufacturing have also unveiled expansion initiatives.
**Shengyi’s RMB 2.6 Billion Expansion Plan** The PCB leader, with a market cap exceeding RMB 70 billion, disclosed its private placement proposal to raise up to RMB 2.6 billion. The proceeds will fund two key projects:
1. **AI Computing HDI Production Base** – Located in Dongguan, Guangdong, the project has a total estimated investment of RMB 2.032 billion, with RMB 1 billion from the fundraising. Construction will take 36 months, with trial production starting in the third year and full capacity (16.72 million square meters annually) by the fifth year.
2. **Intelligent Manufacturing High-Layer Computing Circuit Board Facility** – Based in Ji’an, Jiangxi, the project requires RMB 1.937 billion in total investment, with RMB 1.1 billion from the placement. It will be completed in two phases over 30 months, achieving an annual output of 70 million square meters of high-layer boards.
Shengyi Electronics reported PCB sales of 1.4569 million square meters in 2023, up 15.24% year-on-year. The company highlighted that exponential AI computing demand is driving rapid growth in AI servers and data centers, significantly boosting HDI and high-layer PCB requirements.
**Intensifying Competition in the PCB Sector** Amid rising AI computing needs, industry leaders are aggressively expanding.
In mid-October, Victory Giant Technology completed a private placement of up to RMB 1.9 billion to fund projects in Vietnam and Thailand, targeting AI server and high-end PCB production.
Wanlian Securities noted in an October 17 report that major Chinese PCB firms are accelerating high-end capacity expansions. For instance, Dongshan Precision announced a $1 billion investment in July to upgrade and build new high-end PCB facilities, while Shennan Circuits is expanding through plant upgrades and new constructions.
Shengyi Electronics emphasized in its announcement that the PCB industry is highly competitive, with consolidation favoring large-scale players. Leading companies are strengthening their market positions through innovation, scale, and supply chain integration, while smaller firms face growing pressure.
The company also stated that its current capacity cannot meet surging market demand, making expansion critical to sustaining growth and profitability.
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