The AI wave has fueled robust infrastructure demand, propelling the printed circuit board (PCB) industry into an unprecedented period of growth. First-quarter 2026 reports indicate that the PCB sector on the A-share Star Market generally experienced strong performance growth. According to data statistics, the total revenue of 17 PCB companies listed on the Star Market exceeded 12.888 billion yuan, with a combined net profit surpassing 1.646 billion yuan. Among them, 12 companies achieved growth in both revenue and net profit, accounting for approximately 71% of the firms that disclosed their financial reports. Notably, six companies, including Xunjiexing (688655.SH), Shengyi Electronics (688183.SH), Jiayuan Technology (688388.SH), Nanya New Material (688519.SH), EKOPhotonics (688610.SH), and Huafeng Technology (688629.SH), reported revenue growth exceeding 50%. Three companies—Xinrui Shares (688257.SH), Oke (688308.SH), and Xinci Microequipment (688630.SH)—achieved revenue doubling in the first quarter, leading the sector.
Despite the sustained high enthusiasm in the AI industry, the PCB sector has already initiated a large-scale expansion of high-end production capacity. Leading companies are investing billions of yuan to intensively launch high-end capacity projects. This has raised widespread market concerns: once the new capacity is concentratedly put into operation after 2026, if the growth rate of terminal demand related to AI fails to meet expectations and cannot maintain its high-growth trajectory, could the PCB industry exit its prosperous phase of simultaneous volume and price increases and instead fall into intense, low-price competition?
High-end products are the key determinant for profit growth rates. Looking at the overall picture, the PCB industry's sentiment has continued to rise recently. Companies within the PCB industry chain have demonstrated outstanding operational performance during this AI wave. Four companies—Nanya New Material, Jiayuan Technology, Xinrui Shares, and Shengyi Electronics—each reported first-quarter revenues exceeding 1 billion yuan this year. Specifically, in Q1 2026, Nanya New Material achieved operating revenue of 2.411 billion yuan, a year-on-year increase of 52.62%; its net profit attributable to shareholders was 445 million yuan, surging 122.16% year-on-year. During the same period, Jiayuan Technology reported operating revenue of 3.445 billion yuan, up 73.94% year-on-year; net profit attributable to shareholders was 121 million yuan, a substantial increase of 392.77%; and its adjusted net profit was 109 million yuan, skyrocketing by 1208.18%. The company's single-quarter profit was more than double its full-year profit from the previous year.
Even more remarkable are some "dark horses" in terms of growth rate. In Q1 2026, Oke's revenue soared by 113.49% year-on-year, with its net profit skyrocketing by 2560.71%. During the same period, Xinrui Shares and Xinci Microequipment ranked at the forefront of the sector with revenue growth rates of 111.57% and 112.48%, and net profit growth rates of 576.15% and 108.98%, respectively.
PCB products can be categorized into rigid boards, flexible boards, metal core boards, HDI boards, and substrate-like PCBs, among others. HDI boards and substrate-like PCBs fall under the category of high-end PCB products and are widely used in high-end consumer electronics, servers, and chips. The core engine driving this round of high industry growth is the explosive demand for AI servers. Compared to traditional servers, AI servers (especially GPU servers) impose extremely high requirements on PCBs. The high-level HDI required for them represents a significant technological generation gap compared to the HDI used in consumer electronics and standard automotive electronics.
Due to considerable differences in the proportion of revenue from high-end products and product structures among companies, there is a notable divergence in profit growth rates within the PCB sector. The performance gap primarily stems from the product mix, production capacity scale, and the pace of high-end product deployment among listed companies. Firms that have precisely aligned with the demand for high-end PCB markets have demonstrated more prominent earnings growth. In Q1 2026, as many as nine PCB-related stocks saw net profit growth exceeding 100% year-on-year. Among them, Oke led by a wide margin with a growth rate of 2560.71%, while Nanya New Material, Xinrui Shares, and Jiayuan Technology achieved growth rates of 610.8%, 576.15%, and 392.8%, respectively.
In terms of R&D investment levels, Huafeng Technology, Nanya New Material, Xinrui Shares, and Xinci Microequipment saw year-on-year R&D expenditure growth rates of 78.8%, 66.1%, 58.5%, and 56.44% respectively in Q1 2026, placing them in the first tier. During the same period, companies like Dongwei Technology and Fangbang Shares reported growth rates exceeding 40%, all above the industry average of 8.7%. For example, in Q1 2026, Huafeng Technology achieved operating revenue of 633 million yuan, a 56.15% year-on-year increase; net profit attributable to shareholders was 105 million yuan, up 230.43% year-on-year; adjusted net profit was 97.499 million yuan, rising 322.95% year-on-year; and basic earnings per share were 0.23 yuan per share, an increase of 228.57%. Multiple core indicators showed rapid growth. Regarding R&D innovation, Huafeng Technology's R&D investment in the first quarter totaled 47.4553 million yuan, focusing on and increasing efforts in two core areas: high-speed transmission and system integration. Leading PCB company Shengyi Electronics invested 126 million yuan in R&D in the first quarter, a 38.4% year-on-year increase. Shengyi Electronics' previously released 2025 annual report showed revenue of 9.494 billion yuan for the year, a 102.57% year-on-year increase, and net profit attributable to shareholders of 1.473 billion yuan, up 343.76% year-on-year. In 2025, the company accelerated the deployment and achieved mass production of high-end product capacities for AI servers, OAM, UBB, etc., with revenue from AI computing-related products growing 242% year-on-year.
