Summary of Conference Call on PCB Equipment and Industry Outlook Industry Overview - The conference call focused on the PCB (Printed Circuit Board) equipment industry, highlighting advancements in materials and technology, particularly related to AI applications and drilling equipment [1][2][3]. Key Points and Arguments 1. Material Upgrades: Nvidia's upcoming Ruby Ultra series, expected to launch in 2027, will fully adopt the Ma Jiu material across various components, including middle boards and orthogonal backplanes, driving upgrades in upstream PCB materials [1][3]. 2. Increased Drill Demand: The demand for drilling needles is anticipated to rise significantly due to the reduced lifespan of drilling in Ma Jiu materials, which is less than 200 holes, approximately 10 times shorter than standard materials [1][3]. 3. Limited Production Expansion: Major manufacturers like Ding Tai plan to increase production by about 50% in 2025, with expectations to maintain this level in 2026. Taiwanese manufacturers are expected to see only a modest increase in production capacity [1][3]. 4. Price Trends: Ding Tai's drilling needle prices are steadily increasing, driven by a higher proportion of AI applications. The average price is currently 1.2 yuan, with potential for high-end drilling needle prices to increase significantly as demand grows [1][4]. 5. Technological Developments: Zhejiang Beta is collaborating with Nvidia to finalize technical solutions by the end of the year, with simulated mass production expected to start in the second half of 2026 [1][4]. 6. Laser Equipment Demand: The demand for ultra-fast laser equipment is increasing due to its ability to meet the needs for drilling in Ma Jiu materials, which traditional CO2 lasers cannot satisfy [1][4]. 7. Orthogonal Backplane Benefits: Orthogonal backplanes, as high-layer boards, directly benefit from mechanical drilling, positively impacting companies like Ding Tai and Dazhu CNC [2][4]. 8. AI Market Growth: The recent increase in demand for optical modules suggests a growing end-user demand, which could benefit the entire AI supply chain and the PCB market [4][5]. Additional Important Insights - Price Adjustments: Taiwanese manufacturers have begun raising prices by 15% for certain drilling needle models due to rising raw material costs, while Ding Tai has not yet increased prices due to fixed agreements [5][6]. - Future Trends: The PCB industry is expected to see increased demand for AI PCBs, material structure upgrades, and improved equipment consumption, with leading companies showing strong performance in recent quarterly reports [7]. This summary encapsulates the critical developments and insights from the conference call, providing a comprehensive overview of the PCB equipment industry and its future trajectory.