Core Insights - The price increase of copper-clad laminates reflects the rising demand in the PCB industry, driven by the growth in AI computing servers [2][3] - Major copper-clad laminate manufacturers, including Weilibang, Jiantao Laminates, and Hongruixing, have announced price hikes due to high raw material costs and increased bargaining power from strong demand [2][3] Industry Overview - The global server sales reached $95.2 billion in Q1 2025, a year-on-year increase of 134.1%, with expectations for the global server market to reach $366 billion in 2025, a 44.6% increase [3] - The PCB market is projected to grow from $73.57 billion in 2024 to $78.56 billion in 2025, with a year-on-year growth of 6.8% [3] - The demand for high-layer multi-layer boards and HDI boards is significantly outpacing the overall PCB industry growth, with multi-layer boards expected to grow by 40.2% and HDI boards by 18.8% in 2024 [3] Production Insights - Key production processes in PCB manufacturing include drilling, exposure, and testing, with drilling equipment accounting for approximately 20% of the total industry value [4] - The increasing complexity of HDI boards necessitates advancements in drilling, exposure, and plating processes, leading to higher demand for precision equipment [4] - Domestic production rates are high for mechanical drilling, while opportunities for domestic substitution exist in laser drilling and imaging processes [4] Investment Recommendations - Focus on core production processes: for drilling, consider Dazhu CNC (301200.SZ) and consumables from Dingtai High-Tech (301377.SZ) and Zhongtung High-Tech (000657.SZ); for exposure, look at Chipbond Technology (688630.SH) and Tianzhun Technology (688003.SH); for plating, Eastway Technology (688700.SH) is recommended; for solder paste printing, Keg Precision (301338.SZ) is suggested [5]

Investment Rating - The report maintains an "Add" rating for the mechanical equipment industry, indicating a positive outlook for the sector in the next 6 months [1]. Core Insights - The price increase of copper-clad laminates reflects the high demand in the PCB industry, driven by strong terminal demand and rising raw material costs [1]. - The AI server market is significantly contributing to the incremental demand for PCBs, with global server sales reaching $95.2 billion in Q1 2025, a year-on-year increase of 134.1% [2]. - The global PCB market is projected to grow from $73.565 billion in 2024 to $78.562 billion in 2025, with a growth rate of 6.8% [2]. - Key production processes in PCB manufacturing, such as drilling, exposure, and testing, are becoming more complex due to the increasing demand for high-density interconnect (HDI) boards and multilayer boards [3]. - Investment opportunities are highlighted in the core processes of PCB production, particularly in drilling, exposure, and electroplating equipment [4]. Summary by Sections Price Trends and Demand - Recent price hikes by multiple copper-clad laminate manufacturers indicate a sustained increase in PCB industry demand, primarily due to high raw material prices and strong demand from AI server applications [1][2]. Market Growth Projections - The global server market is expected to reach $366 billion by 2025, with PCB demand driven by the server/storage sector, which is projected to grow by 33% year-on-year in 2024 [2]. - The production value of multilayer boards with 18 layers or more is expected to increase by 40.2% in 2024, significantly outpacing the overall PCB industry growth [2]. Production Process Insights - The drilling, exposure, and testing stages are critical in PCB production, with drilling equipment accounting for approximately 20% of the total industry value [3]. - The increasing complexity of HDI boards necessitates advancements in drilling and exposure technologies, presenting opportunities for domestic equipment manufacturers [3]. Investment Recommendations - The report suggests focusing on companies involved in the core processes of PCB production, including drilling (e.g., Dazhu CNC, Tianzhun Technology), exposure (e.g., Chipbond), and electroplating (e.g., Dongwei Technology) [4].