Huajin Securities stated that recovering downstream demand is driving up prices of upstream raw materials, and they are optimistic about the development of the AI PCB industry chain. They believe artificial general intelligence will be a key technological driver in the next decade, significantly boosting computing power and subsequently driving an upward cycle across the entire semiconductor industry chain. Aijian Securities indicated that growing demand for AI data center optical modules is promoting indium phosphide epitaxial capacity expansion, thereby increasing demand for MOCVD equipment. The high industry sentiment is transmitting upstream, benefiting PCB equipment, semiconductor equipment, and related manufacturing segments.
The surge in AI computing demand is spurring the expansion of high-end PCB capacity. Facing a sharp increase in market orders, leading manufacturers are accelerating the expansion of high-end capacity, while new entrants are joining the high-end segment. The entire industry is generally allocating resources towards AI-specific PCB products. This wave of capacity expansion has also led to market concerns about intensified future competition and a potential decline in overall industry profitability.
A review of company announcements and public information reveals that leading PCB manufacturers have already launched plans to expand high-end product capacity. On November 17, 2025, Shengyi Electronics released a private placement plan aiming to raise 2.5 billion yuan to develop core capacity for AI computing, strengthening its competitive barrier in the mid-to-high-end market. The funds are primarily directed towards two projects: the Dongguan AI Computing HDI Production Base, with a total investment of 2.032 billion yuan and 1 billion yuan from the raised funds, expected to produce 167,200 square meters of high-end HDI boards annually upon completion; and the Ji'an Intelligent Manufacturing High-Layer Count Computing Power Circuit Board Project, with a total investment of 1.937 billion yuan and 1.1 billion yuan from the raised funds, projected to produce 700,000 square meters of high-layer count boards annually at full capacity. These two projects precisely match the hardware demands of AI servers and data centers, addressing the company's shortfall in high-end capacity.
In March of this year, Xinrui Shares' proposed acquisition target, Huilian Electronics, stated that to quickly respond to the urgent market demand for high-end PCB drill bits, it is accelerating its capacity layout. Currently, construction is progressing orderly at its two major bases in Xinxiang, Henan, and Xiamen. The installation and debugging of self-made equipment and production lines, including sintering furnaces, grinding machines, and coating equipment, are steadily underway, with some production lines already entering the trial production stage. Reportedly, the company plans to achieve a monthly capacity of 20 million PCB drill bits by the end of this year, increase it to 50 million per month by 2027, and reach 100 million per month by 2028.
Nanya New Material announced on the evening of April 2 this year that its application for a 2025 private placement had been accepted by the Shanghai Stock Exchange. The plan aims to raise up to 900 million yuan, mainly for the R&D and capacity construction of high-end, high-frequency, high-speed copper-clad laminates based on AI computing power. According to the announcement, the project has a 24-month construction period and, upon completion, will have an annual capacity of 7.2 million sheets of high-end, high-frequency, high-speed CCL and 16 million meters of bonding sheets.
The high-speed connectors produced by Huafeng Technology are downstream supporting products for PCBs. Commenting on the current industry expansion wave during an institutional survey on April 15 this year, Huafeng Technology stated that with growing AI computing demand and market expansion, the number of industry participants may continue to increase. However, high-speed cable module technology involves high barriers; product performance directly determines the core operational performance of servers, industry reliability standards are stringent, and downstream customers conduct rigorous and cautious supplier qualification audits. Manufacturers must undergo long-term product testing and qualification verification before entering the supply chain system.
This PCB capacity expansion wave is driven by the explosion in AI demand. Changes in demand are likely to become the core variable shaping the future competitive landscape of the PCB industry. A telecommunications industry analyst from a securities firm pointed out that if the growth rate of terminal demand, such as AI cloud services and large model training, slows down, the large amount of high-end PCB capacity currently planned will be concentratedly put into operation between 2026 and 2027. At that time, the industry's supply-demand balance could reverse, triggering price competition and continuously compressing corporate profit margins. The PCB industry is capital-intensive with high fixed costs; capacity utilization is central to profitability. Once utilization rates decline, corporate profits will be directly impacted.
The industry-wide large-scale expansion stems from optimistic expectations for the long-term high growth of AI computing power. Although current AI computing demand is growing rapidly, such high growth rates cannot be sustained indefinitely. The aforementioned telecommunications analyst further stated that AI infrastructure construction does not grow linearly and infinitely; it is constrained by multiple factors such as energy supply and the pace of practical application deployment within the industry ecosystem. Furthermore, over the next two to three years, the development logic of the high-end PCB industry will shift from incremental competition based on volume scaling to stock competition focused on technological and quality upgrades. Future industry competition will center on technological iteration capabilities, customer stickiness, and comprehensive supporting service levels.
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