HuaJin Securities: The iteration of AI computing power hardware is driving structural growth opportunities in the PCB industry, and the demand for high-performance PCBs will increase significantly
Huajin Securities released a research report indicating that the rapid development of artificial intelligence has brought new growth momentum to the PCB industry. It is expected that the global PCB market size will grow from USD 62 billion in 2020 to USD 75 billion in 2024, with an average annual growth rate of 4.9%. The demand for high-performance PCBs will significantly increase, especially the application of low dielectric constant and low dielectric loss materials, which will disrupt traditional material routes. By 2029, PCB market sales revenue is expected to reach USD 93.7 billion
According to the Zhitong Finance APP, Huajin Securities released a research report stating that artificial intelligence (AI) is generating new growth momentum for the PCB industry, with the industry's prosperity continuing to rise. According to data from Sullivan Research, the global PCB market size is expected to grow from USD 62 billion in 2020 to USD 75 billion in 2024, with a compound annual growth rate of 4.9% from 2020 to 2024. The value of a single PCB for AI servers is significantly higher than that of traditional servers, and the demand for high-performance PCBs will increase substantially. From a materials perspective, materials with low dielectric constant and low dissipation factor are most suitable, and Q fabric performance far exceeds that of second-generation fabric, which may disrupt the original fiberglass fabric raw material route.
The main points of Huajin Securities are as follows:
Artificial Intelligence (AI) Generates New Growth Momentum for the PCB Industry
Benefiting from the rapid growth in demand for servers and switches brought about by AI computing infrastructure, as well as the innovation cycle of consumer electronics terminals initiated by AI, the demand for high-end products such as HDI and high-layer multilayer boards is rapidly increasing, leading to a continuous rise in the prosperity of the PCB industry. According to data from Sullivan Research, the global PCB market size is expected to grow from USD 62 billion in 2020 to USD 75 billion in 2024, with a compound annual growth rate of 4.9% from 2020 to 2024. It is expected that by 2029, the global sales revenue of the PCB market will reach USD 93.7 billion, with a compound annual growth rate of 4.6% from 2024 to 2029.
AI Computing Hardware Iteration Creates Structural Growth Opportunities for the PCB Industry
As a key carrier of core computing components, PCBs must meet stringent requirements for high frequency, high speed, low signal loss, and high heat dissipation performance, and the value of a single PCB for AI servers is significantly higher than that of traditional servers. With the continuous expansion of AI applications, the demand for high-performance PCBs is expected to increase substantially. According to data from Sullivan Research, it is expected that by 2029, the global sales revenue of the high multilayer PCB market will reach USD 171 billion, and the market size of high-end HDI PCBs is expected to increase from 47.0% of the global HDI PCB market size in 2024 to 57.0% in 2029, reaching USD 9.6 billion by 2029.
In terms of materials, (1) CCL: Due to the skin effect, if conventional copper foil continues to be used for high-speed PCBs, the result will be that as the signal transmission frequency increases, the signal "distortion" caused by the skin effect becomes more severe. Therefore, the application of low roughness copper foil on current high-speed materials is becoming increasingly widespread, with materials like MidLoss and LowLoss using reverse (RTF) copper foil as standard copper foil. (2) Electronic fabric: To achieve high frequency and high speed for PCBs, improvements are typically made in several aspects: improving the resin, fiberglass, and overall structure, or enhancing the substrate characteristics through wiring or other means. From a materials perspective, materials with low dielectric constant and low dissipation factor are most suitable, and Q fabric performance far exceeds that of second-generation fabric, which may disrupt the original fiberglass fabric raw material route.
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PCBs: WUS, Shenghong Technology, Dongshan Precision, Pegatron, Shenzhen South Circuit, Jingwang Electronics, SYE, Guanghe Technology, Nanya New Materials, Aoshikang, Shiyun Circuit, Xingsen Technology, Weirgao, JOVE, Chongda Technology; Equipment: Chipbond Technology, Dazhong CNC, Dongwei Technology; Materials: Electronic Fabric (Honghe Technology, Feilihua, Dongcai Technology), Copper Foil (TGCF, Defu Technology).
Risk Warning: Risks of new technologies, new processes, and new products failing to be industrialized on schedule; risks of market demand fluctuations; risks of international trade frictions; supply chain risks
