Group 1: Market Trends and Growth - The PCB concept is experiencing significant activity, driven by increasing performance requirements for PCB products in AI servers, leading to a substantial rise in HDI market demand. The HDI market is expected to grow at a CAGR of 6.4% from 2024 to 2029, reaching a global market size of $17.037 billion by 2029 [1] - Major companies are reporting impressive earnings, with Shengyi Electronics (688183.SH) announcing a revenue of 3.769 billion yuan for the first half of 2025, a 91% year-on-year increase, and a net profit of 531 million yuan, up 452% [1] - Google disclosed a record high capital expenditure of $22.446 billion for Q2 2025, a 30.5% quarter-on-quarter increase and a 70.2% year-on-year surge, with a significant portion allocated to AI training and high-end servers [1] Group 2: Technological Advancements - The PCB industry is evolving towards high-frequency, lightweight, and lead-free technologies, with key materials like copper foil and electronic cloth gaining attention [2] - The current upward cycle in the PCB market is primarily driven by increased capital investments in AI hardware by international giants, with Nvidia leading the demand for high-density interconnect (HDI) technology [3][4] - The CoWoP (Chip-on-Wafer-on-Panel) process is transforming the role of PCBs from mere connectors to high-precision "inner substrates," necessitating advanced materials with low thermal expansion coefficients [5] Group 3: Supply Chain and Material Requirements - The production of Low-CTE glass cloth is highly concentrated, with few manufacturers capable of supplying it, including domestic leader Zhongcai Technology [6] - The CoWoP process demands high precision in PCB manufacturing, requiring advancements in laser direct imaging (LDI) and laser drilling equipment, with companies like Chipbase Microelectronics and Dazhong CNC leading in these technologies [7] - The demand for high-quality copper foil is increasing due to the skin effect in high-frequency circuits, with HVLP copper foil being developed to minimize signal loss [8] Group 4: Advanced Resin Development - The industry is shifting from traditional epoxy resins to advanced resin systems like PPO, PTFE, and BMI to meet the demands of high-frequency applications, with PTFE offering superior electrical performance but at a higher manufacturing cost [9][10]

Core Viewpoint - The PCB industry is experiencing significant growth driven by increasing demand for HDI products, particularly due to advancements in AI server technology and substantial capital investments from major tech companies [3][7]. Market Trends - The HDI market is projected to grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2029, reaching a global market size of $17.037 billion by 2029 [3]. - Major companies like Google are increasing their capital expenditures, with a reported $22.446 billion for Q2 2025, marking a 30.5% quarter-over-quarter increase and a 70.2% year-over-year increase [3]. Company Performance - Shengyi Technology (生益电子) reported a 91% year-over-year increase in revenue for the first half of 2025, reaching 3.769 billion yuan, and a 452% increase in net profit to 531 million yuan [3]. Technological Developments - The PCB industry is evolving towards high-frequency, lightweight, and lead-free technologies, with CoWoP (Chip-on-Wafer-on-Panel) becoming a focal point for innovation [5][9]. - CoWoP technology requires Low-CTE (Coefficient of Thermal Expansion) materials to ensure compatibility with high-precision applications, leading to a focus on specialized materials and advanced manufacturing processes [9]. Key Drivers of Demand - The demand for PCBs is primarily driven by two segments: high-performance GPUs led by Nvidia and custom ASIC chips developed by cloud service providers like Google and Amazon [7][8]. - The shift towards custom ASICs is aimed at optimizing workloads and reducing reliance on external suppliers, which is expected to further increase PCB demand [8]. Advanced Packaging and Materials - CoWoP technology transforms PCBs from mere connectors to high-precision "inner substrates," necessitating advanced materials and manufacturing techniques [9]. - The introduction of HVLP (High-Voltage Low-Power) copper foil is essential for high-speed signal transmission, with surface roughness controlled to minimize signal loss [12][13]. Resin Innovations - The industry is moving away from traditional epoxy resins due to high dielectric loss, favoring advanced resin systems like PPO, PTFE, and CH, which offer better electrical performance [14].