Wus PC: Strong AI Demand and Capacity Expansion Drive Growth

Overview

This report summarizes Goldman Sachs' interview with Wus Printed Circuit management, focusing on the company’s outlook in the artificial intelligence (AI) PCB segment. The firm believes sustained growth in AI server demand for PCBs, coupled with the company’s capacity expansion to support shipment growth, positions Wus PC well for long-term development.

Core views

Goldman Sachs expects significant PCB demand growth driven by AI infrastructure upgrades. According to its forecasts, AI chip shipments will grow by 49% and 31% year-over-year in 2026 and 2027, respectively, with AI chip penetration in AI servers reaching 40% and 50% in those years. This trend will boost demand for high-layer-count, high-performance PCBs used in chip interconnects, backplanes, midplanes, and similar applications. These dynamics not only reinforce expectations for global PCB market growth—projected at 113% and 171% YoY in 2026 and 2027—but also create opportunities for Wus PC to upgrade its product mix and drive revenue growth. Moreover, management expressed a positive outlook, emphasizing that capacity expansion will prioritize high-value-added products rather than simply maximizing utilization rates. Capital expenditures rose 53% and 34% quarter-over-quarter in Q4 2025 and Q1 2026, respectively, with full-year 2026 capex projected at RMB 6 billion, remaining elevated through 2028. This strategic investment positions the company to capture market growth and optimize both revenue and profitability structure.

Analysis framework

Goldman Sachs began by analyzing the demand drivers for PCBs stemming from AI infrastructure upgrades. It then incorporated insights from management interviews to assess Wus PC’s capacity expansion strategy and product positioning. By benchmarking against peer valuations, the firm built a target price model, ultimately arriving at a Buy recommendation. This analytical approach integrates industry tailwinds, company execution, and valuation judgment.

Methodology notes

• Industry/sector analysis frameworkSupply-demand framework

  Supply-Demand Framework

  Analyzes how growth in end applications like AI servers drives PCB demand, thereby assessing industry growth prospects

• Valuation methodologyPE/PEG valuation

  PE/PEG Valuation

  Compares peer valuation multiples against earnings growth rates to determine an appropriate target P/E ratio and derive the target price

• Company fundamentals and financial frameworkFree cash flow analysis

  Free Cash Flow Analysis

  Evaluates alignment between capital expenditure plans and cash flow generation to assess sustainability of expansion

Asset mapping & comparison

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

• Wus Printed Circuit (002463.SS)

  Benefits from growing demand for high-performance PCBs in AI servers

  Strengths

  Leading domestic PCB player with strong technical capabilities and customer base

  Weaknesses

  Faces intense market competition and must sustain R&D investment to maintain technological leadership

  Comparison

  Compared to peers, the company places greater emphasis on high-end product portfolio development

  Risks

  Slower-than-expected AI server market growth could negatively impact PCB demand

Key data

• 2026E YoY Growth in AI Chip Shipments+49%AI chip shipments expected to grow 49% YoY in 2026
• 2027E YoY Growth in AI Chip Shipments+31%AI chip shipments expected to grow 31% YoY in 2027
• 2026E AI Chip Penetration Rate40%AI chip penetration in AI servers expected to reach 40% in 2026
• 2027E AI Chip Penetration Rate50%AI chip penetration in AI servers expected to reach 50% in 2027
• 2026E Capital ExpenditureRMB 6 billion2026 capital expenditure forecast at RMB 6 billion
• 2026E YoY Growth in Global PCB Market Size113%Global PCB market size expected to grow 113% YoY in 2026
• 2027E YoY Growth in Global PCB Market Size171%Global PCB market size expected to grow 171% YoY in 2027

Impact & implications

Goldman Sachs believes that as demand for high-performance PCBs from AI servers continues to rise, Wus Printed Circuit—as a leading domestic PCB manufacturer—is well-positioned to benefit, achieving dual improvements in revenue and product mix. Its strategic capacity expansion focused on high-value-added products enhances profitability and competitive positioning. Furthermore, the company’s capital expenditure plan reflects strong confidence in future market demand, laying a solid foundation for long-term growth.

Risks

• Slower-than-expected adoption of AI servers and high-speed switches
• Intensifying competition in the AI PCB market
• Delays in new capacity ramp-up

What to watch

• AI server market developments and AI chip shipment data
• Execution of capital expenditure plans and utilization rates of new capacity
• Order intake and delivery performance for high-end PCB products