Dynamic Electronics' Thailand AI PCB capacity expansion reflects the upgrading of demand in China’s PCB industry

Overview

This report from Goldman Sachs’ Thailand/Vietnam Tech Tour is mainly notes from a visit with the chairman of Dynamic Electronics and its Thai PCB factory in Prachin Buri Province. The report focuses on Thailand capacity expansion, PCB product mix, upstream material supply, and the opportunities and challenges of a Thai manufacturing base. Dynamic Electronics is a PCB supplier serving servers, storage, automotive electronics, and consumer electronics; its China production bases include Kunshan, Jiangsu and Huangshi, Hubei, and the company is also expanding capacity in China.

Core views

The core view of the report is that Dynamic Electronics is entering high-value PCB demand in AI servers, optical modules, and automotive electronics through expansion of its Thai manufacturing base. Although near-term margins may be affected by material costs, depreciation, and new-capacity ramp-up, management expects improvements in product mix, yield, scale, and production efficiency to support later profitability recovery. Industry-wise, the company’s AI PCB expansion and management commentary reinforce Goldman Sachs’s constructive view on the Chinese PCB ecosystem, namely that AI demand, specification upgrades, and incremental components will together lift PCB dollar content.

Analysis framework

The report is based on field visits, management interviews, and industry-chain readings, and cross-validates Dynamic Electronics’ Thailand capacity plan with global AI PCB/CCL TAM growth expectations. Because the company is not covered, the report does not provide formal ratings, target prices, or earnings forecasts; instead, it focuses on industry mapping and company operating information.

Methodology notes

• Field researchThailand Tech Tour management discussion

  Chairman interview and PCB factory visit

  Through management discussions and a factory visit, qualitative information was obtained on Thailand capacity expansion plans, product structure, material supply, capacity ramp-up, and changes in profitability.

• Industry mappingRead-across to PCB industry

  Linking company expansion to PCB industry trends

  Dynamic Electronics’ Thailand AI PCB expansion and product upgrades are connected with Goldman Sachs’s constructive view on the Chinese PCB industry, with emphasis on AI demand, specification upgrades, and rising PCB dollar content.

• Market sizingGlobal AI PCB / CCL TAM

  AI PCB total addressable market

  The report cites Goldman Sachs’s outlook that global AI PCB TAM is expected to grow at a 140% CAGR in 2025-2027E, reaching US$18.3bn in 2027E, to support a high-growth AI PCB demand thesis.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• 603175.SS

  Research subject of the report; Goldman Sachs does not cover it

  Strengths

  Thailand capacity expansion is aimed at AI servers, optical modules, and automotive electronics; 1Q26 revenue grew 28% year-over-year; automotive PCB has a strong revenue base.

  Weaknesses

  Short-term margins are hurt by higher raw material costs, depreciation, and the ramp-up of new capacity; no formal ratings or earnings forecasts are provided.

  Comparison

  The company’s expansion direction aligns with Goldman Sachs’s positive view on Chinese PCB industry AI demand and specification upgrades.

  Risks

  AI PCB demand may be weaker than expected, ramp-up may be slower, raw material costs may remain elevated, yield improvements may lag, and operational challenges may emerge in Thailand operations.

• China PCB value chain

  Industry mapping

  Strengths

  AI servers, optical modules, and specification upgrades are driving higher PCB dollar content, with global AI PCB TAM expected to grow quickly.

  Weaknesses

  The industry may face pressure from raw material costs, capacity deployment pace, and intensified competition.

  Comparison

  Dynamic Electronics’ Thailand expansion is a company-level example of the value chain upgrading toward AI applications.

  Risks

  Volatility in AI capex, weakening end demand, and excessive supply expansion leading to price pressure.

Key data

• Thailand expansion investmentRmb3.3bnPCB expansion plan updated in January 2026, used for P5 equipment, P5A, and D1 drilling facility construction and equipment.
• Global AI PCB TAM outlookUS$18.3bn in 2027EGoldman Sachs expects a 140% CAGR for 2025-2027E.
• 1Q26 revenue growth+28% YoYDriven by resilient demand, while margins are pressured by rising depreciation costs.
• Automotive PCB revenue share54% of total revenues in 1Q26Automotive PCB remains Dynamic Electronics’ largest revenue contributor.
• Current price disclosureRmb82.55Dynamic Electronics Co. price information is disclosed on the page; no target price is provided.

Impact & implications

For Dynamic Electronics, expansion of Thai manufacturing capacity helps capture AI server, automotive electronics, and optical module-related PCB demand, and improves supply-chain resilience through regionalized capacity allocation. For the PCB value chain, the report reinforces the logic of specification upgrading and value capture driven by AI applications; however, short-term profitability improvement still depends on the speed of new-capacity ramp-up, relief in material costs, yield improvements, and conversion of orders into production.

Risks

• Margin pressure during the new-capacity ramp-up phase.
• Rising raw material costs may compress gross margins.
• Higher depreciation charges may reduce near-term profitability.
• If demand for AI server, optical module, or automotive electronics PCB is below expectations, expansion returns may be delayed.
• Thai production sites may face supply-chain, operating-efficiency, and local-management challenges.

What to watch

• Progress of P5, P5A, and D1 factory construction and equipment commissioning.
• Order conversion for AI server, optical module, and automotive electronics PCB.
• Ramp-up yield, capacity utilization, and pace of production efficiency improvement on new lines.
• Raw material prices and stability of upstream supply.
• Post-1Q26 trends in revenue growth, depreciation pressure, and margin trajectory.
• Whether global AI PCB TAM growth continues to match the high-growth expectation for 2025-2027E.