Shanxi Securities·2025-12-18 06:57Investment Rating - The report maintains a rating of "B" for the new materials PCB materials industry, indicating a positive outlook for the sector [1]. Core Insights - The demand for PCBs is expected to grow significantly due to the rapid development of AI servers, with the domestic PCB market projected to increase from $41.213 billion in 2024 to $49.704 billion by 2029, reflecting a CAGR of 3.8% [2][18]. - The fastest-growing downstream sector for PCBs is the server and data storage market, with a projected CAGR of 11.6% from 2024 to 2029 [23]. - The transition to PCIe 5.0 standards is driving the need for high-frequency and high-speed PCBs, necessitating improvements in dielectric properties of core materials [27][34]. Summary by Sections PCB Market Overview - The global PCB market is expected to reach $94.7 billion by 2029, with a CAGR of 5.2% from 2024 to 2029, driven by AI, data centers, and smart automotive applications [18]. - In 2024, the domestic PCB market is anticipated to grow by 9.0%, reaching $41.213 billion, while the global market is projected to grow by 5.8% [18][23]. Material Demand and Supply - The demand for electronic-grade PPO and hydrocarbon resins is expected to reach 4,558 tons and 1,216 tons respectively by 2025, with growth rates of 41.89% and 41.62% [3][50]. - The global HVLP copper foil market is projected to grow from $2 billion to $5.95 billion between 2024 and 2032, with a CAGR of 14.6% [5][6]. Key Companies - Shengquan Group is expanding its PPO resin production capacity to over 2,000 tons and is involved in multiple expansion projects [7]. - Dongcai Technology is investing 700 million yuan to build a project with an annual capacity of 20,000 tons of electronic materials for high-speed communication [7]. - Zhongcai Technology is the first domestic supplier to achieve mass production of second-generation low-dielectric products [7]. - Honghe Technology has reached international leading quality levels for some high-end electronic fabrics and will begin mass supply in the first half of 2025 [7]. Material Innovations - Low-DK electronic fabrics are essential for M7 and above CCLs, with a projected global market size of $2.3 billion by 2033, growing at a CAGR of 7.5% [4]. - The transition to low Dk/Df materials is critical for PCB performance, with core materials like PPO, hydrocarbon resins, and HVLP copper foils expected to see significant demand growth [37][40].