Publicly listed companies intensively release "additional investment" PCB announcements; the sector rises in the afternoon, with InnoRee and South Asia New Materials up over 9%.

(Source: Caixin)

          Recently, Pegatron Corporation announced that its wholly-owned subsidiary plans to invest 11 billion yuan in building a high-end PCB project production base in Huai'an.            

On March 24, the PCB concept experienced fluctuations and rose in the afternoon. As of the time of publication, component stocks such as InnoLux (300713.SZ) and Nanya New Materials (688519.SH) rose over 9%, while Dongwei Technology (688700.SH), Inno Laser (301021.SZ), Aiko Optoelectronics (688610.SH), Shengyi Electronics (688183.SH), Saiteng Co., Ltd. (603283.SH), Tiancheng Technology (688603.SH), Chenfeng Technology (603685.SH), and Jinlu Electronics (301282.SZ) also followed suit.

In terms of news, recently, Pegatron Corporation (002938.SZ) announced that its wholly-owned subsidiary plans to invest 11 billion yuan in building a high-end PCB project production base in Huai’an. Additionally, Kexiang Co., Ltd. (300903.SZ) announced that the company has approved the use of 240 million yuan of raised funds to increase capital in its wholly-owned subsidiary Zhi’en Electronics (Daya Bay) Co., Ltd. for the implementation of the “Zhi’en Electronics high-end server PCB production line upgrade project.”

Moreover, previously, Jinan Guoji (002636.SZ) released an investor relations activity record announcement, stating that due to the rising prices of upstream raw materials and increased downstream PCB market demand, the selling price of copper-clad laminates will be adjusted in line with the rise in raw material prices, with the increase in raw material costs being orderly transmitted downward. The company’s current fundraising project is to invest in the construction of a project with an annual output of 40 million square meters of high-grade copper-clad laminates, focusing on high-frequency and high-speed copper-clad laminates, high-temperature resistant special copper-clad laminates, high Tg copper-clad laminates, and halogen-free, lead-free FR-4 and other high-performance, special performance product lines, while simultaneously configuring some capacity for general-purpose FR-4 copper-clad laminate production.

It is worth noting that, according to reports, Japanese semiconductor materials giant Resonac has raised prices for CCL (copper foil substrates) and adhesive films by 30% since March 1; major electronic materials manufacturer Mitsubishi Gas Chemicals has also followed suit in raising prices for related materials, covering key upstream raw materials for copper-clad laminates and semi-cured sheets.

As CCL is the most critical upstream raw material for PCBs, accounting for over 30% of the cost, the significant price increases by Japanese material giants will directly transmit to the PCB manufacturing stage, pushing the overall industry prices upward. The industry generally expects that this price increase will gradually transfer to high-end segments such as MLCC, HDI boards, IC substrates, and high-frequency high-speed PCBs, driving the entire industry chain’s price system upward and further opening up profit space for the industry.

CITIC Construction Investment Research Report points out that driven by AI, the global PCB industry is entering a new upward cycle. Driven by the triple forces of AI computing infrastructure, smart terminals, and automotive electrification, the demand for high-end PCBs is rapidly growing. With process upgrades, the value of PCBs will steadily increase, and overseas cloud vendors’ self-developed chips have higher requirements for PCBs, resulting in greater value elasticity.

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