Core Insights - The 2025 Taiwan Printed Circuit Board Exhibition (TPCA Show) concluded with industry leaders optimistic about the future, driven by the explosive demand for AI servers and high-performance computing, indicating that "PCBs will usher in a golden decade" [1] - The role of PCBs is evolving from merely connecting signals to becoming system carriers, necessitating larger sizes, higher layers, and stricter thermal and signal integrity requirements due to AI server integration [2] - Taiwan's PCB industry holds a strategic position globally, with significant market shares in semiconductor and packaging sectors, expected to increase further with the acceleration of AI and heterogeneous integration [3] Industry Trends - The AI trend is positioning PCBs as a trillion-dollar industry in Taiwan, expected to grow alongside the semiconductor sector [4] - The surge in demand for high-end PCBs due to AI servers has exposed material supply bottlenecks, particularly for high-performance glass fiber cloth and ultra-low profile copper foil [5] - Taiwanese PCB manufacturers are actively collaborating with material and equipment suppliers to optimize processes and develop new materials, forming a new industrial ecosystem [6] Expansion and Investment - Major Taiwanese PCB companies are expanding production capacities in response to the increasing demand driven by AI, with companies like 臻鼎-KY and 台光电 planning significant capacity increases [7] - 臻鼎-KY is expanding its high-end production capabilities in China, Thailand, and Kaohsiung, while 台光电 aims to increase its capacity by 70% over the next three years [7]

Group 1 - The report indicates that the real estate chain is showing signs of stabilization, with policies since 2025 continuing a loose tone that has been in place since 2024, suggesting a gradual bottoming out of the real estate fundamentals [1][34] - Cement demand is expected to decline at a slower rate in 2025, with industry awareness of price stability and profit protection increasing, indicating a potential profit turning point [1][34] - The consumption building materials sector is seeing an increase in the proportion of existing stock, with improved second-hand housing transactions and consumption stimulus expected to accelerate demand for renovations [1][3] Group 2 - Non-traditional building materials are experiencing higher overall demand, particularly in fiberglass, where downstream demand from wind power and thermoplastics remains strong, and competition is expected to ease [2][3] - The civil explosives sector is benefiting from increased investment in mining and water conservancy, leading to sustained demand growth, with major companies accelerating mergers and acquisitions [2][3] - Traditional refractory materials are facing weak downstream demand, but leading companies are expanding into new markets, such as magnesium salt chemicals and wet metallurgy, which are expected to contribute significantly to profits [2][3] Group 3 - The investment focus for traditional chains is on structural and supply aspects, while non-traditional chains are centered on downstream growth opportunities [3][4] - In the cement sector, supply-side reforms are accelerating, with a potential reduction in actual capacity to below 180 million tons in the medium to long term [3][4] - The consumption building materials sector is witnessing a price competition trend easing, with a focus on leading companies in the consumer market [3][4] Group 4 - The fiberglass segment is highlighted as a market focus, with significant demand expected for low dielectric and low expansion electronic fabrics, particularly in communication infrastructure and semiconductor packaging [4][3] - The civil explosives market in Xinjiang is projected to grow significantly, with existing demand estimated at 67.6 million tons, potentially reaching close to one million tons by the end of the 14th Five-Year Plan [4][3] - The report emphasizes the importance of policy-driven demand in the photovoltaic glass sector, awaiting improvements in market conditions [4][3]