Summary of PCB Industry Conference Call Industry Overview - The PCB industry is experiencing significant growth driven by the surge in AI computing demand, with the market size exceeding $70 billion. The server-related segment is becoming the largest application market due to AI requirements, which has increased its share by 3% in 2024 [1][15][52]. Key Points and Arguments AI Computing Demand - The demand for AI computing PCBs, particularly in North America, remains strong, benefiting companies like Nvidia and Shenghong, which have significant market shares in computing and switching boards [1][5]. - The high-density interconnect (HDI) PCB manufacturers, such as Shenye Electronics and Gudian, are also performing well due to increased demand [1][5]. Capacity Expansion - Major PCB manufacturers are accelerating the expansion of high-end HDI and high-speed multilayer board capacities, primarily to serve overseas clients in the computing chain [1][3][6]. - The production capacity utilization rate is around 90% to 95%, with expectations for further increases in Q2 2025 [18]. Material Trends - The prices of high-end copper-clad laminate (CCL) materials are rising, driven by increased demand for high-density products [1][3][21]. - Domestic companies are making progress in the localization of high-frequency and high-speed materials, with Shengyi Technology achieving significant milestones in this area [7]. Market Dynamics - The ABF substrate market is expected to grow alongside the release of computing chips, with domestic leaders like Shenghong and Huidian actively increasing their capacities [1][9][10]. - The automotive sector is also seeing growth, with companies like Jingan and Shiyun Circuit making strides in smart vehicle PCB applications [14][47]. Investment Opportunities - The PCB industry is viewed as a key investment area, particularly in segments related to AI computing and domestic substitution [50][52]. - Companies like Shengyi Technology and Dongshan Precision are highlighted for their potential in the consumer electronics and automotive sectors [13][44]. Additional Important Insights - The overall PCB industry is maintaining a favorable outlook for 2025, with strong performance in AI-related circuit boards and materials [2][52]. - The supply chain is experiencing upward pressure on prices due to increased demand and limited supply of key materials like glass fiber cloth, which is expected to remain tight until 2026 [22][33]. - The Taiwanese PCB sector has shown robust growth, with a 15% year-on-year increase in revenue from January to April 2025, largely due to its strong ties to AI applications [24]. Conclusion - The PCB industry is poised for continued growth, driven by AI computing demands and capacity expansions. Companies that adapt to these trends and invest in high-end materials and technologies are likely to see significant benefits in the coming years.

Investment Rating - The report maintains a positive investment outlook for the PCB industry, suggesting active monitoring of investment opportunities in the sector [2]. Core Insights - The PCB and CCL industry is experiencing upward demand driven by AI computing needs, with high utilization rates and a favorable market outlook for 2025 [1][12]. - The report highlights that the overall demand is on an upward trend, particularly due to AI applications and the automotive industry's smart technology advancements [1][6]. - The PCB industry is entering a new expansion cycle, with significant capital expenditure expected to support high-end HDI and multilayer boards [26][27]. Summary by Sections 1. Industry Sentiment Tracking - The PCB industry is in an expansion phase, with downstream AI innovations driving demand upward. The overall demand for consumer electronics and automotive applications is expected to improve [12][13]. - The global PCB market is projected to reach $73.57 billion in 2024, with a year-on-year growth of 5.8%, driven by various applications including consumer electronics and automotive electronics [13][19]. 2. AI Computing and Innovation - AI computing is expected to significantly boost the demand for high-end HDI and multilayer boards, with the server PCB market projected to grow at a CAGR of 11.6% from 2024 to 2029, reaching $18.9 billion [1][6]. - The demand for CCL is also increasing, with domestic leading manufacturers likely to benefit from the rising need for high-frequency and high-speed materials [1][6]. 3. Investment Recommendations - The report suggests focusing on investment opportunities in the PCB supply chain, particularly in areas related to AI computing, CCL, and domestic replacements [6][12]. - Key companies to watch include Shenghong Technology, Huadian Co., and Shennan Circuit, among others, which are positioned to benefit from the ongoing demand surge [6][12].